Blue Oceans: Looking overseas for business success - How do New Zealand SMEs internationalise and manage branding in foreign markets?

Abstract

The purpose of this study and its underlying research questions is to understand how New Zealand SMEs, that fall within knowledge intensive service industries, internationalise and manage branding in foreign markets.

The research is important because it aims to provide insight into cost effective means for SME’’s to directly deliver service solutions to international markets. Consequently, this will allow companies to further build and develop their resources, assets and markets.

New Zealand is a small market economy with limited growth potential and domestic market opportunities. Therefore, companies are considering extending their sales activities and customer reach to foreign markets and develop international networks.

In the literature review, a strong link between internationalisation and FSA has been established and Dunning (1997) suggested that firms develop a competitive advantage in their home market and transfer this advantage to international markets with CSA. Other literature pointed out that FSA and company capabilities can also be acquired and augmented abroad. Therefore, these can act as a driver and motivator for firms to internationalise.

This is a phenomenological research and data was collected through semi-structured interviews.

The findings of this research suggest that business have to focus on global niche markets and provide quality outputs in order to effectively compete internationally. The primary method for internationalisation is through personal and direct relationships with international key clients which facilitate foreign market entry. The organisational structure and corporate culture are key competencies that must be managed or they can turn into a barrier.