Barriers in online internationalization : The reality for online service providers

Sammanfattning: Due to strong growth in the virtual business environment, online internationalization has become a topic of high interest. This makes it necessary for firms providing software online to carefully investigate and understand barriers and differences in countries before entering them. Further, companies expanding abroad face a variety of differences compared to their home market, which has to be carefully understood in order to succeed internationally and to avoid misinterpretations. This thesis took a qualitative approach and was based on six semi-structured interviews with open-ended questions, all performed with CEOs, founders or managers with explicit knowledge in the online internationalization phase of their firms. The insights from the interviews acknowledge which differences and barriers the firms faced and how they perceived them. The outline and result of the study were based on the four dimensions of cultural, administrative, geographic and economic challenges. The result showed that the cultural and geographic dimensions were barely perceived as barriers by the firms, the administrative dimensions moderately, whereas the companies clearly perceived the economic dimensions as barriers in their internationalization processes. Additional findings of the study were the importance of cultural leadership, hierarchies & decision-making processes, high-density clusters and pricing strategies.