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Authors
Advisor(s)
Abstract(s)
The competition in the international markets traditionally was considered as a
prerogative of the large companies while the player's part in the local and regional markets was
assigned to small and medium business. In these conditions traditional theories of
internationalization were focused mainly on large multinational corporations and were less
applicable to SMEs. The network theory of internationalization was created as a response to the
need for explaining the process of internationalization of SMEs. Previous researches were trying
to explain why networks are essential for the international expansion. This study will try to shed
the light to the practical importance of the networks for the internationalization process and give
the more in-depth look at the role of networks for the organizations and methods of engaging,
managing and exiting the networks. For this purpose main research question and tree sub-reserch
questions were formulated.
Multiple case study method of research was chosen. Three Ukrainian companies were
selected and in-depth live interviews with the company representatives were conducted. The
results were transcripted and analyzed using the pattern matching and cross-case analyses
techniques.
The findings reveal that international networks are used to increase the profits through
territorial expansion, gain an access to the knowledge about other markets, build the competitive
advantage in the foreign markets and distribute the produce. Companies engage in networks
through recommendations, personal informal contacts, industrial exhibitions and trade fairs,
traditional institutions and third-party authorities. The relationships inside the networks are
maintained due to the trust, informal relationships, formal agreements, mutual adaptation and
willingness to sacrifice, with the later being introduced by the author. The concept of exiting the
networks is currently not studied in the literature; hence this concept was developed by the
author and considers both the causes for the termination of the relationships inside the network
and modes of exiting the networks.
Description
Keywords
Internationalization Strategy SMEs Networks