Sara Melén Hånell and Emilia Rovira Nordman
This paper aims to explore the benefits of a regional internationalization strategy and investigate how a rapidly internationalizing SME’s development of market knowledge relates…
Abstract
Purpose
This paper aims to explore the benefits of a regional internationalization strategy and investigate how a rapidly internationalizing SME’s development of market knowledge relates to this strategy.
Design/methodology/approach
After a brief overview of the literature on international SMEs, the internalization approach and the IP-approach, a case study is introduced and analyzed.
Findings
The case findings illustrate that market knowledge steers the investigated firm to follow a regional approach of operations. The regional strategy lessens perceived risks, saves costs and generates sufficient knowledge about one market at a time.
Practical implications
It is important for managers in rapidly internationalizing SMEs and for policymakers to recognize the benefits of supporting regional orientation initiatives for enhancing these firms’ internationalization.
Originality/value
This paper presents a longitudinal case study that contributes to further the understanding and insights into the operations of born regionals. By probing deeper into the ideas provided by the internalization approach, the IP-approach and research about international SMEs, the study contributes with a unified framework for understanding the benefits for rapidly internationalizing SMEs to operate on a regional scope.