Internationalization of SMEs

Abstract

Internationalization is a topic that until recently was in most cases only relevant for large companies. The main reason for this was their advantages in resource access. However, the increasing pressure on the home market is now being felt by small- and medium-sized enterprises (SMEs) as well, moving them to seek opportunities in international markets. The internationalization of SMEs significantly contributes to the economic growth both at the national, regional and local level. According to the European Commission, SMEs within the EU account for 99 % of all businesses and 67 % of all jobs in the private sector, as well as 85 % of all newly created jobs, and some 59 % of the value added by the economy (2014: 9). However, a vast number of studies show that SME managers meet various barriers when seeking outward international expansion. The purpose of this study is therefore to examine how the regional innovation network (RIN), a deliberately created public organization, facilitates the internationalization of SMEs through enabling the interaction of these companies with the international environment. This master thesis also provides a clear understanding on SMEs' usage of the international services and activities provided by RINs. This work was created through a qualitative research design, where a multiple case study approach was used to examine and investigate how the RIN supports and enables the internationalization of SMEs. The analysis presented in this work reveals that the RIN, through RIN-to RIN collaboration, joint stands in international exhibitions and conferences, network projects and inter-firm collaboration enables the interaction of SMEs with its international environment. On the other hand, the use of RINs as an arena to reach out appeared to be disfavor by SMEs.