Internationalization process of SMEs, and the effects of market turbulence : A comparative study between Swedish and Sri Lankan SMEs

Sammanfattning: The world has grown increasingly globalized and competitive which has made it crucial for small and medium enterprises (SMEs) to look beyond their native market in order to thrive. Although internationalization is considered somewhat uncertain in the face of corporate unfamiliar environments, non-internationalization in a globalized economy can be an even more risky task because it can cause the company to lose competitiveness. The business environment of the world is changing from time to time and in recent times there have been several market turbulences. Market turbulence increases the ambiguity and risk of a company's business process, and it is important to maintain a link between corporate strategies and changes in the environment due to turbulence. The main purpose of conducting this study is to examine the internationalization process of SMEs operating in Sri Lanka and Sweden and the impact of recent market turbulence on those enterprises. The study will also discuss how those businesses have sought to manage these turbulent situations. This study, which aims to learn through multiple cases, focuses primarily on Sri Lankan and Swedish businesses engaged in the manufacturing sector. The study's theoretical framework is structured in such a way that it incorporates the theories contained in the internationalization process theory and the market turbulence. The theories applied to the study in the analysis of empirical findings are compared and the analysis and conclusion are made as a result of the study. The study concludes by comparing the recent market turbulence experienced by the Swedish and Sri Lankan SMEs. The study identified that this turbulence had a major impact on SMEs operating in Sri Lanka. Further, It was identified that these market turbulences have had a severe impact on the supply chains of both countries, mainly as a factor common to both markets.