Internationalization of Small and Medium-Sized Enterprises towards an Emerging Market : A study of Swedish Tech Companies in India

Detta är en Magister-uppsats från Södertörns högskola/Företagsekonomi; Södertörns högskola/Företagsekonomi

Sammanfattning: The changes in consumer patterns, digitalization, and the augmented diplomatic relation between Sweden and India has opened new opportunities for Swedish small- and medium-sized enterprises (SMEs) to enter the Indian market, which is characterized as an emerging market. Although SMEs often have scarce resources, they are succeeding in entering foreign markets and competing with Multinational corporations (MNCs). The phenomenon called Born Globals contradicts with the conventional internationalization theories. It sheds light on new internationalization paths, where the firm often is an SME and offers digitized products or services. Business networks and brand strategies are set to be important factors when entering the international markets, yet there are still research gaps in how Swedish SMEs enter the Indian market. The purpose of this study is to investigate the motives of Swedish SMEs when establishing in the Indian market. A qualitative methodology was used, by collecting data through semi-structured interviews from multiple case studies: (1) advisory organisations and (2) companies. The findings show that India is perceived as a continent rather than a country since there are differences in state growth rates and purchasing power. Other findings show that international business networks and market knowledge are crucial for entering a new market. SMEs do not need to have an established brand to succeed in entering the Indian market.

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