Internationalization of Smes: Theory and Research

Proposal for PhD course 7.5 ECTS

Internationalization of SMEs: Theory and Research

Aim: Internationalization is an important growth strategy in the globalized and rapidly changing business world of today, and an increasing number of SMEs are going abroad despite the size- related challenges they face. This course is amid to give the students a thorough knowledge base of SME internationalization including theoretical knowledge, understanding, and research patterns, trends and challenges in internationalization of small and medium sized enterprises (SMEs). After completing the course the students should be able to:

 Apprehend the unique characteristics of SMEs.  Appreciate the rationales and the motives of SMEs for internationalization, the nature and strategic importance of internationalization.  Describe, compare and utilize theories, models, and approaches of internationalization a firm and international marketing process of SMEs.  Analyze both individual and collective form of internationalization of SMEs, using cluster and network formation as strategy for internationalization.  Demonstrate analytical capability in relation to SMEs international market selection and choice of foreign entry modes and the pattern of internationalization among SMEs  Describe and apply SMEs international competitive and collaborative strategies with focus on international strategic alliances.  Analyze internal competences and External barriers for internationalization- Main barriers and problems for internationalization of SMEs  Writing a review paper arguing the strength and weakness of existing theories, integrating theories, building synthesis suggesting theoretical solution to a problem/s of SMEs internationalization. Prerequisites: Marketing management

Organization: Lectures, seminars and individual project work- literature review

Course contents: The characteristics of SMEs, SMEs internal and external growth strategies, the rationales and motives for going abroad and strategic importance of internationalization for SMEs, actors and factors in decision-making to go to foreign markets, SMEs internationalization theory: 1) economic theories - transaction cost theory, eclectic paradigm or OLI-framework, 2) management and strategic behavior theories- Porter, Hamel & Prahalad, 3) behavioral theories- Resource- Based Approach, the Process (Stage Approach)-The Uppsala Model Stage Theory, The Establishment Chain, Innovation-related Models, Collaborative and Network Approach, The International Entrepreneurship, Collaborative approach - alliances, networks and FDI. Born Global Approach, The Cluster Theory, the criticisms of internationalization theory, determinants of internationalization process, SMES, Market Entry Modes, factors affecting SME selection of market entry mode, internal competences and external barriers for internationalization, the patterns of SMEs internationalization, SMEs and international cooperation strategies, strategic alliances, risks associated with SMEs international operation.

Course literature:

Collection of articles

Examination: active participation in lectures and seminars, writing and presenting a review paper on a topic related to SMEc internationalization and standing as opponent to another student presentation

Course instructors

Hossein Dadfar and Anna Öhrwall Rönnbäck