The International Expansion of Finnish SMEs into the U.S. Market: barriers and drivers affecting their market entry

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Volume Title

School of Business | Bachelor's thesis

Date

2023

Department

Major/Subject

Mcode

Degree programme

(Mikkeli) Bachelor’s Program in International Business

Language

en

Pages

48 + 1

Series

Abstract

Objectives: The main objective of this study is to identify the barriers and drivers affecting Finnish SMEs in their entry process into the U.S. market through the analysis of empirical evidence. Furthermore, it aims to understand past research on internationalization and examine the role of Finnish SMEs in the economy as well as their overall international expansion efforts. Summary: To lay a solid foundation, initially, this study aims to investigate frameworks and theories around the concept of internationalization through a comprehensive examination in the literature review. Based on past research, a conceptual framework was derived to encompass the collection of data. To answer the research questions, empirical evidence was collected in the form of semi-structured interviews, from four governmental organizations in charge of the commercial relations between the U.S. and Finland. The purpose of the interviews was to collect insights on the barriers and drivers affecting the internationalization of Finnish SMEs in the U.S. market. Conclusions: Ultimately the findings of this study concluded that the bilateral commercial ties between Finland and U.S. will only be strengthened throughout the upcoming years. The geopolitical alliances being fostered and the strong promise of the U.S. market for Finnish SMEs are making it an increasingly relevant destination for expanding operations. The strategic governmental support programs and the innate ease for the Finnish technological sector to expand are fueling the presence of smaller Finnish companies in the U.S. Nevertheless, the study concluded that areas such as funding, marketing, effective networking, and the overall complexity of the market are strong barriers acting against the expansion efforts of Finnish SMEs.

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Thesis advisor

Rannikko, Heikki

Keywords

internationalization, SMEs, United States, Finland, bilateral trade, trade barriers

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