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Internationalisation at home: The internationalisation of location-bound service SMEs

Author

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  • Helena Turunen

    (HAMK University of Applied Sciences)

  • Niina Nummela

    (University of Turku
    University of Tartu)

Abstract

This study explores how location-bound service small- and medium-sized enterprises (SMEs)—such as tourism companies—internationalise. We suggest that key dimensions in the internationalisation of these firms are the available resource base, the company network and its embeddedness and entrepreneurial capabilities, particularly entrepreneur’s language skills, global mindset and cultural awareness. We propose an internationalisation framework model supported by three illustrative case examples from Finland. The framework differentiates between passive developers, emerging developers and international entrepreneurs. The study makes several contributions. First, it provides an advanced view on the internationalisation of service firms and challenges in previously applied theories in a novel context. Second, it highlights the significance of location-bound resources in the process. Third, the findings indicate that the interplay between the resource base, company network and entrepreneurial capabilities is decisive for internationalisation. We also suggest managerial implications for both the industry and policymakers, supporting the internationalisation of location-bound service firms. Diese Studie untersucht, wie ortsgebundene Dienstleister, wie zum Beispiel KMUs in der Touristikbranche, international expandieren. Wir schlagen vor, daβ die verfügbaren Ressourcen, das unternehmerische Netzwerk, die Sprachkenntnisse des Unternehmers, die unternehmerischen Fähigkeiten, eine globale Denkweise und kulturelles Bewusstsein zu den wichtigsten Dimensionen der Internationalisierung gehören. Durch drei anschauliche Fallbeispiele aus Finnland entwickeln wir ein Internationalisierungsmodell, welches wir vorschlagen. Das Rahmenmodell, welches zwischen passiven und aufstrebenden Entwicklern, sowie internationalen Unternehmern unterscheidet, macht eine Reihe von Kontributionen. Erstens, es erweitert unser Verstehen der Internationalisierung von Dienstleistern und fordert etablierte Theorien durch einen neuen Kontext heraus. Zweitens, es hebt die Bedeutung der ortsgebundenen Ressourcen hervor, die zum Internationalisierungsprozess beitragen. Auβerdem zeigen unsere Ergebnisse, daβ das Zusammenspiel von Ressource-Basis, Firmennetzwerken und unternehmerischen Fähigkeiten von entscheidender Bedeutung für die Internationalisierung sind, Ergebnisse, die uns veranlassen, praktische Implikationen für Unternehmen, wie für Gesetzgeber vorzuschlagen, damit die Internationalisierung ortsgebundener KMUs im Dienstleistungssektor unterstützt wird.

Suggested Citation

  • Helena Turunen & Niina Nummela, 2017. "Internationalisation at home: The internationalisation of location-bound service SMEs," Journal of International Entrepreneurship, Springer, vol. 15(1), pages 36-54, March.
  • Handle: RePEc:kap:jinten:v:15:y:2017:i:1:d:10.1007_s10843-016-0167-y
    DOI: 10.1007/s10843-016-0167-y
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    3. Talukder, Sazzad & Barner-Rasmussen, Wilhelm, 2024. "Exploring the language choice dilemma of international small firms: A social exchange perspective on English-only versus multilingualism," International Business Review, Elsevier, vol. 33(3).

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