Internationalization of Small and Medium -Sized Enterprises towards an Emerging Market

A study of Swedish Tech Companies in India

Draft: Pajseminarium 2020-05-11

By: Prachi Laxman & Ferha Ahmed Shameil

Supervisor: Cheick Wagué Södertörn University | Department of Social Sciences Master’s dissertation 30 credits International Business Management | VT 2020

TABLE OF CONTENTS

1. INTRODUCTION 1 1.1. Background ...... 1 1.2. Problem Discussion ...... 3 1.3. Research Questions...... 6 1.4. Purpose ...... 6 1.5. Delimitations ...... 6 1.6. Thesis Outline ...... 6 2. THEORETICAL FRAMEWORK 8 2.1. Internationalization ...... 8 2.1.1. Born Globals ...... 8 2.1.2. Strategic Decision ...... 12 2.2. Business Network ...... 15 2.2.1. Network Model ...... 17 2.2.2. Networks in SMEs ...... 19 2.2.3. Business Ecosystem ...... 20 2.3. Brand Strategy ...... 20 2.3.1. Brands ...... 20 2.3.2. Brand-building ...... 22 2.3.3. Implementation of Brand Strategy ...... 23 2.4. Cultural Dimensions ...... 24 2.4.1. Hofstede’s Cultural Dimensions...... 24 2.4.2. Trompenaars Seven Dimensions of Culture ...... 27 2.4.3. Language Barriers ...... 29 2.5. Literature Review ...... 30 2.5.1. Challenges ...... 30 2.5.2. Opportunities ...... 34 2.6. Frame of Reference ...... 38 2.6.1. Theoretical Synthesis...... 40 3. METHODOLOGY 41 3.1. Research Paradigm ...... 41 3.2. Preconceptions ...... 42 3.3. Research Purpose ...... 42 3.4. Research Approach ...... 43 3.5. Research Strategy...... 43 3.5.1. Data Collection ...... 45 3.5.2. Sample Selection ...... 46 3.5.3. Implementation ...... 48 3.5.4. Data Analysis ...... 49 3.6. Quality Criteria ...... 51 3.7. Research Ethical Aspects ...... 53 3.8. Methodology Overview ...... 55 4. EMPIRICAL FINDINGS 56 4.1. Internationalization Process ...... 57

Case 1.1 Sweden India Business Council ...... 57 Case 1.2 Business Sweden ...... 59 Case 2.1 Truecaller ...... 60 Case 2.2 Brandie ...... 61 Case 2.3 GX Group ...... 64 4.2. Business Network ...... 65 Case 1.1 Sweden India Business Council ...... 65 Case 1.2 Business Sweden ...... 66 Case 2.1 Truecaller ...... 67 Case 2.2 Brandie ...... 69 Case 2.3 GX Group ...... 71 4.3. Brand Strategy ...... 71 Case 1.1 Sweden India Business Council ...... 71 Case 1.2 Business Sweden ...... 73 Case 2.1 Truecaller ...... 73 Case 2.2 Brandie ...... 76 Case 2.3 GX Group ...... 78 4.4. Challenges ...... 78 Case 1.1 Sweden India Business Council ...... 78 Case 1.2 Business Sweden ...... 79 Case 2.1 Truecaller ...... 79 Case 2.2 Brandie ...... 81 Case 2.3 GX Group ...... 84 4.5. Opportunities ...... 84 Case 1.1 Sweden India Business Council ...... 84 Case 1.2 Business Sweden ...... 86 Case 2.1 Truecaller ...... 86 Case 2.2 Brandie ...... 87 Case 2.3 GX Group ...... 89 5. ANALYSIS 90 5.1. Internationalization Process ...... 90 Case 1: Advising Organisations ...... 90 Case 2: Companies ...... 93 5.2. Business Network ...... 98 Case 1: Advising Organisations ...... 98 Case 2: Companies ...... 99 5.3. Brand Strategy ...... 102 Case 1: Advisory Organisations ...... 102 Case 2: Companies ...... 103 5.4. Challenges ...... 106 Case 1: Advising Organisations ...... 106 Case 2: Companies ...... 108 5.5. Opportunities ...... 113 Case 1: Advising Organisations ...... 113 Case 2: Companies ...... 115

5.6. Swedish vs Indian Culture ...... 120 Power vs Status ...... 120 Group-oriented vs. Self-oriented ...... 121 Masculinity vs. Femininity...... 122 Uncertainty in a Society ...... 123 Long Term Orientation ...... 124 Indulgence ...... 125 Language Barriers ...... 126 5.7. Conceptual Model Revised ...... 127 6. DISCUSSION & CONCLUSION 129 6.1. Discussion ...... 129 6.2. Conclusions ...... 131 6.3. Contribution to Theory ...... 133 6.3.1. Implication for Management ...... 134 6.4. Methodology Reflection & Discussion ...... 135 6.5. Further Research ...... 136 REFERENCES 137 ATTACHMENT: GSDP 146

TABLE OF FIGURES

Figure 1: Presentation of each chapter ...... 7 Figure 2: Strategic Marketing Decision Environment ...... 13 Figure 3: The Business Network Internationalization Process Model ...... 18 Figure 4: Business Networks ...... 19 Figure 5: Five Phases of SME Brand Building ...... 23 Figure 6: Branding Strategies ...... 24 Figure 7: Global Supply Chains in ICT ...... 34 Figure 8: Indian internet users ...... 37 Figure 9: Conceptual model ...... 40 Figure 10: Case-study design ...... 45 Figure 11: Building blocks of the methodology ...... 55 Figure 12: Hofstede's Cultural Dimensions Compared ...... 120 Figure 13: Conceptual Model Revised...... 127

ACKNOWLEDGEMENT

The authors are pleased to contribute with this master’s thesis as the final examination before graduating from M.Sc. in Business and Economics, with a specialization in International Business Management at Södertörn University. We want to thank our professor Cheick Wagué for supervising us with his vast knowledge.

Moreover, we wish to acknowledge the respondents who participated in our case studies. Special thanks to Manan Shah, Lindsey LaMont, and Kari Krishnamurthy from Truecaller, who contributed with insightful information. Thanks to the founders of Brandie; Pranav Kosuri and Douglas Andersson, respectively Paritosh Prajapati from GX Group, whom all provided us with their valuable input. We would also like to thank Robin Sukhia from Sweden India Business Council, and Anna Strandberg from Business Sweden, who contributed with information from an advisory perspective.

We want to thank our opponents at the final seminar for the constructive feedback. Special thanks to our family and friends for proofreading and being supportive. Finally, the authors are more than grateful for their proactive teamwork and time management during the process.

Stockholm, Sweden 2020-07-14

Prachi Laxman Ferha Ahmed Shameil Author Author

ABSTRACT

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.

Keywords: Born Global, SME, Business Network, Brand Strategy, Internationalization, Emerging Market, Tech and Digitalization.

SAMMANFATTNING

Förändringar i konsumentmönster, digitalisering och den ökade diplomatiska relationen mellan Sverige och Indien har öppnat nya möjligheter för svenska små och medelstora företag (SMF) att träda in på den indiska marknaden, som även kännetecknas som en tillväxtmarknad. SMF besitter oftast knappa resurser, när de vill konkurrera med multinationella företag (MNC) på den internationella marknaden. Fenomenet som kallas Born Globals strider mot de konventionella internationaliserings-teorierna och belyser istället hur SMF-bolagen expanderar och etablerar sig internationellt. Denna studie fokuserar på SMF som erbjuder digitaliserade produkter eller tjänster.

Affärsnätverk och varumärkesstrategier anses vara viktiga faktorer vid inträde på de internationella marknaderna, men det finns fortfarande forskningsgap i hur svenska SMF träder in på den indiska marknaden. Syftet med denna studie är därför att undersöka vilka grundläggande motiv som svenska SMF har vid etablering på den indiska marknaden. En kvalitativ metod användes genom att samla in data genom semistrukturerade intervjuer från multipla fall: (1) rådgivande organisationer och (2) företag. Resultaten visar att Indien uppfattas som en kontinent snarare än ett land, eftersom det finns skillnader i tillväxt och köpkraft mellan staterna, vilket attraherar svenska SMF. Dessutom visar undersökningen på att utländska affärsnätverk och marknadskunskap är avgörande faktorer vid inträde på en ny marknad. Däremot behöver inte SMF ha ett etablerat varumärke för att lyckas träda in på den indiska marknaden.

Nyckelord: Born Global, SMF, Affärsnätverk, Varumärkesstrategi, Internationalisering, Tillväxtmarknad, Tech och Digitalisering.

DEFINITIONS

Born Global Firms that are international from the inception.

Business Ecosystem A network of organisations involved in the delivery of a specific product or service through both competition and cooperation. The idea is that each entity in the ecosystem affects and is affected by the others, creating a constantly evolving relationship in which each entity must be flexible and adaptable in order to survive as in a biological ecosystem.

COO Country of Origin: The main origin, in this case country, where the product/service comes from.

Digitization The conversion of text, pictures, or sound into a digital format that can be processed by a computer.

Early adopter One of the first people to start using a new product, especially a new piece of technology.

Feature Phone A feature phone is a type of mobile phone that has more features than a standard cell phone but is not equivalent to a smartphone. Feature phones can make and receive calls, send text messages and provide some of the advanced features found on a smartphone.

First-mover-advantage The first company occupying a specific customer and market segment.

GSDP Gross State Domestic Product: GDP on a state level.

ICT Information Communication Technology: the use of computers and other electronic equipment and systems to collect, store, use, and send data electronically.

IPL Indian Premier League: Indian professional Twenty20 (T20) cricket league established in 2008. The league, which is based on a round-robin group and knockout format, has teams in major Indian cities.

MNC Multinational Corporation: Businesses that have facilities in several countries and contain 250+ employees.

OEM Original Equipment Manufacturer: a company that makes parts and products for other companies, which sell them under their own name or use them in their own products.

R&D Research & Development: the part of a business that tries to find ways to improve existing products, and to develop new ones.

RAM Random Access Memory: a type of computer memory that can be searched in any order and changed as necessary.

RBV Resource-based view: A theoretical framework, based on a business's resources, determines competitive capacity and advantage.

Rural Consumer Internet users living in rural areas.

SAARC South Asian Association for Regional Cooperation: a group of member countries including Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka, who have joined together as a geopolitical union and intergovernmental organization. Smartphone A mobile phone that can be used as a small computer and that connects to the internet.

SME Small- and Medium Sized Enterprise: in a Swedish case a company that consists of a maximum of 249 employees.

Start-up A small business that has just been started

Symbian Phone Symbian is a mobile operating system (OS) targeted at mobile phones that offers a high-level of integration with communication and personal information management (PIM) functionality.

Tech Technical: a company that operates in the area of technology.

WOM Word-of-Mouth: given or done by people talking about something or telling people about something

1. Introduction

This chapter presents the modern internationalization process, the competition from emerging markets, and the bilateral relations between Sweden and India. Furthermore, a problem discussion is presented, explaining why Swedish SMEs path to the Indian market is relevant to investigate. Concluding with research questions, a purpose, delimitations, and an overview of the thesis outline.

1.1. Background

The internationalization of a firm has become common due to lower entry barriers and more open economies around the world. The new genre of internationalized companies, called Born Globals, characterizes companies who enter the international market from inception (Dzikowski, 2018). Born Globals can benefit from creating a brand that primarily reduces market-related uncertainties, and at the same time, creates a brand- based reputation, which in turn helps them to enhance their sphere of influence internationally (Gabrielsson, 2005). There is also an increased shift in competition from Asia. According to Tillväxtanalys (2014), it is predicted that The Western world will face increased competition from Asian countries such as China and India, due to their advancement in global value chains; apart from these factors, these countries are classified as emerging markets. The economic growth rate in India and China is around 7%, while other emerging markets’ growth rate is 4%, and the developed economies growth is around 2% (European Commission, 2020). Boston Consulting Group (BCG, 2018) stated that due to the rapid and long-term growth and development, companies operating in emerging markets are growing significantly faster than those in developed economies.

India has emerged as a flourishing economy; the previous reforms have led to less poverty and an increase in a new middle class (McKinsey, 2007). The current economic growth has continued to be influenced by the open Indian economy welcoming Mergers and Acquisitions (M&A), and Foreign Direct Investment (FDI) (IBEF, 2020). Studies show that there is a relation between elected parties and local economic growth (Asher & Novosad, 2017). India's Prime Minister Narendra Modi, elected in 2014, and re-elected 2019 within the Bharatiya Janata Party (BJP), has been a driving factor in changing large parts of the societal priorities for India to become a desired global base for manufacturing industries. Besides, the aim is to make India a digitally empowered economy with the new project Digital India Programme (Kaur & Singh, 2019). By promoting the nation through Research and Development (R&D) in digitization, work and education, Modi’s Government has illustrated national action plans to digitize India

1 by investments in Smart cities project, set to be ready by the year 2022. The Smart Cities will provide sustainable infrastructure changes, including the development of a digital transformation (Tata Communications, 2018). The mission for Smart Cities is to tackle the increased urbanization, resulting in improved employment opportunities, education and attraction for other nationals interested to invest in India (Ministry of Housing and Urban Affairs, 2020). Furthermore, the Indian government has created awareness for foreign businesses to invest in India by implementing a campaign called Make in India.

According to Business Sweden, India is one of the world's largest economies and a global hub for innovative start-up companies; thus, Swedish small- and medium-sized enterprises (SMEs) have started to enter the Indian market (Business Sweden, n.d.). As India's urbanization has arisen, it attracts Swedish SMEs opting to invest in digitized products to please the Indian consumers. The underlying causes of these business opportunities are transformation in consumer behaviour and spending patterns that are changing as incomes are rising and Indian society is developing. These changes have significant implications on how foreign companies position themselves today (Singhi, Jain & Sanghi 2017).

The infrastructural increase in internet connection within Indian society and the increased use of smartphones attract foreign companies to enter and operate their business. BCG (2018) sees a trend in the increase of rural consumers, i.e. rural consumers who use the internet for information and purchase. Since demands and the use of the internet differ between customer segments, companies need to know how to market their brand to reach the rural consumers as well. A classic stereotype assumes that the Indian consumer to a large extent uses the internet to read Bollywood news, window shop and socialize. However, in the study conducted by BCG (2018), the representative Indian consumer was identified as profoundly engaged in online activities. These online activities were buy-and-sell activities, private finance management, education and media consumption. The researchers Craig and Douglas (2011) also presented a study focusing on the Indian consumer, which indicated a massive demand for international brands. Due to increased income amongst the new generation, international companies are considered more enticing for these consumers, leading well-known western brands to establish on the Indian market.

According to Tillväxtanalys (2014), India has negotiated free trade agreements that affect certain parts of the European Union (EU) trade routes, nevertheless this has not been completed yet. Sweden and India have established and kept well-developed trade agreements and institutional regulations since 1948. India has received financial assistance from Sweden between 1953-2013, in conjunction with Swedish corporate investments on the Indian market since 1920 (Regeringskansliet, 2020). The historical bilateral relations between the two nations have included scientific- and technical cooperation, as well as questions regarding health, environment, defence, renewable 2 energy, sustainable urban development, and much more (ibid.). Furthermore, the parliamentary exchange, combined with the bilateral relations, has resulted in a settlement agreement known as a memorandum of understanding (MoU) between the two nations during 2007. This has provided further reasons for the current mutual relationship to strengthen, as well as it has given Swedish SMEs additional reasons to establish themselves in the Indian market regarding the cooperation perspective. On the other hand, the Indians perceive Sweden as a nation and the Swedish workforce to be competent as they act in an extremely knowledge-intensive market. According to Tillväxtanalys (2014), this has resulted in the India Council of Scientific and Industrial Research (CSIR) to establish a fundamental part of research and development (R&D) known as Joint Centers of Excellence in Stockholm, Sweden.

1.2. Problem Discussion Although internationalization has been a hollow subject that various researchers have investigated and analysed for decades (Oviatt & McDougall, 1997), Stoian, Dimitratos and Plakoyiannaki (2018) explain that companies’ approach to expanding in foreign markets differs depending on the size of their business. Thus, it is relevant for the new phenomenon named Born Global, to be studied and raised to the surface, comparable with the traditional and eminent Uppsala model and Network theory (Gulanowski, 2016). The Born Global concept focuses on start-up companies that in today's generation manage to reach the foreign- and unknown markets with the help of a few clicks on the mobile or computer, in order to collaborate with other business partners abroad.

According to Vahlne & Johanson (2013), this is because the traditional Uppsala model mainly focuses on capital-intensive industrialized business operations, which are primarily based on resources and assets. The model also explains the foreign expansion through agents, sales in larger volumes and through the establishment of manufacturing facilities in international markets. Besides, the Uppsala model is adapted for the industrialized multinational companies (MNCs) that have gradually expanded according to the model. As an alternative, the International New Venture (INV) or the relatively novel Born Global theory focuses on how companies, through their business strategy, survive globalization at an early stage (Del Sarto 2019). The business environment today is a complex network that companies, competitors, customers and suppliers jointly have created (ibid.).

The former Uppsala model supports the Innovation Model (Vahlne & Johanson, 2019), which is difficult to apply for all firms internationalizing since today’s environment differs from when the Uppsala model was created. Mainly the technological development concerning IT-companies in high-tech industries. The Uppsala model theory has not been developed in connection with the rapid change of globalization, 3 however, Born Globals have still tended to internationalize. Therefore, Del Sarto (2017) along with Ribau, Moreira and Rapson (2018) believe that the size of the companies and their expansion strategy, in general, determine how their competitiveness and survival chances look in the market today, which the traditional models did not consider. Therefore, it is essential to apply a theoretical foundation that considers the companies (1) size and (2) industry they operate in. Hilmersson and Johanson (2016) also explain that there is a big difference in the internationalization process for SMEs compared to MNCs since the SMEs are perceived to act with scarce resources, hence, they must constantly be economically cautious of their internal finance. This means that smaller companies do not have reliable resources to utilize in the internationalization process (Hilmersson & Johanson, 2016). Therefore, there is a research gap when investigating the internationalization of SMEs, with the correct theoretical background.

Currently, digitalization has reduced the psychic distance, which has led a multitude of companies to be considered international from the inception; this applies to the Born Global phenomena. What sets Born Globals apart from the remaining genre of companies that have internationalized, is that they are considered to have innovative solutions. Innovation is considered to be a backbone for the Born Globals. Innovation in general is defined as "a company's openness to new ideas and new ways to meet customer needs" (Knight & Liesch, 2016). Therefore, the size of the company is an essential factor to keep in mind when examining internationalization processes since the internationalization differs between SMEs and MNCs due to their internal capacities (Chelliah, Sulaiman & Pandian, 2010).

Freeman, Edwards and Schroder (2006) argue that Born Globals are commonly SMEs and there is a trend where these firms are often identified as operating in innovative and high-tech markets. Research also shows that some SMEs tend to internationalize rapidly by using market entry modes, which differ from the low-tech markets (ibid.). There is limited research on how managers in Born Global SMEs develop their business network to internationalize. According to Freeman et al. (2006), the following obstacles should be considered when SMEs try to expand: the firm finds new networking stages rather than following traditional ways. The firm should combine its resources to find new dimensions to create a network. By testing different combinations, business relationships can be confirmed. However, there is still a lack of research that examines the networking strategies for Swedish Born Global SMEs in India. Business networks are recorded to have an influential factor in combination with innovation, Kudina, Yip and Harry (2008) describe that combining a firm’s innovative product or service and networks abroad, lead to success.

In recent years, scholars have started to adopt the term ecosystem in business networks. A study by Aarikka-Stenroos & Ritala (2017) presented a lack of overall understanding regarding the value added by an ecosystem in a business network. They argue that 4 existing literature has a scattered view on the implementation of ecosystems in business networks. Hånell, Nordman, Tolstoy, & Sharma (2018) imply that SMEs need to adapt their technology to international relationships since they need to consider the local conditions of the global markets. Further on, Hånell et al. (2018) mean that it is not enough to become an insider in a specific business network on an international market. Management also needs to establish key business relationships in order to harness the resources acquired in these networks. They suggest that future research on international SMEs needs to examine company-specific factors, relationship-specific factors and market factors. According to Hånell et al. (2018), these factors “either promote or constrain innovativeness in foreign business relationships”. Still, there is a research gap in how networks and ecosystems work in relation to Sweden and India.

Another component of the business ecosystem that plays a significant role in representing the company’s product, value and performance is the branding aspect (Aaker 2004). Brand strategies are factors that have been noted as critical for the survival of Born Globals, although most of the research has not paid much attention to survival through brand strategies. Simon-Moya Revuelto-Taboada and Ribeiro-Soriano (2016) explain that previous research has a critical approach to SMEs, as the main focus has been on growth and profitability issues in comparison with MNCs, resources are very minimal. According to Aaker (2004), studies show that the majority of the western companies that establish in foreign markets have difficulties to develop, maintain and adapt their branding strategies. Simon-Moya et al. (2016) explain that SMEs counter this, due to the lack of business connections, general market understanding and mainly socioeconomic knowledge about the new market.

Furthermore, Simon-Moya et al. (2016) believe that even today, there are insufficient studies on how Born Global SMEs with the scarce resources expand. These companies have taken advantage of digitalization the most and have been able to grow much faster internationally than the older theories advocate. Urde (1994) explains that the future survival of each company lies in its branding strategy and approach regardless, which the companies do not prioritize. According to Camillus (2008), SMEs tend to forget and almost ignore the complications that they encounter when establishing in a complex foreign market, unlike MNCs that see branding as an integrated segment that is a part of their business model. Furthermore, Camillus (2008) believes that SMEs and start-ups need to understand that a single product is not able to succeed on a foreign market without the reputation and illustration that represent the company, which is observed through a brand vision, and strategy or name.

By reviewing previous research, the authors find a research gap in examining SMEs classified as Born Globals and their expansion into emerging markets through their business network and brand. Previous research indicates that SMEs are incredibly

5 vulnerable in terms of capacity, resources, knowledge and various driving forces behind the internationalization process, which is also a research gap. Despite their reduced resources, Born Globals have significantly been affected by technological developments in the digital world. This development includes availability, personalization and immediate delivery of standardized products to broader markets. Although some digital companies are characterized as Born Global at an early stage, given the geographical location and the two collaborating countries; Sweden and India, there is a research gap in how Swedish digitized SMEs enter the Indian market. There is also a research gap in how business networks are created between these countries and how the Born Globals can implement its brand strategy to enter the Indian market by creating awareness among potential consumers. This leads us to the following research questions in the next section.

1.3. Research Questions

RQ 1: Why do Swedish SMEs & start-ups establish in the Indian market? RQ 2: How are Business Networks & Brand Strategies implemented by Swedish SMEs & start-ups when establishing in the Indian market?

1.4. Purpose The purpose of this study is to investigate the motives of Swedish SMEs when establishing in the Indian market through a business network and brand strategy. Furthermore, to create a deeper understanding of the challenges and opportunities that may arise during this process.

1.5. Delimitations This thesis will only study Swedish SMEs & start-ups within the tech-industry who offer digital products and services to their consumers, by focusing on their aim and strategy while internationalizing towards an emerging market. The implementation of a business network is viewed through a B2B-perspective, while the implementation of a brand strategy is viewed through a B2B and B2C perspective. Moreover, no financial analysis will be involved in this study.

1.6. Thesis Outline The thesis consists of six chapters, which are systematically constructed to introduce the subject, find a current research gap and use existing literature, to collect new data in 6 order to analyse and answer the research questions. Hence, contributing to the research gap. See the presentation of each chapter in figure 1.

1.Introduction 2.Theoretical Framework 3.Methodology Gives an introduction to the This chapter presents relevant The research design is subject by presenting problem theories and a frame of presented and discussed in discussion, RQ, purpose and reference. order to collect data for this delimitations. study.

4.Empirical Findings 5.Analysis 6. Discussion & Conclusion The collected data is The empirical findings from Finally, the findings are presented, divided into five chapter 4 are analysed by discussed and concluded by topics. referring to the frame of concerning the research reference in chapter 2. questions.

Figure 1: Presentation of each chapter illustrated by the authors.

7

2. Theoretical Framework

The chapter highlights three central theoretical areas within the study; Internationalization, Business Network, and Brand Strategies, concluded with a literature review of challenges and opportunities. The research questions are connected to the Frame of Reference, subsequently presenting a self-illustrated theoretical synthesis to provide a precise analysis in the coming chapters.

2.1. Internationalization Knight (2016) explains the concept of internationalization as a result of all the countries and continents of the world being intertwined through the pursuit of a common economy, while previous researchers perceive it as a cross-border exchange of knowledge (Melin, 1992). Keohane and Milner (1996) stated that the world is shrinking so much that almost all countries can consider each other as neighbours. Therefore, its effect is witnessed in business and economic, socio-cultural perspective and several other contexts. The Internet is an excellent example in this regard. It has helped humans interact with one another living miles apart, simplified physical shopping by replacing it with online consumption and improving the environment by increasing the use of email as a smarter tool rather than sending paper letters.

2.1.1. Born Globals Entreprenörskapsforum (2012) indicates that there are various terms for the concept of Born Global firms. McDougall et al. (1994) refer to the concept as international new ventures, Coviello and McAuley (1999) as instant exporters and Oviatt and McDougall (1994) as global start-ups. In comparison to this study, however, the study is based on the relatively new concept called Born Globals (Knight & Cavusgil, 1996). When companies are small or medium-sized as well as new, innovative and internationalized, such companies are characterized as Born Globals. These companies represent that (1) they have limited resources, and (2) they are internationalized at an early stage, also including their expansion of business operations abroad (Dzikowiski, 2018). This is because Born Globals’ business strategy is primarily based on intentions to please foreign demand, as there are rapid opportunities for increased growth (ibid.).

According to Kudina, Yip and Barkema (2008) the majority of Born Globals are characterized by fulfilling different requirements, as they are mainly known for being early internationalists because their internationalization process takes place within the first 1-3 years of their business establishment. Apart from those requirements, Kudina et al. (2008) state some criteria that Born Globals aim to please, as they deal with; (1) new 8 market conditions, (2) technological advances, and (3) knowledge exchange. Kudina et al. (2008) state that such companies also tend to use differentiation strategies, which is one of the main characteristics for Born Globals. This means that the services/products that Born Globals provide for their new market should be developed in such a way that it meets the demand of several customer segments. Furthermore, Kudina et al. (2008) explain that this is important, due to the high demand from various kinds of customer segments on emerging markets.

Rennie coined the concept of Born Globals in (1993) in opposition to the Uppsala Model Johanson & Vahlne (1977) and Innovation-related model (Cavusgil, 1980), as it turned out that SMEs did not expand like the other companies. These traditional models describe a gradual internationalization process, as previously mentioned in chapter 1, problem discussion. Chang (1995) stated that companies that are thriving through this type of strategy are taking advantage of the breakthrough mainly in the digital and technological world so that the smaller companies can expand to every corner of the business realm. Born Globals tend to benefit from external opportunities created through technological revolutions such as the Internet, network organizations and digitalization (Knight & Liesch, 2016), mainly because smaller companies do not have internal resources to use like the larger multinational companies. The world is seen from a unique perspective since the whole earth is a market to embark on, contrary to what the traditional theories advocate.

Johanson and Vahlne (2009) argue that this may be since physical and psychological closeness has previously been important factors, in conjunction with cultural and socio- economic barriers that have been decisive factors for the company’s survival in the foreign markets. Anything from business communication to currency exchange is either an advantage or disadvantage, depending on whether countries have a similar background in establishing trade relationships. Born Globals have successfully demonstrated that firms can have characteristics that differ from the traditional internationalization process. The demand for products and relationship formation also creates a pleasant business atmosphere that many companies can take advantage of, within an environment entirely different for their domestic market (Johanson & Vahlne, 2009).

Knight and Cavusgil (2004) explain that although Born Globals are affected by resource constraints, the innovative culture is a fundamental pillar for what its theory advocates. The theory supports that the internationalization of SMEs is open to new ways of thinking, entrepreneurial spirit, and interest in connections to rare business networks. Theory about Born Globals is essential to use within the framework of internationalization, as increased innovation-knowledge and ability leads to the company possessing organizational capabilities to deal with competitive and

9 challenging markets that are not similar to their own (Martin Javalgi & Cavusgil, 2017). Unlike MNCs, Born Globals act in a niche and specific markets because they do not have the same capacity as the giant companies.

The SMEs began to receive extra attention in the business world, following the OPEC crisis in the 1970s. The OPEC crisis mainly affected the larger companies, which led to SMEs being attracted since the financial crisis did not influence them as much because they were engaged in as subcontractors. According to Paulson (2013), it was found that SMEs tended to relate to the global financial change in a better way because they succeeded in exporting to the emerging countries. The economic change created a vacuum for SMEs, which replaced the function that the larger companies had previously focused on (Mok, Wu, Ahn & Garassino, 2017). Even currently, Born Globals are perceived as companies whose primary purpose is to please the emerging markets, with the help of various functionalities that are run using the innovative opportunities that these developing economies need. Knight and Cavusgil (2004) explain that the innovative nature of Born Globals can also be associated with risk-taking and optimistic goals for companies. Like Martin et al. (2017), the researchers Chetty and Campbell-Hunt (2004) believe that the innovative attitude that Born Globals act on, leads to the fact that SMEs develop other “reality glasses”. Such companies manage to seize external opportunities with scarce resources precisely because they operate based on a creative entrepreneurial spirit (Martin et al., 2017).

Disputes regarding Born Globals The Uppsala Model and Innovation-related model oppose the Born Global concept, as these traditional models gradually demonstrate how companies with risks in mind internationalize. This is mainly because the management of a company lacks market knowledge, which can lead to the internationalization process not meeting the expectations of the company (Mok et al., 2017). Unlike Born Globals, Innovation-related models focus on companies by explaining the internationalization process as a slow process. The model believes that it is the key to success in the company's early export stage. Since Born Globals are considered as internationalized from the most initial stage of expansion, the Uppsala Model opposes the concept of "the birth of a foreign market" (Johanson & Vahlne, 2009). Johanson and Wiedersheim (1975) illustrated the model, whose primary focus was on integration, acquisitions, knowledge of foreign markets, and high commitment. Knight and Liesch (2016), respective Knight and Cavusgil (2004), on the other hand, explain that Born Globals should be called into question more often, as the vulnerability of start-up companies is significantly higher than other business operations while affecting their survivability for the future. Since it is almost impossible for those kinds of companies to adopt a global strategy to make a profit in their early stages, the vulnerability of Born Globals is mainly explained by the discussion of change 10 in sales volumes. In contrast, Johanson and Vahlne (2006) raise Born Globals in connection with the opposition, as it means that human- and knowledge capital will be strengthened as networking, social capital and knowledge development take place. This means that integration and collaboration with several stakeholders will result in the opportunity to survive in the case of Born Globals.

With the expansion of the Internet as a communication tool, English has become a universal language worldwide; these changes have characterized the last 30 years. Based on these favourable external conditions the SMEs have succeeded in surviving through the rapid expansion theory of Born Globals (Martin et al., 2017). Mok et al. (2017) explain that the entrepreneurial spirit is the main explanation for the Born Global theory. This theory is also influenced by the abstract disciplines that entrepreneurs need to undertake, specifically to broaden their views on the foreign market. This means that entrepreneurs need to have positive attitudes when planning to enter the emerging markets that do not guarantee any outcome. Martin et al. (2017) further explain that the founders of the SMEs play a crucial role in the success of their business. Therefore, they need to be optimistic, positive, engaged and social if they wish to be successful entrepreneurs (ibid.).

Born Digitals With the rise of digital technologies, even business models have changed for companies by being able to reach international markets without requiring to be located overseas. Vadana, Torkkeli, Kuivalainen, & Saarenketo (2019) describe Born Digitals as “services or manufacturing companies in which most of the inward and outward value chains are digitized soon after inception” (p.200). The characteristic of Born Digital companies is that their business model has a higher degree of digitization, enabling them to enter the international market at an early stage. Furthermore, Born Digitals offer their services online, have digital products or commercialize products/services to customers using the web and mobile technologies or other computer-based information system technologies built on the Internet infrastructure (Vadana et al., 2019). Born Digitals are described as having different characteristics, and various terms are used to describe the character of a Born Digital firm that are discussed below.

Brouthers, Geisser & Rothlauf, (2016) explain Born Digitals as iBusiness firms, which characterises companies who use the Internet as their main platform to interact with other users, but these iBusinesses are not a typical E-commerce company since the value is generated by users who sell and buy products or services on the iBusiness-platform. Furthermore, Brouthers et al. (2016) note that to enter an international market, the iBusiness firm should develop a network on the local market for the users. By comparison to the network perspective, iBusiness firms have an outsider perspective 11 when entering a new market, thus they need to target groups of networks who bridge the gap to an insider on the foreign market. According to Zhou et al. (2007) by providing information and recommendations about the iBusiness, the already existing firms provided the possible ways of entering the foreign market. Hennart (2014) argues that firms with business models having low-cost information and delivery methods through the assistance of the process of digitization, leads these companies to become accidental internationalists, since their product or service can be consumed by people all over the world.

Another issue Born Digitals need to tackle is the outsider perspective in a network when entering the international market. Similar to the explanation about the insider- outsider-ship by Johnson & Vahlne, which will be presented in chapter 2.2. Business Network, the digital firms create their value by users interacting on their platform, i.e. by knowledge exchange and thus by creating a user-network on the foreign market is crucial (Brouthers et al., 2016). Such issues that digital firms have faced can be tackled through user adaptation in the new international market (ibid). Unlike traditional companies that sell physical goods that need to be shipped or produced in the new international market through various investments in fixed assets, Born Digitals have an advantage as such investment for production plants does not have to be transferred to the new market. Instead, Born digitals should transfer their business model to the new market, according to Brouthers et al. (2016).

2.1.2. Strategic Decision SMEs are known for being resource-constrained businesses that operate in risk full and uncertain markets (Hauser et al., 2019). In order to succeed in the international market, SMEs must make use of their scarce resources based on resource-adapted strategies. The business strategies, on the other hand, should shed light on both internal strengths and weaknesses but also the external opportunities and challenges that occur in foreign markets (Burke, 1984). Unfortunately, SMEs tend to be absent in their strategic decisions, which leads to a lack of documentation regarding SMEs’ performance during their internationalization process.

With the help of the Strategic marketing decision Environment model (Burke, 1984), we get an understanding of which business activities SMEs need to take into account from an internal- as well as external aspects when they establish themselves in the new, foreign and unknown markets. It describes aspects such as market attractiveness and long-term investment opportunities, but also the importance of abstract concepts such as knowledge transfer and understanding the new market. Those aspects are also considered to be determined factors when establishing on foreign territory. The authors of the thesis have illustrated and adapted figure 2 after the illustration made by Burke

12

(1984), due to the relevance of the six factors that SMEs and start-ups should have in mind when establishing in emerging markets; which are also known for being volatile markets. Therefore, it became essential for the authors of the study to illustrate a model, by having the theoretical basis of Strategic marketing decision Environment model (Burke, 1984).

1.Market Attractiveness

2.Relative Competitive Strength

3.Entry Barriers Strategic Marketing SMEs & Start-ups Decision Environment 4.Exit Barriers

5.Organizational Synergy

6.Environmental Uncertainty

Figure 2: Strategic Marketing Decision Environment Source: Adapted from Burke (1984)

The model Strategic marketing decision Environment model, illustrated by Burke (1984) show four components, which are the building blocks for the model; (1) The Market, (2) Business Unit in the Market, (3) The Firm and (4) The Unit in the Firm. These are four functions that management teams must consider when making market-related choices when establishing a new business in foreign markets. Within the four components, Burke (1984) presented smaller building blocks that are highlighted, for instance, entry and exit barriers, but also synergy effects and competitive advantages. In order for the model to adapt to the study, only the six relevant blocks of the illustration are presented and analysed.

Similar to Andreu et al. (2017), Burke (1984) believes that (1) market attractiveness and (2) relative competitive strength are the main basic components that determine the market's potential in the longer term, which companies also tend to be attracted to. What the market has to offer and the gaps that should be pleased to give Western companies a greater tendency to establish their business in emerging markets. Such

13 markets are in need to keep up with the economic developments associated with digital trends such as the internet, mobile surfing, app users etc.

Burke (1984) also explains that market attractiveness and relative competitive strength are the two main pillars of the contingency theory, which assumes that there is no absolute marketing strategy that will guide companies towards the most optimal goals. Therefore, the companies, according to Krush, Agnihotri and Trainor (2016) who also support Burke (1984) and explain that companies must see the market attraction as an external factor, as well as being aware of the external competitors that are established in the market. By knowing that there is no perfect strategy and further understanding that they themselves are able to create “perfect” situations for their business, the companies, according to Burke (1984) have come a long way. By having knowledge about their external environment, companies will be able to prepare their internal strengths according to this model.

By contrast, Burke (1984) criticizes his own illustrated model and questions what really characterizes an attractive market while at the same time he is constantly hunting for concrete examples that can show how companies should be able to equip their competitive advantages in new markets. He then concludes that a dominant position with a competitive advantage within an industry, is the most optimal and essential for the companies, as it (1) results in the companies having larger market shares and (2) a higher economical guarantee in volatile environments that emerging markets have. Although the attractive market and competitive advantages can have positive outcomes, it is important for companies to constantly protect themselves as emerging markets are not guaranteed for profitability.

Similar to Burke (1984), Haddoud, Onjewu and Jones (2019) argue that (3) entry- and (4) exit barriers should be kept in mind, as the market's attraction and competitive advantages shift in changing environments that emerging markets can easily be affected by. Especially when companies enter a market, the ease or difficulty of entry depends on the nature of the industry in which the company operates but also external factors such as political- and tax regulations. Some examples that determine the difficulty of entry are customer loyalty, patents, supplier contact, etc. Exit barriers, on the other hand, highlight how much the cost can be for companies when they "earn less than they expected" and choose to leave the market. Burke (1984) explains that high exit costs can have a negative impact on companies that do not run a multi-productive business since exit becomes a must when they do not have other products to invest in, while changing strategic approaches also becomes a cost. Also (5) organizational synergy may be an important reason why firms choose to establish themselves in a foreign market (Burke, 1984).

14

Burke (1984) refers to the Ansoff Matrix, which is a product/market expansion model. Furthermore, Burke (1984) believes that it is important for companies to link marketing and strategic choices to synergy effects since marketing aspects form and maintain the company's image in a market. Therefore, it is important to invest in what the company's internal organizational structure will look like in the new market, while at the same time meeting the need that exists in the market is also essential. Burke (1984) argues that companies succeed in achieving the main goals of synergy; namely 1 + 1 = 3, by focusing on organizational synergies. Thus, matrices such as Ansoff, helps companies to identify potential investments from both short- and long-term perspectives.

Burke (1984) also chooses to highlight how (6) environmental uncertainty must be identified by companies when entering an emerging market. Burke (1984) suggested this to be important and applied, as companies face it as fundamental and complex when entering a foreign market. Since it is an external factor, companies need to collect market information in advance regarding the business environment in which they want to operate. Burke (1984) refers to both Dill (1958) and Duncan (1972), who argue that the external business environment includes suppliers, labour, political regulations, technological tools etc. In addition, Burke (1984) concluded that the higher uncertainty there was in a market, it would not mean that companies would have to step out. Instead, he felt that uncertainty was inevitable and that companies would therefore equip themselves in emerging markets and face the uncertainty.

2.2. Business Network

One of the perspectives of analysing the internationalization process of a company is through viewing the business network perspective. Johanson & Vahlne (1990) further developed the internationalization process theory of a company. By integrating the business network's impact in a foreign establishment, a company is usually part of a business network with various actors involved (Johanson & Vahlne, 1990). A fundamental assumption in the network model is that companies interconnect in direct and indirect channels between different business relationships that form the so-called network; these business relationships are developed between suppliers, customers, competitors, distributors, and the state (Chetty & Holm, 2000).

Johanson & Mattsson (1987) emphasize the importance of knowledge exchange through various interactions in a network; they argue that complementary and competing relationships are crucial in the internationalization process. Hadley & Wilson (2003) studied the connection between experienced knowledge; a firm's degree- and the network-degree of internationalization. Their study pointed out that the degree of

15 internationalization of the network is also influential. Hadley & Wilson (2003) claim that their findings may explain that a business network performs as a multiplier for the firm’s existing knowledge, which can be connected to the extension of experience. Johanson & Mattsson (1987) present four categories for internationalization within the business network context: (1) The early starter, (2) The late starter, (3) The lonely international and (4) The international among others, each category is discussed below thoroughly:

1. The Early Starter

According to Johanson and Mattsson (1987), a firm characterised as an early starter has a low degree of internationalisation with a weak level of connections with business networks and a low international position (ibid). To this effect, the relationships within the business network are fragile, affecting access to knowledge feedback.

2. The Late Starter

Like the Early Starter firm, the late starter also has a low degree of internationalisation, the difference between the two is that the Late Starter enters an international market, when the specific market is already a vastly internationalised market (Johanson & Mattsson, 1987). Other factors describing the late starter are that the firm has a relatively low level of commitment and activities in the international markets. However, the late starter has an advantage of bonding business networks in the market, which already has set foundations, which foster trade and foreign business operations. According to Bonaccorsi (1992), SMEs who decide to commit their resources to international markets are generally triggered by a collective experience of their business network.

3. The Lonely International

Jonsson & Mattson (1987) describe the lonely international firm as a highly internationalised firm with an inexperienced network. One major advantage for the lonely international is that the knowledge exchange can be built and exchanged in line with their own interest. Since there are no other players on the specific market, the lonely international has a first-mover advantage (Hadley & Wilson, 2003). In opposition, the late starter enters the international market when the business networks are already set up internationally (Johanson & Mattsson, 1987).

4. The International Among Others

Johanson & Mattsson (1987) claim that a firm characterised as international among others is highly international and operates within highly internationalised business networks. Similar to the lonely international firms, the international among others have established and benefited for the resources in the global markets.

16

2.2.1. Network Model

Unlike the previous Uppsala Model, where the internationalization process is considered gradual, Johanson & Vahlne (2009) believe that the network model includes relationships between parties that enable an establishment in foreign markets whether in the domestic or the international market. The relationships in a network are flexible; hence, more adaptable in an environment where conditions are constantly changing. Due to these relationships, companies can establish their business operations in foreign markets. According to Johanson & Vahlne (2009), the network model is considered to be resource-intensive as building a relationship takes place over an extended period, where, among other things, trust and knowledge are exchanged between the parties. Only after the relationship has been built into a network can the company benefit from a possible new goal.

The term Psychic distance was previously used to explain the perceived distance between home market and foreign market, and why companies internationalized gradually (Johanson & Vahlne, 2009). Psychic distance explains that language barriers and cultural differences may affect the entry mode. Cultural distance is a more objective aspect, while the psychic distance is considered subjective, since it is influenced by personal feelings or knowledge. In the context of creating a business network, psychic distance may affect the relationship within a network as business partners subjectively view each other as more or less foreign. Johanson & Vahlne (2009) explain that a lack of market knowledge is connected to the psychic distance which leads a market to be perceived as more foreign than another. The researchers revised the Business Network Internationalization Process Model, created in 1977 (Johanson & Vahlne, 2009). The new concept includes two variables: state and change, and they claim that these variables affect each other and are applied to both sides in a relationship between, e.g. a firm and a supplier (see figure 3). Johanson & Vahlne (2009) indicate that the liability of outsidership of a firm can be overcome by knowledge exchange within its business network. The constant maintenance of the business relationship leads to an insidership (ibid).

Johanson & Vahlne (2009) explain that a current situation in a business network (state variable) has an impact on changes (change variable) and vice versa. Hence, the model explains dynamic, cumulative learning processes and implicit factors such as commitment and trust in a business network relationship. Johanson & Vahlne (2009) claim that the first state variable knowledge opportunities, is an essential pillar for the internationalisation process in a business network, since it includes receiving opportunities in competences, strategies, and other networks of directly or indirectly related firms (ibid). The second state variable network position presumes that a firm internationalizes within a business network.

17

State Change

Relationship Knowledge commitment Opportunities decisions

Learning Network Creating position Trust-building

Figure 3: The Business Network Internationalization Process Model Source: Johansson & Vahlne (2009)

Johanson & Vahlne (2009) describe the first change variable relationship commitment decisions, as the intended level of a firm to either increase or decrease the level of engagement to the network, which can be applied to one or many relationships in the focal firm’s business network. They argue that the level of commitment will change the entry mode process, investment and the level of dependence. Furthermore, the commitment level may be intended to stretch out to new business relationships, overcome gaps over structural holes or to create strategic alliances within the network (ibid). The second change variable demonstrates learning, creating and trust-building, which according to Johanson & Vahlne (2009) is a cognitive dimension. This change variable is interlinked with the state of knowledge opportunity, demonstrating the extent of how deep or surfaced the relationship commitment is between the two parts in a network.

There is no given pattern on how a network needs to be designed; therefore, a company can create its business network in a different environment. The main goal of the actors at a foreign establishment is to exchange knowledge and seek new opportunities to run business operations forward. Johanson & Mattsson (1988) claim that the business relationships can occur in three major categories: (1) international extension, where the firm bonds relationships with new actors in foreign countries, (2) penetration, where the firm increases its commitment to the foreign business network and finally (3) international integration, where the firm implements their business operations within the foreign business networks. This study uses three variants of business network relationships, adapted from Ratajczak-Mrozek (2012), in figure 4.

18

FOREIGN MARKET HOME COUNTRY GOAL OF EXPANSION

Company

Foreign business network

v Foreign market Company v Foreign business network in non-target country

Foreign market

Company´s local business network

Figure 4: Business networks Source: Adapted from Ratajczak-Mrozek (2012)

2.2.2. Networks in SMEs

According to Freeman, Edwards, & Schroder (2006), the internationalising possibilities for SMEs include internal activities of the firm, such as procurement of raw material and purchase of machinery, these activities foster opportunities for business networks across borders. Previously conducted studies suggested that in order to create closer strategic integration within the business network, it is favourable to develop more horizontal partnerships than vertical integrations (Freeman et al. 2006). This leads into more insight on how the firm can use its network to build effective alliances (ibid). Another dimension of the business networks can be explained as the relationships are embedded inside and outside a firm (Ritter, Wilkinson & Johnston, 2004). The internal relationships are the relations between employees and departments, while the external relationships are the relations between suppliers, customers, and competitors (Ritter et al., 2004).

19

2.2.3. Business Ecosystem

Similar to The Network Theory, business ecosystems create an environment where different counterparts act in relation to each other. Tanev (2012) describes different distinctions between the ecosystems for technological companies. According to Tanev (2012), the first ecosystem is attached around universities and companies that are operating within the same industry as the firm; this leads to technological knowledge and opportunity for investment from local venture capitalists. Tanev (2012) argues that this type of ecosystem provides a global competitive advantage for the firm. The second ecosystem deepens the relationships between local firms and their international operations; this facilitates networks between clients and engineers to fulfil the required need. Tanev (2012) also explains that the second ecosystem is essential for knowledge exchange from experts located on international markets. The third ecosystem is established around international sales companies and local clients; this ecosystem provides information about customer needs in relation to product development. Within the third ecosystem, the relationships between the international firms and their clients help the firms to obtain and exchange technological knowledge (ibid).

2.3. Brand Strategy The literature in marketing has examined brand strategies on a comprehensive level. Research shows that brands have a notable impact on the company's strategy as it gives room to strengthen relationships by creating value for the various parties in a business network (Gabrielsson, 2005). According to Gabrielsson (2005), a review of previous studies in Branding shows that different disciplines have emphasized the importance of implementing a brand strategy as a significant part of a company's overall business strategy. In this section, we will introduce the definition of a brand and its components in terms of brand equity. Furthermore, we will focus on describing which part brand strategy plays in the context of a network environment and internationalization process.

2.3.1. Brands

What distinguishes a common product or service from a brand? The classic definition defines a brand as a name, term, sign, symbol or design, or a combination of them, designed to identify a seller's goods or services and distinguish them from competitors. Thus, a brand is a product or service that is designed to differentiate one’s own product or service from the other products and services available on the market Wood, (2000). Rowley (2004) describes a brand as follows: “A brand is not a positioning statement. It

20 is not a marketing message. It is a promise made by a company to its customers and supported by that company” (p.131).

There are two well-known and cited descriptions for brand equity by Aaker and Keller. According to Aaker (2009), brand equity consists of five components, namely brand loyalty, brand awareness, perceived quality, brand associations, and other proprietary assets. Aaker (2009) defines brands as the set of assets and liabilities associated with the brand, as well as names and symbols that add value or reduce the value from the product or service. These assets include brand loyalty, brand awareness, perceived quality, and associations Aaker, (2009). Brand equity can be used to concretize the brand's components and predict future performance. Apart from the five components, the model also reflects indicators and consequences of the desired brand policy Aaker, (2009).

Unlike Aaker (2009), Keller (1993) focuses on emotions and believes that brand equity consists of the power of what customers have learned, felt, experienced, and heard about the brand. The brand is a result of the consumer’s experience over time. Furthermore, Keller (1993) argues that knowledge about a brand is linked into two dimensions, (1) brand awareness and (2) brand image. The first dimension that created brand knowledge is brand awareness, which is associated with the memory of a consumer. It is reflected by the consumer’s ability to identify the brand under different terms. The second dimension of brand knowledge is the brand image; the image is defined as perceptions of a brand reflected by brand associations held in the consumer’s memory.

Spence & Essoussi (2010) studied brand equity in SMEs, and they argue that SME brands are an extension of “the entrepreneur’s vision, beliefs, and values. Their creation and development are intrinsic rather than extrinsic”. Spence & Essoussi (2010) also point out that SMEs often have a personal touch to their brand compared to MNCs who create their brand in accordance with the outside demands. Findings from Spence & Essoussi (2010) showed that brand equity could be created at low cost by enhancing the company’s capabilities and country of origin.

Country of Origin Craig and Douglas (2011) argue that the nationality of the brand has a notable impact on consumers’ perception. In the context of building an international brand strategy, an additional perspective must be considered: country-of-origin (COO). The literature institutes that COO influences brand identity since the association to brands from emerging markets or developed economies impact consumers’ judgemental behaviour towards the product or service (Melewar, Small, Pecotich, & Ward, 2007). According to Melewar et al. (2007) developed countries are associated with higher quality brands while emerging markets are associated with poor quality. Nisbett and Wilson 21

(1977) explain that country-of-origin in branding can be associated with the Halo effect, originating from psychology, the halo effect means that a person feels positive about a company, product or brand due to the person’s own cognitive bias Nisbett & Wilson, (1977). Han (1989) studied the correlation between a country’s image and how consumers evaluate the product. The study showed that a country’s image serves as a halo effect when a consumer is unfamiliar with the product or service. The level of knowledge about the product or service in accordance with the country’s image indirectly affects the consumers’ brand attitude Han, (1989). According to Melewar et al. (2007), a novice consumer gets more affected by the COO than a knowledgeable consumer, since knowledgeable consumers tend to seek more information before decision-making, rather than novice consumers who often rely on their existing knowledge.

2.3.2. Brand-building This study is analysed through the SME-perspective; thus, it is relevant to study how SMEs build their brand through different phases. Centeno, Hart, & Dinnie (2013) developed a conceptual model for brand building in SMEs, which describes five phases, as seen in figure 5. In the first phase, Centeno et al. (2013) emphasize that small and medium-sized brands are built in a non-traditional way due to limited resources and restrained brand planning, combined with the lack of long-term strategy. SMEs show indications that they are willing to take risks, commit, be creative, and have the willingness to learn from these factors.

The study also emphasizes that, unlike larger companies, SME brands are built through an innovative, experiment-oriented, and inventive approach. Such phases and processes help SMEs develop skills and knowledge that will help them to move on to the next phase of brand building. After the commitment level has increased, the next step is phase 2, where SMEs start to categorise their brand as a product, by differentiating it from the competitors on the market. The third dimension in brand-building is ‘brand as a symbol’, where management implements the visual part of a brand in the sense of creating a brand logo and graphic attributes for their brand identity. In the fourth dimension, ‘brand as an organisation’, the core values of a brand are created. In this fourth phase the corporate culture and its values are reflected within the brand. The brand identity is developed in the last phase; thus, the brand starts to grow. Furthermore, previous studies show that a starting point for a brand is anchored with positive and adverse conditions. Taking actions leads to consequential conditions. Centeno et al. (2013) present the different factors within a condition in figure 5.

22

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 • Brand as a • Brand as a • Brand as a • Brand as an • Brand person product & symbol organisation identity brand development differentiation & brand growth

Starting stage Development stage

Figure 5: Five phases of SME Brand building Source: Adapted from Centeno et al. (2013)

2.3.3. Implementation of Brand Strategy When an SME firm has built its brand, it is necessary to have a brand strategy for entering the new network and consumers in the foreign market. Spence & Essoussi (2010) argue that in order to be successful in the international market, the critical factor lies in a well-constructed brand strategy, enabling the SME to maximize its brand equity. Gabrielsson (2005) presented a theoretical framework for branding strategies in Born Globals. The framework consists of three major building blocks that are the antecedents for influencing the brand strategy, illustrated in figure 6.

The first building block is Firm characteristics and global expansions, as studies show SMEs’ values and beliefs are the core to their brand, since it is believed that the competencies and beliefs of the owner or management team is transmitted to the brand identity Spence & Essoussi, (2010). The second block is product-market environmental factors, which include the decision-making of which product-market the brand will operate within. Since Born Globals’ often are high-tech companies with low-costs and minimum resources, they intend to satisfy the demand on an international level with competitive products and services. Gabrielsson (2005) emphasizes the fact that the stage in the product life cycle plays a significant role while choosing a brand strategy since more conservative consumers are not pleased with only relying on the new technology a Born Globals offers in its product or services. Thus, depending on where the product/service is in the product life cycle, more or less investment should be put on branding. The third building block "marketing channel and network relations" describes how the network relations and marketing channel has an impact on maintaining a good relationship since Born Globals often are involved in a network with distribution channels, this building block in an enabler for branding strategy.

23

Firm characteristics and global expansions - General company charcterictics & branding strategy objectives - Founder's & management's background (history, experience, recognition) - Global/international market expansion performance

Product-market and environmental factors Branding Strategy - Home & target country market (size, structure) - Brand building approach - Customer market segment scope (B2B, B2C) and uniformity - Type & number of brands - Product life-cycle & industry charachteristics -Degree of standardisation

Marketing channel and network relations - Co-operation & networking with challens and partners - Leverage & partnership advantages - Power-interdependence & conflict potential

Figure 6: Branding Strategies in Born Globals Source: Gabrielsson (2005)

2.4. Cultural Dimensions International business means working and collaborating across borders, where the counterparts have different cultures. Studies stretching back twenty years show that culture has a significant effect on communication styles, work ethics, management styles, beliefs, and values. Since the internationalization process of Swedish SMEs towards India includes networking within two different cultures, and setting up business operations in a new culture, it is relevant to study how cultural dimensions are portrayed in theory. Two well-cited explanations of cultural dimensions are presented below. The language barriers within cross-cultural business are additionally presented since communication is one of the initial step to internationalize.

2.4.1. Hofstede’s Cultural Dimensions Hofstede's cultural dimension theory identifies six dimensions that describe national cultural values, which influence internal values in organizations and at the workplace (Hofstede, Hofstede, & Minkov, 2010). The first three dimensions are associated with social behaviour, while the remaining three are connected to external societal structures (Hofstede & Usunier, 2003).

24

1. Power Distance Hofstede et al. (2010) describe power distance as the extent to how power is distributed, expected, and accepted amongst the members of an institution and organization. The institutions within a society are families, workplaces, schools, and organisations. The Power distance index is based on the less powerful members within an organization, since the people who are led can describe what they observe in the situation. A survey from IBM showed that managers who self-rated their management style resembled what they preferred rather than how they truly acted (Hofstede et al., 2010). The power distance dimension is also applied to social class, educational level, and occupation. Different social classes portray inequality within a society, which leads them to gain various benefits and education within the same nation. E.g., if the individual belongs to lower- middle- or upper-class. The power distance within a workplace reflects how organisations are built, e.g., it permeates the hierarchical levels and decision-making power.

2. Individualism vs. Collectivism Societies consist of families, which are commonly constituted as nuclear families and extended families. Collectivism refers to the power of a group and has no political purpose in this context. Communities characterized by collectivism include extended families, where their own family consists of parents, siblings, aunts, uncles and grandparents. A collectivist society values loyalty amongst its group over a self-sufficient way of life. Collectivism creates strong, loyal bonds amongst the group. On the other hand, an individualistic society is characterized by nuclear families, where the child has close contact with its parents and siblings, but a weaker connection with relatives. Individualist vs. collectivist cultures describes how individuals tolerate others, how established relationships among families and friends are, and how they stand in solidarity with their community. In modern times, Information and communication technology (ICT) has changed the way people communicate and create relationships; individualist societies tend to use ICT more often than a collectivist society according to observations by Hofstede et al. (2010). Combined with the previous dimension, we can see that an individualistic society has a lesser power distance than a collectivist society. Within a workplace environment, employees from individualist cultures tend to act in their self-interest, where their personal needs are valued. Employees from a collectivistic community pose in-group interest; it resembles the relationship between a family where mutual loyalty is appreciated.

3. Masculinity vs. Femininity This dimension describes ideal attributes which the society is driven by, in order to excel. Masculine culture is driven by competition, achievement, recognition, and success, while feminine culture values an equal quality of life and attitudes. Hofstede et al. (2010)

25 describe that the Scandinavian feminine countries are encoded with the Law of Jante, an unwritten law, implying that an individual should exist equally to others and not be flamboyant or stick out from the crowd. A provoking description is that during education, masculine societies praise high-achieving students, while feminine societies tend to more often ridicule talented students. In Sweden, there is a term called “plugghäst” which has negative annotations, describing a student who studies a lot. In a business environment, feminine society resolves conflicts with negotiation and compromise while masculine societies have organisations with a more aggressive approach, letting the most dominant win.

4. Uncertainty Avoidance This dimension indicates the extent a person feels comfortable or uncomfortable in an uncertain situation, and is referred to as the feeling of anxiety, which is a term from psychology. Unpredictable conditions apply to unstructured situations that are unknown and unusual. Hofstede et al. (2010) explain that every society has an unpredictable future. Still, the way uncertainty is handled within a nation's law, religion, and technology, leads to individuals dealing with the uncertain anxieties. Feelings of uncertainty are subjective experiences, which are shared with other individuals in a society. Hofstede et al. (2010) explain that modern societies have an ingrained history; hence laws, technology, and religions vary across nations. Furthermore, uncertainty is acquired within the society that individuals grow up in, and those feelings are connected to society's cultural heritage. How uncertainty is held is transmitted to the institutions within a society, e.g., family, school, and state (ibid). Countries with a high uncertainty avoidance index are more conservative than countries with low indexes, which are more liberal. Hofstede et al. (2010) compare this dimension with corruption. They argue that institutions and private organisations function differently based on how people use their power illegally. Corruption is defined differently depending on which context it involves. Some nations use lobbying and self-compensation within an organisation, while others have a tradition of giving away "gifts" in an organization. Tipping can be considered as bribery while it is natural in some nations. Hofstede et al. (2010) pinpoint that officials and teachers in developing countries are underpaid, hence, obtaining payment unofficially, may be a matter of survival rather than greed.

5. Long Term Orientation Countries plan long term infrastructural changes differently. Long term orientation refers to how a state maintains its present and future challenges. Countries with low long-term orientation are often holding on to their norms and are suspected of societal changes. Countries with high long-term orientation have a pragmatic approach towards preparations for the future. Hofstede et al. (2010) compared Long term orientation with economic growth. They explain that from 1970 to 2000, some countries went from “rags to riches”, referring to the five dragons: Taiwan, South Korea, Singapore, Hong Kong, 26 and Japan. The rise of these Asian countries is connected to the availability of western technology and the integration of local markets towards a global supply chain. Politics within a country is also dependent on economic growth.

6. Indulgence vs Restraint The sixth cultural dimension describes the extent to which a country allows the population to indulge in enjoying life as they prefer. Hofstede et al. (2010) explain that less indulgent, but more restrained societies are more cynical. The authors find a correlation between indulgence and restraint, where restraint societies have a history of intensive agriculture. Freedom of speech is a subfactor, which is related to indulgence.

2.4.2. Trompenaars Seven Dimensions of Culture Fons Trompenaars illustrated the model known as The Seven Dimensions of Culture, which aims to demonstrate in what ways national cultures can affect the function in cross-cultural situations and contexts. Trompenaars, together with Charles Hampden- Turner illustrated seven dimensions that can help companies interested in acquiring or merging with other companies when entering the international market (Hampden- Turner & Trompenaars, 1998). When such situations occur, Trompenaars and Hampden-Turner believe that companies can also solve differences, risks, and uncertainties that companies can solve by "talking alike", focusing on the cultural aspect and context. Since almost all national cultures are different from one another, the seven dimensions aim to help companies by providing a mutual understanding of how the national culture challenges can be tackled when doing business activities. In addition, Trompenaars and Hampden-Turner (1998) mean that international business creates a universal business culture among companies since most companies are internationalists (ibid.).

By contrast, the concept of culture is so abstract that the authors believe that one should study the concept by “scaling the onion layers” that culture consists of. Furthermore, Trompenaars and Hampden-Turner explain that culture is based on several layers, making it even more diffuse to explain as one concept. These layers contain norms, languages, values , and several other factors that make up a particular national culture, for an instant. Trompenaars and Hampden-Turner outlined the 7 dimensions in 1998, intending to help organizations and companies in international and heterogeneous business relationships. The book “Riding The Waves of Culture” (Hampden-Turner & Trompenaars, 1998) describes the first five points. Later, points six and seven are presented in “Resolving international conflict: Culture and business strategy” (Trompenaars, 1996).

27

1. Universalism vs. Particularism Regulations or relationships? It is essential to understand what is appreciated in various national cultures, especially when regulations come before relationships or vice versa. In universalistic cultures, regulations, in the form of norms, state regulations, and values, are believed to be fundamental pillars of society. On the other hand, pluralistic cultures tend to value human relationships, such as family ties and friendships, as more important. This does not mean that such societies do not take regulations into account, but the national culture must be based on the fact that human relations are valued very strongly.

2. Individualism vs. Communitarianism Self-driving or group thinking? In individualistic societies, the happiness, joy, and success of the individual are appreciated. You are expected to take care of yourself and your own. The first initiative is to take the lead, which is contrary to the collectivistic societies. In communities and nations that are characterized by collectivism, the group goes before the individual. This means that protecting one's community, family, and friends is more important than oneself. The central idea is that the individual feels content if everyone around is equally satisfied.

3. Emotional vs. Neutral To what extent is it okay to show their feelings? In affective societies, individuals exhibit all kinds of emotions and you are not obliged to hide how you feel. In societies where neutral behavior predominates, the norm is that you do not expose your feelings. Because emotions are biologically contingent, it means that individuals can feel similar emotions as everyone around the world, but there is an immense control when dealing with emotions.

4. Specific vs. Diffuse To what extent do you integrate different components in life? In specific societies you focus on things separately. In such communities, for example, you separate your personal- and work life. It means that you do not mix work related issues with your personal interests, family, friends, etc. In diffuse societies, on the other hand, it is more common to mix up your private and work life.

5. Achievement vs. Ascription In societies where achievement takes place, it is mainly about what status you have. The status is assessed based on work title, performance, education, and social class. In such communities, one should also be able to show what she/he/they has or have done, in order to achieve status. On the other hand, ascription societies refer to status based on wealth, age, gender, and other personal appearances. You cannot achieve status, but you get status based on who and what you are, which is out of your control. 28

6. Time orientation: Sequential time vs. Synchronic Time Managing then, now, and the future determines how the national culture is affected. In sequential societies, time is characterized by being structured and performance- oriented, which means that such societies also have a future mindset. The structured scheduling is done in order to promote future outcomes, while the societies that are characterized by synchronic time orientation focus on doing several things at the same time. This means that you believe that time is flexible. In sequential societies, on the other hand, it is considered that time is valuable, and you do not want to waste time on what is considered unnecessary.

7. Internal vs. External Control Can you control natural life or not? The communities characterized by internal thinking believe that you can control situations with the help of strategic planning that will affect the environment around. They believe that one should exhibit a dominant and controlling attitude to influence one's surroundings, which communities characterized by external thinking do not share. Instead, they believe that the environment and society are external components that one should adapt to as it is almost impossible to try to control. Such societies are characterized by attitudes that are flexible, harmonious and comprisable.

2.4.3. Language Barriers The previous cultural dimensions explain how individuals act in a society, in addition, Feely & Harzing (2003) explain there are language barriers when companies operate across nations, since communication is crucial for setting up businesses and promoting the product or service. They present three dimensions which companies need to examine in order to create language management strategies.

1. Language Diversity Language diversity refers to the number of languages that are spoken and need to be managed. This dimension evaluates the language diversity within the companies’ network, e.g. which languages are spoken between the suppliers, customers and subsidiaries (Feely & Harzing, 2003).

2. Language Penetration Language penetration means the number of functions and the number of levels within these functions that are working cross-functionally. Depending on how many departments a company has, language penetration means that linguistic versatility is required when operating businesses across nations. E.g. marketing-, finance- and HR- department need to be able to communicate cross-functionally (Feely & Harzing, 2003).

29

3. Language Sophistication Finally, Feely & Harzing (2003) argue that language sophistication is required depending on the post holder within the company, different depths in communication is crucial in order to avoid a language barrier. Language sophistication means how well a language needs to be mastered. Language skills involving speaking-listening proficiency differ between different posts. E.g. a receptionist needs to have speaking-listening proficiency, while a logistic clerk has to have reading and writing capabilities too (ibid.).

2.5. Literature Review Previous research is presented regarding the challenges and opportunities that SMEs face while expanding into emerging markets. With the help of various researchers and their studies, the challenges are initially presented in relation to the risks and the current uncertainty; namely the pandemic COVID-19. Subsequently, the opportunities within an emerging market attracting SMEs are also presented.

2.5.1. Challenges An increasing population, whose income development leads to increased demand for goods and services, characterizes a growing market. Gankema, Snuit and van Dijken (1997) explain that many companies take such a situation for granted as the idea of making a profit is considered to be obvious. Therefore, Zhou et al. (2007) explain that foreign companies should instead be vigilant, since state protection largely always protects domestic business operations, because foreign competition can pose a threat to their production and sales. The obstacles could arise in the form of tax barriers for only foreign companies that want to invest their business in foreign markets. The tariff problems that companies could be affected by are still not improved even if the state were to establish a mutual trade agreement. Savrul, Incekara and Sener (2014) believe that it is a further challenge for Western companies to establish themselves in the growing market, as there are other additional costs that are driven by the informal structure such as bribes, higher production costs, etc. Roy and Vyas (2016) refer to Katsikeas and Morgan (1994) that instead divide the barriers into 4 categories namely (1) external-, (2) operational-, (3) internal- and (4) informative factors.

The barriers based on these points are mainly due to the fact that SME companies are based on resource-based view (RBV) which sets the bar on how much a business operation with scarce resources will be affected upon entry. During the internationalization process, SMEs take advantage of the human and social capital they have, but according to Sakarya et al. (2007), this is not enough. The challenge lies in the need to constantly update such resources, through informal and formal intuitions that

30 give companies access to capital, manpower and distribution channels. Sandberg (2012) further explains that foreign companies must also understand that they operate in an unstable economic and political environment for which emerging markets are characterized. Roy and Vyas (2016) refer to the European Commission, which in 2004 showed that the unstable conditions in emerging markets lead to higher costs when SMEs are just about to start their internationalization. The report presented that there were increased costs in the form of higher prices of market analysis, legal consultations, translation of documents and product adaptation to the market. In addition to the business procedures, Krati and Gupta (2017) also explain that challenges in emerging markets may be due to the fact that digital services require large investments that companies must be prepared to make even though this occurs among a population with unequal income distribution. Similar to Krati and Gupta (2017), Zhou et al. (2007) also argue that companies must therefore understand that it is a demanding process awaiting the return of their investment.

Risk and uncertainties Currently the researchers are debating on risks and uncertainties that companies must consider before their internationalization process. However, Müllner (2016) refers to the article "From uncertainty to risk - A risk management framework for market" and explains that it is extremely important to distinguish between the meaning of "risk" and "uncertainty", since the concepts have similar meanings but different effects (Liesch et al. 2011). Risk is something that companies can measure, expect and try to deal with when establishing themselves, while uncertainty is not as measurable and more unpredictable (Müllner, 2016).

Liesch et al. (2011) explains that knowledge, networks, decision-making, culture and international activities affect both risk-taking and uncertainty. Furthermore, the researcher believes that companies need to improve within the framework of the previous concepts, in order to reduce the consequences that may arise when entering a riskful and/or uncertain market. Liesch et al. (2011) also explain that recent studies regarding the new phenomenon, Born Globals, mainly focus on risk-taking rather than uncertainty, considering that entrepreneurs are encouraged to have a "fearless" character and a high desire to take risks. Currently, internationalization trends indicate that entrepreneurs should have fearless characters, independent but mainly unafraid to face risks on foreign markets (Fletcher et al., 2011).

Product risk is something that companies should keep in mind, as it also affects the immaterial property rights affecting the product; namely the brand, design, patent, etc. (Chaudhuri & Holbrook, 2002). Product risks are not only connected to the delivery of the final product, but also to the manufacturing facility on the foreign market. Further 31

Chaudhuri and Holbrook (2002) explain that a good reputation of the product’s origin, a higher quality performance and a long service life, reduces the chance that companies are generally affected by product risks. As this study focuses on digital services, tariff costs for physical transport do not arise as well as delivery risks and therefore the product risks are decreased.

However, the commercial risks become relevant for the Swedish SMEs. As the western companies establish themselves in the foreign Indian market, the majority rely on networks existing in their own home market. Studies also indicated that increased trust in the local networks, among the foreign companies (Žigienė, Rybakovas & Alzbutas, 2019). The commercial risks arise when the western company establishes a business relationship with agents on the local market. According to Žigienė et al. (2019) commercial risks consider to what extent the local agent, for example, (1) follow agreements, (2) resolve disputes, (3) deliver on time and (4) insure payment. Further, Žigienė et al. (2019) explains that the vulnerable SMEs can encounter commercial risks, in a way that they are promised one thing but receive another. Within the framework of the commercial aspect, cross-cultural risks also become challenging (Renn & Rohrmann, 2002). Cultural barriers can affect the business relationship, in a way that both parties do not understand the underlying norms and ethics of each other. According to Renn and Rohrmann (2002) SMEs tend to assume that emerging markets are needed for their business, as well as they underestimate the communication difficulties. In fact, different studies show that SMEs that fail, normally overestimate their business activities because they embrace a sense of “western superiority” which leads them exploring cultural knowledge and understanding, is almost unnecessary (Vos et al., (1998), Nandkeolyar, 2017)

Political risks, on the other hand, are occurrences for any company internationalizing (Diamonte et al., 1996). According to Henisz and Zelner (2010) this aspect of risk focuses on the governmental regulations that demonstrate a sharp difference between the western company and the foreign market. The application of dDifferent regulations is the source of multiple challenges for foreign investors, which makes the situation tough for them to establish due to higher taxes and duties (Perotti & Van Oijen, 2001). But also, external factors, such as war or revolution might cause instability, which in turn result in both expected and unexpected risks (ibid.). Further Henisz and Zelner (2010) explain that foreign developing countries are strongly influenced by bureaucracy, which also affects the foreign companies that want to enter and establish themselves. According to Lesmond (2005) emerging markets are politically volatile, which the companies need to be aware of before internationalizing.

32

De-Globalization In oppose to globalization, there are evidences indicating that the process of de- globalization started a decade ago, Witt (2019) explains there are evidence showing that global trade had a peak between 2007 and 2010, and FDI investments peaked between 2007 and 2011. Furthermore, politics and technological advancements which lower transport and communication costs may lead to the de-globalization movement (Witt, 2019). The definition De-globalization signifies that the nations get less interdependent with each other (ibid). Even though globalization has been set to be positive in the business ecosystem, there are movements against the open borders within some populations, which led policymakers to reconsider their trade agreements and regulations. E.g. Brexit, Trump Administration and other elected parties, which are leaning more towards the right ideological spectrum. Other critiques to the globalisation are the fact that single economies are interconnected globally, where there is a major risk to get affected during a catastrophe. The financial contagion in 2008 led to the Great Recession, which some explain was a reality-check for the people across nations (Van Bergeijk, 2018).

The noble coronavirus outbreak COVID-19, was declared as a pandemic on 11th March 2020 by the World Health Organization (WHO, 2020). Economists state that COVID-19 will have a great effect on the world economy and international trade, according to Baldwin (2020), the pandemic may be as contagious economically as it is medically. A recent study, constructed by a leading group of economists from The Centre for Economic Policy Research (CEPR), consisting of a network of more than 1,500 research economists, has demonstrated the effects of COVID-19 (Baldwin & di Mauro, 2020). To get a better understanding of why a pandemic affects the world economy, we need to see how the global supply chains are interconnected with each other, see figure 7 describing global supply chains within the Information technology (ICT). Figure 7 shows that the ICT industry is interlinked between China and Germany, which in turn are linked to further to India respectively Sweden.

A central assumption and evidence are that there will be a supply chain shock and a demand-side shock (Baldwin & di Mauro, 2020). The manufacturing sector will be affected by supply disruptions, which hinder production; that in turn will lead to a supply-chain contagion in other nations. And hence, it will be more expensive to find other production options. Baldwin & di Mauro explain that there also will be a demand shock due to the macroeconomic effects on aggregate demand due to recessions and because of purchase delays by consumers, who wait to make a purchase during uncertain conditions. There will also be investment delays (ibid). The disruptions from COVID-19 may lead to unexpected de-globalization (Baldwin & di Mauro, 2020). It is predicted that the pandemic may lead to a learning lesson for future risk assessments and global supply chains.

33

CHN = China, IND = India, DEU = Germany, SWE = Sweden Figure 7: Global Supply Chains in ICT Source: WTO (2019)

2.5.2. Opportunities Previous expansion theories have focused on how companies gain competitive advantage in emerging markets, while Foligne et al. (2013) argue that the key to success lies in the fact that companies need to focus on marketing strategies and technological components in markets undergoing economic development. This is because companies need to keep up with the new products and services offered to the market, in connection with the fact that communication to consumers about the products and services must be done in an attractive way that interests their foreigner consumers. Emerging markets are considered to be a popular market with long-term growth opportunities, unlike markets in developed economies where competition is already high (Sandberg, 2012). Researchers Knight and Liesch (2016) further explain that emerging markets are also characterized as having rising income development, a larger population of the younger population and financial freedom to attract investment companies to the market. When researchers discuss "long-term growth", they mean that emerging markets show rapid economic growth within the country's gross domestic product (GDP) (Coviello & McAuley, 1999). This means that the economic activity of a nation for one year shows potential for future economic progress that companies tend to be attracted to (Zhou et al., 2007).

Zhu et al. (2006) also argue that the profitability of economic activity rests in the institutional and social relations that will determine what the internationalization will look like for a Western company that wants to enter a growth market. This means that companies that possess resources in the form of capital, but also market awareness and

34 social networks, have a tendency to succeed in emerging markets. Furthermore, Zhu et al. (2006) argue that SMEs are therefore not inclined to act independently in such markets, since social connections to the country's companies, agents or network organizations are essential. In addition, Matlay et al. (2006) argue that SMEs entering emerging markets have greater potential to grow and expand, as they are constantly updated by market demand that is volatile in developing economies and emerging markets. Since SMEs are also likely to be niche in a product area, it will be easier for such companies to adjust their product portfolio, business model or investment area if they wish or need it (Zhou et al. 2007). This is mainly because emerging markets are also known as being unpredictable, which SMEa are more likely to adapt to the situation, than large businesses.

Knight and Liesch (2016), like Savrul et al. (2014), argue that the choices available for SME companies' expansion are mainly based on the quality of the market in combination with the companies that act within the same industry and intuitions. As emerging markets also tend to interest Western companies, according to Savrul et al. (2014) for the following reasons it is natural for SMEs to establish contacts in the new markets, namely, the high flexibility that small businesses exhibit in partnerships, (2) SMEs ability to work out of a cross-functional perspective to gain market awareness and (3) the willingness to establish trade agreements by creating and maintaining mutual interests (Sakarya et al., 2007). In this way, SME companies that also strive for long-term profitability succeed in taking part of the international business operations that definitely have a positive impact in the longer term. Small and medium-sized companies based on the innovative culture advocated by Born Globals also tend to gain access in, for example, market shares, increased information and knowledge exchange that lead to socio-economic improvements. This can be seen in for example; job opportunities being created internally and for the foreign market. It can also be perceived as a domino effect, when the educational sector as well as the national economy standard improved (Matlay et al., 2006).

In addition to the foreign market being an attraction to Western companies, the attitudes of consumers in the new market towards goods and services are important (Zain, 2006). Studies show that emerging markets report high numbers in the younger population that have a higher income, leading to an increase in the demand for international brands and the receptivity of foreign-influenced articles becoming increasingly popular. From expensive brands such as Prada, Mercedes and Gucci to McDonalds, Starbucks and KFC are more common in emerging markets today (Craig & Douglas, 2011). Therefore, the fast-growing population has resulted in companies drawing attention to the Asian market as a gold mine. Furthermore, Craig and Douglas (2011) also argue that foreign companies usually do not understand the consumer in the emerging market which is shown by the difficulty in meeting the consumer's needs.

35

Therefore, researchers believe that SME companies instead can see it as an opportunity, by changing the way of thinking when they meet their consumers. By understanding the overall perspective from the consumer's point of view, companies will be able to produce and please demand in relation to their basic living conditions, which in turn affect the purchase intention (ibid.). Since SME already acts on the basis of limited resources in search of more information and knowledge, competitive advantages are created which MNCs tend to miss. Craig and Douglas (2011) also explain that SMEs have a greater tendency to understand the behaviour in which people distant from the cities consume. This does not mean that a lower price is set for a higher quality, but instead the SME companies manage to niche a target group that sets the success for emerging markets. By contributing to products that for example the rural population can afford based on the lower income, SME companies then succeed in reaching hand in hand with the population to achieve success in their own businesses.

Changing consumer behaviour Internal reforms in the country from the 90’s have led the Indian economy to be one of the fastest-growing economies, predicted to be the 5th-largest consumer economy by 2025 (Beinhocker, Farrell, & Zainulbhai, 2007). The increased middle class in India can be explained by rising in incomes, access to information and communication technology (ICT), and the desire to consume international products (Javalgi & Grossman, 2016). Recent studies show that the middle class in India has a major impact on the Indian economy since this population consumes international brands and has high education which increases the qualified Indian workforce (ibid.).

With the help of technological advancements and access to the Internet, consumer behaviour in India is changing rapidly. In line with the booming Internet access, the transaction of online businesses in India is also growing which allows consumers to access information about brands and have the opportunity to buy online even from the rural areas. There is a shift in the typical Internet-user in India, previously consumers were located in metropolitan areas and mostly aged between 16 – 29 (Statista, 2019). However, currently, the Internet users are also located in rural areas and the age range is also expanding to the elderly generation and more women in the rural area. India is expected to have the world’s largest consumer market by 2030 (Pant, 2014). According to the statistics from Statista Digital Market Outlook, the number of mobile Internet users in India will double from 2015 to 2023. In 2018, 390.9 million people accessed the Internet through their mobile phones. In 2023, this figure is projected to 500.9 million mobile phone Internet users, presented in figure 8.

Due to the increment in Internet users, digital consumers who shop online have also increased. Smartphones are the first source for using the Internet and the use of 36 smartphones while surfing on the Internet has surpassed computers and laptops (BCG, 2019). According to BCG (2019), the forces behind more Indians using the internet is the fact that smartphone prices are falling, a significant decrease in data tariffs in India and an increase of online content which is presented in the local language. Although India has a huge amount of growing Internet users, the country is still behind in the adoption of digital transactions. However, this is changing due to Internet penetration and digital maturity amongst Internet users. It is estimated that e-commerce for consumer electronics, apparel & accessories, food & grocery, etc will increase within a few years. Thus, the profile of a typical Internet user is in a changing phase. According to BCG (2019), female e-commerce consumers will increase by 2.5 times and the age group above 35 years will increase 3 times as much as in 2017.

Number of mobile phone internet users in India from 2015 to 2023 (in millions) 600, 500,9 469,3 486,7 500, 448,2 420,7 390,9 400, 351,6 281,81 300, 242,92

200,

100,

0, 2015 2016 2017 2018 2019* 2020* 2021* 2022* 2023*

Figure 8: Indian internet users Source: Statista Digital Market Outlook (2020)

According to The Diffusion Theory presented by the Sociologist Everett Rogers, an innovative product can appear to be different depending on which market it is introduced to (Keegan & Green, 2015). When consumers are presented to an innovative or new product, they go through an adoption process involving awareness, interest, evaluation, trial and adoption. The Diffusion Theory presents a “Diffusion of Innovation model” describing five adopter-categories, where each segment describes the individuals within a market (ibid.). Innovators are the first 2.5 %, characterized as wealthier and venturesome. The second category named Early adopters consists of 13.5% and are the most influential individuals within their society. The remaining categories are called Early majority (34%), Late majority (34%) and Laggard (16%). The Early majority adopts to new products after they get influenced, where else the Late majority are often sceptical to new innovations or products. The Laggards consist of individuals who are the last to adopt an innovation, they are more conservative (Keegan & Green, 2015). 37

2.6. Frame of Reference

The frame of reference in table 1 summarizes the literature that is used as a base for this study. It will also act as a protocol while analysing the collected data in chapter 5, and finally, in chapter 6, to answer research questions (RQ), presented in chapter 1.

Table 1: Frame of Reference

Research question Literature Concept Central references RQ 1 Internationalization Born Global Knight & Cavusgil (2004) Born Digital Vadana et al. (2019) Strategic decisions Burke (1984) RQ 2 Network model 4 types of internationalization Johanson & Mattsson The business network (1988) internationalization process Johanson & Vahlne (2009) model Ratajczak-Mrozek (2012) 3 Types of networks Tanev (2012) Network Eco System Brand strategy Brand equity Aaker (2009), Keller (1993) SME Brand building Centeno et al. (2013) Firm characteristics & global Gabrielsson (2005) expansions Product-market environmental factors Marketing channel & network relations Country of Origin RQ 1 & 2 Cultural Hofstede’s six cultural Hofstede et al. (2010) dimensions dimensions Hampden-Turner & Trompenaars seven cultural Trompenaars (1998) dimensions Feely & Harzing (2003) Language barriers Opportunities Long term growth Knight and Liesch (2016) Changing consumer behaviour Keegan & Green (2015) Challenges Product risk Chaudhuri & Holbrook Commercial risk (2002) Cross-cultural risk Žigienė et al. (2019) Political risk Renn & Rohrmann (2002) De-Globalisation Henisz & Zelner (2010) Witt (2019), Baldwin & di Mauro (2020)

RQ 1: Why do Swedish SMEs & start-ups establish in the Indian market?

The study begins to introduce the theme areas by highlighting the internationalization process as the first block to answer RQ 1. The theoretical chapter initially presents an introduction explaining the concept of Born Globals, based on a study by the authors

38

Knight and Cavusgil (2004). The purpose is to demonstrate how Swedish SMEs and start- ups internationalize themselves in line with theories that advocate Born Globals, which is based on various causes such as growth opportunities and profitability aspects on foreign markets. The researchers Vadana et al. (2019) then present an updated version of Born Globals, by the name Born Digitals. Further, Vadana et al. (2019) highlight how companies today, unlike traditional models and theories, are expanding into foreign markets with the help of digitalization. To examine how the SMEs decision-making looks regarding how, where, and why, a self-illustrated model is presented based on the original model Strategic Marketing Decision Environment by Burke (1984). Theories of cultural dimensions are used to portray how Swedish and Indian culture is infused in the internationalisation process.

RQ 2: How are Business Networks & brand strategies implemented by Swedish SMEs & start-ups when establishing in the Indian market?

The aim is to use theories from the Network model presented by Johanson & Mattsson (1988). Consequently, identify in what of the following stages; The early starter, The late starter, The lonely international and The international among others, that SMEs and start-ups are anchored in when entering the emerging market India. Besides, we will use The Business Network Internationalization Process Model, which was revised in 2009 to see how relationships within a business network affect business opportunity. The classifications of the ecosystem by Tanev (2012) will be used to get a grip on how the business ecosystem looks within the context of this study.

Furthermore, theories of brand strategy will be used to see how a brand affects the internationalization process. Theories from Aaker (2009) and Keller (1993) about Brand equity, helps us understand the components of a brand and how it can create awareness for a consumer. The explanation about COO gives an insight into how products and services from another country can have predicted assumptions among the consumers. The five phases of SME brand-building constructed by Centeno et al. (2013), will be used to analyse how the chosen cases within this study have developed their brand in accordance with internationalization. The three major building blocks for brand building in Born Globals presented by Gabrielsson (2005) is chosen since it shows how global expansion, product-market environmental factors, and network relations go hand-in-hand while creating a brand strategy.

RQ 1 & 2: According to Burke (1984), there are external as well as internal opportunities and challenges that companies need to consider before establishing themselves in emerging markets. Thus, the study has chosen to lift two more blocks; (1) opportunities, in the form of growth that the researchers Knight and Liesch (2016) focus on, and also (2) 39 challenges, by breaking down the barriers to risk and uncertainty. The study has concluded that there are different types of risks, which various authors have mainly highlighted in their scientific articles. Chaudhuri & Holbrook (2002) highlight product risks, Žigienė et al. (2019) presents commercial risks, Renn & Rohrmann, (2002) presents cross-cultural risks and Henisz & Zelner (2010) studies political risks. Finally, it will also be important to shed light on how today's pandemic COVID-19 has affected companies, which researchers Witt (2019), Baldwin & di Mauro (2020) have done by conducting a study about the situation.

2.6.1. Theoretical Synthesis

Challenges

Business Network

Internationalization Foreign Emerging Market

Brand Strategy

Opportunities

Figure 9: Conceptual model illustrated by the authors

The authors present a conceptual model by reviewing the existing literature and describing why relevant theories presented in the frame of reference are chosen (figure 9). The conceptual model shows how different sections in chapter 2 are related to each other. We assume the Internationalization of a firm starts with relationships within a business network. The network model and brand strategy are linked to each other since they are essential factors to enter an emerging foreign market, in this case, India. However, the emerging foreign market has both opportunities and challenges, which are fundamental sub-factors influencing a firm’s entry and exit barrier.

40

3. Methodology

In this chapter, the research design chosen by the authors is manifested. A conscious choice is made in (1) the scientific starting point, (2) the application of research design, and (3) selection of respondents based on the presented criteria. In addition, the ethical approaches that support the research in connection with the quality criteria for the study's content are presented. A methodological reflection is later discussed in Chapter 6 to strengthen the design and outcomes of this study.

3.1. Research Paradigm The philosophical aspects of business management studies are essential perspectives to consider since they put the written words and interpretations into context with real- life events. By describing the philosophical aspects, it helps us convey the accumulated knowledge in a methodical and well-founded way. Ontology is the meaning of how the world is constituted, and the researchers view of the nature of reality or being, while, Epistemology is the researchers view on what is considered to be accepted knowledge and what knowledge we can gain from the outside world (Bryman & Bell, 2013). There are a couple of main branches within these philosophical aspects that this study has chosen to set the research paradigm. The research paradigm is based on different types of underlying assumptions built on ontology and epistemology. Commonly, research studies are based on Positivism or Interpretivism, since these philosophies are considered as a contradiction to each other. Earlier, positivism was primarily based on natural science. However, positivism can also be applied in social science studies for research pointing toward data collection with quantified data, e.g., surveys and statistics (Bryman & Bell, 2013). Since the aim is to gain knowledge by interpretation of the subjects in the given context (ibid), this study has an interpretivist philosophy with the motive of exploring why and how Swedish SMEs enter into the Indian market. Using the interpretivist perspective also aligns with our research about organizational behaviour (Saunders, Lewis and Thornhill, 2009).

Bryman & Bell (2013) imply that interpretations have three different levels, primarily the researcher should interpret meanings within the given theoretical framework. Secondly, the researcher has to interpret other respondents’ interpretations of the given context, and finally, the researcher has to place the interpretation into concepts and theories. Within the interpretivist paradigm lays the hermeneutic philosophy, which has a central idea that when a researcher interprets the collected data and text, they should view it through the respondents’ point of view and sympathize with them (Bryman & Bell, 2013). Philosophers often discuss the hermeneutical circle, meaning that a part of something can only be understood if it is linked to the whole, and put into

41 context (Grondin, 2016). Debesay et al. (2008) argue that the hermeneutical circle is considered to be a spiral instead of a loop, since the parts in a context are analysed to the whole and the whole adds up to a part, which further is analysed by subsequent research. Hence, this study uses an interpretivist paradigm during the methodological collection, in line with a hermeneutic point of view to analyse the collected data through the respondent’s perspective.

3.2. Preconceptions The authors hold a bachelor’s degree in Business and Economics, with a major in Marketing. Followed by their preconceptions, the authors found it interesting to study how a Swedish SME enters an emerging market due to their immense interest in international business, together with their earlier knowledge in the subject of marketing. Prachi Laxman graduated at Luleå University of Technology and gained knowledge in how institutions affect business strategy on a micro- and macro-level. Prachi has a great understanding of both Swedish and Indian culture, due to her ethnic Indian roots, combined with an upbringing in Swedish society and traditions. Her interest in international business comes from her regular visit to Mumbai; a city that has transformed from bazaars to malls containing Swedish brands over the past decade. Living and traveling within these culturally different countries has given her a broad perspective on how international brands adapt their products to different markets.

Ferha Ahmed Shameil graduated from Södertörn University in 2019. With a great interest in international business combined with her Ethiopian background, she has gained knowledge in multi-cultural contexts such as foreign business relations and how to become an internationalist theoretically. The Ethiopian background and the Swedish upbringing have resulted in a comprehensive understanding of how to cope with two different cultures at the same time. She has also travelled to the capital of Ethiopia, Addis Abeba, yearly. With her academic background, passion for the home country, and interest in foreign markets - she has big plans to settle down in Ethiopia where there are great opportunities for the future diaspora returning.

3.3. Research Purpose While formulating a research purpose, it is crucial that the research purpose is aligned with the research questions in the given study. In business studies, there are three categories of research: descriptive, explanatory or exploratory (Saunders et al., 2009). A descriptive study aims at describing different events and situations objectively. An explanatory study seeks to find relationships between different variables, such studies from the outset focus on finding answers to a problem or situation. The purpose of an exploratory study is to investigate a phenomenon, thus creating new insights into the

42 subject matter under investigation (ibid.). Since this study aims to get a better understanding of why Swedish SMEs enter the Indian market and how business networks respectively, brand strategy affects the entry mode, a descriptive research purpose is most suitable for this study.

3.4. Research Approach Given the research purpose combined with existing theories, a research approach can either be inductive, deductive, or abductive. According to Bryman & Bell (2013), a deductive approach includes the use of relevant theories, which are later tested, while the inductive approach starts by collecting data and developing a theory by using the results. In short terms, deduction involves testing theory, while induction signifies to develop a theory (Saunders et al., 2009). There is also a third category called abduction, which implies research based on theoretical prepositions and proceeds from empirical facts (Denscombe, 2016). Patel and Runa (2019) argue that abduction initially has inductive features, where researchers hypothetically formulate a pattern that will explain and become the basis for a case. This means that the researchers create a theoretical structure and follow the second step where they work deductively; the collected data test the theory.

This study finds a secure connection in using current theory from the theoretical framework in chapter 2 and testing it through qualitative data collection. It is later analysed and developed into new insights in theory; hence the research approach of this study is abductive. Saunders et al. (2009) argue that the inductive approach is more appropriate when the researchers want to study why something is happening, i.e., in this study, why Swedish SMEs enter the Indian market. Even though Saunders’ explanation points to this study, since this study uses previous theories, an abductive approach is more applicable. This study has drawn its research approach through previous studies by illustrating a theoretical frame of reference to investigate the outcomes from the internationalization-, networking- and branding perspective. Consequently, the thesis has been able to compare the empirical findings in relation to the theoretical background. Furthermore, Patel and Runa (2019) believe abduction is favourable, since it gives the research a freedom to switch between inductive and deductive elements.

3.5. Research Strategy There are a couple of parameters, which should be considered within the choice of a research strategy. A research strategy is guided by how the research questions are formulated, time restrictions, existing knowledge in the given research, and finally, accessibility to resources, which enables the feasibility of the research (Saunders et al., 2009). A case study is appropriate for this research, considering the explorative nature

43 of the research purpose. According to Yin (1981), the requirement to use a case study arises when the researchers want to examine a phenomenon in the context of real life. Moreover, a case study is applicable when the research questions are designed to address why and how questions (Baxter & Jack, 2008). In line with this context, this study, therefore, has two research questions:

RQ 1: Why do Swedish SMEs & start-ups establish in the Indian market? RQ 2: How are Business Networks & brand strategies implemented by Swedish SMEs & start-ups when establishing in the Indian market?

Since the research questions include these words, combined with their explorative approach, a case study was chosen as a research strategy. The researchers wanted to examine the phenomenon of Born Global SMEs in a real-life context, i.e., studying the Swedish companies in India. Furthermore, case studies have two dimensions, (1) they can either involve a single case or multiple cases and (2) holistic or embedded (Saunders et al., 2009). These two dimensions, with their four elements, can be combined to design a complete case (Yazan, 2015). Since the aim is to generalise empirical findings by using a comparative design and study the organization as a whole case, illustrated in figure 10, this study uses a multiple and holistic case study strategy.

Multiple cases are used to find similarities, allowing the researchers to generalise collected data (Yin, 1981). Within multiple cases, embedded cases can be applied if the researcher wants to analyse the sub-units of an organisation (Saunders et al., 2009). Since sub-units do not give information about a whole organization, in combination with the time restrictions and availability of respondents for this study, a holistic approach was selected. The purpose of using holistic cases within the multiple case design was to examine the respective organisation as a whole subject by collecting data from respondents who played key-roles in the organisation, see figure 10.

44

Case Multiple Holistic Context study cases

1.1. Advisors Resp. 1 Case 1: Alpha Advisory Organisations 1.2. Advisors Resp.1 Beta

Resp. 1 Internationalization of Swedish SMEs & 2.1. Resp. 2 Start-ups in India Company X

Resp. 3

Case 2: Resp. 1 Companies 2.2. Company Y Resp. 2

2.3. Resp. 1 Company Z

Figure 10: Case-study design illustrated by the authors

3.5.1. Data Collection

Within case studies, the researchers can conduct the following methods of data collection: interviews, questionnaires, observations, and review of documents from archives (Eisenhardt, 1989; Saunders et al., 2009; Bryman & Bell 2013). It is crucial to separate primary data with secondary data during data collection. This is mainly because primary data tend to have a higher degree of validity and reliability compared to the secondary data. Secondary information about the organisations was used from articles on the web, such as different reliable websites and LinkedIn accounts to find respondents in this study. Primary data was used in semi-structured interviews to generate new empirical findings that aligned with the exploratory purpose of this study. Furthermore, the differences in cultural dimensions between Sweden and India were

45 compared by the empirical findings in the form of primary data, respectively Hofstede’s cultural dimensions index in the form of secondary data.

There are three distinct categories for the interviews, which are commonly applied to collect primary data in a case study with an exploratory nature. Interviews can be categorized into semi-structured, in-depth, or focus group discussions (Saunders et al., 2009). Saunders et al. (2009) describe that exploratory research can use both semi- structured and unstructured interviews to collect data; therefore, this study used semi- structured interviews with open-ended questions to collect data. The purpose of using semi-structured interviews was to create structure during the interview process within the different cases, consequently generating data within different topics, which is later analysed using a comparative design between the cases in this study.

Four main themes were created for the semi-structured interviews to collect data within the research field in combination with the presented theoretical framework in chapter 2. These themes were: (1) Internationalization process, (2) Business network, (3) Brand strategy, and (4) Internal and external factors. The cultural dimensions have not been involved in questions during the semi-structured interviews or open-ended questionnaires. The authors intended to use the cultural dimensions while analysing the empirical data, to see if a culture has an impact on internationalization with subfactors such as business networks and brand strategies. After reviewing the semi-structured interviews, the researchers sent an open-ended questionnaire to the same respondents to cover missing data and the rapidly changing environment due to the pandemic COVID-19, which changed the business-ecosystem for the whole world (Harvard Business School). The open-ended questionnaire was created through Google Forms and contained two questions where the respondent could answer without restrictions.

In addition, semi-structured interviews give rise to the interviewer being able to ask follow-up questions to the respondent, so that they can further explain their statement vis-à-vis to the question asked (Bryman and Bell, 2017). When transcribing the content, there was a red thread in each response that the respondents gave us. The authors operationalized the empirical data by encoding the words into different colours. The answers were later compared to each other in the analysis chapter - which the comparative approach also allowed us to do (ibid)

3.5.2. Sample Selection This study was based on a subjective judgement that is included under the collective name: non-probability judgemental sampling. Denscombe (2016) believes that it allows the authors to select adapted respondents. The latter can contribute to the study's

46 purpose by having accurate knowledge in parallel to the main aim of the essay. Therefore, the study has deliberately selected respondents with experience in how the internationalization processes affect Swedish SME companies in the Indian market (Saunders et al. 2019). The study collected primary data by selecting respondents who had the following criteria; (1) company with a Swedish background, (2) advisors with a Swedish background working for an organization that is partly owned by the state and (3) a Swedish and Indian network-organization that promotes the business establishment in the Indian market. Denscombe (2016) explains that such an approach is also called a representative sample. Because the study wanted to have a broader and more diverse perspective, representative individuals from the state and private sectors were selected to participate in the interviews. These people had access to such information the study required, due to the lack of research concerning SMEs.

Since the study is based on non-probability sampling, researchers Denscombe (2016) and Silverman (2016) believe that it will be easier for the essay to answer the research questions with the help of the subjectively chosen respondents. Therefore, the essay collected data from different perspectives, which is presented both from the companies- and advisors’ perspectives. A further selective selection made by the study is that it only included companies that (1) internationalized within the first three years, also classified as Born Globals, (2) SMEs and start-up companies with less than 249 employees and (3) companies with core business that offer digital products and services in the Indian market.

Table 2: Case & Respondent profile

Case Name Title Respondent Duration 1.1. Business Sweden Associate Anna Strandberg 37 min 1. Advising 1.2. Sweden India Business Council General Robin Sukhia 47 min Organisations Secretary/ President 2.1. Truecaller Vice President Kari Krishnamurthy 21 min Director Manan Shah 54 min Marketing Brand Manager Lindsey LaMont 43 min 2. Companies 2.2. Brandie CEO/COO Douglas Andersson 39 min CEO/COO Pranav Kosuri 52 min 2.3. GX Group CEO Paritosh Prajapati 20 min

In accordance with Denscombe (2016), Saunders et al. (2019) explanation of a judgmental sampling also suits the structure of the essay. This means that the authors have chosen individuals who have the knowledge and experience to provide the study with in-depth data. As the research gap affects several areas, such as international 47 expansion and uncertainty in the growing Indian market, it becomes even more important to focus on carefully selecting people who have key-positions in the organization. The individuals holding key-positions could fill in the research gap since this study contains holistic case studies.

3.5.3. Implementation To answer the research questions, the thesis studied eight respondents who participated in the interview by contributing their personal experiences when entering the Indian market. These interviews lasted between 25 and 55 minutes. Before the respondents participated in the interviews, the authors had a short introduction-meeting to make sure that the authors had correct respondents for our essay, but also to be transparent and give understanding to the respondents about what the purpose of our study is. Before the interviews were confirmed, the authors sent out a formal invitation through email, presenting four topics for the interview.

Saunders et al. (2009) explain that the appropriateness of the interview location can affect the data collection; thus, it is crucial to choose a location for personal safety and convenience for the participants. Due to the external circumstances with COVID-19 and The Public Health Agency of Sweden’s recommendation of social distancing, the authors conducted all interviews through online-meetings, which allowed us to interview respondents from different geographical locations. The respondents could also choose to be located wherever they wanted. According to Saunders et al. (2009), the appropriateness of the researcher’s appearance at the interview can also affect the interviewer’s perception; the appearance may affect the credibility, and the bias may affect reliability. The authors introduced themselves by a personal introduction meeting before the COVID-19 was declared as a pandemic, respectively, had video meetings with respondents located outside Stockholm. During the data collection, the online interview took place without video, giving the respondents more freedom to attend the interview through any location and not affect their privacy.

Therefore, it became extremely important for us to send specific information about the interviews, one calendar invitation for the online-meeting, information about how long the interview would take, and a request if the authors could audio record the interviews. When the interview started, the authors introduced the purpose of our study and the four interview topics. One author led the interviews by adding follow-up questions, while the other author wrote down notes and asked additional questions after each topic. Because the study implemented semi-structured interviews, the authors received answers outside the box that contributed to the study in a nuanced way. The semi-structured interviews gave the respondents greater freedom and a chance to discuss. This also helped the study to collect data by avoiding "yes" and "no" answers. 48

Consequently, this study collected varied, realistic, and well-thought-out responses from each respondent.

Since this study used respondents as a primary source for the data collection, it became important to reason about the interview effect, i.e., the tendency where distorted information from the respondents may arise, due to their interpretation of the questions being asked (Denscombe, 2018). Collecting data using interviews as a primary source may have advantages, but also disadvantages in some contexts. This is because the respondents may perceive the question asked by the interviewer in their understanding. According to Denscombe (2018), this can result in distorted answers, unwillingly. In order to reduce the chance of such situations occurring, the interviewer chose to clarify the question by giving examples in connection with the question being asked.

3.5.4. Data Analysis After the data collection, the data was analysed qualitatively. There are two different approaches, either the qualitative or the quantitative methodology, described in table 3. This study is based on qualitative research design, since the aim is to please a complex research area (Bryman & Burgess, 2002). It has not yet been raised to the surface within the framework of how Swedish SMEs establish themselves in the Indian growth market. Since the study is also based on a semi-structured interview methodology, abstract and interpretive words such as experience, perception, business relationships, networks become current concepts during the interviews. Because of this, there is no objectivity or absolute truth behind every answer and discussion. Nevertheless, the qualitative approach allows the essay to be based on a theoretical chapter, which helps to formulae the interview questions (Bryman & Burgess, 2002). This means that the respondent’s in- depth and personal responses are analysed in relation to the theoretical frame of reference.

Silverman (2016) considers that a qualitative approach is necessary since the collected data wishes to answer the research questions. However, the information is based on (1) subjective experiences and (2) interpretative analysis of the authors who present the empirical data, which later leads to the analysis chapter (Denscombe, 2016). The use of a qualitative approach lets words and formulations become crucial building blocks for understanding the reality of the respondent’s internationalization process. When researchers use a quantitative approach, it is primarily about obtaining data using numerical and systematic approaches (Bryman, 2017). On the other hand, the qualitative methodology emphasizes on getting closer to the more in-depth information about respondent’s knowledge and experience (Heaton, 2004).

49

Table 3: Quantitative vs. Qualitative data

Quantitative Qualitative General framework Seek to confirm hypotheses about Seek to explore phenomena Phenomena

Instruments use more rigid style Instruments use more flexible, of eliciting and categorizing iterative style of eliciting and responses to questions categorizing responses to questions

Use highly structured methods Use semi-structured methods such such as questionnaires, surveys, as in-depth interviews, focus and structured observation groups, and participant observation

Analytical objectives To quantify variation To describe variation To predict causal relationships To describe and explain relationships To describe characteristics of a To describe individual experiences Population To describe group norms Question format Closed-ended Open-ended Data format Numerical (obtained by assigning Textual (obtained from audiotapes, numerical values to responses) videotapes, and field notes) Flexibility in study design Study design is stable from Some aspects of the study are beginning to end flexible (for example, the addition, exclusion, or wording of particular Participant responses do not interview questions) influence or determine how and which questions researchers ask Participant responses affect how next and which questions researchers ask next Study design is subject to statistical assumptions and Study design is iterative, that is, conditions data collection and research questions are adjusted according to what is learned Source: Adapted from Hashemnezhad (2015)

Denscombe (2016) furthermore believes that the function of the qualitative approach tends to demonstrate what reality looks like since it is a methodology that priorities the respondent’s formulation and subjectivity. Therefore, in order to raise different perspectives on the internationalization process with the help of the companies and network organizations, the study has also chosen to include diverse approaches that discuss the topic from different perspectives. This study aims to explore the subject matter by presenting (1) how companies have experienced their internationalization, (2) what experience they have gained through networking and their branding strategy but also (3) which opportunities and challenges there are in the Indian market. By giving the respondents a chance to explain these concepts, the study can give a deeper understanding of the different internationalization theories and empirical data (Denscombe, 2016).

50

Within the framework of qualitative studies, the method of analysis can be applied from two perspectives; either manifest or latent (Olsson & Sörensen, 2011). The manifested perspective mainly focuses on the actual content, which is interpreted as in what respondents exactly say and express during the interviews. On the other hand, the latent concept differs because it primarily focuses on the meaning behind the actual content (Olsson & Sörensen, 2011). The latent concept can be explained when the authors or researchers for example observe how a respondent poses a question or how he or she argues for its position. This study therefore mainly used the latent approach, because the study is aimed at understanding the phenomenon deeper than just presenting what the respondents replied to the questions.

The study is divided into the following theme areas; internationalization, business network, brand strategy, challenges, and opportunities. Chapter 4 and 5 will follow these theme structures to make it easier for the reader. Since the study used the latent approach to analyse the collected data, Ponterotto (2006) would explain it as a “thick description” approach. Thick description indicates that the authors, with the help of qualitative methods, interpret the collected data subjectively and very carefully. This approach primarily focuses on the difference between what has been (1) said, (2) observed, and (3) interpreted. Furthermore, this means that the authors subjectively analysed the collected data in comparison to the theories by associating between what the respondents said and what the authors perceived during the interviews. As mentioned in the beginning of this chapter, the study holds a hermeneutic philosophy meaning that the authors seek to interpret the collected data from the respondent’s perspective.

3.6. Quality Criteria Denscombe (2018) in parallel to Bryman and Bell (2017) explains that it is essential that studies are reviewed with the help of quality criteria, so that the author and other readers can speculate the methodology using a critical approach. Therefore, four concepts are presented below, in order to describe the challenges and strengths the study encountered. The challenges faced are presented under 6.4 Method reflection and discussion, together with the general improvement suggestions for the essay.

(1) Credibility is about how credible the collected data is, as the qualitative approach can encounter difficulties when the author presents the primary data, which is gathered from interviews (Bryman & Bell, 2017). Therefore, the authors have taken these criteria into account by focusing on the design of the interview guide. Because the study has deductive elements, the interview questions have been designed using the theoretical framework and what the previous research says. Since the study is also based on a semi- structured interview methodology, Denscombe (2018) believes that it strengthens the 51 study's credibility because it creates space for follow-up questions and questions from the respondents during the interview. This method decreases the risk of misunderstanding, for example, questions or specific words during the interviews. A further enhancement of the study's credibility can be found by the respondents receiving a basis of the five themes that the interviews are based on, a week prior to the interviews. The intention was to let the respondents contribute with more solid information through personal preparation before the interview.

(2) Transferability focuses on which extent the result of the study can be applied to other cases to make sure it results in similar outcomes. Denscombe (2018) believes that independent researchers should be able to research similar subjects within the framework and produce similar conclusions in order for the study to be perceived as reliable. This can be challenging in a qualitative approach, as the study is based on subjective experiences and thoughts (Bryman & Bell, 2017). For this reason, the study has attempted to incorporate the criteria by including representatives holding a key-role from the business perspective but also from an advisory point of view. In this way. Bryman and Bell (2017) believe that the study makes an active choice to exclude irrelevant sources of information and by motivating why the study’s respondents were chosen. This strengthens transferability as there is a research gap within the framework of SMEs establishment in emerging markets like India. The study has also openly presented who the respondents are to promote transferability, if future researchers want to research in a similar area.

(3) Confirmability is about the objectivity of the study and if the author's personal values and thoughts have influenced the outcome of the study. Denscombe (2018) argues that qualitative studies can never be completely objective, meaning that the study can reduce the risk of lower confirmability by the authors being open-minded. This study has attempted to promote this criterion by being aware of the misunderstandings that may occur during interviews and constantly finding theoretical evidence to explain phenomena that arise. Denscombe (2016) believes open-mindedness promotes objectivity, which the authors have tried to be aware of constantly. The study is fundamentally based on the collected data and less from a subjective perspective, by being attentive during the transcription process of the documentation of what exactly has been said.

(4) Reliability, Denscombe (2018) focuses on how transparent the authors have been when they have gathered information, and when analysing the data. Furthermore, Denscombe (2018) argues that transparency is required to influence every chapter of the study because it helps the reader to be convinced of the content from the beginning. In order to promote this criterion, constant arguments have been presented under each sub-heading. Because the study refers to several theories and researchers, the aim has been to prove that the research gap is real from different perspectives. As mentioned 52 earlier, the study presents methodological criticism in order for the authors to show an understanding of the study's shortcomings, which results in constant questioning of the study. Bryman and Bell (2017) argue that the study's shortcomings in relation to improvement proposals show that each study will not be perfect and that it increases the reliability of the study by being aware of that.

3.7. Research Ethical Aspects Within the framework of qualitative studies, it is necessary to use research ethical guidelines in line with guidelines prescribed by the Swedish Research Council in the 90s (Vetenskapsrådet, 2002). Since social development depends on the research and evolution that is constantly changing, it is also important to work in the promotion of researchers and contributing respondents who take part in the research (Vetenskapsrådet, 2002). This study is therefore based on ethical principles by verifying the ethical principles that affect the respondents and the scope of this study. There are four concepts presented below:

(1) Information requirement is the first requirement, which means that researchers are obligated to provide prior information to respondents about the study and its purpose (Vetenskapsrådet, 2002). The rationality by applying this requirement is to provide room to the respondents, letting them decide whether to accept or decline the interview request, depending on their experience regarding the purpose of the study. The information requirement gives the respondents the right to refrain from having their interview presented in the study, if they consider the interview did not fulfil the information presented by the researchers at the start. The study adopted this requirement because it conducted a background check on the respondents in question. The authors managed to find accurate respondents through LinkedIn accounts and online searches. The relevant respondents were later contacted based on title and work experience. Information about the purpose of this study was sent to the respondents. The respondents confirmed if they understood the purpose, which led them to accept the invitation and participate in the semi-structured interviews.

(2) Consent requirement is the second requirement that focuses on each individual having self-assertion to participate in the interview (Vetenskapsrådet, 2002). This is conducted with the help of the researchers gathering information indicating that there is consent from all respondents. This study has taken this requirement into account by briefly discussing the topic of the thesis with the companies/advisors in the early stage of the thesis; when we initially brainstormed. The next step was to send a formal invitation to the respondents with a supporting document on the theme areas. In the formal invitation, the authors explained the purpose and that the interviews would be audio-record. The authors received confirmation from all parties, as they responded to the interview inquiry. The formal invitation was extremely transparent as the authors

53 wanted to make sure the respondents understood everything. The email-invitation included an interview basis, time frame, and date for the interview.

(3) Confidentiality is the third requirement, which considers the respondent’s privacy level. For example, by asking the respondents if they want to be anonymous or to what extent they want to be presented in the research (Vetenskapsrådet, 2002). This is to respect the respondent's integrity so that they do not perceive the situation as unpleasant or offensive. The study has promoted this requirement by clarifying the purpose, informing that the respondent's contribution will be used in the study. Both before and after the interview, we ensured that the respondents were aware of what was happening, and we also confirmed that they are okay with being published in the study. To increase the credibility of the empirical findings, it has been desirable to present the respondents in connection with their work positions. This is to help other researchers interested in a similar field to get inspiration. The working title also helps the reader understand and trust the choice of the primary source of the study.

(4) Useful requirement is the last requirement that stands for a non-profit purpose of a study. The thesis should not have a commercial purpose or be used for non-scientific reasons (Vetenskapsrådet, 2002). This also applies regarding the integrity of the respondents, as the study must promote the participants by keeping the same mindset on the individual level. Thus, this study has only focused research that we as researchers have perceived/identified as a research gap; Swedish SMEs establishment in the emerging Indian market. There is no profit-making purpose, as the main aim of the study is to increase knowledge about the subject and inspire the next researchers who are interested in the same area.

54

3.8. Methodology Overview Each component that has been described and used as a building block for the methodology within this study is summarized below in figure 11.

Philosophy Purpose & Approach Strategy • Interpretivism • Descriptive • Case studies • Hermeneutics • Abductive • Multiple & holistic

Data collection Sample selection Data analysis • Qualitative • Non-probability sampling • Audio records • Semi-structured interviews • Judgemental sampling • Transcription • Open-ended questionnarie • Thick description

Quality criterions Research Ethical aspects & ethical aspects • Information requirement • Credibility • Consent requirement • Tranferability • Confidentiality • Confirmability • Useful requirement • Reliablility

Figure 11: Building blocks of the methodology

55

4. Empirical Findings

This chapter presents the empirical findings collected through the semi-structured interviews and open-ended questionnaire within the case study, designed in the previous chapter. The empirical findings consist of transcripts from the semi-structured interviews and are divided into five different categories: internationalization process, business network, brand strategy, opportunities, and challenges. Each category consists of five cases. The contextual information is presented in table 4 to get a better understanding of the participated respondents.

Table 4: Contextual information about the cases

Case Founded Product/Service Respondent Sweden India 2003 Sweden India Business Council (SIBC) Robin Sukhia is Secretary General and Business is a network organization that was President of SIBC. Council created in 2003, with the aim of Mr. Sukhia has worked with India (SIBC) promoting Indian and Swedish since 1996, which means he has a enterprises. SIBC arranges seminars in steady market knowledge. He also the form of “round table” discussions holds an academic background in and general meetings, where SMEs & Business Administration. MNCs join their gatherings. Mainly, this organization wants to help investors establish in both India and Sweden. Business 2013 Business Sweden is a partially state- Anna Strandberg is a consultant Sweden owned organization founded in currently working for Business 2013. The aim of the organization is to Sweden in Delhi. She has promote Swedish enterprises to international experiences when it expand internationally, but also to help comes to start-ups and non-profit international companies invest in organizations, with an academical Sweden. Business Sweden also helps background in innovation and start-ups, SMEs & MNCs to expand and business development. establish themselves through customized market analysis Truecaller 2009 Truecaller was founded by Alan The respondents from Truecaller are Software Mamedi and Nami Zarringhalam, who (1) Vice President, Kari Scandinavia established the company in Sweden Krishnamurthy, who has a AB and later expanded to India and other background in brand professionality markets. The company provides a & Telecom industry, and a Business smartphone application, which helps Management Graduate. (2) Brand the mobile user to identify calls, audio- Manager, Lindsey LaMont, marketing record and also flash-message. professional and (3) Marketing Primarily, the app is developed to help Director, Manan Shah, who has users track numbers & spam-calls. marketing and communication quality experience of 15 years.

56

Brandie 2013 Brandie is a marketing platform that This essay interviewed the both Co- was created in 2013. The company founders Douglas Andersson and primarily enables companies to build a Pranav Kosuri. They both have an loyal customer segment, by making academical background in Innovation consumers to be a part of the and Engineering, with a great interest marketing effort. Brandie helps in Asia as well as emerging markets. companies to get help from their customers, in a way where they create personal and authentic content of a brand that they like and then posting it on social media. The customers are then rewarded by the brand owner. GX Group 2002 GX Group is a digitized company that An interview was held with the CEO was founded in 2002. With the help of of GX Group, Paritosh Prajapati, who the expansion of the Indian telecom also leads and supports the Indian sector, GX Group has been able to businesses. He has 20 years of focus on digital broadband solutions international experience, when it for two million households in India, comes to digitalization and telecom. which is one of the largest upcoming Before GX Group, he was working for markets in this industry. Nokia, Telia and Siemens. He also holds an academical background in Electrical Engineering.

4.1. Internationalization Process

Case 1.1 Sweden India Business Council The Secretary-General of the Sweden-India Business Council (SIBC) and chairman, Robin Sukhia, elucidates that Swedish SMEs developed an interest and find the Indian market attractive because it is so large. He further pointed out that the large market is made up of a local population that has great academic titles, but also that access to Research and Development (R&D) is accessible to everyone in the community; private persons, authorities and companies. As the Indian population has a strong interest in its own market, it automatically attracts other investors from the West. Another interesting aspect, Robin explains, is by focusing on the language. He explains that Swedish companies show a great interest in India, as the local population has good English skills compared to other Asian emerging markets such as China. He further highlighted that all regulations and laws are easily accessible in English, which makes it easier for Swedes to understand. Furthermore, it will be easier for the Swedish SMEs to create their own perception of enterprise, as the universal English simplifies and reduces the barriers between the Indians and the Swedes.

Robin further explains that it is important for the Swedish SMEs to make use of the English, since India is a country where you have to be able to create your own ideas and 57 interpret different phenomena before entering the market. Robin believes that market knowledge is extremely important and compares India with the US. He explains that India, like the US, has English as a main language and that they also have their own currency. He also says that they usually make comparisons between India and the US so that the companies can understand the Indian market.

Digitalization has an impact on the internationalization process and Robin believes that it is an efficient driving force and trade route that helps the Swedish SMEs to position them in India. On the other hand, he explains that it depends on which industry you work in. For example, Spotify, Truecaller and all other companies with digital products can use digitalization as a driving factor, with no tariffs for digital services and no logistics problems, Robin also clarifies. However, regulations may arise when handling, for example, databases and the General Data Protection Regulation (GDPR). The difference between SMEs and MNCs is that the larger companies have the opportunity to convert their digital services to digital products, by setting up manufacturing companies and factories to be able to use robotization instead of human capital.

Robin explains that this is a big reason why many companies are also attracted to the market, as digitalization incorporates the product and supply chain with the help of digitalization. In addition, Robin further explains that digitalization has helped Swedish companies but also companies in general that want to establish themselves outside their borders, to conduct the dialogue via Internet apps. He says that WhatsApp is widely used, which was not the case 10 years ago. It is a digital tool that reduces costs, he says, because as an entrepreneur you do not have to bring an interpreter with you all the time. You can instead simply text or call regarding your business ideas. Robin then explains that the conditions may differ when an SME wants to enter the Indian market unlike MNCs, but that it does not always have to do so because business in India is primarily about the people, and connections to these people. The differences may lie in the fact that the smaller companies do not have the opportunity to contact the Indian authorities, which MNCs can do. However, Robin explains that it does not take away from the other advantages that SMEs possess, such as being small and flexible in many areas.

Robin also cited an example, where SIBC helped a Swedish company dissolve a knot in the internationalization process. He explained that SIBC helps SMEs take advantage of the bilateral agreements that are at hand and further explains that the Swedish company did not know about it. SIBC thus helps those companies that have no idea what the legal parts of the internationalization process look like, which MNCs have much better knowledge of. Robin says that in many cases, the larger companies in India, for example, have an operation group in the market, which is a huge help that SMEs do not have. He

58 further explains that SIBC therefore has various ministries and divisions that help SMEs who are at various stages of the internationalization process when establishing in India.

Case 1.2 Business Sweden Anna, from Business Sweden, says that India is a large but above all, a fast-growing market compared to other parts of the world. They have a growth rate of 5–6%, she explains, adding that it has been so for several years before COVID-19 struck. Other attractions that Swedish companies usually pay attention to, are that they are able to manufacture products at a cheap price and that there are high competent staff at a lower wage, in connection with the fact that these are easily accessible. Business Sweden helps Swedish companies to establish themselves in India in different ways, says Anna. She explains that they help companies to register in India, provide advice to those who want to penetrate the market, link the companies to key people in their industry etc. Business Sweden also helps companies to maintain employment agreements between the company and the employee by paying salaries etc. As India is super large, Business Sweden helps with market analysis in India. Anna thinks it is important for Swedish companies that are in an ongoing internationalization process, so that they can understand the market in the best possible way. Then Anna also explains that it depends on what the company is looking for. Some wonder how to build their brand while others need help with commercial agreement etc. In summary, she says that Business Sweden helps with the practicality of the internationalization process.

Anna advice that Swedish companies should have a solid strategy before entering the Indian market because she thinks she should have done her homework properly, because India is like a large continent such as Europe. You also need to understand the mass of the country; the culture, the language and above all that you have to have a customized business model for the Indian market. In addition to making everything much cheaper, Anna thinks that companies should focus on simplifying the complicated products by being innovative, so that a larger crowd of people can make use of the product.

Anna also says that Swedish companies tend to move to India, because they quickly realize that Sweden is a small market to grow on. With the help of digital services, it will also be much less costly to establish abroad today. She explains that India is an interesting market with a growing population and middle class, with the larger proportion consisting of a younger generation. This means that the people of India have succeeded in using digital products, which are extremely popular and rapidly growing among their population. Anna says that it is almost strange if a person would not have a smartphone today. She also believes that this is an attractive reason why digital, Swedish companies today want to establish themselves in India. 59

Furthermore, Anna explains that the internationalization process for companies today and 30 years ago is very different. Then they thought of physical products, which required stocks, customs costs, different means of transport etc., subsequently they had to find local agents and they started from traditional trading. She then says that the internationalization process looks completely different, since it is mainly digital products and services. Partly those things go faster, but also that the companies do not have to find a local partner, you can on your own establish in a market today. In this regard, Anna believes that as a company you get closer to your end customer and that the company can choose the quality of its products and services. As you get closer to your end customer, you understand the Indian market, for example, in a much better way than if you were to work in several stages as the majority of MNCs do.

Case 2.1 Truecaller

The internationalization of Truecaller took place organically, with word-of-mouth. Manan, who is Director Marketing at Truecaller implies that Truecaller never took steps to internationalize in India, it was just that the Truecaller-app was available on the Play Store and people who faced spam or unknown numbers calling them, they found Truecaller to be a solution. Truecaller was popular even before The Google Play Store and IOS app store that came into existence. All agree on the same point that “Truecaller didn’t find India, India found Truecaller”. People found a way of discovering Truecaller, when the founders were not aiming for new markets yet. Lindsey explains that the founders were students from The Royal Institute of Technology (KTH), when they created the app. They wanted a solution for their own problem for spam-calls. In the beginning, Truecaller was a team consisting of three developers who were students at KTH.

Truecaller was founded in 2009, when the iPhone had just been launched into the market, but at that point, Truecaller was developed for Symbian phones and not really a brand yet. In the beginning, Truecaller was more just like a caller ID, the app was a forum and it had gained over ten thousand installs, which mostly was from Lebanon. Manan explains that Truecaller specifically didn’t choose to enter any specific markets. Lindsey means that the app became so popular in India since the app had a global outlook, combined with the ever-growing telecom market and smartphone market in India, which helped Truecaller in a great deal. According to Manan, the founders never imagined that India would become such a great market for the app, the recipe for growth was perfect since there was a lot of spam calls and unknown number calling as a trend in India, and this lead to consumers specifically from India becoming aware of Truecaller, hence spreading it by word of mouth (WOM). According to the Brand Manager Lindsey, when it comes to user’s acceptance their product, experiencing their

60 product and enjoying the solution for caller-ID and spam-calls, they started seeing the growth in the Indian market, which sort of raised a very important flag for them in a positive way. The Vice President Kari describes that they built the app not for a local purpose but with a global outlook in its mind.

Manan says they primarily manage the Indian market and the neighbouring countries. So, India plus the neighbouring countries is a terminology called SAARC, the SAARC countries are basically an association of eight countries neighbouring India, basically who formed a union. By targeting India they can also target these countries, Manan says the culture is similar, the trains are similar, the languages are similar and if your communication is primarily in Hindi and English, then you have covered almost all the urban markets and at least the northern part of India. Truecaller’s existing network of local agencies for instance who make the campaign and designs the marketing have a good understanding of these adjoining countries, thus they are able to deliver material for these countries also. Manan said it's easier for them sitting in India to manage the neighbouring countries and reduce the amount of work. Otherwise, they would have been required to set up an office in each of these countries.

Interestingly, Manan gives us an example of what Truecaller is doing in Africa: and he said there are a lot of cultural similarities between African countries. Not just not just in terms of language similarities, rather in terms of general range and range NP cultural things that you see like Africa is a huge market, in terms of people who are getting into mobile payments, as a new thing and a new technology. They are seeing a lot of growth for Truecaller in Africa, Truecaller is a fairly known name. Manan states that even if Africa is a continent, it is easily referred to as one country because of so much similarity. The biggest challenge for Truecaller is to keep a very close eye in terms of what are the other plants or other competitors or potential competitors doing in these markers. Africa is used as a test bed for a lot of new features and products, Manan says they do not do that. But a lot of other companies try out new products and new features in a smaller geography in Africa, and then they expand it to other countries. These are interesting trends that Truecaller has seen.

Case 2.2 Brandie The Co-founder Douglas says that they chose India because they were looking for a grown market that they want to establish. Therefore, with his partner and co-founder Pranav both had their eyes on China because Douglas was living there before founding Brandie. However, they then concluded that India was in a very interesting position than China in 2016, when Brandie was founded. Douglas goes on to say that he had knowledge and interest in emerging markets and that Pranav is also half-Indian, which was a great opportunity for the establishment. Douglas also explains that India was in a transition to a super-digital society, where mobile payment was the new thing back then. China

61 already had such a society, which caused Douglas and Pranav to choose India instead. At the early stages of the internationalization process, both Pranav and Douglas knew that they wanted to establish their platform for development and innovation in Sweden.

Douglas says that the next step was to go to the Indian city of Rajahmundry, which was also Pranav's hometown; hence they bought tickets and flew to India to test the product for a month. Douglas explains that they conducted pilot studies in restaurants and cafes, by discussing with the owners. They explained the concept in such a way that they wanted to help the owner increase their customer base on social media. The concept was based on word-of-mouth (WOM) that would help the owners to become larger, by allowing everyday individuals with smaller companions to pass on the word about their particular café or restaurant. Douglas also recalls that both he and Pranav then went back to Sweden and waited for the product to be validated. In just three weeks, they had 4,000 unique users, who had shared 16,000 images in a city of 300,000 residents. Then Douglas says they adjusted their product based on the criticism and feedback they received. Douglas also says that their customer base is mainly the new generation, as these are visible in the restaurants and cafes but also because they are mainly on social media.

Douglas also explains that there is no specific way to enter the Indian market, because you can do it in different ways. However, since networks can help Swedish companies both at the individual and industrial level, he thinks it is worth taking the help of organizations that already exists in the market. He therefore recommended that a new entrant to contact SIBC, Business Sweden or/and the embassy. As India is a relationship- based country, it is important that you are ready to network at a personal stage that differs from Sweden. Here you are more formal, Douglas thinks. However, Douglas believes it is also extremely important to be read about the Indian market. Knowing what the trends look like, knowing what they look like in their industry and reading reports etc. When Brandie started the internationalization, they did their background homework carefully and benefited from the market analyses of Business Sweden.

Pranav explains that they didn’t see any product-market-fit in Southeast Asia, they investigated China and India then consequently, saw a potential in India since many people speak English and there is an opportunity to develop against same types of apps and social media as Facebook, Instagram or Twitter, which is not the case for China. Pranav says in China they use WeChat and other similar platforms. The first step to India started with them visiting the hometown of Pranav’s family in India. After some research, where they studied what people share on their social media etc., Pranav says they conducted a pilot study with local restaurants and cafes, which gave them very good outcomes. Then they went back home and raised money for it.

62

Pranav continues the narration and said that when they came back to India again, it was through a contact, which they had connected to through an India-Sweden event. He recalls that this contact made an introduction to a woman named Hanna who lived in Mumbai. She is Swedish and comes from Österlen, but has lived in India now for seven years and had worked as a management trainee in Mahindra previously, then she worked for a start-up, initiated by the founder of Clear trip, which is one of the largest flight booking sites in India. Pranav tells us that Hanna had a wide network of contacts. Since they mutually connected very well with each other, they decided to start working with her. According to Pranav, their new partner liked the idea that a Swedish company wanted to take the Indian market with her. Together with Hanna, they reached a goal to meet 10 of the 10 companies that are well recognized brands in India. Together with her, they worked their way into the Indian market with the help of these ten Mark-key brands that many Indian brands look up to, Pranav explains.

According to Pranav, they had people who could validate their technology and their product, so it was really where it started. Later, Pranav was elected to the board of Sweden India Business Council, which also opened many new doors, he explains. Pranav says that Robin from Sweden India Business Council has been a very big part of Brandie’s journey. Pranav says SIBC has started to put focus on start-ups, which is predicted to be the next wave and yet, not many start-ups are looking at the Indian market and the connection with SIBC has given them leverage, they have pushed them quite a lot and it has opened a lot of doors in India.

Pranav says his experience is that when you take a new product to a market, whatever it is, you will always work with early adopters first because they are always the easiest to target, by referring to the Bell curve which is a product life cycle, and went on saying that working with an early adopter is always the easiest to get and they are fast on catching on. But it is still a small group and it is quite difficult to work against the early majority. Further on, Pranav said once you have pressed the early adopter and instead of pressing early majority, you choose to enter a new market and open in a new country, because it is easier to reach early adopters.

Pranav believes you can replicate what you have done in the country previously. His experience when he started another company prior to Brandie, named Flic, was that first they drove in the US and in Scandinavia and got all the early adopters in those markets then pretty quickly, they wanted even more customers but didn’t really know how to take the majority of a market. Pranav described that it is very difficult and costing huge amount of money, hence it is easier to look at a new market. With Flic, he opened e.g. in France and Germany. Pranav expresses its hard, since working towards Media Market in Germany or Germany as a market, you must have marketing communications that are in German. You must have the app in German; you must have packaging that is in

63

German. Regarding the language barriers, one of the criteria for Brandie was also to find a market that is big enough where it can have enough early adopters.

According to Pranav, there are about 350 million people who are classified as middle class in India who have the same purchasing power as in Europe. Thus, you have a very big chance of meeting early adopters in the part that you can still grow and work on. You can provide that in a very cheap way because they understand the product quickly, they want to test new things. It is a market where you can jump into a very large market share that is early adopters. Thus, you don't have to move away from the market. It is a major contributing factor to their view of China and India, the two largest markets in the sense of population. However, they chose the Indian market because of the English language that they do not have to develop for technology development against Chinese API. By choosing to enter the Indian market, they do not need Product Information in Chinese, or apps in Chinese. By choosing India, they can have English websites etc and that was one crucial factor of why Brandie chose India Pranav concludes.

Case 2.3 GX Group Paritosh says that he chose India because of the opportunities that existed when he mainly analysed the market in its present and also future contexts. Since he also has Indian roots, it was naturally to him to explore the opportunities in India. Initially, a lot of offsite took place, so you are close to the customers and the local market he explains. Paritosh goes on to say that India is not a short-term country, but one must see the investments that one makes in the longer term. He believes he was ready to have patience when he gave up the Indian market, because that's what he was interested in. Above all, he wanted to establish his business there, as it is a developing country with highly competent workers that you find at a lower cost. He explains that India was a country that cut costs, which several SMEs should take advantage of. Furthermore, Paritosh said that GX Group offers citizens services that contribute to the use of broadband services, which the Indian population extends to a large extent. He believes that digitization has helped GX Group to meet high demand as it has provided solutions for the customers.

Paritosh says that he also spent a long time in India; he went back and forth for six years. He explains that it was extremely difficult to go there and meet new people, but that it later helped the business to establish itself. Paritosh explains that initially you need to understand the market, the culture and start small projects, before jumping to aim high and too big. He believes that there are several aspects that Swedish and Western SMEs should keep in mind but understanding emphasizes Paritosh as much.

64

4.2. Business Network

Case 1.1 Sweden India Business Council Robin explains that India is a big market that will be a challenge for the companies, as they do not have knowledge of it. That is where SIBC comes in and helps companies tackle the market that consists of regulations, strong culture and product customization. Robin went further to say that SIBC is a network organization that will act as an operation group for SMEs, ie. a group that helps in companies to understand the Indian market. He explains that the larger companies have operation groups, which helps them gain market knowledge. The SMEs, on the other hand, take the help of SIBC by participating in “round-table” events, ie. Several SMEs gather to have open discussions about their journey to the Indian market. During such discussions exchange advice for each other, while giving the new SMEs the chance to find the right contacts who have been in the same seat as them. Robin explains that such platforms of discussions help companies reduce the chance of mistakes, which in turn means reduction of costs.

Robin explains that SIBC has also been named one of the world's best country-to- country organizations, by having 500 successful activities over the past 10 years. SIBC has had many seminars, where they mainly share plenty of information to SMEs and so far, Robin says that they have not done any bad activity yet. He also explains that it is not only because of SIBC, but that the people, with whom the organization has worked with, have contributed to enormous success. The individuals that SIBC has chosen to cooperate with are passionate about their work and goals. Although not everyone has presentation ability as Robin explains, he believes that they succeed in conducting the dialogue with the help of communication that SIBC helps with because “round table” discussions give rise to a joint discussion. Robin says that five companies with different backgrounds, products and conditions can contribute with much more than you ever would think. One might work with vehicle technology whilst the other with health issues. However, he explains that it is important to find the common pillar, which is how to market-link in India. Robin also states that companies coming from different directions contribute to a huge breadth of issues, both from those who will start their journey and those who reflect on their internationalization process. This results in a comprehensive understanding of the market. Such information, Robin believes, is valuable because one can hardly Google or buy such answers. SIBC provides companies with intensive and rewarding information during a two-hour seminar.

On the other hand, Robin explains that there are companies that have almost succeeded without SIBC. Some that internationalize completely independently, some that have taken lots of help and even those who asked for advice at a later stage of their internationalization. Robin then tells us about some SMEs that have taken help from

65 their business network. This company needed to get in touch with (1) the Business Council, in order to understand the market and (2) authorities, to understand the legal aspect. When the company travelled to India, SIBC connected them with people that had the right background and then set up meetings. Although digital services can be considered easy to work with, Robin explains that the most important thing SMEs is that they need to visit the market they want to enter. One must understand the networks, the people, the product and above all the patterns of the purchaser’s behaviour. Therefore, it is not enough to just Google or send emails to the people.

Another example Robin mentioned was a large Swedish company that established itself with the help of another American company that had very good market knowledge about India but a poor network. Although they are known, SIBC helped the company by connecting them to the right key people within the government partly on the Indian and Swedish side. With the help of the embassy and government officials, it took about 25 minutes to connect the right people to the right job. This is a huge development for SIBC, as it indicates that you have done the right job, Robin explains, as it demonstrates that networking is effective. This applies to both MNCs and SMEs, he adds.

Robin also says that SIBC as a network organization is easily accessible to companies, what it requires is determination and a minimal small service charge. The cost for the services is different based on the size and turnover of the company, e.g. a company with 1-10 employees are expected to pay 2875 SEK, while larger companies with a turnover of 5 billion SEK are expected to pay 21,275 SEK annually. Another prerequisite is that the companies must have an establishment in the Nordic market. He also specifies that SIBC only assists companies and not individual persons. The reason why they must have a Nordic establishment is because it can be demanding to work together when it comes to the financial aspect, which for example consists of invoicing. It can also be really difficult when dealing with companies that have completely different regulations when it comes to the financial arrangements.

Case 1.2 Business Sweden Anna considers it is important that Swedish SMEs seek help from business networks, especially when they plan to establish themselves in India. She thinks that, because India is a relationship-based country where there is high bureaucracy. Therefore, in order to establish itself in the market, it will be important to have contact with the local population but also the official authorities. As a company, you have to know how the legislation works and therefore Swedish companies usually want help when it comes to the public relations department, so that you get to know key people while building your business network. Anna says that the bureaucracy characterizes the business world so much that it can take months before getting a response if, for example, the company needs approval or an answer to its queries. Therefore, business networks are a must 66 before one decides to establish itself in the new market. Business Sweden helps companies in different ways, but Anna thinks it is relevant that the company has a suitable product and capacity to invest. It is already strenuous to establish abroad; which Business Sweden is ready to help with.

Anna also explains that networking in Sweden differs from the Indian one. Swedes network in a transactional way, that is, you talk to the one you have to in order to have an exchange between them. She then states that Indians primarily network to create and maintain a relationship, which helps make it easier to meet for coffee than just to discuss business. Anna also thinks that Swedes are withdrawn and obscured when, for example, they do not discuss private life as they do in India. There it is important to ask about the person's family, even wellbeing and other questions, which are not directly related to professional life etc.

Anna, on the other hand, says that networking in India consumes time, is a long process; because it is such a large market that one has to deal with at the state and national level. Besides that, the cultural differences are great, in connection with the need to have access to the right person. She explains that you do not even know who is serious and not, when some, for example, go around with fake business cards. This is a general challenge, says Anna, regardless of any emerging market.

Case 2.1 Truecaller Manan explains that when the app was recognized in India, but before Truecaller had established their business operations in the country, Kari was the first employee hired by Truecaller in India. It was not a formal process according to Manan, since Truecaller is not a formal organization or a traditional organization in that sense. While Kari was working for another company in India, he discovered this app called Truecaller and he happened to do some research behind it, and figured out the founders and he sent out an email to Nami, asking him what are his plans for India and interestingly Nami replied back to him asking him what are his plans for India? The founder and Kari had a discussion and later Kari joined Truecaller as a rate of growth.

After Kari joined Truecaller, the first vertical was set up in India. Manan explains that for an app like Truecaller that is a utility, it is important not only to grow with consumers but also to develop an ecosystem. Along with Kari, other people joined Truecaller in India; they essentially set up the whole premise for Truecaller to have an ecosystem in India. Manan describes the ecosystem in terms of working with other companies, e.g. handset manufacturers in India or OEMS receiver, since these networks of people are important for Truecaller in terms of the ecosystem. Furthermore, Manan explains that these kinds of networks help them grow faster than in other traditional order formats of growth, which are, downloads. By partnering with OEMS, they started contacting

67 companies that make handsets, and tried to get Truecaller to be an app that is embedded into the operating system of these phones right from the box or come as a pre-loaded app. The strategy was that discoverability can be aided in such cases that consumers can basically from the moment they buy a new phone, and they turn on the phone for the first time, Truecaller gets installed with their permission and then allows Truecaller to function (Manan).

According to Manan, this strategy brought in a phenomenal amount of growth for Truecaller, and that was the first formal step that took place in India. The second step in India was employee number three and four, which was Manan who joined as Head of Marketing and his colleague who joined as Head of Sales. Both helped set up verticals in India, which lead to more growth. Manan was primarily tasked with creating a brand identity focus and looking for Partnerships in terms of marketing. These partnerships meant Truecaller could work with other brands and other Industries. While Manan’s colleague, the Head of Sales, and his team took care of sales in terms of Truecaller becoming stronger because of the huge user base that they had figured out. At the beginning, the employees who set up verticals in India were registered as consultants since Truecaller was not yet registered as a company in India. They managed the four verticals and set up the business in India, since it was during the inception of the project and Truecaller was not sure how big it would be in India. During that time Manan and his colleagues were all consultants but worked and had the same benefits as employees. The different kinds of expertise that the team brought from their experienced background, the team kept expanding and today Manan explained that Truecaller has around 170 employees in India and there are three different offices.

Kari implies that an important factor, which helped Truecaller, from the Swedish perspective, is that Sweden is a very inclusive, multiculturalism of the country and the dynamics of the sentiments of the country. This is mainly because there are people from different countries and different cultures working together which in turn allows bringing a greater level of wisdom and knowledge. According to Kari, this is an important and a key role during their effort to look at an international market or internationalization of their product and processes. These internal factors are where it starts. Secondly, is the way they externalize the macro level factors that help you internationalize as well, says Kari. By engaging with your investors and with your partners spread across different categories plus different countries, also helps you understand and get knowledge when you want to tailor your product.

Furthermore, Kari explains that Truecaller’s Business network approach has been a 360- degree approach, instead of having a tunnel vision and only focusing on their products and own teams and selecting people of their best interest, Truecaller has instead ensured to be more open. In terms of how much proactively, this spans from their investors who come from a very varied background. Truecaller has Sequoia Capital from India, which 68 is their biggest market, and then they have Kleiner Perkins from the US and Atomico from the UK. According to Kari, these people and companies, which are Truecaller’s investors, add a lot of the weightage and a lot of valuable information. Since these investors have their own portfolio companies, e.g. Sequoia, the business network multiplies further on. Kari replies that their willingness to open-up and include multiple discussions among their own portfolio companies helped them a lot. Additionally, the ecosystem owners such as Apple, Google and all other smartphone device producers are helpful. When you start engaging with them is when they start telling you the best practices from their site. By having this circle of business networks, Truecaller has a great 360-degree approach, which seems to be expanding every day and every moment as we speak, according to Kari.

Since Truecaller is a small company, it has always followed the philosophy of openness. They were very open with their partners and remain open to their partner’s ideas and suggestions, by engaging with companies such as Apple, Google, and all the device producers and Telcos who have millions and millions of users in their fold. Added to that, they also have some of the best talents, who have had many years of experience, when these talents start connecting with a small company like Truecaller and start asking relevant questions and add their own opinions and suggestions, that’s when it tends to mould Truecaller. The ecosystem, which Truecaller created, was in the beginning of their expansion to India, i.e. business operations. Kari describes it, as there are two ways of doing things; one is diving deep into your own set of knowledge and the other is being like sand. Sand has the exceeding ability to absorb anything that is thrown at it.

Case 2.2 Brandie Douglas explains that they managed to enter the Indian market with the help of private networks through Pranav's uncle. He had informal relationships with the individuals who, for example, owned the restaurants in which they conducted the pilot studies. Douglas then says that they began to contact the larger networks, such as SIBC, when they began to make money. When they joined SIBC, they got to be part of the ecosystem where they took part in relevant events and seminars. Douglas explains that he and Pranav thus started to build their business network with the state, government and other companies in India. He also thinks the round table discussions were useful to take part in, as it naturally gave rise to a network effect that everyone gathered needed. In this way, Douglas says, in a good, open and social way, customers take help from each other.

Since Indians are generally more open than the Swedes, Douglas thinks it is easier to make networks in India than in Sweden, he also believes that Indians are very promising to deal with. Douglas goes on to say that a yes does not always mean a yes and that there are many yes-peoples that you have to take them lightly. Mainly for yourself and your

69 company, as you can easily be disappointed that what you wanted and been promised does not go away in real terms. To feel the atmosphere, Douglas thinks that you should go to the Indian cities and naturally just mingles to meet residents, businesses, etc. Not only does it simplify the situation, but also it becomes helpful before you establish your business, he said.

Pranav also explained that they did not have any Indian agents while establishing a business network, but only Hanna, who according to Pranav, worked very efficiently since she knew about the Swedish work culture. This Swedish contact was part of Brandie's management team, and she could run the Indian market without them having hands on with her. Pranav says in compared to other countries the bureaucracy in India is a little bit different where the decision making process is stratified and more hierarchical, hence you really have to work through the organization and come from the top-down, but there is still a lot to do, like follow-ups. Pranav says together with SIBC & Hanna, they have entered the Indian market on an executive level, since their network pretty much consists of upper management in many Indian companies that have given them a path.

Even though Brandie has taken the help of Truecaller's journey and their contacts, it has meant that they have received instructions to founders or CEOs of various companies very quickly. The employee who runs the Bangalore office for Brandie has a large contact network and Pranav says they have never had to work from the bottom up, they have always been involved at the managerial levels. Further on, they have tried to work from the bottom up a few times. Pranav says it is a must that a Swedish company has an established network in India; it is a must to have the knowledge and access to be able to ask other Swedish companies. He gives an example of Otivr which is a Swedish company and says there are some Swedish companies that Brandie talk, where the founders have gone through similar paths, which is everything from evaluating organizations that they choose to work with or take help of, to which partners we're talking to.

If someone wishes to establish themselves in India, Pranav advised that it is 100% important to have a network with other Swedish entrepreneurs or people who are already active in India. You may not need to have an established network before; however, you need to have contact with the Swedish entrepreneurs and business leaders who are in India. Pranav would say that is extremely important, it is important that you can expand but there must be some kind of entrance for it, and where you can get feedback since there is also a lot of re is a lot of nonsense happening, like everywhere else. Pranav implies that there are challenges if you do not have a contact network with the upper management teams in India that leads to more challenges while entering the Indian market. He explains that if you are looking at a company and fail to reach someone who is a decision maker, then you will never reach to decision makers, because the middle managers mostly are in a limbo with no absolute decision-making power. 70

Pranav says it is a big challenge to get past people with no role played in the decision- making process or decision mandate.

However, Pranav explains that the Swedish MNC helps them by means that they have established a reputation and a name for Sweden. Pranav says people know about Swedish companies and they usually have a pretty good reputation about it, so that helps to some extent. He continues telling “we stand for quality and such that people have confidence in our products”. But he implies that start-up companies like Truecaller help them the most on the Indian market since you can check with them about similar thoughts. Pranav gives an example that IKEA for that matter makes a completely different journey than Brandie does in India. IKEA can come in with hundreds of billions of dollars and get a completely different help from the Indian state than Brandie gets, vs. that Truecaller has gone from nothing from the beginning to be established in the Indian market.

Case 2.3 GX Group Paritosh thought that networking was difficult at the early stage, as the first step was to meet Swedish and collect information. A lot of knowledge then was needed before entering the Indian market. First and foremost, GX Group took advantage of Ericsson, as their business is based in the former Ericsson Company. Paritosh says that they looked at how the big company did from the ground up, but specific focus was on contact networks. The idea, according to Paritosh, was to learn from a company that had experience so that GX Group could build its own network on its own. However, Ericsson had state contacts but also with Indian entrepreneurs and other smaller companies. Therefore, he also states that it is important that you are constantly on the hunt when you establish yourself in an overseas market, as nothing is served for free. Paritosh says that, for example, Business Sweden is a good organization with a broad network of contacts, even though they did not work closely together. Paritosh says that there are many informal networks in India, where many are also brokers and consultants working underlying. He believes it is important to build a steady relationship with the middlemen as they manage to convey the information to the correct person. GX Group, although this, has tried to work and pass through the formal channels, because it is a Swedish company Paritosh says.

4.3. Brand Strategy

Case 1.1 Sweden India Business Council Having a Swedish brand helps Indians to associate their product/service with the word "quality", Robin explains. He goes on to say that Volvo buses are a good example in this case. Before they established themselves in the Indian market, there were no luxury or

71 high-quality buses. When Indians buy bus tickets today for first class, it is referred to as a Volvo bus ticket, whether the bus is an actual Volvo or not. This is because the brand is associated with a positive semblance of luxury, durability and quality. Robin explains that companies should create a brand based on their service or product that, when it gets delivered to the market. On the other hand, you may have a strong brand, but you need to know how to deliver it to the market, as well.

Robin further explains that Indians value brands based on the quality and purpose of the product. During the interview he referred to Blue Air to substantiate his explanation. It is a company that sells air purifiers, which one might consider to be a smart idea in India as it is unclean air in many cities. On the other hand, Robin explains that their journey has not been so easy – because there was not a large demand from the Indians. This is because Indians do not consume air purifiers until they start to feel sick or give attention to the actual problem. Robin compares it to information technology (IT) security and further explains that no one buys such goods until something actually happens or goes wrong. In order to promote its brand, Blue Air contacted traffic police, Robin explains that the company gave them facemasks and educated them on how to use their products. Soon after, Blue Air became popular and now delivering perfect products to the market Robin said. Through marketing the brand in the right way, the company has now started to obtain loyal customers. Robin also explains that MNCs such as IKEA have other opportunities, which the SMEs miss out on. Due to their big brand, almost the majority of the Indian population is a potential consumer. Robin adds that branding is a crucial aspect of the internationalization process.

Albeit more indirectly, Robin said that SIBC can help the SMEs on how to apply the concept of branding during the initial period of the business. This means that SIBC links the companies with the right person who can help the companies in the process. Robin also explains that they associate companies with other companies that have made the similar establishment process, so that they can share their experiences to others. At SIBC, they have communications directors working as global advisors, which in turn help companies to converse with each other. SIBC, on the other hand, has no specific function that specifically promotes branding. Swedish brands stand out in the Indian market on their own, Robin said. Majority of the Indian population considered that Western brands are attractive such as IKEA, Spotify, Hennes & Mauritz (H&M), Skype etc. There is a pattern among these companies, Robin thinks. They focus on e-commerce solutions and payment solutions in general, which are dependent on a comprehensive system that includes, cash, alarm and store solutions. Swedes have a holistic approach, which the Indians do not have. India has shown great potential in developing mobile payment solutions, Robin says. This is especially due to the fact that Western companies have used demonetization that happened in 2016.

72

Case 1.2 Business Sweden Anna said that a brand in the Indian market is important, but it also works well if the company has a vision of how they would like to build a custom brand for the market they are entering. She thinks it is a good idea to build a brand or step in with a strong one, as the Indian ecosystem differs. The international brands in general, however, tend to be popular in India, she also says. Today there are about 200 Swedish companies in India and every year a survey is conducted among them. Anna says that five years ago, the survey showed that half of the population perceived the Swedish brands as positive, while three-quarters today consider it. IKEA, H&M and Wellington have grown in the Indian market and this is what Anna believes has helped Indians to associate quality with Swedish origin products. Swedish brands are also working on sustainability, which India has started to notice as manufacturing plants have started to flourish in their market.

Case 2.1 Truecaller Lindsey explains that Truecaller’s main strategy all along is to think global from the very beginning. Truecaller never built a product just for the Swedish market. When they realized the need of their app due to the overwhelming amounts of stories on social media, in forums, meeting people on the ground about spam calls and harassment and fraud, it was then Truecaller’s strategy turned into creating specific features that benefit the Indian users. These features are not the same features that might be in Sweden or in the US, in the cases such as spam protection tools for blocking. Due to different preferences among the users, Truecaller invented and introduced “India only” features. Since the Indian government made all telemarketers register their number. Including the prefix number of 140, Truecaller added features for the Indian users, where they could block those types of numbers. Moreover, Truecaller introduced their first “India only” feature for the app called Truecaller pay. Truecaller pay is a peer-to-peer payment system for money-transfer using UPI. Lindsey describes that Truecaller sees India as they are in a large digitalization period and Truecaller is aware that many conversations with parents or friends include discussions about sending money. Thus, they wanted to implement a solution for Indians to quickly pay bills and transfer money. Another brand strategy according to Lindsey is that Truecaller has positioned themselves as a research- based company, to back up why they create their product for, to further the positioning of the app in modern times. The research called Truecaller insights, conducted back in 2016 with around 26 studies recurring statistics for call & SMS harassment on women, or U.S. and U.K. scams and the money that has long been lost from that.

Furthermore, Lindsey added that when you think of a brand, a brand could be anything in the beginning, which usually are just a name and an app. When Lindsey joined Truecaller, the marketing team consisted of two people and the rest were developers, totally around ten people in 2013. It was at that point Truecaller started focusing on 73 marketing, branding and what position they have in the digital ecosystem. Lindsey explains that the brand name Truecaller was already a household name in 2013 when they really started focusing on the brand itself. It was at this point; they realized how much social media plays, and its effect. The remaining focus was to build up the brand as a lifestyle brand and Truecaller has evolved in pop culture. There are a lot of Indian movies that quote Truecaller, and TV-shows where stand-up comedians tell Truecaller jokes.

Lindsey believes that Truecaller is just in the beginning of its product life cycle, they are getting more globalized respectively attaining more involvement in societal issues. Truecaller is building more features, including getting into fintech and understanding how their app can be utilized in different ways. According to Lindsey, Truecaller has really changed the Indians way of communication. One out of three Indian smartphone users has Truecaller installed and over 150 million daily active users today using this app. Lindsey adds that many people for instance don't even save numbers in their phone, since Truecaller identifies them. For the users, the app not only puts trust back into communication for the Indian people, but they feel more confident and less stressed out when the phone rings or their inbox buzzes.

Truecaller’s customer segment is anyone who uses a smartphone. As it is pointed out above, by Kari it would be a hoax if he said this and that were brand strategies when they were trying to reach the Indian market, because India found Truecaller. However, the reason behind the massive demand of Truecaller from Indian users was the prevalent problem of unknown and spam calls. Kari says the solution was identifying every unknown caller and blocking the spam calls, Kari calls it as a nice product-market-fit, and to this day, Truecaller has not spent a single dollar on acquiring their consumers. Instead, Truecaller has exerted their efforts on ensuring a sound product and distribution. By distribution, Kari meant that distribution across App Stores and Play stores on smartphones. Besides, Truecaller is increasing their WOM amongst the consumers, where Indian consumers are 50-60 % of the total user base. Kari believes the consumer base purely comes from delivering on their brand promise and providing important features, which Truecaller continues to do as a brand. They do certain relevant product interventions, which are driven by consumer’s feedback from the market from time to time. Kari tells us; as long as you keep your brand promise stable, constant, consistent and your future announcement and on-going activity. This ensures a great level of freshness for the consumers. The consumers don't feel or don't think that you're a boring brand and they always know that “ok you are solving my 90% of the problem”. Additionally, you are also adding more and more features to our requirements. Maybe it drives them to a future need to use our App more and more.

Pranav gives an example that right now in Africa, they are developing an ecosystem of other developers where there are other companies, which they are partnering with. 74

Apart from this they are trying to provide solutions, and for instance they are partnered with a cab company called little created a partnership with them recently and they announced it through public relations, Pranav believes these engagements keep you in a brand in conversation and also help you grow in an organic way by just being on top of your mind, controlling your budgets.

Truecaller COO Lindsey says they are persistent and very proud that Truecaller is a Swedish company, the founders come from immigrant backgrounds and Truecaller’s CEO is a refugee, which is a proud aspect of him. Furthermore, Truecaller’s internal Swedish morals are something Lindsey believes that the organisation carries with them through their company. Truecaller takes on societal issues in India where, maybe other companies might not want to tap into. And this has played profound attribute according to Lindsey in line with the peculiar characteristics of Swedish progressiveness. Regarding the social responsibility of the company in the past couple of years, Truecaller has been focusing on women's empowerment in India and hence creating programs and opportunities for women in tech, but also helping women have safer communication by providing tools and Truecaller to identify block report harassment calls. This social responsibility has received a well-deserved recognition in 2019 and 2020 and makes them winner numerous awards for its project called “It’s Not OK.”

Kari, a native Indian, explain that it does not matter if Truecaller is originated from Sweden, what Kari has seen over the past years and also through his experience in Truecaller and frequent interaction with their consumer is very simple; they have a very open-minded approach and as long as the brand delivers its promise, then rest is subsidiary. Accordingly, Truecaller never had to tell its Indian users that they are a Swedish company or a European company. Kari explains that they just had to rely on their brand's philosophy, as long as you keep you deliver the brand promise constant and consistently, you are pure and simple as well, you don't really have to talk about your origin.

As Lindsey mentioned, Truecaller has positioned itself as a research-based company. When they conducted some research on call & SMS harassment, they wanted to determine effects on spam and harassment calls on women in India and what actions are taken subsequently. The research identified that one in three women in India were sexually harassed through calls & SMS. Furthermore, Lindsey narrates that they wanted to reach out to women, who would tell their stories about their harassment calls or read those SMS messages, which contain irritating and annoying contents. Lindsey believes that it has a significant effect on the women's empowerment movement, which according to her is just a beginning in India. The campaign “It’s not OK” launched in India in 2019 was very successful in India, that resulted in the expansion of the research campaign in other countries such as Kenya, Colombia, Brazil and Egypt in 2020. 75

Manan tells us that Truecaller’s advertising platform is 100% programmatic. What that means is that any brand that wants to advertise can choose to advertise on the platform, but eventually Truecaller has the final word on it. Some products are not allowed to be advertise in certain countries, for example in India, the government has banned any sort of advertising on liquor or tobacco products. Thus, Truecaller doesn't allow it on their platform. Similarly, gambling in India It is looked down upon in most parts of the country. Despite the fact that some states in India that are legalized gambling to a certain degree, however as a platform, we do not allow any of gambling advertising transmitted through our app. Moreover, political advertising and campaigns are not allowed, thus, Truecaller has consciously created a brand safe environment, according to Manan.

Case 2.2 Brandie Douglas said that they mainly studied their product in cafés and restaurant environments, since Indians tend to dine more their lunch and dinner at cafes or restaurants. Eating out culture is great, where the target group, who are between the ages of 18 and 26, are also located. Douglas also explains that it is possible to argue that Indians are peoples who show off what they are proud of, which also includes brands. The bigger the brand, the prouder they are. Douglas thinks it is a big difference from how Swedes are, because they are more withdrawn and not as open with what brands they really love. To the contrary, he says that Indians are so proud of the brands they choose to buy, that they are also extremely cautious about marketing the brand. They also know what it stands for and can argue why they like a specific brand. Douglas also explains that a brand from India's point of view says whom they are which is super important to them.

Douglas goes on to say that Brandie's main purpose was to start from crowd marketing, which is that the companies take help from their customer base when they are going to market themselves. The effect it would have on their customers helping them to market, the owners considered it to be an interesting approach. Douglas believes that Brandie would please the Indian especially also appreciate in marketing, namely loyalty and relationship formation. That is why Douglas and Pranav believed that they wanted to create such a credible and appealing concept, so that it would put the companies in a new wave in 2020, 2021 and onwards. Douglas explains that the goal was to help companies appear on social media, but also that the Swedish origin would make a mark. Being a Swedish brand means opening many doors, Douglas says, especially at the beginning. They want to show that Sweden is a small, yet open, innovative and knowledge-rich country. The idea was to give the Indian people a sense of security, as Douglas felt that Indians appreciated Western products and services. Therefore, the idea behind Brandie, mainly fresh, was minimalist and Swedish.

76

Pranav says their strategy was to be classified as visible and to be associated with brands that are very hyped, that could put their platform on the radar, associated with quality, new thinking and being top of the line. He explains, after all, it has been their area to have a little exclusivity-selected partner to work with, but mainly stand for Swedish innovation. Pranav believes Scandinavian design is an elaborated brand in some way, where people have confidence that the product is associated with quality and coolness. Pranav’s experience is that people have confidence in them, coming from Sweden, since he believes it is looked up upon that they have the expertise. He sees that Sweden is a bit ahead on many other markets in Europe, like Germany and France. Pranav says they obtained benefit from people having confidence in them, he feels a little like this, we want something with mystique around our brand and that we are associated with coolness.

Pranav tells it is important to have a brand when entering into the Indian market, however, by siting. Spotify as an example albeit its established brand but not known that much by many people in India. By this he is referring that they are working similar to a start-up, where Spotify has an office with around 40 people working to build up their brand in India. He gives an example of H&M, that even they had to build their brand in India, implying even if you have a brand or not, when entering the Indian market, you need to have a brand which the Indians want. Pranav believes, in India you absolutely cannot rely on the brand, he thinks Mc Donald is a perfect example for that, they went bankrupt for not meeting the consumer needs and now they have re-invested, after 10 years absence.

Brandie reaches out to their consumers through the brands they work with. They make these brands talk about Brandie on their social media platforms. He believes they can be more effective on PR. After all, they have received a lot of pressure around them since Brandie has a whole new concept and many marketers are interested in them. Pranav says they have worked very much against MNE media and talked in those channels very actively and tried to establish themselves as a leader. Brandie tries to express their opinion on why crowd marketing is a good tool and it has worked effectively for them. Furthermore, Pranav explains that they work with both international and Indian brands, some of the examples he gave were; Fast Track, Godrej Group, Mahindra and start-ups like Raw Pressery and Bounce. Brandie also partners with Storytel, which is a small Swedish start-up in India. Pranav says their target group are brands, and these brands need to establish a relationship with them in order to use Brandies platform. He divides the users in two parts; (1) Brandie sells the tool for free to consumers (2) their customers are brands, which are the paying source.

77

Case 2.3 GX Group Paritosh says that the idea behind GX Group's brand, mainly based on the desire to deliver quality services but low costs. The strategy has been that they want to convey a brand that is easy to use, because he finds that many businesses complicate the product. GX Group wants to be able to meet demand in a simple way with the underlying support available in the local market. He also says that it is difficult to sell a brand if one is not available and therefore, they have focused on close contact with the customers. Since GX Group had worked in Europe and mainly in Sweden previously, they had to build the brand from the scratch. Since quality and design are the most influencing factors in building a reputable brand He further explains that it has been an advantage to establish himself in India with a Swedish brand. GX Group has worked and focused on being transparent with the brand, suppliers to the Asian market as a whole. It has given their brand a great opportunity to leave positive impressions in this way.

In addition, Paritosh believes that the wide variety of people in India contributes to the development of different products with different price ranges. He says that India is categorized into three different cities; namely A, B, and C class. The classes indicate the economic status of the Indian city, where A encompasses the wealthier parts and C the less fortunate ones. Since the demand for the products in different cities varies hence the quality and price are adjusted. Paritosh, on the other hand, believes that an attractive brand is always a must regardless.

4.4. Challenges

Case 1.1 Sweden India Business Council Robin says that SIBC helps Swedish companies, as it will be a challenge when Swedish companies try to establish themselves in markets that are not similar to Swedish ones. In general, he thinks that Swedes are withdrawn, which can be to the disadvantage. That's because you have to be able to have discussions and mingle to stand out, which Robin believes that the Americans are good at. SIBC helps these companies through round table discussions, by linking several companies so that everyone gets the chance to talk and present ideas. This is also because Swedes are not as network-friendly, which Robin believes is due to the Swedes working culture, which is more accustomed and comfortable to work in internal teams. For Indians, this is not as obvious as international partnerships are constantly being established in the company they work for.

Another challenge is that Swedish companies do not have the general understanding on how the Indian operate. A lot happens in real time, where for example 40 new cafés are opened while we Swedes are used to digital times and events. Robin explains that one 78 must understand India as a continent with 29 countries. Cities That in turn requires understanding of the basic issues such as how to develop contacts, the political situation, relationship formation and more.

Case 1.2 Business Sweden Anna believes that India is a large, international competitive market for all industries. Local companies should also be kept in mind, as the business that the concept must be able to adapt product and price in order for Swedish SMEs to establish them in the market. Anna takes Spotify as an example and explains that Indians are extremely fond of Bollywood movies. Since Netflix has no such offering, Indians prefer Amazon Prime. Although Netflix is a global leader when it comes to the online movie contents, Anna believes that it is mainly about how customizable the brand is in a specific market. She also takes Spotify as an example, as they have had difficulties while they were trying to establish into the Indian market. That is mainly because, like Netflix, they don't have the same variety of Bollywood music/films as the local actors have. Therefore, Anna thinks that it does not matter if you are an MNE company, - it is rather that you manage to please what your customer segment is interested in, which can be a problem.

Anna says that companies sometimes take their brand for granted and believe that a Western brand is attractive regardless. However, she further explains that for Indians it is primarily about quality and price. It depends a little on what customers think, discuss and show off. Therefore, it is a challenge to locate oneself among the right customers, and to give them what they want.

Case 2.1 Truecaller Manan describes Truecaller as a highly fast-paced company and they do not have a traditional mindset or a traditional hierarchical corporate-structure. An example Manan gave was that if they have to make a decision about a new campaign, start a new activity or push a new feature inside their app: the decision-making is fairly quicker than what a traditional company would have. Hence, they need to work with partners that are fast or work even faster than Truecaller.

Kari does not consider networking to be a challenge, instead he explains it is a crucial part. Kari says you need to strike an excellent balance, it's not all business calls to begin with, rather a human to human interaction, and that is where mutual respect comes in. Kari explains once you realise it, rest is not a challenge. He means Truecaller has been strenuous in maintaining that sort of philosophy. Kari pinpoints the moment you respect the other person, whatever background they come from and whichever company they are representing, then the rest is extremely easy for any businesses who are intending to create a business network.

79

Lindsey explains a challenge for Truecaller has been to build apps for low-end phones. She says the founders have spoken about it before, but any company can pump as much money as they want into building a brand. But in the end, it is all about your product that you are developing. Lindsey implies that's why Truecaller has been so successful, since they created a good product. Going back to the challenges, Lindsey explains a lot of companies missed out on building apps for low end phones, these phones could not handle the apps since they did not have a low amount of RAM. Companies usually built apps for the high-end Samsung phones or the latest smartphone on the market. Truecaller on the other hand developed apps small enough to fit low end phones but maintained quality and speed which worked with an old operating system. Lindsey explains they went as far as figuring out even a new way for their caller-ID, which usually needs 3G and 4G i.e. a strong wi-fi to work. But Truecaller developed a caller-id which worked offline and also worked on feature phones. Lindsey says Truecaller partnered up with Airtel, which is a telecom service provider, hence they were able to provide caller- id on a feature phone, this was groundbreaking according to Lindsey. She concludes that the biggest challenge when entering emerging markets is that you need to think outside the box and understand that not all users are going to afford to have high end devices to even use your product on. Understanding the cultural challenges of daily life and how people would use your product is important according to her.

Risks

Manan: India isn't really one country. Every 200 kms the language, the food, the attire, literally everything changes. There are thousands of languages and dialects. This brings forth a very interesting challenge of creating communication and marketing strategies that work for all these groups of people. Then there is also the challenge of distribution and opportunity sizing for a population so huge and dispersed over a geography that's this vast. The political arena has been fairly stable since 2014 and hence that doesn't pose much of a challenge in my opinion. In fact, a lot of policies of this government are pro- business and pro investment which is evident by the rise in India's position in the 'Ease of doing business' index.

Kari: It has been a seamless experience for us. For any company entering India, a crucial aspect to look out for is the cultural and language diversity of India. Every brand and company should try and embrace the cultural nuances in the first place. Politically and administratively, India has been very open to any MNC entering their borders. Our journey from the very beginning has been very pleasant and cordial with the relevant authorities and stakeholders. As a fastest growing economy, our experience like many other brands has only been positive.

Lindsey: India is a very big country - not just in population and size but also in the fine details. I can only compare to my experience working in the U.S. - where every state is 80 like a different country. I feel India is also very similar in regard to so many different cultures, foods, dialects, language. While this can be challenging to nail down a specific target audience or reach the right people, it’s a challenge we happily take on to create communication and marketing strategies that work. I feel with so many different Indian cultures working together inside the Truecaller organizations, we can get a lot of insight from our own team and try different strategies for what will work on a local level.

COVID-19

Manan: It is business as usual, for us except for some austerity measures, more from the perspective of precaution rather than a threat. As we all continue to work from home, this didn't take much 'getting used to' as our organization was quick to enable this with the required tools, while our HR team was well equipped and quick to handle this change without any disruption. We have always maintained a policy of hiring only how many we need hence keeping ourselves lean, agile and nimble, yet fast moving. This ensures that we don't have to take more drastic measures in such times. We have a positive outlook for the future of our organization and continue to strive in this direction.

Kari: Our working routine has been affected without a doubt, but these are unfortunate and extraordinary times, and everyone has to evolve to the new reality. We are a very simple, nimble and agile organisation. Our extensive use of technology when it comes to communicating with our colleagues across borders has ensured we are able to adapt ourselves to the situation arising out of the pandemic (working from home). As a company we always have put our colleagues and their dear family first. And, it continues stead faster than ever during these tough times. We are proud to state that everyone in our company is doing their very best to keep our company going forward and more importantly continue serving our millions of users globally.

Lindsey: Truecaller is running as it usually does. We are working from home in all our offices throughout the world. Since our company works with a lot of cross-ocean collaboration within our teams, this didn't take very much time to get used to working remotely since we already have all the tools setup from our everyday work. As for hiring, we have always had a policy of hiring only how many we need. We’ve had a lot of pride throughout the years in keeping lean teams that function on an agile level. Our HR team has made sure to make the right decisions in terms of health and safety, as well as preparing plans for any type of disruption. We’re definitely excited for the future of Truecaller and are positive despite the current global situation.

Case 2.2 Brandie Douglas says that a big challenge is that you must get a feel for the market, but most of the time, the internal resources are very important. You need to be able to have a budget 81 or a buffer, to even go down to India. You need to get to know people, the market, the culture, the difference between B2B and B2C, etc. He explains that Indian companies are generally open to international minorities who want to establish themselves in India, but one must be serious and self-sufficient in the market. You need to dig deeper, find companies, contacts and lots of people who can help than - which you can do via LinkedIn and email. Douglas further explains that much is different from Sweden, since we Swedes take a lot of forgiveness for, for example, a yes. But that is not the case in India. He believes that the justice system fails because agreements are not followed and that there are always lengthy processes because of. advanced agreements. Douglas also says that it takes a long time to make payments, due to. they do not have similar collection and chronology systems as in Sweden. Furthermore, they postpone payments, which in turn creates uncertainty, he says. This can be a challenge for all companies, regardless of size, but Douglas says it can hurt smaller companies that depend on a cash flow that must be active. Some companies have a business model that is focused on having an active flow of costs and revenues, which is not safe to rely on in the Indian market.

Pranav says the biggest challenge in India is the recruitment of Indian people and finding the right people to find their driving force to try to get them to work according to Swedish organizational structure. There are other motivational factors in India than in Sweden, trying to find them is a challenge. According to Pranav, recruitment is an extremely huge challenge. He explains, especially in the Indian market, if it gets a little further down the trail among employees on junior level, their experience is that it requires much more mentoring, more supervision or patience is required in the recruitment process, which is a major challenge. The second thing is that Brandie after all, are risk capital financed so they have the opportunity to be long-term. But it is probably not for the Indian market. Pranav says if you do not have a budget or a long- term vision on the Indian market, then you should not enter it. Another challenge is getting paid in India. Pranav says getting paid in the Indian market is extremely difficult. Therefore, you have to have financial muscle, you need to have venture capital that allows you to be in the market for a very long time without feeling a need to get paid. Pranav says Brandie can be in the market for a very long time without having to get paid.

Risks According to Pranav, there is a risk of not gaining revenue in a while, he says make sure you have money and don't expect to make money in a while. Thus, you need to have long term plans. Pranav suggests to not enter the market unless you have enough capital. The second suggestions are to stay away from the political party. Even if Modi has done many good things, there can be other parts which people perceive as negative, since you never know what political backgrounds people have, it is better to avoid taking parts.

82

Pranav also implies that there are major challenges with organizational cultural clashes and that to have it all while trying to build markets, can become too much.

COVID-19 Pranav tells the current pandemic has affected Brandie extremely much. The Indian market has been completely shut down, which means that even companies like Puma cannot deliver their goods, which means that brands do not want to market in the same way as before. For many companies, the entire marketing portion has been stopped or frozen. Where Brandie is extremely affected. Pranav says half of the hard work he and Douglas do is sales-work, which they are good at. Now that there are flight restrictions as well as a lockdown in India, The Ministry of Foreign Affairs advises against going to India, they are losing out which is a big part of the organization in India. Pranav says even when the lockdown opens, it will probably be a challenge. Now they will need to recruit people who can Pranav and Douglas’s work because they cannot visit India, which will be a huge cost and challenge.

If we predict that the business ecosystem will change after COVID-19, and for Brandie, who has come as a challenger and a new platform in the Indian market, Pranav believes it will be positive for them. He says, “Why destroy something that works?” But now suddenly, with the effects that the lockdown brings, India will in the coming year not have an IPL cricket league, the football league is in pause. He means the brands who spend a lot on the IPL, around one third of their total annual budget, will have to find alternative ways to spend the remaining budget. He believes the outdoor marketing will also go down, it will take a long time for the subway to be full again, so that budget must be distributed on other platforms.

Pranav says during the week we interviewed him, they have had some investment companies in India who have heard of Brandie, because they see that the way of buying in India will change extremely much, to go digital when working towards digital so is it's also that people will not dare to go to the mall now in the suites of Covid-19. Pranav says since you cannot go and test the products in the same way as before, it means that you will be very familiar with friends & family recommendation and their product, Brandie, is all about friends & family recommendation. Many people see that it will be a big trend as they move forward. He believes the situation has led them to redo and do better, in some way it is very positive for Brandie but Pranav says it is obviously scary and extremely sad what is happening to people who get sick etc.

Pranav believes the positive aspect of the circumstances are that Indian companies suddenly have to switch it to digital meetings. Technical solutions mean that you have to test things. You have to change so that it becomes more e-commerce. Pranav says they realize that they cannot work with traditional retail. They understand that they must find solutions outside social media or traditional advertising. Certainly, it will be a 83 big advantage for a technology company that facilitates large companies in India, which helps in the digitization process. But it all depends on what market you are in.

Case 2.3 GX Group Paritosh says that there are numerous challenges, as it can be extremely difficult to meet both competitors and high prices in the Indian market. Then it is also difficult to find the right person in the large crowd, because India is a country where you need complete understanding. If you do not understand the sales and the customers, Paritosh thinks it is impossible to establish in India. Paritosh also explains that he believes that from the financial part to the logistics management it is difficult to get an overview of, since many are involved in the entire value chain until the product reaches the end user. An overall picture that encompasses all actors can be difficult to obtain. He says that the bureaucracy in India also puts a lot of stops and hindrances on the companies. Other barriers that may also arise are that the state has imposed some tariffs to promote local production, which could have a negative impact on Western investment, Paritosh thinks. He believes it is stressful to see increased demand, but that too high tariff costs can be an obstacle for many.

Risks Indian market needs to have a long-term vision, it's a market with scale possibility but also it takes time to build a brand and name. Right network and right approach to the market is the right way, larger customers with huge demand are always not the right customers.

COVID-19 It has affected the entire industry, but telecom services are seen as essential service and the operation of service providers have been in operation during this period. Also, the work from home demand has increased, which means the need for broadband is increasing as a new culture of working from home is starting to take a trend.

4.5. Opportunities

Case 1.1 Sweden India Business Council Robin explains that SMEs see great and abundant opportunities in a growing market of the world like India. He says that this is mainly due to the fact that it is a market with excellence in research and development, but also because the production costs are extremely less compared to the West. The state and authorities have also shown keen interest on foreign investors and companies by creating a motto called "Make in India" in an effort to attract more foreign stakeholders. It is assumed that foreign companies 84 set up manufacturing companies in India, which makes it (1) cheaper than, for example, manufacturing in Sweden and at the same time (2) contributing its own share for the growth of Indian economy. Robin also explains that India is a promising volume market, where as a company one can retail sell large volumes of products at a lower cost per individual product.

Robin refers to India as a larger continent than a country, which needs to be divided at the states level, where the growth rate is somewhat varied from state to state. While the overall growth rate is around 5%, cities like Maharashtra have registered a growth rate of 7–8%. Therefore, it is important to look at the state growth national product, as a city like Maharashtra has a population of 120 million people. One must thus segment the large India into many smaller parts, in order to succeed. Robin thinks this is necessary, because India has not only big cities but also rural areas. Therefore, one must adapt its strategy of producing and selling its product in line with reaching these areas too. He explains that, for example, Truecaller has an extraordinary growth in the big cities, while they do not develop an equally big name in the rural areas. Adapting one's own product to the target group in the right way means that there is, you have a great opportunity ahead. SIBC today helps companies that focus on incandescent lamps, for example, as there is an increased demand for such products in the rural population engaged in agricultural activities, which make up a larger part of India's economy. Although there are companies, which focus on such areas, who distributed agricultural products, the tractors sold to Indian farmers must be adapted. Robin explains that customized products generate higher profits for the company by producing smaller tractors with less horsepower because the Indian farmer does not have the need for a luxury product that they cannot afford.

Swedish companies, on the other hand, can take the advantage of digitalization, which today also affects the rural population in India. Robin says that Swedes have a great deal of expertise in software products to create innovative apps that can help farmers to produce more crops. In addition, India and Sweden have extremely good cooperation, since they share similarities and contribute different good knowledge. Robin explains in India jokes and says that an Indian consumer wants 70% of quality to 40% of the price. Sweden is an extremely well-known country for its quality goods and services; however IKEA and H&M were not classified as quality companies in the past.

In addition, Indians appreciate that the Janet Act, which is based on not trying to be cocky and saying, influences Swedes that you are the biggest, best and most beautiful. Robin says that Swedes who establish themselves in India are very cautious and respectful, in connection with our assumption of human rights and equality. Swedish corporate culture is very much appreciated, since Indians since childhood have been in a long-drawn out school competition, which Swedes are not familiar with. Robin says

85 that Swedish companies make sure that every employee is a contributing person, which Indians also appreciate when they are hired. The bilateral relations also open up several opportunities for Swedish entrepreneurs who aspired to establish themselves in India. Robin also explains that a lot of money has been invested in the process of inviting the Indian government officials to Sweden continuously. It has given rise to creating relationships between the Swedish state and India's Prime Minister, state secretary, governors etc.

Case 1.2 Business Sweden Anna says that India is a great opportunity for Swedish companies looking to establish them in emerging markets. One can sell, manufacture and buy in the Indian market for an incredibly low cost and at the same time it is a large consumer market. She explains that the market is so large that one has to segment breakdown India into small parts i.e. cities for cities, in effort to explore what the Indian consumer in Bangalore wants unlike it in Bombay. In case it learns to drive in one city, Anna explains that it is not impossible in another because the culture and business differ. In general, however, she thinks that Swedish SMEs can see opportunities along the entire value chain, which is covered by the product and consumer side. On the other hand, one has to keep the customer base in mind, as it also differs from customer to customer. Local adaptation to the Indian market presents great opportunities as the internet population, for example, is increasing, but also that the rural areas are in need of digital products.

Anna explains that SMEs should also think about the internal resources they already have at hand. Although financial difficulties may arise, in the form of insufficient capital, Anna believes that it is a huge strength that companies work agile and that SMEs are more flexible than MNCs. The larger companies must go through longer procedures and be approved on several different levels before they can establish themselves. Smaller companies, Anna believes, have a greater chance of quickly and easily adapting the product to a new market. The strength lies in being closer to your end customer, but also all other workers in the company.

Case 2.1 Truecaller Since they are engaged in providing communication stream and caller-ID services Kari explained that Truecaller’s biggest opportunity, is the best of dialogue, which has ever existed. So fintech is a big space that they are looking at because like the way India adopted smartphone and telecom Kari thinks fintech business has grown impressively since 2016, therefore as Truecaller is one of the key players in the forefront of ensuring the digitalisation of fintech, there is a big opportunity in the Indian market.

According to Lindsey, the biggest opportunity is that India is a mobile first country, meaning that landlines are now part of the past. She thinks that a lot of countries are 86 turning into mobile first, since at this era of history one cannot prefer telephones, while you get a mobile phone. Lindsey tells us that in the past five years, smartphone penetration in India has grown by about 25%, and an increment of another 14% is projected two years’ time. The other opportunity for Truecaller according to Lindsey is digitalization, she explains India is growing rapidly with putting things online, and they realize everyone is starting to get on fintech apps, which is a large opportunity currently in India. Lindsey recalls the incident that a couple of years happened, when PM Narendra Modi decided to get rid of some of the bills that makes every Indians panicked. She went on explaining further and said that when physical money gets obsolete, having an online banking is a big opportunity which India is focusing more on. To this effect, peoples started to look at other options by getting their mothers, fathers and grandparents online. Furthermore, Truecaller has had a lot of good contact with Indian ambassadors in Sweden and ministers that are coming to visit. So, it's been a positive ride for Truecaller, says Lindsey.

Manan explains that Truecaller is a fast-paced company and does not have a traditional mind-set or a traditional hierarchical structure in the company. For instance, if they need to make a decision, to a new campaign or start a new activity or push a new feature inside the app. Manan describe that the decision-making process is fairly quicker than a traditional company would have and hence for them, they need to work with partners that are as fast or even faster than Truecaller. If you're a FMCG company, that makes soaps, then there is a manufacturing process, a research and development process and a huge lead-time in terms of getting the product to the market. Whereas for Truecaller, if they see an opportunity in a market, getting the product to the market does not passes through the same process as a FMCG company, and hence Truecaller is able to act faster during changing trends. Therefore, Manan explains that they need companies that are proactive or partners that are proactive and who can work at attack speed or even faster than Truecaller itself, only then they can grow. Manan explains that this is a challenge for them and a big criterion when selecting partners or agencies. For Truecaller, this is very critical for their go-to-market plan, that these partners are able to deliver everything according to the plan or else there is an entire domino effect.

Case 2.2 Brandie Douglas says that they were mainly dependent on the opportunities that both he and Pranav had to create for themselves. He explains that one must be fearless, social and a glow in oneself when one establishes himself in India. Because they were only two, Douglas thinks they were mainly dependent on the internal human capital that existed between himself and Pranav. The external ones were mainly about the fact that there is an incredible amount of people in India, in connection with the fact that there are opportunities in every corner of the country regardless of industry to industry. He also says that the middle class is growing at an alarming rate and that they have in themselves

87 created a huge increase in purchasing and consumption power. When Douglas also compares India with other emerging markets, he finds that India has great advantages in terms of an English-speaking democracy. English is the foundation of much, Douglas believes, as it welcomes international companies and products that create an incredible foundation for future India. Douglas even thinks it is almost strange that several Swedish companies have not established themselves yet in India.

Currently, Brandie has no specific competitors, but they work in an environment where there are other brands that, with the help of influencer marketing, are growing. But since their concept is to help companies to market themselves with everyday people who have smaller follower scales, it has a unique approach that differs from companies that choose to employ large influencers. Another opportunity that Brandie has been able to use, as competitiveness is that it is a Swedish company with Swedish engineers and technicians. Douglas says that Brandie has benefitted immensely from the existing Swedish reputation, which is related with innovative atmosphere that Indians are looking forward to in Swedes.

Pranav believes that there is an opportunity to run in the market, where very few Swedish players are available, which gives you a comparative advantage. By this He means that if you succeed then there is much to be gained from all kinds of initiatives that exist in India. India and Sweden have developed a cordial relationship, Modi has been in Sweden and Stefan Löfven has also been in India, and the Innovation contributions these relationships have produced are very much focused on innovation between the two countries, so it is in a spotlight. Pranav says both sides show up success cases and you can gain extreme promotion by working towards Indian authority. Pranav says there are few cases and if you make any kind of success you will get a lot of help. It is one of the biggest benefits of working in the Indian market. Pranav believes another opportunity is that India has an extremely large market to work on. He means since India is a huge country with many markets, you do not need to be afraid that if you fail in Bangalore, you do not need to be failed in the rest of India. By this He is referring to be fearless for failures because even if it fails in Bangalore, then there are 10 other parts of Bangalore that you can work against. Test yourself through trial and error.

Furthermore, Pranav finds it to be an opportunity to find expats in India and work with a good expat who dares to "get their hands dirty". He believes it will facilitate the entire start-up period so that you do not have both cultural challenges in recruitment while trying to build your presence in to new markets. What has been very good for Brandie was finding Hanna at an early stage and being able to work with her, since then they got the person they wanted to recruit in India with Indian knowledge of an Indian network. But she worked in a Swedish way, Pranav explains that no one says that a Swedish way is better than an Indian way, but it worked well for them since it matched their Swedish way of working and expectations. 88

Case 2.3 GX Group Paritosh explains that GX Group has competitive advantages in the Indian market, as they have a strong connection to the local market. GX Group develops, plans and produces locally, which also means that they have taken advantage of the highly competent Indian workforce available in the market. Paritosh says that they have gained control of the entire product because it is market-adapted and that they receive assistance from the local support. Further opportunities see Paritosh in that it is an extremely large population that is growing, but that it is also an undeveloped domain in which the GX Group operates. It helps digital products to be developed with the help of broadband and other products that GX Group supplies.

Paritosh also says that the state is supportive by helping businesses like GX Group though indirectly. As the business contributes with digitized products such as broadband, the state encourages the population to use digital products and open its door for different goods and services such as Netflix, which has a variety of Indian Bollywood films. In this way, the state helps digital services to be welcomed to India, in connection with the digital products.

89

5. Analysis

The empirical findings presented in chapter 4 are analysed in line with the frame of reference, to provide the collected data a contextual meaning. The analysis is divided into six sections, including an additional category of cultural dimensions. Section 5.1. to 5.5. reviews the thematic findings from the case studies: (1) advising organisations and (2) companies. Furthermore, section 5.6. analyses the empirical findings by incorporating the cultural dimensions. Finally, the conceptual model illustrated by the authors is revised and presented at the end of this chapter.

5.1. Internationalization Process

Literature Concept Central references Internationalization Born Global Knight & Cavusgil (2004) Born Digital Vadana et al. (2019) Strategic decisions Burke (1984)

Case 1: Advising Organisations

India: Country or Continent Both Robin, from SIBC, respectively Anna, from Business Sweden, explains at the beginning of the interviews that Swedish SMEs are mainly attracted to India as the country is vast, divided into larger states/regions, and the growth rate has averaged 5– 6% over the past years. According to Chang (1995), this is one of Born Global’s strongest traits; such businesses have a wider perspective, as Born Globals sees every corner and edge of the continents, and nations as an opportunity to expand into establishing. For Swedish SMEs, Chang’s (1995) from a theoretical starting point in connection with both Robin’s and Anna’s explanation becomes relevant. As the study resonates around Born Global’s starting point, Anna adds that it is important to remember that the internationalization process differs from how it looked 30 years ago. The former Uppsala Model, created in the 1970s, advocated at the time that expansion occurred (1) gradually and (2) to physically neighbouring countries (Johanson & Vahlne, 1977). On the other hand, both Anna and Robin explain that Swedish companies tend to see the opportunities from such a perspective that makes them want to find new markets to explore. Therefore, the Uppsala Model does not become an applicable model for Swedish SMEs today within the tech industry.

Furthermore, Anna explains that India is a continent rather than a country, where the nation's structure consists of 29 different states. Robin also explains that the nation is

90 made up of different clusters with entirely different conditions and possibilities, which Chang (1995) explains as an attractive market for Born Globals. Robin says that the states differ so much that a Swedish company can easily place itself in another city if it does not go as planned from the start. Anna agrees with Robin, as she also explains that Born Global is characterized as being innovative and flexible in its product portfolios, making it easier for them to restructure and adapt their business strategy to a new market if desired. Like Anna and Robin, Dzikowiski (2018) advocates that Western Born Globals tend to be attracted to markets with many opportunities, especially to those who generate high growth opportunities within a short period.

Anna believes that India is a destination to which Swedish SMEs are attracted, as the opportunity lies mainly with the middle class and growing younger population. She considers similar to Brouthers et al. (2016) that the digitalization is popular among these segments. According to Vadana et al. (2019), today's Born Global firms offering tech products are further characterized as Born Digitals. They are described as digital companies entering the international market in their initial years. Robin explains it to be due to the Indian consumer in this case. According to Brouthers et al. (2016), it is also applied to companies using iBusiness, thus taking advantage of a population that uses the Internet as a platform to shop online. Anna further explains that it is considered to be strange if an individual in India did not own a smartphone.Therefore, the concept Born Digitals becomes accurate when both Anna and Robin also discuss the issue.

The internationalization process of businesses has been characterized by the ambiguities and disagreements between the concept of Born Globals (Rennie, 1993) and the Uppsala Model (Johanson & Vahlne, 1975). Anna believes that the internationalization process has undergone striking changes over the past 30 years, which has resulted in the expansion strategies of SMEs differing from how MNCs perform. Robin says that the increased demand for digital services and products in India has resulted in innovative SMEs and start-ups being able to establish themselves in the Indian market. Knight and Cavusgil (1996) would explain the phenomenon as a direct birth in the international market. Moreover, Vadana et al. (2019) would, based on their theoretical starting point, explain this as a result of companies succeeded in adopting corporate strategies using the digital era. Furthermore, Brouthers et al. (2016) theoretical aspect of the concept of Born Digitals, suits both Robin's and Anna's statement because digitalization has helped companies to establish themselves swiftly and more efficiently than ever before. Hennart (2014) also explains that digitization is helping SMEs expand to such an extent that establishing a foreign market can be unexpected and surprising.

Robin, on the other hand, claims that digital expansion is not easier than physical delivery, just because Born Globals avoid expensive costs in the form of duties and taxes.

91

Instead, he explains that companies tend to neglect that digital products and services instead require the management of databases such as the General Data Protection Regulation (GDPR). Burke (1984) explains that it is essential for companies not only to be fooled by a growing and attractive market. According to Burke (1984), Born Globals need to obtain specific market knowledge of their industry they are operating in, as well as keep the entry and exit barriers and costs in mind because these factors are becoming important to consider before entering a new market.

As previously mentioned, there are different interpretations of the concept of internationalization based on the starting point. However, the researchers even disagree on a universal explanation for the very concept of internationalization. Knight (2016) defines it as a result of all countries and continents in the world being intertwined through the pursuit of a common economy, while Melin (1992) views it as a cross-border exchange of knowledge. Last but not least, Keohane et al. (1996) stated that the world is shrinking so much that almost all countries can consider one and the other neighbours, which is the result of the concept of internationalization. According to Robin, these definitions have given Swedish SMEs the opportunity to expand and establish themselves in the Indian market. Robin, respectively Anna, believes that the English language is a driving factor that eases communication between countries and continents, which in itself has led nations to depend on each other. Robin mentions, for example, that SIBC compares India to the US so that the Swedish SMEs can easily understand what they are getting into when they are interested in the Indian market. He further explains that English is a universal language used by Indians and that India has its own currency, similar to the US dollar. Martin et al. (2017) explain that language is an external opportunity that will help the SMEs to survive due to those factors giving the company owners a clearer understanding of what Burke (1984) explains as market knowledge.

Like Robin and Anna, Knight and Cavusgil (2004) explain that language, but above all business language, is an essential factor as to why Born Globals are attracted to emerging markets that share similarities in communication when doing business. Robin also explains that linguistic competence helps Swedish SMEs to build self-confidence, as the companies get a chance to understand the market on their own without having to hire a translator for each case. Therefore, Burke (1984) further believes that market attractiveness is a result of the company having managed to make its own interpretation of a market they are interested in, for possible establishment. Robin's explanation resembles Burke (1984), as the majority of SIBC members have appreciated the seminars about understanding the Indian market before entering the country, which is held by former companies that have passed through the internationalization process to the Indian market. SIBC also organizes round table discussions, which are based on the fact that Swedish companies with previous internationalization experience share their

92 knowledge, which Martin et al. (2017) also argue for. Born Global theories constantly illuminate that SMEs are extremely vulnerable compared to MNCs, which signifies that they depend on direct and specific information (Martin et al., (2017). Anna agrees with this, and she explains that organizations such as Business Sweden and SIBC contribute information that cannot be purchased or searched online, as Business Sweden helps with specific market analyses for interested companies. Anna further explains that personal experiences are the most important tools in such situations, which SIBC offers.

As previously mentioned, the internationalization process for Born Globals differs from the previous Uppsala Model (Johanson & Vahlne, (1977). Robin explains that language is a significant reason for reducing the physical and linguistic distance and barriers that companies usually are aware of when internationalizing at foreign markets. Johanson and Vahlne (2009) also explain that socio-economic barriers are stressful in cases where Born Globals want to expand, establish, and survive in such environments. Anna agrees with Johanson and Vahlne (2009), but in contrast, Swedish companies quickly notice that Sweden is a much smaller market to grow on, compared to, for example, India. By this, Anna meant that Swedish SMEs are willing to take risks as they have growth- and probability in mind. According to Mok et al. (2017) and Martin et al. (2017), innovative Born Globals need to have positive, engaged, social, and optimistic leaders when establishing on foreign markets. This means that the entrepreneurs need to have a positive attitude when entering a volatile and unknown market, regardless of the outcome. Robin, in parallel to the previous theoretical starting point, explains that SIBC only helps the companies in the formal procedures – but the company itself needs to be engaged, self-disciplined, and optimistic.

Finally, both advisory cases, like Burke (1984), conclude that Swedish SMEs mainly tend to establish themselves in India because of organizational synergy (Burke 1984). Anna believes that the growth potential attracts companies, as the market results in synergies, even though uncertain conditions exist. On the other hand, Burke (1984) argues that uncertain conditions cannot be excluded, but it is essential to keep that in mind for any company.

Case 2: Companies

The unexpected internationalization Like the various studies describing that internationalization has different purposes, the internationalization process for the companies has also taken off in different directions. Truecaller expanded without actually choosing it. All three respondents claimed that; "Truecaller did not find India, India found Truecaller". According to Hennart (2014), 93

Truecaller progressed to internationalize, because Indians consumed the offered service, because they showed high demand, in combination with the low cost that the company put out when completing their digital service. When companies consequently happen to end up in the international market, it means that digitalization has been a significant driving factor since they just happened to expand through their digitized product and service, as an external factor (Hennart, 2014). According to Burke (1984), companies should do market surveys based on the six points presented in the Strategic Market Decision Environment Model, which Truecaller did not. Even Rennie (1993), who formulated the concept Born Globals, argues that SMEs that expand according to theory tend to have a niche and specific information about the market before internationalizing. However, Truecaller expanded with the help of digitalization, which increased the accessibility and access for Indians; thus, the Swedish app today is one of India's most widely used digital services, Kari explains. In addition, the Indian market demand was as high as many were affected and still affected by spam calls and unknown flash-messages. Knight and Liesch (2016) explain that this is also due to digitalization since Born Global mainly tends to benefit from the external factors in the earlier years of its expansion – which happened when India found Truecaller and not vice versa.

Manan further claims that Truecaller is currently located in several countries, but that the company never chose a market. Lindsey agrees and believes that the telecom market is forever, which means Truecaller relies on that lifeline. She further explains that the increased use of digital services and products, for example, in the form of apps, will mean survival for Truecaller and similar businesses. Knight and Cavusgil (2004) explain that SMEs are primarily expanding into emerging markets due to the growth opportunities that exist. By contrast, Kari, Manan, and Lindsey explain that the expansion "just happened", and the growth potential came to their understanding afterward. Kari also clarifies that Truecaller did not have a local vision, but the company had a global outlook from the beginning. Kari's explanation agrees with Knight and Liesch's (2016) reasoning, which suggests that Born Globals sees the world as a whole market to establish itself on, rather than having a "tunnel vision" focusing on just one country or continent.

Lindsey explained that Indian consumers helped Truecaller understand how profitable the Indian market and economy actually is. Since Born Globals has an international sparkle in its eye, as mentioned in the previous phase, Martin et al. (2017) explain that Born Globals, therefore, tend to survive in markets other than just one. Manan mentions Africa as a large market, where comparisons with the Indian market have been made. It is not just about the similarities of African countries using English (Mok et al. (2017) and the high demand for imitation service. However, Truecaller has begun to find other markets as potential with the help of Indian consumption. Martin et al. (2017) explain that Born Globals tends to, with the help of its international perspective, succeed in finding other markets that are similar to the one they are growing the most.

94

Manan says that Africa is a large continent, with various parables from a socio-economic and cultural perspective when compared to India. However, like Burke (1984), Manan explains that Africa is a testbed for many features and products that attract many interested investors. The African continent presents various growth opportunities at present, as mobile payment solutions and new technology are starting to grow at a rapid rate.

Manan explains that Truecaller must continuously have competitive advantages in mind if they want to establish themselves in Africa - which Burke (1984) explains as point (2) relative competitive strength. Issues that should be considered in the internationalization process where competitive advantages are the main topic are; who are we really? What can we offer? Whom will we meet? Is there more than one counterparty? And so on. The internationalization process to India resulted in Truecaller's expansion to Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, and Sri Lanka, i.e., SAARC countries. According to Johanson and Vahlne (2009), this is a sign of stepwise expansion into countries that have similarities to the socio-economic and cultural aspects. Furthermore, this indicates that physical proximity to the market that is already established has an influencing factor. In contrast, the theoretical starting point of Johanson and Vahlne (2009) differs. Truecaller did not expand step by step at the beginning of the internationalization process - but India gave the company inspiration to establish itself in neighbouring countries later. Manan says that the business language and understanding of the culture simplified the internationalization process to the SAARC countries and reduced the costs that Truecaller would have to incur if they established themselves elsewhere. According to Knight and Liesch (2016), this is an exceptional opportunity for SMEs to expand through, because of their vulnerability and lack of resources in their early years.

The conscious internationalization For Brandie, on the other hand, it was an active search for a growth market. Although Douglas had steady knowledge of Asia when he lived in China in combination with Pranav's Indian background, Brandie was attracted to India in 2016 as the Indian market was in a transition to a digitalized society where mobile payment services were becoming popular. Since SMEs are vulnerable (Dzikowski, 2018), it becomes crucial to study the market attraction and the potential competitive advantage (Burke, 1984). Burke (1984) argues that the external environment becomes a decisive factor for companies, as SMEs are recommended to combine their internal strengths with the external opportunities that exist. In this way, both Douglas and Pranav explain that they took advantage of their internal buffer and the knowledge both possessed about growth economies when they chose to establish themselves in India.

95

The internationalization process took place by travelling to India and testing the product/service. According to Martin et al. (2017), this is necessary for Born Globals, Western companies can underestimate emerging markets because foreign entrepreneurs tend to believe that their products/services will result in profitability regardless because they choose to establish in an underdeveloped emerging market. Pranav mainly explained that they did not see a similar product on any South Asian market, which resulted in them slowly wanting to enter the market. This means that there was no demand directly, which Knight and Cavusgil (2004) explain as one of Born Globals’ fundamental characters, specifically that they add new products and services that will eventually have high demand shortly. Douglas further explains that a pilot study was required in order for them to gain market knowledge, as Pranav then explains that SMEs and, above all, start-ups should initially take the help of the Early adopters, i.e., the first consumers that consume a product before it becomes relevant to the general public. According to theory, Early adopters are the most influential people within a society, this supports Pranav's argument of why they chose the Indian market (Keegan & Green, 2015). Although a small part of the Indian population was tested with the help of the pilot study, Pranav and Douglas, like Burke (1984), believe that the external market must be examined based on aspects relating to uncertainty, entry- and exit barriers, etc. According to Pranav and Douglas, those kinds of analysis help business owners to understand what can be profitable or a loss.

By having good steady market knowledge, Mok et al. (2017) believe it helps SMEs in the long run, whereas they gain valuable experience. Besides, Mok et al. (2017) argue that a company that has internationalized itself into a country helps the company gain inspiration for similar expansion into other markets with similar conditions. In this case, Pranav explains that one can replicate one's approach to a growth market if one has done so before. Rennie (1993) similarly argues that Born Globals tend to possess specific and niche information, as such activities are classified as flexible and open. This means, in line with Pranav's statement, that Born Global SMEs and start-ups have a free chance to use their size as an opportunity because they are known for possessing (1) specific information and knowledge, as well as (2) being open and flexible. According to Knight and Cavusgil (2004), smaller companies are affected by resource-based restrictions, but this does not stop them. SMEs and start-ups are almost always forced to be innovative, Douglas says, which supports Chetty and Campbell-Hunt (2004) argumentation. The innovative attitude that Born Globals tend to incorporate, results in an entrepreneurial spirit that helps entrepreneurs see other emerging markets as additional opportunities. Therefore, SMEs are continually evolving.

Pranav and Douglas, explain that they would like to expand into other markets in the future, as they reveal that there are various reasons for them to choose India as a fist market. Like Knight and Cavusgil (2004) also explain, India showed remarkable growth

96 potential as the market exposed Brandie into taking various risks within the Indian market. On the other hand, Douglas and Pranav, considered it to be a big opportunity as the average middle-class consists of 350 million people showed strong consumption capacity with the help of market analysis. They compared the Indian market with Europe and considered that the early adopters, for the most part, would be found in India. Furthermore, like Martin et al. (2017), Pranav and Douglas explain that India gave the Swedish Brandie a lighter opening than other emerging markets in Asia, compared to what China would have offered. Martin et al. (2017) believe that Born Globals can be affected by regulations that either help or hinder the internationalization process. Brandie would be affected if, for example, they established themselves in China. In China, there are specific approaches in business relationships, where, for example, technological regulations exist when it comes to the production of digital services and products. Pranav and Douglas explain that they did not have to keep that in mind when expanding to India, which also is one of the main reasons why Brandie chose India.

GX Group expanded to India as Dzikowiskis (2018) theoretical starting point; because it attracted the company to the current opportunities that existed in the Indian market. Paritosh also explains that GX Group analysed India on the basis of market surveys before they even entered the Indian market, which Burke (1984) strongly recommends. Paritosh says that GX Group looked around the Indian market, to keep several external aspects in mind. Since Paritosh has Indian roots, it seemed natural for him to see India as a potential emerging market to expand his business. Furthermore, Knight and Cavusgil (2004) explain that the fundamental pillar of Born Globals is that the internationalization process is inspired by new ideas, entrepreneurship, and great interest in the market that the company wants to expand to. Paritosh’s explanation can be related to Knight and Cavusgil (2004) when he clearly states that he knew that profitability would not be made in the short term. Paritosh also stated that it is important to see internationalization to India as a long-term investment since patience is the key to a successful business in such a market. He went back and forth to India within six years, because he wanted to grow so big that he needed to learn everything about the Indian market. Rennie (1993) would explain Paritosh's behaviour and attitude, as an essential starting point when Born Globals wants to expand into new markets as it helps companies understand the required patience. Above all, (1) patience is needed when companies discuss in the return of their investment and (2) the profitability of the investment made, as companies tend to overestimate how quickly a growth market should generate profits.

Paritosh explains, like Dzikowiski (2018), that the main reason why GX Group chose India as a growth market to establish on, was because it is a low-priced market in the form of employing high skills at low cost. Dzikowiski (2018) believes that SMEs and start- ups are primarily looking for growth markets, because at the beginning of the expansion

97 they are limited in resources in the form of human capital, budget, knowledge etc. GX Group, on the other hand, had a steady base before they established themselves, when they initially saw a trend and high demand that they could please with the help of broadband solutions. According to Knight and Liesch (2016), Born Globals tend to be more vulnerable than other companies, which Knight and Cavusgil (2004) also discuss in the form that sales volumes do not usually generate profitability in the initial periods of SMEs and start-ups expanding. Instead, Paritosh says that India is a market, which helps companies exploit external opportunities. The main thing is that GX Group, as SME, has succeeded in taking advantage of the fact that the Indian market has a great need for broadband products at a lower cost. Paritosh also agrees with Knight and Liesch (2016) and explains that SMEs are vulnerable, however, they will overcome the challenges as their knowledge and understanding about the market increases.

5.2. Business Network

Literature Concept Central references

Network model 4 types of internationalization Johanson & Mattsson (1988) The business network internationalization process model Johanson & Vahlne (2009) 3 Types of networks Ratajczak-Mrozek (2012) Network Ecosystem Tanev (2012)

Case 1: Advising Organisations

Both Advising organisations; Business Sweden and Sweden India Business Council (SIBC), act as a facilitator regarding the creation of a business network, for the firms and organisations attracted to invest in India, vice versa. E.g., Robin from SIBC explained that they give Swedish companies market knowledge about India; moreover, SIBC is characterised as a network organisation. Through round-table meetings led by SIBC, SMEs get the opportunity to meet other organisations and exchange knowledge with each other. To get access to these types of events, the companies need to become a member at SIBC and pay the fee according to their company size. Robin explains that the variety of participants during these events contribute to different magnitudes in knowledge.

For Swedish firms, SIBC acts as a network organisation within the home country, since the Swedish members can network and create a new business relationship with foreign actors initially without having to enter into the Indian market. According to the network theory presented by Johanson & Mattsson (1988), business relationships occur in three types of stages where the firm first finds an international network. Then by gaining

98 penetration, the firm can integrate into various international networks on the foreign market. Accordingly, SIBC played a crucial role in minimizing the distance and steps into networking with foreign actors. As Robin mentioned, “During such discussions, you give each other advice while giving the new SMEs the chance to find the right contacts who have been in the same seat as them”. Further on, chances of connecting to the right person increases, which Robin explained is a massive cost-saver for SMEs. Robin gave an example where an already internationalized company took the help of SIBC to gain market knowledge about India and got help on the legislation part. In that case, SIBC helped the company when they travelled to India, by connecting them to authorised people in India with the right knowledge and expertise for their matter. This means, SIBC advises companies to create a business network within various internationalising stages and ecosystems.

Business Sweden serves as an advisor for various foreign countries. According to Anna, it is important that Swedish SMEs receive assistance when establishing in India since India is considered to be a relationship-based country, and there are bureaucratic processes that need to be tackled. Therefore, it is crucial to create contact with official authorities and local actors. Other aspects Swedish companies need to have in mind is the fact that since India is a relationship-based country, the business ecosystem relies on creating deeper connections within the network. Anna explained Swedes usually network in a transactional way, where the networking is intended to have an exchange between the two parties. In contrast, Indians primarily network to create and maintain a relationship.

Case 2: Companies

Freeman et al. (2006) conclude that it is favourable to develop more horizontal partnerships than vertical integrations to create closer strategic cooperation within the business network. After the empirical findings from Truecaller, Brandie, and GX Group, it is concluded that the firms expanded to the Indian market by using their business networks. The shallow networks described as strategic horizontal networks (Freeman et al., 2006) are important when entering an international market, e.g., through the round table meeting by SIBC, where Brandie found a contact-person in India. However, vertical networks are crucial when integrating business operations on sight. Truecaller’s journey to becoming popular in India was an accident, as Manan, Lindsey & Kari pointed out: “Truecaller didn’t find India, India found Truecaller”. The Truecaller-app created awareness for the consumers, but it was until Kari reached out to the founders of Truecaller; when the organization could set up different verticals in India. Looking at Truecaller’s journey and applying it to the theory presented by Johanson & Mattsson (1988), we can see that their business network started as an

99 international extension right from the start, since it was available for all smartphone users.

Knowledge exchange According to theory, the business relationship between two representatives include a state variable and a change variable that affect the level of engagement within the business network (Johanson & Vahlne, 2009). In Truecaller’s case when the first three employers in India were hired, the international penetration took place with their expertise and market knowledge (Johanson & Mattsson, 1988). Truecaller later integrated into the Indian market by setting up different verticals in marketing and sales. After the verticals were set up, Manan described the business ecosystem as an important factor for Truecaller to gain market share. The ecosystem consisted of OEMs and manufacturers, which helped them to install the Truecaller app on a smartphone. A business network can also be characterized as a business ecosystem (Tanev, 2012). Theoretically there are three kinds of ecosystem for digitized firms which foster knowledge exchange, the first kind is where universities and firms collaborate with each other, the second ecosystem is a bond between local firm and its international operations, and finally, the third ecosystem is consisted of local clients and international sales companies (ibid.). The previous explanation about how Truecaller created its ecosystem implies that the business ecosystem and network go together for Truecaller, since it fostered knowledge exchange between Truecaller and the mobile manufacturers, which later created a profound relationship, while setting up business operations in India.

In Brandie's case, the close bond to their contact person in India helped them gain market knowledge. By viewing Brandie's journey, it is concluded that it took another path into India. Although the founders of Brandie did a test pilot to see if India was a suitable market, they also had to receive assistance from a contact within their business network who had a good market knowledge about India, similar to the case of Truecaller. Johanson & Vahlne (2009) highlight that the first state knowledge opportunities are a crucial factor within a business relationship as it includes obtaining knowledge in competences, strategies, and other networks of directly or indirectly related firms. In Brandie's case, gaining market knowledge through their partner in India led them to meet a goal of reaching out to 10 of the most popular brands in India. According to Pranav, Brandie got more insight and help within the internationalization process when he got selected to the board of SIBC. Since SIBC creates round table meetings for its members, it is a unique opportunity to exchange knowledge.

Johanson & Vahlne (2009) explain that the “state” in a business network is connected to a “change”, vice versa. By gaining market knowledge, the companies chose to commit relations within their business network consequently. This led them towards the next change-variable described by Johanson & Vahlne (2009) as learning, creating and trust- 100 building. When both Truecaller and Brandie found contact persons, the findings show that both cases gave their contact persons a place within their business network. Johanson & Vahlne (2009) describe trust-building as a cognitive process, which by deciding how deep the relationship commitment should be, gives the firm a specific position in a business network.

GX Group was already established in Sweden and other parts of Europe, and later the brand expanded to India. In the case of GX Group, the firm entered India with help from Ericsson, a Swedish MNC in the telecom industry. Paritosh from GX Group described networking as difficult at the beginning, where the first step of internationalising to India was to gain market knowledge. By viewing how MNCs did and taking help from Ericsson, the aim was to build their business network. Paritosh argued it is crucial to continuously chase other business actors while establishing in a foreign market. In India, many agents operate with underlying business tasks; Paritosh said, building a steady relationship with these intermediaries so that they could convey the information to the right contact is vital. The case of GX Group also supports the network model presented by Johanson & Vahlne (2009), unlike involving its business network in the firm’s internal operations, like Truecaller and Brandie, GX Group gained market knowledge provided by Ericsson on a surfaced level compared to the other cases. As Johanson & Vahlne argued; the degree of relationship commitment in turn affects if the firm chooses to create a strategic alliance or overcome gaps. GX Group overcame a gap in terms of how an MNC entered India, while Truecaller and Brandie created partnerships, employed their contact persons, and gave them a voice in their business operations to a larger extent.

Location of a Business Network Analysing the three types of networks presented by Ratajczak-Mrozek (2012), theory shows the implementation of a network can be configured in both home country and foreign markets. Johanson & Mattsson (1988) proposed three levels of internationalization within a firm's business network, depending on their current position. By establishing contacts and adapting their resources, a company created its business network, which in turn is connected to other business units (Ratajczak- Mrozek, 2012). Brandie had a business network within their home country, Sweden. The business network became extended by the contact person Hanna, located in India, and had vast market knowledge with Swedish work culture ethics. This led to international integration, by having contact with top management level within Indian companies, Brandie got the opportunity to penetrate their international business network. Environmentally speaking, the ecosystem for Brandie consists of developers in Sweden, while the marketing and sales are established in India.

101

Ratajczak-Mrozek (2012) explained that a business network helping the firm be international could be situated in the home country, in a non-target foreign country, and the targeted foreign country. By analysing the empirical finding, we can conclude to the following: (1) Truecaller expanded their business operations to India after getting popular in the country, hence, started to focus and create their business network in India. (2) Brandie had contacts from their home country and later expanded its business network in India. (3) GX Group created its business network in India by the guidance of a Swedish MNC. In all the three cases except Truecaller, the companies networked with other Swedish companies to establish their business operations in India. These results show that there is not a single way to create a business network. However, the networking events in Sweden provided by Swedish advisors can be a port into creating a business network in the target country.

5.3. Brand Strategy

Literature Concept Central references

Brand strategy Brand equity Aaker (2009), Keller (1993) SME Brand building Centeno et al. (2013) Firm characteristics & global expansions Gabrielsson (2005) Product-market environmental factors Marketing channel & network relations Country of Origin

Case 1: Advisory Organisations

The advisory organisations such as Business Sweden and SIBC, both believe that Sweden has a good reputation in India for offering quality products and services. Robin from SIBC gave an example of Volvo's high-quality buses, which are now associated with luxury buses. Since the brand offers high quality, other services associated with the brand are considered as good and quality. Apart from having a strong brand, Robin stated that market knowledge is fundamental since it provides know-how for delivering the products and services to the market. Anna from Business Sweden explained that they conducted a survey five years ago, which showed that half of the population had developed a positive attitude towards the Swedish brands. In contrast, currently, the rate of the attitude is extended to ¾ of the population.

Looking at product-market environmental factors explained by Gabrielsson (2005), Robin’s example strengthens the theory. E.g., Blue Air, who sells air-purifiers, had a hard beginning penetrating the market. Even though seemingly, it may be assumed that

102

India is a given market for air purifiers. According to Robin, people don’t buy air purifiers until it affects their health. To create awareness, Blue Air partnered with the traffic police and gave them facemasks, which marketed their product. This led them to increase demand for their product and gain loyal customers.

Case 2: Companies

Theoretically it is known that brands have a notable impact on the company's strategy as it strengthens relationships within a business network as it creates value for the various parties (Gabrielsson, 2005). Truecaller’s primary strategy has been to think global from inception. When the app got recognised in India due to the constant problem with spam calls, harassments, and fraud, India accidentally became a target market. As described in the earlier section of Business networks, Truecaller set up verticals for their business operations after becoming popular in India. In the beginning, Truecaller was just a utility with no particular brand attributes. Brandies initial brand strategy was to collaborate with high-quality brands in India, both local and international, hence let the consumers market the brand, which leads to a win-win situation for (1) Brandie; who is a facilitator for the platform, (2) The Brands; who get an insight about how the marketing is succeeding and (3) the consumer/user of the platform, who earns rewards for sharing photos along with the brands they chose within the platform named Brandie. In GX group’s case, their brand strategy was primarily based on conveying quality to a cost- friendly price. Collaborating with local distributors in India has helped them launch their product. As Paritosh from GX group said, the different price groups in India makes it possible to develop products in different price ranges. The classification of the Indian cities named A, B, and C indicates the economic status of the city, which lets GX Group target their brand accordingly by adjusting the quality and price of their products.

Brand Building Phases Aligned by the brand-building phases described by Centeno et al. (2013), we can see the following:

Phase 1, Brand as a person: According to Centeno et al. (2013), SMEs' brands are reflected in the founders' values initially due to constrained resources. As Manan told us, Truecaller was just a platform in its earlier days, developed for Symbian phones, and the founders created it for them at the beginning. However, the app got noticed because of the current problem of spam calls and harassments. Centeno et al. (2013) imply that during phase 1, SMEs are often built through an innovative and experiment-oriented approach. The empirical findings of Brandie strengthen this theory. As the Co-founders explained, Brandie did a pilot study on the Indian market before building their brand. The aim was to test their platform.

103

Phase 2, Brand as a product & brand differentiation: After the innovative and experimental initiative, Centeno et al. (2013) describe phase 2 as where the SMEs explore and develop their skills. In this phase, the brand is differentiated amongst the competitors and applied to a product. During Truecaller’s case, when Manan, Kari, and their colleagues set up verticals for marketing and sales in India, it was in this phase they took contact with local partners and sponsors and started to integrate with the Indian market. For Brandie, phase 2 can be applied when the founders took contact with famous Indian brands to collaborate within India.

Phase 3, Brand as a symbol: According to Centeno et al. (2013) the third phase in brand-building is where management implements the visual part of a brand in the sense of creating the brand logo and graphic attributes for their brand identity. According to Manan, Truecaller had a logo and identity from inception, which has kept evolving over the last decade.

Phase 4, Brand as an organisation: Centeno et al. (2013) describe phase 4 as when the core values of a brand are created. The corporate culture and its values are reflected within the brand. Lindsey from Truecaller said they consider themselves as a research- based company, since conducting research of the current trend on the market lets them position themselves further in modern times.

Phase 5, Brand Identity development and brand growth: In this phase, the brand identity is developed in the last phase; thus, the brand starts to grow (Centeno et al., 2013). Manan from Truecaller explained when he joined the firm in September of 2016; Manan carried up the creation project of a complete brand identity. This identity was finalised and released in February of 2017. During this period, there were hardly a handful of people in India, which has not changed since then. According to Lindsey, Truecaller was a household name in India; now, their focus is on building up the brand as a lifestyle brand, although she believes Truecaller is just at the beginning of its product life cycle. Truecaller is growing its brand globally and involves societal issues such as harassment via SMS and phone calls. Lindsey explains Truecaller is a recognised app in India that the brand has evolved in pop-culture. E.g., Indian movies and TV-shows quote Truecaller. The app and brand itself have developed, and added functions targeted to the Indian consumer demand, e.g., Truecaller is developing the app functions more towards fintech.

Country of Origin The country of origin has had a positive impact on Brandie’s case, where the founders have chosen India as their first market to launch the platform on. COO has an influence on brand identity since the association to brands from emerging markets or developed economies impact consumers’ judgemental behaviour towards the product or service Melewar et al., (2007). As Pranav explained, being an entrepreneur from Sweden is 104 perceived to be positive since the Swedish MNCs in India have set an admirable reputation for Sweden, where Swedish products are associated with good quality. The collaboration between Sweden and India and the already existing business networks in India has given Swedish companies a halo effect, described by Nisbett & Wilson (1977) and Han (1989) as the positive impressions that influence the consumers. However, for Truecaller, the COO has not impacted the app to flourish in India. By analysing the empirical findings, we found that COO has an influence when establishing business networks and entering the Indian market; however, the COO of a tech product has no significant impact on the product itself when branding it to the local users. Both Truecaller and Brandie act as utilized tools for people’s daily lifestyle. Truecaller acts as a helpful tool for caller-ID and reaching out to friends, family, and colleagues. While Brandie acts as a crowd-marketing platform since its core belief is that in today’s social media atmosphere and word-of-mouth (WOM), people believe in their friends and family more than influencers.

Implementation of Brand Strategy Although having a brand is not enough when entering a foreign market, Spence & Essoussi (2010) claim a well-constructed brand strategy is necessary when entering the foreign market since it enables SMEs to fulfil their brand equity. Truecaller, Brandie and GX Group are SMEs who have adapted their brand towards Indian customers. In addition to the brand, they have also adapted its products and services. Gabrielsson (2005) explains there are three building blocks that are connected to each other and influence the creation of a brand strategy.

(1) Firm characteristics and global expansion imply to SMEs values and beliefs. Truecaller had a global outlook from inception since the customer segment is anyone who owns a smartphone and can download the app. Brandie targeted India as its first market, while GX Group decided to expand to India after internationalising their products in the European market.

(2) Product-market environmental factors apply to management's decision-making, towards which product-market the brand will promote its products or services. Gabrielsson (2005) emphasizes that the stage in the product life cycle plays a huge role in choosing a brand strategy since more conservative consumers are not pleased with only relying on the new technology a Born Globals offers in its product or services. The Co-founder of Brandie, Pranav, explained that it is easier to target the early adopters in a new market than to try to satisfy the early majority. For a start-up like Brandie, it is cost-saving to find a market where the product-market-fit satisfies many consumers. Gabrielsson (2005) argues that depending on where the brand is currently in the product life cycle influences if investments should be made on branding. Truecaller has added new features to the original app; the users have enhanced caller-ID and chat functions, which strengthens the brand's reliability and trustworthiness. 105

(3) Marketing channels and network relations are set to maintain a good relationship, according to Gabrielsson (2005). This last building block has had a significant impact on all three company cases in this study. Network relations are the first step to gain knowledge about the Indian market and connect to relevant people in India, which will enable the market entry.

5.4. Challenges

Literature Concept Central references

Challenges Product risk Chaudhuri & Holbrook (2002) Commercial risk Žigienė et al. (2019) Cross-cultural risk Renn & Rohrmann (2002) Political risk Henisz & Zelner (2010) De-Globalisation Witt (2019), Baldwin & di Mauro (2020)

Case 1: Advising Organisations

Importance of Entrepreneurship Robin, from SIBC, explains that their network organization exists for Swedish and Nordic SMEs and start-ups that certainly face challenges when they establish themselves in India, as it is a different market than their own. Generally, Swedes are not social and outgoing. Robin defined it as a disadvantage in the Indian market. It is an important ability to be social and active during the mingling when meeting with Indians, which SIBC tries to help with during the round table discussions.

Katsikeas and Morgan (1994) explain that SMEs tend to encounter four categories of challenges; one of them is internal strengths/weaknesses. As Swedes are very reticent, it can result in a bad enterprising attitude. Martin et al. (2017) consider positive and optimistic attitudes to be essential for SMEs in terms of internal resources. Through roundtable discussions SIBC contributes to a more familial feeling where Swedes can openly discuss what their journey to the Indian market has been like and that those who want to establish in India can ask questions. According to Robin, the main challenge is that Swedes are so reticent that they fail to develop business relationships and networks with the local Indian agents, which Savrul et al. (2014) consider problematic. The theoretical starting point is that Western companies either (1) overestimate their product by considering that there is going to be a demand for their product no matter what or (2) that they will succeed in the market by themselves. Robin says that it is not a must when it comes to an intermediary, but that it can be of great help. Especially regarding market knowledge, which many people lack information about, he explains.

106

SMEs in Emerging Markets Roy and Vyas (2016) explain that international companies are affected by high and different costs that they have to pay in emerging markets, as the state aims to promote domestic businesses as well. Therefore, high prices are set for westerners who want to conduct market analyses, translation of company documents etc. In this way, SMEs may encounter challenges as such operations are based on the resource-based view (RBV), i.e., resource-limited (Sandberg, 2012). He adds that Swedes need adequate knowledge about the market before they establish themselves, as it can produce more costs than expected because they preconceived the Indian market as cheap. Another challenge Robin explains is that India is a country where a lot happens in real-time more than it does in Sweden, which has long-term thinking. There, for example, 40 new cafés are opened, while a Swedish company may find digital solutions that are not "visible" as much. Although India is in great need of digital solutions, Krati and Gupta (2017) believe that emerging markets with high-tech solutions are affected by high costs no matter what. Mainly in terms of regulations, agreements, and trading partners in the local market, but also the unequal distribution of income among the population. Therefore, the theoretical point of view means that companies can be affected by the purchasing power of the population, in which emerging markets are very volatile. How is the demand? Will there be a growing trend within the next two to five years? Uncertain conditions in this way can pose major challenges for SMEs and start-ups (Krati & Gupta, 2017).

Product Adaptation The findings from Business Sweden, correspond with SIBC, where both cases clarify that India is a large international market where many competitors interact from different industries and industries. On the other hand, Anna from Business Sweden believed that Western companies can more easily disregard the existing local competitors, as they believe their business operations will have an impact regardless. Although Western companies are sought after in the Indian market, Zhou et al. (2007) explain that the state will protect domestic production from the Western competition. Foreign competitiveness can be perceived as a threat to domestic production and sales, which is harmful for the country. Such challenges, according to Savrul et al. (2014), make Western companies extremely vulnerable as the state can establish regulations such as extra taxes and tariff barriers.

To reduce such outcomes, Anna believes that Western companies must adapt their products to the market and be less overestimating, as she explained that the world leading Netflix did not do. Furthermore, she described that the Indian population did not enjoy their service due to the lack of Bollywood representation. Therefore, Anna believes that it does not matter if the firm is an MNE or a global player since the most challenging situation is actually about adapting to their customer segment. Zhou et al. 107

(2007) explain that Western companies should, therefore, not overestimate their capacity and ability when entering a growth market, as they can easily encounter regulations that only affect their business because they are not local. Anna believes that Western companies must continuously remind themselves that Indians appreciate their definition of what quality is and what pricing is reasonable because they like to show off what they have bought and consumed. Meeting a specific demand is also a significant challenge.

Case 2: Companies

General Challenges Manan, from Truecaller, explained that one of the biggest challenges the company has encountered is that Truecaller is a modern company that does not have a traditional mindset, which the Indian market is still characterized by. He believes that Truecaller, for example, is used to making quick decisions in connection with market trends, which takes time in the Indian market. The Indian market has strong impressions in the bureaucratic regulation, which affects companies that want to establish themselves there. Savrul et al. (2014) similarly believe that Western companies must stand up to specific challenges, because they are just Western. This means that companies face informal costs, such as bribes and foreign taxes, to cope with the pressure. Manan, on the other hand, explains that bribes mainly affect companies that sell physical products, which Truecaller does not do. However, he believes that a major challenge is to develop in emerging markets, as they do not have many players in similar industries. The disadvantage may be that it is difficult for Truecaller to cooperate with other players, as they seek someone who works faster and more efficiently than themselves - and he points out that it is difficult to find partners who work on "attack speed".

On the other hand, Lindsey also mentioned that Truecaller has mainly addressed how to adapt products to phones with lower capacity than today's smartphones, which their product requires. Today it is mainly, for example, Samsung mobiles that have the capacity and space for the Truecaller app since they have quality and an updated operating system. She explained, for example, that it will be challenging to apply the app as available on low-quality mobiles, as the product is developed to have caller ID, offline features, etc. Roy and Vyas (2016) believe that this can be a major challenge for Western companies, focusing specifically on digital services and solutions. In the context of India's high demand and a largely rural and older generation that forms a large part of the economy, it becomes difficult to balance both situations. Lindsey also adds that the biggest challenge is to see such great advantages in such markets that one wants to enter, while nothing is apparent.

108

The firm should be able to think outside the box and see the situation outside of their personal goals and product. For example, one needs to understand the cultural aspects that will affect one's daily work, which Burke (1984) considers essential. As Kari from Truecaller explained that the cultural aspects are important to keep in mind, as it creates a mutual respect when you as “guests” establish yourself in a foreign market. It becomes essential for the company to create an understanding of what it looks like in the market you want to work on. According to Roy and Vyas (2016), it is a major factor that the company struggles with, as there is a human-to-human interaction outside the purpose of the enterprise. Kari believes that respect and understanding for the other party result in a domino effect; all parties feel like someone, which they will get rid of when they collaborate for profit.

Similar to Truecaller, in the case of GX Group, Paritosh described that it is difficult to understand the new market in which one is interested because it consists of competitors, advanced knowledge, and purchasing power. However, Paritosh considered that the most difficult for GX Group was to contact the correct key person, which is a notable challenge for Western companies, according to Savrul et al. (2014). According to theory, studies show that it is difficult to establish a mutual relationship in foreign markets because there is a huge risk that Western companies encounter other interests that the agents have in the form of bribes and soaring costs for being from abroad (Savrul et al., 2014). In addition, compared to Burke (1984), Paritosh considers it difficult to take part and understand the entire production chain in a new market. From finance to logistics planning, it is challenging to create a holistic view. He explains that the bureaucracy makes the situation more difficult for companies, as Indian regulations set high taxes to promote domestic production, which confirms the description by Roy and Vyas (2016).

Internal & Recruitment Challenges As Douglas, from Brandie explained, companies usually take the internal factors for granted while the internal resources are crucial for SMEs and start-ups. To start with, one needs internal resources in the form of a budget to experience the Indian market. The internal resources can be an extreme challenge, as SMEs and start-ups are mainly affected by internal constraints (Katsikeas & Morgan, 1994). The biggest challenge may lie in the fact that the company has the motivation and the will, but extremely little capital in the form of liquidity. On the other hand, Pranav and Douglas consider it a must if a firm is planning to establish in a market like the Indian. To gain an understanding of how the Indian B2B and B2C appear, how people network etc. Douglas stated that you could contact people via LinkedIn and email on their own in an effort to obtain the internal strengths of the companies.

109

Pranav, on the other hand, considers that recruiting the Indian workforce is a challenge. He believes that it is difficult for a Swedish company to recruit Indian employees, although these are highly competent. This is because, as a Swedish company, one would like to have workers who are accustomed and work-adapted to a Swedish organizational way of working. Hennart (2014) argues that the Indian workforce has high competence at low cost, which companies should appreciate as an advantage. By contrast, Pranav believes that it creates job opportunities that, however, take a long time for mentoring and training of an abstract, Swedish corporate culture. He believes that this will be a challenge, as the recruitment of new and foreign employees requires supervision and patience. It requires a considerable cost, for a company like Brandie that is still in its early stages of the internationalization process.

Risks According to Müllner (2016), companies must distinguish between “risk” and “uncertainty”, since findings from Truecaller, especially Manan’s description, is mainly concerning uncertainty. Manan explained that India could not be considered as a typical country, as every 200 kilometers, the country differs in terms of language, food, and almost everything. Lindsey also emphasized it by comparing the Indian market with the US. She further explained that it is difficult to focus on a specific target group to please, as different types of marketing strategies are needed when a brand wants to reach different types of customers located within India. Manan pointed out that there are thousands of languagesand dialects, which makes it risky when the company applies extensive/general brand communication. He believes that geographically, India is a vast country, which holds major challenges.

Müllner (2016) considers that uncertainty is something that companies cannot bear in mind since emerging markets are known to have (1) unpredictable environments that (2) are not measurable, unlike risks that are (1) predictable and (2) measurable. Furthermore, Manan stated that you never know what can happen, but still believes that Truecaller has not encountered any specific uncertainty; such as political challenges that many seem to face in the Indian market. Diamonte et al. (1996), on the other hand, argue that state regulation is a high potential risk every Western company must bear in mind before entering an international market. Usually, foreigners are exposed to specific regulations that are strongly based on bureaucratic costs, which means Swedish companies that find security in their state, can no longer obtain it in the new emerging market (Perotti & Van Oijen, 2001). On the other hand, Manan believes that the Indian state promotes investors by referring to India's higher level on the 'Ease of doing business' index.

Like Manan, Kari believed that Truecaller has had a seamless experience in establishing and expanding. First of all, he felt that the cultural aspects were mutually respected, and 110 the language skills were equal between the Swedish and Indian Truecaller, which have led to good cooperation. Renn and Rohrmann (2002) explain that mutual interaction reduces the chance of cross-cultural differences, but there is still a high chance that SMEs are affected by it. The cross-functional risk is mainly about the extent to which business communication is perceived and understood by both parties. Since English is the primary business language, formal language reduces risks that can arise in the form of misunderstanding. Renn and Rohrmann (2002) also believe that understanding of ethics is essential, which differs in Swedish and Indian.

Douglas pointed out, like Zhou et al. (2007), that the Swedish market differs significantly from India, which means that Swedes must be able to change their attitude towards the Indian market. He stated, for example, that the legal system in Sweden is more rigid than the Indian since agreements are strictly followed in Sweden. In India, it is mainly about whom you know and network with, which can shock Swedish entrepreneurs who are willing to follow the agreement regardless. Furthermore, he explained that as a Swedish company, there is a risk of meeting several yes-sayers who give false promises, which leads to enormous frustration from time to time. Žigienė et al. (2019) explain this as a commercial risk, since Westerners, especially SMEs and Born Globals, tend to rely on the local players to a large extent. This means that companies must take commercial risks into account based on the extent to which agents, agreements and guarantees, resolve disputes. Paritosh from GX Group added that India is a long-term market with a need for an accurate network and people who will help please the enormous population, which you cannot do on your own as a Western company. This also indicates that foreign companies require local agents. Theoretically, Žigienė et al. (2019) consider that SMEs generally depend on local agents. Paritosh concluded that companies should bear in mind that this can be a risk, as everything may not go exactly as you want.

Both Douglas and Pranav believed that another important commercial risk companies should bear in mind is that it generally takes time to get a return, but receiving payments is even more difficult. Douglas says that it takes a long time to get payments because they do not have the same system as in Sweden, where debt collection and the chancellor get involved. Pranav adds that it can feel like you are working without getting paid, which means you have to have financial muscle as a buffer. According to Žigienė et al. (2019), this is one of the most significant commercial risks that a company encounters when entering emerging markets. There is a great chance that payments will take much longer than expected, which Douglas considers being a problem for companies that depend on their cash flow. In particular, Douglas believes that the risk is higher for SMEs, as vulnerable businesses are dependent on their financial tools.

111

COVID-19 The current pandemic situation with COVID-19 has locked down businesses in severe parts of the world. Indian government implemented lockdown since 25th March 2020 and extended it to 31st May 2020 (Government of India, 2020), while the Swedish government does not have a lockdown; instead, they have set some regulations and recommendations of social distancing (Folkhälsomyndigheten, 2020). Researchers argue COVID-19 will have a demand and a supply-chain chock (Baldwin & di Mauro, 2020). Truecaller has continued with business as usual. Manan, Kari, and Lindsey explain that the situation has not affected them severely, in fact, their extensive use of technology and communication with other business units across borders have already given them the tools they need to work remotely from home. Truecaller has a policy of hiring people according to their needs; hence, they work lean, agile, and nimble. Kari stated that everyone at Truecaller is doing their best to keep their company moving forward and serving millions of users worldwide. Manan and Lindsey imply they have a positive outlook for the future regardless of the current situation.

For Brandie, the lockdown in India has affected them since the brands using their platform cannot deliver their products. Furthermore, brands are not wanting to market their products, e.g., Pranav says the IPL where companies set high marketing budgets is affected by COVID-19 and lockdown; instead, these marketers need to find new solutions for their remaining marketing budget. Baldwin & di Mauro (2020) described the pandemic will lead to a supply chain chock, which means there will be a stop in production, and this will affect the connecting business operations. Since Brandie is a platform based on crowd marketing, where users share photos of their favourite brand and earn rewards, they are affected e.g., when Puma cannot deliver their goods, as Pranav explained. Another factor hindering Brandie is the flight restrictions to India. Since Douglas and Pranav manage the main sales work, they need to find employees in India who can do the tasks instead of them.

Pranav said that if we predict the business ecosystem will change, companies will seek to put their business and sales in online activities. Investors have contacted Brandie. In the long run, Pranav explains that businesses need to work towards digitalization. Brandie has a solution for the new upcoming demand, and COVID-19 has shown that digitalization helps the daily lifestyle move close to normal. Baldwin & di Mauro (2020) explained that COVID-19 would also lead to a demand shock, where consumers pause until making a purchase. Pranav said that since Indian consumers are in a lockdown, and cannot test a product physically, the recommendation of friends & family will be more significant. Thus, Brandie has a positive outlook in the long run. E- commerce will also grow more quickly than expected. Paritosh from GX Group described the telecom services has an increased demand due to the work-from- home situation, caused by COVID-19. Hence, the demand for broadband has increased

112 due to the new work environment. The novel coronavirus COVID-19 has locked down most of the countries. However, the demand for online activities has increased. Thus Truecaller, Brandie, and GX Group are not severely affected by the pandemic.

5.5. Opportunities

Literature Concept Central references

Opportunities Long term growth Knight and Liesch (2016) Changing consumer behaviour Keegan & Green (2015)

Case 1: Advising Organisations Findings from SIBC show that growth opportunities are the main advantage that attracts Swedish SMEs. The Indian market is a growing market, which Coviello and McAuley (1999) consider possesses a significant impact on Western companies in search of attractive markets. The authors refer to "long-term growth" and imply that emerging markets show rapid growth within the framework of the nation's gross domestic product (GDP). On the other hand, Robin from SIBC pointed out that India is a large country, where the growth rate must be studied at the regional level since the overall growth rate may vary from a city. He refers to the gross state domestic product (GSDP), which explains that growth in India may show 5% while, for example, the city of Maharashtra, with 120 million people, shows a state growth rate of 7–8% (see attachment 1). Findings from both advisory cases show that both refer to India as a "continent" because the country is enormous with different types of opportunities in each state. Foligne et al. (2013) believe that countries that show growth opportunities in different ways and various forms have a high tendency to attract investors because these can be opportunities that suit their business in each direction.

Furthermore, Robin stated that Truecaller has a large customer base in the big cities. In contrast, Joseph Cyril Bamford (JCB), who produces agricultural materials, has a more extensive customer base in India’s rural areas. Both companies are known in different ways, as the Indian consumer also differs in demand for products and services. Like Craig and Douglas (2011), Robin explained that product customization benefits not only the population but also the company itself. Robin takes JCB as an example and explains that they had to reduce the horsepower in the excavators, which means that product adaptation is crucial. In that case, it would be more efficient to produce services in parallel with the low purchasing power that their target consumers can afford. Besides, the rural population constitutes a large part of the Indian economy, which led to JCB

113 redesigning the product, by reducing (1) the horsepower, which (2) led to a decreased cost on their business’s behalf. Anna, on the other hand, believes that Swedish SMEs can see the rural areas as an assignment to undertake, in such a way that they can satisfy that demand by actually producing digital products that the larger cities are already using. Pant (2014) explains that India is expected to have the largest rural population using digital services available through the Internet. By 2023, India is expected to have 500.9 billion Internet users, which is covered by both the elderly and the rural population (Statista, 2019). Anna explains that Swedish SMEs can see this as an advantage of utility, in order to be closer to an understanding of their end- customer and to affect their profitability positively.

On the other hand, Craig and Douglas (2011) believe that Western companies tend not to understand foreign demand but claim that SMEs have the opportunity to specifically focus on reaching their target consumers, by understanding them individually. Furthermore, Craig and Douglas (2011) believe that the minimal resources that are considered to limit SMEs can be perceived as an advantage, as larger companies tend to miss the details in emerging markets. The findings from SIBC outlines that Sweden and Swedish companies, have great opportunities to help the rural areas with the help of their innovative software products. Sweden is also a well-known country for the production of quality products. Zain (2006) considers quality to be an attractive factor, as the younger generation earn more, which leads them actually to buy "luxury products". Not just because of the quality, but also the income increase results in purchase ability.

Robin explained that although general consumption among Indians is high, the valuation of brands is important and purchasing power exists; Indians tend to want 70% of the quality to 40% of the price. Like Sandberg (2012), Anna concluded that Western companies such as Sweden have advantages in the entire value chain, from raw material production to end customers, these SMEs who originate from innovative- and high-tech clusters are able to encounter (1) high-quality product/services relative to (2) a more satisfying price for the customers. As digitalization accelerates several solutions such as e-commerce and mobile payments, Swedish SMEs can please those gaps due to the high technical background, which they possess.

Swedish characteristics Anna from Business Sweden also mentioned that the growth opportunities lie in Swedish SMEs obtaining a chance to cut many costs, which they would have to bear in mind if they chose to establish themselves in another market. She further explains that Swedish SMEs can sell, buy, and produce in the Indian market as they also have a broad consumer audience. Savrul et al. (2014) argue that it is a clear example of why Western 114 companies manage to produce at a cheaper cost with a broad audience of consumers interested in their products; because these companies tend to produce and sell quality. Robin strengthens both Anna and the previous theoretical point of view, as he mentioned that India is a fantastic volume-market where companies can sell larger volumes at a lower cost per unit produced. However, like Craig and Douglas (2011), he clarifies that Western companies must meet the Indian consumer symmetrically to take advantage of the given opportunities. Robin and Anna consider it extremely important that Swedish SMEs adapt their production and product to customer segments to meet the demand that they intend to please. Knight and Liesch (2016) believe that SMEs can use their size as an advantage in adapting to different customer segments since SMEs, unlike MNCs, have greater adaptability as the innovative culture and flexibility laid the foundation for Born Globals.

According to Zhu et al. (2006), SMEs are adaptable in cross-functional and social contexts, focusing on social capital rather than just liquidity. The findings from the advisory cases show additional Swedish aspects to bear in mind as an opportunity while networking with Indian partners. Robin discussed the Law of Jante, which Swedish companies overall follow. He considered it to be an excellent characteristic that Swedish SMEs practice and should continue to use. Robin explained that Swedes have a natural strength of not saying that they are the best, biggest, and most beautiful (The Law of Jante), which Indian perceive as respectful. Further, Zhu et al. (2006), similar to Robin, explain that economic activities in foreign markets are also based on the social relationship created between the Western company and the new market. According to Matlay et al. (2006), the Swedish work culture is explained to have a domino effect, which means that it adds more desire than wanted. Matlay et al. (2006) consider that several standards are being improved for the Indians; for example, they become someone at their job; they sense reduced competition from Western companies, and the exchange of skills increases. Robin confirms this and explains that the Swedish companies contribute to good bilateral relations that the Swedish and Indian authorities maintain, in conjunction with the creation of healthful workplaces and working environments at the local level.

Case 2: Companies

Digitalisation as a driving force The most significant opportunities Truecaller has found in the Indian market prevail mainly in the technological developments that have contributed to their product being able to provide a caller-ID. Kari explained that it is because India has been able to help companies like Truecaller since 2016 by focusing on developing within fintech and business sectors, by adapting smartphones to mobile payment 115 solutions. BCG (2019) explains that online shopping has increased, mainly due to the decrease in smartphone prices. Although there are still great opportunities for companies like Truecaller to develop in, such as mobile payment solutions, India is lagging in technological development within this area (BCG, 2019).

According to Pant (2014), consumer attitudes change when the Internet use is flourishing as much as it has done in India lately, as several customer segments use digital services that Truecaller has created. Although Robin from SIBC explained that digital services are not as popular in the countryside, according to Statista (2019), things will change, as the older generation and people in the countryside will be almost the majority of Internet users in India until the year 2030. Lindsey also added that Indians today prefer to use mobiles instead of a landline, which has given Truecaller a great opportunity over the past five years as mobile usage has increased by 25%. She further explains that the next two years are expected to show an increase of 14% of mobile usage.

According to Figure 7 in the theoretical framework, page 28. Statista (2019) shows that by 2023, India will have a total of 500.9 billion mobile internet users, indicating good prospects for a company like Truecaller. According to Lindsey, Prime Minister Narendra Modi has accelerated the development of a more “digitized India”, as he made sure that mobile bank payments should be normalized in the Indian society. Zain (2006) would according to his theoretical starting point, explain that the younger generation are drawn to Western products/services. On the other hand, Craig and Douglas (2011) explain that this does not apply to all western companies, since Truecaller did not expand like that. By contrast, Lindsey’s statement suggests that external opportunities, created by the Prime Minister, laid the foundation for the Indian population to develop in conjunction with the rest of the world. Although the theoretical assumptions explain that there should be a demand that Western companies should please, it also goes as Truecaller; by taking advantage of digital gaps such as developing a digital solution, companies can please the demands regardless. Truecaller has even indirectly succeeded in creating a demand for digital solutions, which is an advantage, as Statista (2019) shows positive growth trends of Indians consuming smartphones and digital services.

All respondents from Truecaller explained that Truecaller has succeeded in utilizing the fact that the company does not have a traditional way of thinking when expanding to India and emerging markets. Furthermore, Manan believes that Truecaller is a company that develops in conjunction with the modern processes of change, in terms of working methods and market conditions. Truecaller has had an advantage by offering digital services that do not require the same manufacturing process as FMCG companies. Zhu et al. (2006) explain that SMEs focus on the social interactions and promotion of the work environment, unintentionally or deliberately creating a domino effect. Moreover,

116 the researchers mean that the new market, India, in this case, is affected in the right way because the business relationship improves several aspects such as new employment opportunities are created, and working conditions are improved. Manan also compares Truecaller's digital service with physical products and explains that Truecaller has a huge advantage in producing and selling digital services. If you are an FMCG company, e.g. that makes soaps, then there is a manufacturing process, a research and development process and a huge lead time in terms of getting the product to the market, which can be a disadvantage. Truecaller expands much faster, which, however, can cause disadvantages for the company. According to Manan, this is because it can be difficult for a company such as Truecaller to find agents or business partners that work faster and more efficiently than them.

The Start-up Perspective Zhou et al. (2007) explain that start-ups are vulnerable businesses that cannot act independently in a market. The researchers further explain that the institutional and social relations lay the foundation for how an internationalization process will look for a company. Findings from Brandie shows that the Co-founder Douglas corresponds with the theoretical point of view, as he mainly thinks that as an entrepreneur, you need to be fearless, social and have a passion when you want to establish yourself in India. Douglas further explains that human capital is an important internal asset that start-ups and SMEs must take advantage of. Craig and Douglas (2011) likewise explain that such businesses must act based on the given resources when SMEs are known to be resource- adapted businesses. On the other hand, the external opportunities for Brandie were the massive Indian population. It is a country with fantastic opportunities, where every corner and edge have different opportunities for all types of industries. Like Knight and Liesch (2016), Brandies Co-founder also adds that India today has a growing middle class, which means that the purchasing power is intense. According to Knight and Liesch (2016), one of the main attractions to why Western companies choose emerging markets like India, is because the middle class is becoming larger, and their income is increasing, which also affects their purchase ability. Douglas believes that India welcomes Western companies in this way.

Douglas from Brandie also believes that international companies get the chance to establish themselves in India, in that the business language is in English in conjunction with projects such as "Make in India" allowing entrepreneurs to see India as a potential market. Researchers Craig and Douglas (2011) also claim that Indians appreciate international brands, as they have recently been given increased revenue growth, which in turn means that the younger generation presently has a higher purchasing power. Douglas also explains that Swedish companies have a good reputation in India and think it is almost strange that several Swedish companies have not yet established themselves in the Indian market. Brandie’s other Co-founder, Pranav, on the other hand, believes 117 that it is an advantage for Brandie at present, as there are few Swedish players in the Indian market.

Furthermore, Pranav also believes that India and Sweden have succeeded in establishing a mutual relationship, which has led Modi to visit Sweden several times, and Löfven has been down in India a lot. He explains that the Indian- and Swedish bilateral relationship has mainly focused on innovation, which Sandberg (2012) explains as a crucial component when companies want to establish themselves in new or foreign markets that are not similar to their own. Sandberg (2012) explains that innovation helps Born Globals to perceive the international market from a nuanced perspective. As a company, for example, they will not only seek demand but will also succeed in creating demand through new products or services (Sandberg, 2012). Brandie finds India's geographical size as an opportunity since the co-founders claim that if a business operation does not work in one city, other cities within India give new chances. Theory supports this matter, where SMEs and start-ups have the opportunity to test their business with the help of “trial and error” - as such minor businesses are recognized for (1) extreme flexibility and (2) willing to create and maintain mutual interests with agents on the local market (Sakarya et al., 2007). This theoretical starting point is explained to promote SMEs and start-ups to take advantage of their “smaller” size, which gives them the chance to be flexible and not tied to a place (Sakarya et al., 2007). If, as a larger company, you have already set up production facilities, it can be difficult to reposition yourself if it does not go well physically. Which is not the same case for SMEs and start-ups.

Relationship to the Indian market The findings also showed that India is a good market out of different angles, as Pranav thinks it is a market where companies get the chance to "get their hands dirty". He argues that companies entering the Indian market encounter challenges that can actually be perceived as opportunities at a later stage due to the experience the companies have managed to embrace. For example, cultural barriers became something that every company encounters as they establish themselves in new markets. Brandie solved this problem by hiring a person with Swedish work ethics and Indian market knowledge, although Pranav clarified that the Swedish or Indian approach is not better than one or the other, it helped them obtain a deeper relationship with the Indian market. The researchers Sakarya et al. (2007) consider that a business size has an impact, as SMEs tend to be detailed in terms of market knowledge. In this way, the cross- functional perspective becomes something that companies naturally have in mind before they establish themselves. Their size pushes them to take advantage of most external and internal factors that companies should keep in mind, at an early stage of

118 internationalization. This is because these businesses are very vulnerable, which makes them forced to look around the business environment more closely.

Paritosh said that GX Group had competitive advantages as they had a strong relationship with the local agents available in the Indian market. Sakarya et al. (2007) believe that this is because SMEs are limited by being dependent on players located in the foreign market, as they will not do otherwise. On the other hand, Paritosh explained that the local awareness and interest in the agents increased as GX Group aimed to develop, plan, and produce their products in the Indian market. Based on this goal, they made sure to employ highly competent and academic individuals in order to be able to produce high quality. According to Matlay et al. (2006), GX Group has succeeded in creating a domino effect based on their goal of wanting to be local producers, consequently it has created job opportunities for several Indians with better working conditions.

Like the other cases, Paritosh also explained that GX Group has taken advantage of (1) India's large market and (2) the undeveloped domain that their broadband solution has aimed to please. As GX Group has succeeded in creating broadband solutions for consumers, Paritosh further explained that it has led to India beginning to highlight that the digital era needs develop in connection with the remaining world changes. BCG (2019) shows that prices for smartphones are falling, in conjunction with India, also being in a major development phase to adapt to mobile payment solutions. Therefore, companies like GX Group are welcomed to the Indian market, while at the same time, their companies manage to satisfy the demand that already exists. In addition, digitization has helped GX Group, as Paritosh believed that the Indian state has promoted business in the broadband sector. He takes Netflix as an example of the Indian market, which had received a great welcome to the market due to the emergence of digitalization. In this way, they have also included Bollywood films and mutually met Indian demand, which Craig and Douglas (2011) consider to be the result of international brands being more than welcome to the Indian market. Paritosh explains that GX Group, which digitalisation as a basis, has helped two million homes with broadband solutions since 2013.

119

5.6. Swedish vs Indian Culture

Literature Concept Central references Internationalization Cultural dimensions Hofstede et al. (2010) Language barriers Hampden-Turner & Trompenaars (1998) Feely & Harzing (2003)

The empirical findings from chapter 4 will be compared to theory and to the differences between the cultural index, presented in figure 12, which is secondary data. Figure 12 shows an index from 0 to 100, comparing the national culture in Sweden and India.

India vs. Sweden

India Sweden

77 78 71

56 53 48 51 40 31 29 26

5

Power Distance Individualism Masculinity Uncertainty Long Term Indulgence Avoidance Orientation

Figure 12: Hofstede's Cultural Dimensions Compared Source: Adapted from Hofstede Insights (2020)

Power vs Status By comparing the power distance dimension, we can see that India scores 77, while Sweden scores 31. This indicates that Indian society has a more hierarchical structure where else Sweden is more decentralized (Hofstede et al., 2010). As Robin from SIBC explained, India is a more relationship-based country and the difference in entering the Indian market may lay in the opportunity to contact the authorities. Due to this barrier, SIBC advises companies with market knowledge of regulations and helps companies get in touch with both Swedish and Indian government officials. This is supported by the findings of Anna from Business Sweden, who similarly describes India as a relationship- based country where having contact with the official authorities is essential when establishing in the country. Hofstede et al. (2010) explain that the power distance index includes how the social classes are divided within a society, which leads social class, education, and occupation to be correlated with each other.

120

Anna from Business Sweden explained that India is an attractive market with a growing middle class, according to Javalgi and Grossman (2016) the growing middle class in India is leading to higher purchase power. Pranav, the Co-founder of Brandie, explained that the middle class in India consists of around 350 million people, which indicates there is a relatively same purchasing power as in Europe. Although there is a growing middle class which may reduce the power distance in society, the power distance in organisations is prominent. Pranav implied there is a challenge of getting past people who do not have decision-making power. He explains that having business relations with the upper management team helped them to establish their business much quicker. Since a person without decision-making power, e.g. middle managers, will be time- consuming as they do not have decision-making power. This supports the high-power distance index, which means Indian organisations have a more hierarchical structure than Swedish organisations. The Group CEO of GX Group, Paritosh, described that there are many brokers and consultants who are working within the business networks in India. Furthermore, these stable relationships with the middlemen are important since they act as a messenger and are crucial factors while conveying information to the correct person. Bureaucracy is another factor which is an obstacle.

Group-oriented vs. Self-oriented Hofstede et al. (2010) describe collectivistic societies as more group-oriented since an employer in a collectivistic society rather hires a person who belongs to an in-group. However, it is important to highlight that organizational culture may vary from societal norms (ibid). The empirical findings show a repeating answer that India is a “relationship-based” country. Majority of the respondents emphasize that networking in India is on a more personal level than in Sweden. This cultural dimension indicates that India is a more collectivistic country compared to Sweden, which is more individualistic. As Hofstede et al. (2010) describe, a bond within a collectivistic society is more family- oriented where relations and loyalty plays an important role. Hampden-Turner and Trompenaars (1998) has a similar cultural dimension called Individualism vs Communitarianism, and he describes this dimension as self-oriented vs group-oriented. Sweden scores high in Hofstede’s individualism vs. collectivism dimension with an index of 77, implying that Sweden is more individualistic than India, who scored 48 and is neutral but more collectivistic. Although Sweden is individualistic, the empirical findings from Truecaller describe that from a Swedish perspective, the inclusive and multiculturalism in Sweden is an important factor for Truecaller which led them to gain wisdom and knowledge from people of various cultural backgrounds. This implies that even though a country is individualistic, relationships play a central role. Hampden- Turner and Trompenaars (1998) describes another cultural dimension as Universalism vs. Particularism, he explains that this dimension is complementary to a society being self-oriented or group-oriented, as universalism means a society follows regulations and treats people according to the rules, while particularistic society values human 121 relationships. Anna from Business Sweden explained that while creating a business relationship, topics about personal life, well-being and discussions not related to the profession are more frequently discussed in India, while Swedes are more withdrawn on discussing private life. This implies that India has a more collectivistic and particularistic culture. Douglas, who is the other Co-founder of Brandie, also supports this finding as he thinks Indians have a more openness while connecting to new people than the Swedes.

Hampden-Turner and Trompenaars (1998) cultural dimension of Specific vs Diffuse, describes specific societies where personal and work life is kept separate, while diffuse societies have an overlap between private and professional life. Diffuse societies believe that a more profound relationship is decisive for meeting business goals. Robin, VP and Secretary-General of SIBC, describes Swedes as more withdrawn in comparison to Indians, which can be a disadvantage. Since SIBC creates roundtable meetings and other events, you should be able to mingle and have a discussion with others. Why Indians are more network-friendly than Swedes is explained by Robin by that it is linked to the Swedish work-culture, where Swedes are more comfortable with their internal teams while Indians are constantly exposed to international partnerships for the company, they work in. This leads to the conclusion that India has a more diffuse culture, while Sweden is more Specific in terms of business relationships.

Hofstede et al. (2010) explained that ICT is frequently used in individualistic societies compared to collectivistic, with regards to the current pandemic COVID-19, it is important to note that although the use of ICT within a society varies between personal and professional life, the work from home demand has increased, leading both collectivistic and individualistic societies to use ICT recurrently. The empirical findings from GX Group showed that the demand for broadband has increased in India, Brandie predicts Indian society will need to adapt to e-commerce quicker. The current situation may force collectivistic societies to use ICT at the same extent as the individualistic societies.

Masculinity vs. Femininity Culture is infused to what extent an individual’s expression of emotion is accepted within a society. Hofstede et al. (2010) describe masculine societies as more thriving towards competition, best-in-class and where the strongest people are admired, while feminine societies lean towards equality and where standing out from the crowd is not as admired. Sweden is a feminine county with an index of 5, while India is highly masculine (index 56). The Brand Manager of Truecaller, Lindsey, explains that they carry out the Swedish morals, e.g. by tackling societal issues in India, where other companies do not integrate, she believes this characterises the Swedish progressiveness. Truecaller’s philosophy of being open towards their partners in other aspects also define

122 that the Swedish feminine culture is infused in the organisation. More empirical findings support the feminine cultural dimension, e.g. Robin from SIBC describes that Indians value the Law of Jante, where Swedes do not try to exaggerate a situation. Furthermore, he explains that Swedes who have established their business in India are respectful and cautious in regard to equality. Douglas from Brandie explained that Indians more often show off what they are proud of, which includes brands. The other Co-founder, Pranav, gave an example that if a person in India wears a brand, they do not hesitate to hide it, which can be supported by the theory that India is a more masculine country compared to Sweden.

Hampden-Turner and Trompenaars (1998) describes a similar cultural dimension named Neutral vs Emotional, which implies to what range the individual's feelings can be expressed and accepted as a norm. Individuals try to control their emotions vastly in neutral societies, while individuals in emotional societies often express their emotions spontaneously. Although India is a masculine country, the empirical findings suggest that India tolerates emotions, which is supported by the welcoming of Swedish SMEs and the fact that deeper business relationships are preferred in India. In order to create a deeper relationship, one must be able to express their feelings; thus, Indian society can be characterized as accepting of emotions within a business environment. Hampden- Turner and Trompenaars (1998) introduces an additional cultural dimension which can be a complement to Hofstede's dimension of Masculinity vs Femininity. The dimension named Achievement vs Ascription intends to describe how society defines an individual's status, whether it is gained through achievement or ascription (Trompenaars, 1998). The findings did not show any correlation to status having a role in the business environment. However, in the context of Swedish SMEs internationalizing to India, the respondents did point out that being a Swedish company gave them an advantage since Swedish MNCs have benchmarked Swedish products/services as highly innovative and with high quality.

Uncertainty in a Society All respondents agreed that India is a country that one needs to visit if there is an interest in investing, regardless if it is digital services or physical products. Hofstede et al. (2010) would base on the dimension of uncertainty avoidance, explain that it is because the Indian market is (1) foreign to Swedish companies and (2) an unstructured environment, where one does not know what will happen in the near future. The index also indicates that Sweden has a much greater need for uncertainty avoidance than India. Furthermore, Hofstede et al. (2010) explain that uncertainty is based on the laws, language, religion, the technology of the nation. Douglas from Brandie expresses similarity to the theory of uncertainty. He explains that the Indian market still stands out because English was the common source that created the bridge between their companies and the Indian market. He also said that they were considering the Chinese

123 market, but their market showed uncertainty; mainly based on their extreme use of Chinese and that the regulations are usually only in Chinese. Hofstede et al. (2010), from the theoretical point of view, considers that companies instead seek markets that have similar background in business communication, laws, and technology. This decreases the uncertainty anxiety, as Hofstede et al. (2010) refer to when discussing corporate internationalization.

However, Douglas from Brandie explains that it is difficult to establish yourself in any emerging market because there is an uncertain atmosphere regardless. Therefore, all respondents say that the most important thing that the Swedish SMEs understand about culture and language but that they primarily create a “tailor-made” business model for the market they wish to establish themselves in. Trompenaars (1996) would explain such a way of thinking based on Internal Control, which means that companies, using strategic planning, try to control the external environment. Anna from Business Sweden, for example, explains that Netflix failed to deliver Bollywood movies to the Indian market as Amazon Prime did, which led to them not being as popular in India initially. Therefore, Anna believes that it does not matter if you are a world leader or not, as the most important thing is to adapt to the environment to which you are expanding. Trompenaars (1996) argues that Internal Control assumes that it has such a dominant and controlling attitude to adapt, but also to facilitate the situation for itself with the help of market analyses and planning.

Trompenaars (1996) also addresses how societies are characterized by External Control, which emerging markets are also characterized as being. Robin from SIBC explains that situations in the Indian market cannot be predicted, but with the help of an open mind and a strong will you can always get help from their network organization. For example, Trompenaars (1996) explains that people who are characterized by External Control have a mindset that compromises and is flexible, which Anna and Robin demonstrate. They mainly explain that the Swedish SMEs are interested in the Indian market as there are high growth figures, which leads to an early realization that the opportunities are great with risky conditions. Anna explains, like Trompenaars (1996), that Swedes try to possess External Control, by adapting to the Indian environment by, for example, tying up contacts to create and maintain mutual business relationships.

Long Term Orientation Hofstede et al. (2010) and Trompenaars (1996) consider that societies and nations' perceptions of short- versus long-term thinking have a significant impact when companies are interested in establishing themselves in a new market. Hofstede et al. (2010) explain this by discussing it based on Long Term Orientation, where Sweden has an index of 53, and India shows 51. Further, Trompenaars (1996) explains his theoretical 124 starting point, based on Time Orientation; sequential societies where a lot happens schematically and every minute is important unlike synchronic societies, where you are flexible and deal with several things for the purpose of seeing improvement here and now. Paritosh from the GX Group declares similar to Hofstede et al. (2010) and explains that India is characterized by long-term thinking, which Swedes also must be when establishing themselves in the Indian market. He says that there is a great need to understand the market, accept that the return on investment takes longer and that there are several other factors the companies must keep in mind. Hofstede et al. (2010) would say from the theoretical point of view, that India is a good market for Swedish SMEs, as the countries show significant similarities in terms of future thinking. Besides, Paritosh adds that the Indian market is open when it comes to Western investing, which means that international minorities who want to grow have a perfect market to establish themselves in.

Anna, on the other hand, like Trompenaars (1996), explains that it is also a long process to establish itself in a market with high growth. This, she explains, is because the market is so large that Swedish SMEs have to deal with the national - but also the regional aspects, which is a major obstacle. Trompenaars (1996) explains that synchronic societies are appreciated in the context of internationalization, but that a sequential way of thinking must be applied. This means that you need a structured schedule to give you an unstructured environment, which is really based on flexibility. The man from Truecaller cited an interesting example that shows that the Indian market gave their companies inspiration to invest in the African market in the longer term, for example. In addition to the parables that India and African countries exhibit, he also believes that the African continent shows tremendous potential in future technological developments regarding mobile payment solutions. In this way, both Trompenaars (1996) and Hofstede et al. (2010) believe that long-term societies are also associated with emerging economies, using a pragmatic approach based on, for example, growth trends.

Indulgence Douglas from Brandie, and Robin from SIBC, explained that it is essential for Swedish SMEs to be open and social, which are internal strengths that they can make great use of during their early internationalization process. When looking at Hofstede’s compression between India and Sweden, the index showed that the Indian society is more restraint than the Swedish, due to Sweden’s index on 78 whilst India was ranked as 26. The higher the index a society is characterized by, it is considered less restrained and more enjoyable. On the other hand, this case study showed that Swedes are more restrained than the Indians when it comes to creating business relationships. Hofstede’s dimension regarding indulgence versus restraint was hard to apply on the different outcomes when analysing the collected data, because the empirical findings were 125 analysed with a starting point focusing mainly on business relationships and networks, and not how these companies embrace their national culture. For example, Robin mentioned that Swedes have difficulties when mingling at events or when networking, which does not match the indulgence index. Likewise, Douglas explained that openness and social competence is highly requested by Indians, during international and foreign networking. On the other hand, Hofstede et al. (2010) refer to Swedes as more liberal and open minded, when discussing different matters out of a national perspective. Hofstede et al. (2010) also believe that India does not have the same extent of promoting, for example, freedom of speech, which is considered to be an essential part of societies being characterized as highly indulgent.

The empirical findings showed that the business environment has another take on it, due to Swedes being more individualistic and restraint when being exposed to the unknown and new markets internationally. Furthermore, Robin explained that SIBC mainly works with these issues, by offering such SMEs round-table discussion as they arrange different social events to connect people and companies. The case studies further showed that Indians are more open when it comes to building business relationships, which opposes the index (Hofstede et al., 2010). However, this does not mean that the Indians are more indulgent, it can be interpreted as the Swedes have more space and room to be impulsive at their workplace whereas the Indians are more restrained. As the findings from the counsellor organisations showed, Indians have been affected by a long-drawn competition within their school- and work life which results in a more restraint and labour driven behaviour. However, when it comes to creating new business relationships, other cultural dimensions like masculinity vs. femininity are more prominent, therefore it is concluded that Swedes may appear more indulgent in daily work life but are more restrained during networking.

Language Barriers Feely & Harzing (2003) explain that international companies encounter language barriers, and therefore it is crucial to have a language management strategy while operating across nations. The empirical findings show a strong connection between choosing to establish in India, thus minimizing the language barriers according to Feely & Harzing (2003). The case studies show that English as a business language simplifies the communication between Swedish and Indian parties. As previously mentioned, Brandie chose India over China especially because it minimizes communication and translation costs. Moreover, the counselling organisations explained that laws and regulations are easily accessible in English, thus leading Swedish companies to choose India over other Asian markets. Even though culturally speaking both Sweden and India differ to a large extent, as the authors examined in the previous cultural dimensions, the

126 findings show that managing English as a single language does not create a language barrier.

In the context of creating a business network or establishing in India, the empirical findings do not demonstrate that the companies have tackled any language barriers. There are no evident language diversities, nor does it imply that language penetration was required, since English is already spoken as a business language in India, giving Swedish SMEs a simplified path to enter the Indian market. Brandie’s case shows that the psychic distance to a relatively neighbouring country can lead a start-up to rather establish in a culturally different market instead. As one of the founders explained based on his previous experience, although Germany is closer to Sweden, the language barriers in terms of having to market in German, and change the features in an app to German, made it clear for Brandie to rather chose India as their first international test market since the consumers and B2B customers speak in English. For a Start-up or SME with minimal resources, India offers immense opportunities due to the huge demand combined with relatively low language barriers.

5.7. Conceptual Model Revised By analysing the empirical findings, the authors have found new insights, which are applied to the conceptual model below.

Challenges

Business Network

Internationalization Foreign Emerging Market

Brand Strategy

Opportunities

Stage 1 Stage 2 Stage 3

Figure 13: Conceptual Model Revised

127

Stage 1 - Internationalization:The initial stage is influenced by a firm’s mission and aims to internationalize. In stage one, the management has decided to target a specific foreign emerging market. However, to enter the market, they need to use either existing or new business networks, which help them establish their business operations in the emerging market. The long-term orientation within a country influences the choice of an emerging market since it facilitates the mission and vision. The empirical finding from Case 2: Companies, showed that the Born Globals, e.g., Truecaller, already had consumers in the emerging market. Nevertheless, when setting up business units and verticals in the new market, they still need to have a business network and create an ecosystem, which leads us to the next stage.

Stage 2 - Business Network + Brand strategy: Refers to relationship and awareness creating. In this stage, the SME exchanges knowledge with its business network. Relationships within a business network have cultural aspects, e.g., a masculine or feminine culture, that leads to how relations are maintained. The case studies show that brand strategy is an essential factor since the firm has to adapt its marketing communication to the consumers on the emerging market. However, a brand strategy does not have to be created before entering the emerging market. Our study shows that a brand strategy can be adapted afterward by gaining more market knowledge. Although horizontal networks are essential while creating partnerships, vertical networks, classified as a business ecosystem, are fundamental factors for SME operating in the emerging market.

Stage 3 - Foreign Emerging Market: The final stage where the firm enters a specific market by embracing the opportunities and tackling the challenges. When the SME has established their business units in the emerging market, they continuously need to gain new market knowledge since an emerging market is changing rapidly, and the SMEs have to develop their product/service accordingly. How a society manages uncertain situations have a vital impact on the survival of an SME, as regulations and laws are instituted to tackle uncertain situations that may help an SME to enter and, at the same time, lead to an exit from the emerging market.

128

6. Discussion & Conclusion

Chapter 6 highlights the research questions involving the factors; (1) internationalization, (2) business network, and (3) branding strategies, for an overall discussion. These factors are primarily discussed based on their contribution to the study. Furthermore, conclusions, theoretical contribution, and a methodology reflection is presented.

Reconnection to purpose The purpose of this study is to investigate the motives of Swedish SMEs when establishing in the Indian market through a business network and brand strategy. Furthermore, to create a deeper understanding of the challenges and opportunities that may arise during this process.

6.1. Discussion The results indicate that there is a common denominator, which is the mutual relationship between the Indian and Swedish states in promoting investment in each other’s market. This has resulted in international companies, but above all Swedish SMEs and start-ups, to be welcomed to the Indian market. India and Sweden have established bilateral trade and diplomatic relations, which have led Modi, India’s Prime Minister and Stefan Löfven, Sweden’s Prime Minister, to visit each other’s nation. From the theoretical point of view presented by Hofstede et al. (2010) in conjunction with Trompenaars (1996) indicates that India and Sweden are countries that promote long- term thinking, which is explained by the long-term orientation dimension, explaining that long-term thinking leads to economic growth. Thus, they have succeeded in maintaining bilateral trade relations, although the countries show differences in national cultures. In addition, India is a country that is considered to be a continent, as different cultures and demands are depending on where within the country the company chooses to position itself. India has 29 states with a growth rate of approximately 5-6 %. Due to differences between the states, the state growth rate (GDSP) is an important factor to consider, as the general level of GDP cannot be applied to all states and varies from state to state for instance the state of Maharashtra has a growth rate of 11-12% unlike 5 % at the national level. This implies that SMEs with scarce resources can choose to establish their operations in preferred Indian states (see attachment 1).

As states differ, so do opportunities for Swedish SMEs, which enables an opportunity for product development, in relation to the Indian states. Since SMEs, with digital products/services are flexible, it means that if the business does not work out in one state e.g. Bangalore, there are other large cities like Mumbai or New Delhi for their business establishment. In today's digital world with non-physical products, it is easier 129 to internationalize, but this brings up other barriers that SMEs should bear in mind, such as data protection regulations in India, which are equivalent to General Data Protection Regulations (GDPR), in terms and rights when using digital products. An interesting aspect besides splitting India into 29 different states is that some firms label the cities as A, B and C regions depending on the purchasing power. This is a breakdown that indicates purchasing power within each region, where cities labelled under category A are customers with the largest purchasing power. However, companies should not disregard rural consumers and the older generation, as growth trends indicate that the demand for digital services will increase among these segments. However, a challenge for Swedish SMEs is the lead times in the decision-making process. It is essential to find a business network that includes contacts within high-ranked positions. Recruitment of employees on site is considered a challenge since there are cultural differences between Swedish and Indian companies. The dimension power distance suggests that western companies, in connection with the previous statement, are dependent on trusting people who are considered to hold higher positions because emerging markets are characterized by occupation and bureaucracy.

The advantage of innovative SMEs entering an emerging market is that they usually get a first-mover advantage. The company has the opportunity to establish relationships with different value chains in order to distribute their products/services before competitors enter the market. An example is Truecaller, who had a first mover- advantage as their product was unique in the market, and there was no competition. As a result, Truecaller collaborated with mobile manufacturers and adapted their products accordingly. Although companies can see several benefits of entering the Indian market, this does not mean that the firm has actively chosen to enter the market. In Truecaller's case, all three respondents clarified that "Truecaller did not find India, India found Truecaller". The reason why the Indian population is Truecaller's most extensive customer base is because the growth potential in the Indian market was subsequently perceived. Before the Truecaller app became popular, the high demand was the reason it became famous in the market. Later on, Truecaller started adapting its digital service according to the opportunities they found in the market.

The question is if these Swedish SMEs are classified as Born Globals or not. The result from this study shows that even if a company is characterized as a Born Global firm, it still needs to adapt its product or service to suit specific consumer preferences. E.g., Truecaller’s app can be consumed worldwide, although they also had to adapt their features to the Indian consumers. Brandie is characterized as a Born Global firm, as the platform provided by Brandie, which is an app, can be used in other countries as well. In Brandie’s case, the founders are still in a start-up phase with scarce resources; hence they have chosen India as their first market since it provides a broader spectrum of consumers. GX Group expanded similar to a Born Global firm, but the company’s 130 products had challenges to meet the requirements for a broader customer segment to use their product. GX Group offers broadband solutions that the majority may not be able to use. On the other hand, India is an emerging market, where infrastructure upgrades are taking place, consequently, it has increased the demand for products offered by GX Group.

The theoretical starting point and the discussion that focuses on Swedish SMEs and start-ups have mainly been wrestled with if these Born Globals are expanding just as the traditional models and theories advocate or not. Interesting aspects are found in this study, since Born Globals have established their services/products in new markets with the help of digitization which has accelerated the internationalization process. Nevertheless, India is a country with many challenges and opportunities, helping these Born Globals to gain experience. Using their experience, the SMEs have been able to compare India with continents such as Africa and Europe, and then enter into other markets. Some respondents pointed out that the Indian market has a similar culture to other potential markets that the companies are interested in expanding. This means that the Indian market has helped the companies to look around in order to find security in expanding and establishing themselves in a similar market. Comparison is made when it comes to language, culture, growth opportunities, and much more. The traditional theories mean that expansion takes place in such a way where companies look to establish themselves where they find similarities to their home market or experience, minimizing the psychic distance. In that way, they get a sense of knowhow, since the business networks also contribute to knowledge exchange. In this way, it is perceived as SMEs are expanding to new markets in a new way, but gradually, based on experience and comparison, they are looking for similar markets. By entering the Indian market, SMEs can quickly expand into neighbouring countries, referred to as SAARC countries, as there are many similarities.

6.2. Conclusions RQ 1: Why do Swedish SMEs & start-ups establish in the Indian market?

• Both Sweden and India have institutions built on long-term orientation, which has resulted in a stable and mutual relationship that has prompted Swedish entrepreneurs to invest in the Indian market. Swedes often consider their home market to be smaller than India; on the other hand, India perceives Swedish companies as highly competent and innovative. This has led India to welcome Swedish SMEs and start-ups to the Indian market. Moreover, there is a mutual relationship when the Swedish companies employ highly competent Indian professionals.

131

• India has a large population with rapidly increasing levels of purchasing power, which means that SMEs that offer a variety of digital products can meet different market demands with the help of product development or diversification.

• Early adopters are the first customers to adapt to new technology or product. India's massive population is equivalent to the early adopters in the European market. One advantage is that a start-up does not have to devote resources to adapt their marketing material to several different languages as in Europe, the firm can rely on English communication throughout India.

• By establishing their operations in India, new innovative and digital solutions are created that lead to the creation of a new demand for products/services, such as a new digital solution for everyday life.

• India is perceived to have a lower language barrier than most other Asian countries, or even European countries since the networking process, regulations, marketing, and setting up business operations, can all be conducted in English.

RQ 2: How are Business Networks & Brand Strategies implemented by Swedish SMEs & start-ups when establishing in the Indian market?

• Swedish SMEs with low market knowledge have the opportunity to create an Indian business network in the domestic market thanks to SIBC and Business Sweden, who are reliable business counsellors who can refer to authentic business partners in the Indian market.

• Another important factor to be able to establish in the Indian market is to create an ecosystem for its operations. This means partners and local Indian actors who help the product reach out to the Indian consumer.

• When companies enter an emerging market, they can either (1) have a ready- made brand or (2) build their brand in place, based on the demand. If a firm enters the market with a brand, it gives the market an impression of the product/service. Awareness is created on the basis that it is an international brand. On the other hand, if the brand is created on the spot, SMEs can adapt their brand by creating awareness for the population, based on what the consumers consider to be an attractive brand.

• When it comes to digital brands, it is evident that emerging markets primarily value the product’s ability to deliver what the brand advocates. In this study, for

132

example, Swedish brands are associated with high quality. This notion of Swedish brands has arisen because Swedish MNC in India has been supplying high quality and innovative products/services for several decades, which has created a halo effect for Swedish SMEs.

• Digital brands that offer unique solutions already have a head start when there are no similar services on the market, giving them a first-mover advantage. Thus, they do not need to focus on a brand strategy at the beginning of the establishment phase. In the longer term, a brand strategy can be created to reach new potential customers in the Indian market.

• Swedish SMEs that have succeeded in establishing themselves in the Indian market offer digital services that are very much adapted to the lifestyle of the consumers. The app is more like a tool that simplifies everyday life for consumers. Although WOM is a well-used tactic on social media, new results indicate that consumers are primarily turning to their family and friends. This trend is predicted to increase due to COVID-19 when Indian consumers turn to e- commerce instead of physical stores.

6.3. Contribution to Theory One of the new concepts that the study encounters is the state growth rate (GSDP), which is a significant component that Swedish SMEs should consider when entering an emerging market. Since GSDP varies between different states and development of the cities within an emerging market differs, therefore this study shows that India, as a nation, consists of 29 different states that are not similar to each other with different challenges and opportunities. The GSDP is also different from the national GDP. Furthermore, SMEs can use their knowledge by classifying regions and cities based on an income and pricing system. Such market knowledge is essential for companies before they establish themselves in India. As internationalization to India is based on different reasons for each company, it may be interesting to focus on how the expansion continues afterward. The SAARC countries are considered to be potential after the Indian market, as the companies tend to be attracted to similar markets.

The study concludes that it is vital to implement business networks, which is possible for SMEs to implement without being on sight. As an entrepreneur, it is important to visit India at the beginning of the establishment process. However, in Sweden, a business network can be set up in the domestic market that extends to the Indian market. A good example is Swedish SMEs who have succeeded in learning and gained experience from other Swedish SMEs. Thus, they have succeeded in taking part in a fully developed business network. The findings show that smaller companies have the potential to help each other by giving relevant advice since they encounter similar 133 challenges and opportunities. SMEs are not obligated to have a brand before entering an emerging market, although it can be a significant advantage that a company has an international brand from the start.

6.3.1. Implication for Management The study found internal, organizational aspects that Swedish SMEs should consider when expanding to the Indian market. As a Swedish entrepreneur, abstract topics such as attitudes and motivation become important factors. Although the Law of the Jante does not apply to all Swedes, compared to the Indian masculine culture, the Swedish feminine culture becomes more prominent during a cross-cultural business network, which is appreciated by the Indians. However, at the same time, Swedes are considered as reserved. A positive entrepreneurial spirit is essential, which can be underestimated as companies primarily consider start-up capital, resources and external factors to be the only important factors. A positive, optimistic and motivated attitude is a strong, internal trait that can be of great benefit at the organizational level. Furthermore, it is apparent that the firm shows respect and understanding while creating a relationship within a business network, regardless of the background or which company they might represent. Indian collectivistic society influences the business relationships, where a deeper loyal bond is preferred between individuals. As a Swedish entrepreneur entering the Indian market, one must have workforce recruitment in mind. The possibility is that a mix of Swedish and Indian employees promote the transfer of knowledge. In addition, India is considered to have a highly educated population within the information communication technology (ICT). However, it can pose a challenge that creates costs, as the focal company has to pay large sums to have supervisors and mentors to support the new employees in India.

On the other hand, the Indian market offers excellent opportunities that attract international and Swedish SMEs. The increased growth, investment opportunities and increased middle class give opportunities, since these aspects tend to change the current cultural dimensions. The increasing middle class may lower the power distance in Indian society. Swedish companies can take advantage of the rising demand. If the demand for digital services is increasing in India, it means that tech companies have an opportunity to establish their operations on the vastly large Indian market. The pandemic COVID- 19 is predicted to create a higher demand for digital services as it has resulted in lockdown and social distancing. The new business ecosystem is considered to require a digitalization of firms more rapidly than predicted before. In conjunction with this, companies also want to increase their profitability through continuous product development, which requires that Indian consumers need updated operating systems to take advantage of the updated digital services. In this way, the company has succeeded in (1) updating its product and (2) creating an increased demand for newer and faster digital products such as smartphones. Product development also means that SMEs adopt 134 their product towards the purchasing power, e.g. some consumers might use a less advanced app or product.

Although cultural differences are present at a foreign establishment, it is necessary to distinguish between corporate culture and society's culture. This study intended to clarify how business relationships are implemented. Even though the authors deliberately did not ask any questions about culture, the findings show that the cultural differences are present, but still lets a Swedish SME to establish on the Indian market. Personal traits are set to be recurring, although it is important to clarify that all Swedes are not reserved, and all Indians are not talkative. Personal traits differ between extroverts and introverts; thus, it is difficult to generalize. Other results showed that the Swedish companies based in India refer to India as a continent, and Africa as a country. Which means that cultural differences can be more prominent in a specific emerging country but may not be as prominent in other continents. This indicated that culture can spread into neighbouring countries, allowing SMEs to gain easy access to a broader market than intended.

6.4. Methodology Reflection & Discussion

This research used a qualitative approach to gain a deeper understanding of the respondents' answers rather than collecting data based on quantity, which would give a more surfaced result, but a more accurate, statistically significant answer. Denscombe (2018) argues that the qualitative approach narrows down the thesis. Yet, the qualitative approach might be difficult to generalize (ibid). Since Swedish start-ups and SMEs establishing in the emerging market India, is a new phenomenon with limited research, this study chose a qualitative approach. Aligned with Bryman and Bell (2017), the qualitative study was appropriate because it gave room for further research, as there may be gaps for future research. First and foremost, it helps the researchers and the reader to gain an overall understanding with the help of the qualitative interpretations, such as understanding, explanations, experience, and perception. Furthermore, Bryman and Bell (2017) also argue that qualitative studies give rise to questions that consist of the words why and how which helps the thesis collect more substantial answers from the respondents, which the researchers may not have reasoned about before the interview.

During the data collection, the authors met some obstacles due to the current pandemic situation. The authors found it relevant to ask additional questions for the study, which was sent to the respondents in the form of an open-ended questionnaire. Other obstacles were the fact that not all companies could participate in the study, which affected the results. In addition, the lack of Swedish tech-SMEs in India resulted in choosing a qualitative methodological approach. Finally, the study has been reviewed by opponents and a supervisor, respectively, to avoid bias.

135

6.5. Further Research The following recommendations are introduced for further studies within the same research area. Further research can be conducted by:

• implementing a similar study, but through a consumer perspective. E.g. Are there any specific demands for tech products/services amongst Indian consumers?

• studying how SMEs enter emerging markets by using financial instruments, e.g. FDI.

• studying how Born Globals expand in emerging markets after their early years to other similar markets, by testing if the internationalization process after the early years is more similar to the traditional models and theories or not.

• studying how business networks are mapped in India, e.g. are there Swedish business clusters in any specific city, which simplify networking with similar firms?

• focusing on how brand strategies differ for SMEs that (1) already have a brand before entering a market and (2) for those who build their brand after entering an emerging market.

136

References

Altshuler, L., & Tarnovskaya, V. V. (2010). Branding capability of technology born globals. Journal of Brand Management, 18(3), 212-227.

Andersen, O., & Buvik, A. (2002). Firms’ internationalization and alternative approaches to the international customer/market selection. International business review, 11(3), 347-363.

Andreu, R., Claver, E., & Quer, D. (2017). Foreign market entry mode choice of hotel companies: Determining factors. International Journal of Hospitality Management, 62, 111-119.

Asher, S., & Novosad, P. (2017). Politics and local economic growth: Evidence from India. American Economic Journal: Applied Economics, 9(1), 229-73.

Baldwin, R. T. (2020). Thinking ahead about the trade impact of COVID-19. Economics in the Time of COVID-19, 59.

Baldwin, R., & di Mauro, B. W. (2020). Economics in the Time of COVID-19. London. Accessed, 26.: A VoxEU. org Book, Centre for Economic Policy Research.

Beinhocker, E. D., Farrell, D., & Zainulbhai, A. S. (2007). Tracking the growth of India's middle class. McKinsey Quarterly, 3, 50.

Bell, J., & Loane, S. (2010). ‘New-wave’global firms: Web 2.0 and SME internationalisation. Journal of Marketing Management, 26(3-4), 213-229.

Bong, K. H., Park, J., & Kim, J. Y. (2018). A Study on the Effect of Technology Collaboration on Innovation Performance of SMEs: From the Views of Resource-based Theory. Journal of Technology Innovation, 26(3), 98-128.

Boston Consulting Group (2018). Digital Leapfrogs. Retrieved: 2020-01-20 from https://www.bcg.com/publications/collections/2018-global-challengers- digital-leapfrogs.aspx)

Brouthers, K. D., Geisser, K. D., & Rothlauf, F. (2016). Explaining the internationalization of ibusiness firms. Journal of International Business Studies, 47(5), 513-534.

Bryman, A. & Bell, E. (2013). Företagsekonomiska forskningsmetoder. (2., [rev.] uppl.) Stockholm: Liber.

137

Bryman, A., & Bell, E. (2013). Företagsekonomiska forskningsmetoder. 2. uppl. . Stockholm: Liber.

Burke, M. C. (1984). Strategic choice and marketing managers: an examination of business-level marketing objectives. Journal of Marketing Research, 21(4), 345- 359.

Burmann, C., Riley, N. M., Halaszovich, T., & Schade, M. (2017). International Identity- Based Brand Management. In Identity-Based Brand Management (pp. 291-312). Springer Gabler, Wiesbaden.

Centeno, E., Hart, S., & Dinnie, K. (2013). The five phases of SME brand-building. Journal of Brand Management, 20(6), 445-457.

Cerrato, D., Crosato, L., & Depperu, D. (2016). Archetypes of SME internationalization: A configurational approach. International Business Review, 25(1), 286-295.

Chang, S. J. (1995). International expansion strategy of Japanese firms: Capability building through sequential entry. Academy of Management journal, 38(2), 383- 407.

Chelliah, S., Sulaiman, M., & Pandian, S. (2010). The determinants of internationalization of small and medium enterprises (SMEs): A case in Malaysia. World Applied Sciences Journal, 10(10), 1202-1215.

Chetty, S., & Campbell-Hunt, C. (2004). A strategic approach to internationalization: a traditional versus a “born-global” approach. Journal of International marketing, 12(1), 57-81.

Chetty, S., & Holm, D. B. (2000). Internationalisation of small to medium-sized manufacturing firms: a network approach. International business review, 9(1), 77-93.

Chiu, C. C., & Lin, K. S. (2019, July). Rule-Based BCG Matrix for Product Portfolio Analysis. In International Conference on Software Engineering, Artificial Intelligence, Networking and Parallel/Distributed Computing (pp. 17-32). Springer, Cham.

Coviello, N. E., & McAuley, A. (1999). Internationalisation and the smaller firm: a review of contemporary empirical research. MIR: management international review, 223-256.

Craig, C. S., & Douglas, S. P. (2011). Empowering rural consumers in emerging markets. International journal of emerging markets.

138

Del Sarto, N., Di Minin, A., Ferrigno, G., & Piccaluga, A. (2019). Born global and well educated: start-up survival through fuzzy set analysis. Small Business Economics, 1-19.

Denscombe, M. (2016). Forskningshandboken: för småskaliga forskningsprojekt inom samhällsvetenskaperna. (3., rev. och uppdaterade uppl.) Lund: Studentlitteratur.

Denscombe, M. (2018). Forskningshandboken: för småskaliga forskningsprojekt inom samhällsvetenskaperna. (Fjärde upplagan). Lund: Studentlitteratur.

Dzikowski, P. (2018). A bibliometric analysis of born global firms. Journal of Business Research, 85, 281-294.

Entreprenörskapsforum (2012). Born Globals. Retrieved: 2020-03-15 from https://entreprenorskapsforum.se/wpcontent/uploads/2012/06/Born_Globals_ WEBB.pdf

Erumban, A. A., & Das, D. K. (2016). Information and communication technology and economic growth in India. Telecommunications Policy, 40(5), 412-431.

Feely, A. J., & Harzing, A. W. (2003). Language management in multinational companies. Cross Cultural Management: An International Journal, 10(2), 37-52.

Foligne, B., Daniel, C., & Pot, B. (2013). Probiotics from research to market: the possibilities, risks and challenges. Current opinion in microbiology, 16(3), 284- 292.

Freeman, S., Edwards, R., & Schroder, B. (2006). How smaller born-global firms use networks and alliances to overcome constraints to rapid internationalization. Journal of international Marketing, 14(3), 33-63.

Gabrielsson, M. (2005). Branding strategies of born globals. Journal of International Entrepreneurship, 3(3), 199-222.

Gankema, H. G., Snuit, H. R., & van Dijken, K. A. (1997). The internationalisation process of small and medium sized enterprises: An evaluation of the stage theory. Entrepreneurship and SME research: On its way to the next millennium, 185-197.

Government of India. (2020, 05 20). Retrieved from MyGov: https://www.mygov.in/covid-19

139

Gubbi, J., Buyya, R., Marusic, S., & Palaniswami, M. (2013). Internet of Things (IoT): A vision, architectural elements, and future directions. Future generation computer systems, 29(7), 1645-1660.

Gulanowski, D., Plante, L., & Papadopoulos, N. (2016). A knowledge perspective on the Uppsala and born global internationalization models. In Rediscovering the Essentiality of Marketing (pp. 503-504). Springer, Cham.

Haddoud, M. Y., Onjewu, A. K. E., & Jones, P. (2019). A Primer on International Entrepreneurship in Emerging Markets. In International Entrepreneurship in Emerging Markets: Nature, Drivers, Barriers and Determinants. Emerald Publishing Limited.

Hadley, R. D., & Wilson, H. I. (2003). The network model of internationalisation and experiential knowledge. International Business Review, 12(6), 697-717.

Hampden-Turner, C., & Trompenaars, F. (1998). Riding the waves of culture: Understanding diversity in global business. Hachette UK

Han, C. M. (1989). Country image: halo or summary construct? Journal of marketing research, 26(2), 222-229.

Hånell, S. M., Nordman, E. R., Tolstoy, D., & Sharma, D. D. (2018). Pursuing Innovation: An Investigation of the Foreign Business Relationships of Swedish SMEs. British Journal of Management, 29(4), 817-834.

Hegner, S. M., & Jevons, C. (2016). Brand trust: a cross-national validation in Germany, India, and South Africa. Journal of Product & Brand Management.

Hennart, J. F. (2014). The accidental internationalists: a theory of born globals. Entrepreneurship Theory and Practice, 38(1), 117-135.

Hilmersson, M., & Johanson, M. (2016). Speed of SME internationalization and performance. Management International Review, 56(1), 67-94.

Hofstede Insights. (2020, May 29). Retrieved from COMPARE COUNTRIES: https://www.hofstede-insights.com/product/compare-countries/

Hofstede, G., & Usunier, J. C. (2003). Hofstede’s dimensions of culture and their influence on international business negotiations. International business negotiation, 137-153.

Hofstede, G., Hofstede, G. J., & Minkov, M. (2010). Cultures and Organizations: Software of the Mind. Revised and expanded 3rd Edition. N.-Y.: McGraw-Hill.

140

Hull, C. E., Tang, Z., Tang, J., & Yang, J. (2019). Information diversity and innovation for born-globals. Asia Pacific Journal of Management, 1-22.

IBEF. (March 2020). Retrieved from ABOUT INDIAN ECONOMY GROWTH RATE & STATISTICS: https://www.ibef.org/economy/indian-economy-overview

Javalgi, R. R. G., & Grossman, D. A. (2016). Aspirations and entrepreneurial motivations of middle-class consumers in emerging markets: The case of India. International Business Review, 25(3), 657-667.

Johanson, J., & Mattsson, L. G. (1987). Interorganizational relations in industrial systems: a network approach compared with the transaction-cost approach, 34- 48.

Johanson, J., & Vahlne, J. E. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership. Journal of international business studies, 40(9), 1411-1431.

Johanson, J., & Wiedersheim‐Paul, F. (1975). The internationalization of the firm—four swedish cases 1. Journal of management studies, 12(3), 305-323.

Katsikeas, C. S., & Morgan, R. E. (1994). Differences in perceptions of exporting problems based on firm size and export market experience. European Journal of Marketing.

Kaur, H., & Singh, J. (2019). Indian Economy Developments (Special Emphasis on Mr. Narendra Modi Era Developments). IBMRD's Journal of Management & Research, 8(1), 1-7.

Keegan, W. J., & Green, M. C. (2015). Global Marketing, Global Edition. Pearson Education UK.

Keohane, R. O., & Milner, H. V. (Eds.). (1996). Internationalization and domestic politics (p. 308). Cambridge: Cambridge University Press.

Knight, G. A., & Liesch, P. W. (2016). Internationalization: From incremental to born global. Journal of World Business, 51(1), 93-102.

Knight, J. (2004). Internationalization remodeled: Definition, approaches, and rationales. Journal of studies in international education, 8(1), 5-31.

Kudina, A., Yip, G. S., & Barkema, H. G. (2008). Born global. Business Strategy Review, 19(4), 38-44.

141

Kudina, Alina, George S. Yip, and Harry G. Barkema. "Born global." Business Strategy Review 19, no. 4 (2008): 38-44

Martin, S. L., Javalgi, R. G., & Cavusgil, E. (2017). Marketing capabilities, positional advantage, and performance of born global firms: Contingent effect of ambidextrous innovation. International business review, 26(3), 527-543.

Matlay, H., Ruzzier, M., Hisrich, R. D., & Antoncic, B. (2006). SME internationalization research: past, present, and future. Journal of small business and enterprise development.

McDougall, P. P., Shane, S., & Oviatt, B. M. (1994). Explaining the formation of international new ventures: The limits of theories from international business research. Journal of business venturing, 9(6), 469-487.

Melewar, T. C., Small, J., Pecotich, A., & Ward, S. (2007). Global branding, country of origin and expertise. International Marketing Review.

Melin, L. (1992). Internationalization as a strategy process. Strategic management journal, 13(S2), 99-118.

Ministry of Housing and Urban Affairs, Government of India. (2020, January 30). Retrieved from Smart Cities Mission: http://smartcities.gov.in/content/innerpage/national-level.php

Ministry of Housing and Urban Affairs. (2020, April 23). Retrieved from Smart Cities: http://mohua.gov.in/cms/smart-cities.php

Moen, Ø., & Servais, P. (2002). Born global or gradual global? Examining the export behavior of small and medium-sized enterprises. Journal of international marketing, 10(3), 49-72.

Moeuf, A., Pellerin, R., Lamouri, S., Tamayo-Giraldo, S., & Barbaray, R. (2018). The industrial management of SMEs in the era of Industry 4.0. International Journal of Production Research, 56(3), 1118-1136.

Mohan, R. (2008). Growth record of the Indian economy, 1950-2008: A story of sustained savings and investment. Economic and Political Weekly, 61-71.

Mok, T. S., Wu, Y. L., Ahn, M. J., Garassino, M. C., Kim, H. R., Ramalingam, S. S., ... & Lee, C. K. (2017). Osimertinib or platinum–pemetrexed in EGFR T790M–positive lung cancer. New England Journal of Medicine, 376(7), 629-640.

142

Nisbett, R. E., & Wilson, T. D. (1977). The halo effect: evidence for unconscious alteration of judgments. Journal of personality and social psychology, 35(4), 250.

Oviatt, B. M., & McDougall, P. P. (1994). Toward a theory of international new ventures. Journal of international business studies, 25(1), 45-64.

Oviatt, B. M., & McDougall, P. P. (1997). Challenges for internationalization process theory: The case of international new ventures. MIR: Management International Review, 85-99.

Pant, A. (2014). An Online Shopping Change the Traditional Path of Consumer Purchasing. International Journal of Business and Management Invention, 3(3), 39-42.

Patel, P. C., Criaco, G., & Naldi, L. (2018). Geographic diversification and the survival of born-globals. Journal of Management, 44(5), 2008-2036.

Paulson, H. M. (2013). On the Brink: Inside the Race to Stop the Collapse of the Global Financial System--With Original New Material on the Five Year Anniversary of the Financial Crisis. Business Plus.

Ponterotto, J. G. (2006). Brief note on the origins, evolution, and meaning of the qualitative research concept thick description. The qualitative report, 11(3), 538-549.

Ratajczak-Mrozek, M. (2012). The network model of internationalisation. The development of business networks in the company internationalisation process, 30-36.

Regeringskansliet. (den 17 April 2020). Retrieved from Indien: https://www.regeringen.se/sveriges-regering/utrikesdepartementet/sveriges- diplomatiska-forbindelser/asien-och-oceanien/indien/

Ribau, C. P., Moreira, A. C., & Raposo, M. (2018). SME internationalization research: Mapping the state of the art. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration, 35(2), 280-303.

Roy, A., Sekhar, C., & Vyas, V. (2016). Barriers to internationalization: A study of small and medium enterprises in India. Journal of International Entrepreneurship, 14(4), 513-538.

Sakarya, S., Eckman, M., & Hyllegard, K. H. (2007). Market selection for international expansion: Assessing opportunities in emerging markets. International Marketing Review, 24(2), 208-238.

143

Sandberg, S. (2012). Internationalization processes of small and medium-sized enterprises: Entering and taking off from emerging markets (Doctoral dissertation, Linnaeus University Press).

Savrul, M., Incekara, A., & Sener, S. (2014). The potential of e-commerce for SMEs in a globalizing business environment. Procedia-Social and Behavioral Sciences, 150, 35-45.

Simón-Moya, V., Revuelto-Taboada, L., & Ribeiro-Soriano, D. (2016). Influence of economic crisis on new SME survival: reality or fiction?. Entrepreneurship & Regional Development, 28(1-2), 157-176.

Singh, R., & Arora, S. (2019). Brand Communication: Research and analysis of communication of global hotel brands. ZENITH International Journal of Multidisciplinary Research, 9(4), 310-317.

Spence, M., & Essoussi, L. H. (2010). SME brand building and management: an exploratory study. European Journal of Marketing.

Stoian, M. C., Dimitratos, P., & Plakoyiannaki, E. (2018). SME internationalization beyond exporting: A knowledge-based perspective across managers and advisers. Journal of World Business, 53(5), 768-779.

Sydsvenskan (2019). Börsaktuella Uber: Blir kanske aldrig vinst. Retrieved: 2020-03-16 from https://www.sydsvenskan.se/2019-04-12/borsaktuella-uber-blir-kanske- aldrig-vinst

Tanev, S. (2012). Global from the start: The characteristics of born-global firms in the technology sector. Technology Innovation Management Review, 2(3).

Tillväxtanalys (2014). Indien - Möjligheter för Sverige i gränslandet mellan handel och innovation. Retrieved: 2020-03-05 from https://borsvarlden.com/artiklar/googles-omsattning-som-vantat-och-resultat- battre-an-vantat-under-fjarde-kvartalet-aktien-svagt-ned-i-efterhandeln/

Trompenaars, F. (1996). Resolving international conflict: Culture and business strategy. Business strategy review, 7(3), 51-68.

Vadana, I. I., Torkkeli, L., Kuivalainen, O., & Saarenketo, S. (2019). The Internationalization of Born-Digital Companies. In The Changing Strategies of International Business (pp. 199-220). Palgrave Macmillan, Cham.

144

Vahlne, J. E., & Johanson, J. (2013). The Uppsala model on evolution of the multinational business enterprise–from internalization to coordination of networks. International Marketing Review.

Vonderau, P. (2019). The Spotify effect: Digital distribution and financial growth. Television & New Media, 20(1), 3-19.

Welch, C., Nummela, N., & Liesch, P. (2016). The internationalization process model revisited: An agenda for future research.

Wood, L. (2000). Brands and brand equity: definition and management. Management decision.

Wood, V. R., & Robertson, K. R. (2000). Evaluating international markets. International marketing review.

World Health Organization. (2020, 03 11). Retrieved from WHO Director-General's opening remarks at the media briefing on COVID-19 - 11 March 2020: https://www.who.int/dg/speeches/detail/who-director-general-s-opening- remarks-at-the-media-briefing-on-covid-19---11-march-2020

Zain, M., & Ng, S. I. (2006). The impacts of network relationships on SMEs' internationalization process. Thunderbird international business review, 48(2), 183-205.

Zhou, L., Wu, W. P., & Luo, X. (2007). Internationalization and the performance of born-global SMEs: the mediating role of social networks. Journal of international business studies, 38(4), 673-690.

Zhu, H., Hitt, M. A., & Tihanyi, L. (2006). The Internationalization of SMES in Emerging Economies: Institional Embeddedness and Absorptive Capacities. Journal of Small Business Strategy, 17(2), 1-26.

145

Attachment: GSDP

Indian states by Gross State Domestic Product.

Source: Ministry of Statistics and Programme Implementation (2019)

146