A Subcontractors Dilemma : Two Case Studies of Subcontractors' Internationalisation

Sammanfattning: Subcontractors today find themselves in an increasingly fierce competitive environment, much due to the famous or should we say infamous globalisation. When the big important clients of subcontractors expand over boarders the subcontractor might be obliged to follow them, especially if holding competences of particular value to the outsourcing principal. A subcontractor that thus follow a client abroad might take a great leap, both in regards to what cultural differences or geographical distance might exist as well as the risk associated with such an investment. In this thesis we have highlighted the situation of these so-called client-following subcontractors. The purpose is to investigate how well client-following subcontractors take advantage of opportunities in a new market and how the relationship with the client has affected this. We found that a qualitative study would best serve our purpose and to be more specific we chose the method of case studies. Two Swedish subcontractors was selected through certain criteria and contact via an outsourcing principal. These two cases was researched through in-depth interviews but also by gathering secondary data such as financial reports. To further increase our understanding of the research area we put significant focus on building a sound frame of reference. Three main theoretical areas was emphasized; first the internationalisation process, second customer relationship and trust, and third strategic choices for subcontractors. In conclusion we found distinct differences in the underlying strategies of the two cases that could be connected to just what laid behind the decision to internationalise. We could develop this picture by looking at the relationship between the subcontractor and its major client in both instances. A relationship in which more long-term objectives are taken into account had a positive effect on the expansionary strategy of the subcontractor.