Foreign Market Establishment of Knowledge Intensive Business Services (KIBS) : Key Factors to Consider for Swedish KIBS Firms Entering Norway

Sammanfattning: The purpose of this study was to explore key factors to consider for a Swedish Knowledge Intensive Business Services (KIBS) firm to successfully enter the Norwegian market, and examine how these factors compare to incumbent theories on foreign market establishment. The study is based on an interpretivist research design and utilizes qualitative methods in order to achieve the intended purpose. The empirics were gathered by a combination of methods, namely, an extensive literature review, a pilot-study, and a multiple-case study. The data gathering methods utilized in the pilot study were semi-structured interviews conducted with individuals with expertise in the KIBS environment, as well as participant observations. The pilot study resulted in a deeper understanding of the KIBS sector. The multiple-case study consisted of semi-structured interviews with Swedish KIBS firms that have entered the Norwegian market. The empirics have been analyzed and discussed in relation to existing literature. Consequently, several success factors and pitfalls have been identified that may aid an internationalizing firm, especially a Swedish KIBS firm entering the Norwegian market. The identified success factors were: Narrow your focus through relational embeddedness, Understand customer’s business, Educate customers, Become familiar with foreign laws, Be aware of network position, Exploit existing networks, Identify new relevant networks, Refresh and expand the network, and Ensure relational embeddedness with key actors. The identified pitfalls were: Underestimation of time and resources required, Lacking awareness of aggravating effects, Knowledge transfer problems, Failure of internally anchoring foreign ventures, Underestimation of the language barrier, Underestimation of differences in organizational structures, Underestimation of the cost of spatial distance, Underestimation of Patriotism, and Underestimation of loyalty to suppliers. Moreover, the study provided insights as to how the concepts of liability of foreignness and liability of outsidership might interplay, and thereby exert pressure on a firm's dynamic internationalization capabilities in the foreign market establishment process. As such, the need for firms and researchers to undertake a holistic view in order to avoid faulty conclusions has been discussed and visualized.