THE ROLE OF INSTITUTIONS IN INTERNATIONAL MARKETING A COMPARATIVE STUDY

The framework I outline in this thesis develops from a review of literature on institutional environments and on experiential learning in SMEs developed thanks to the survey created by the students of the University of Vaasa. In combining previous literature and studies with the analysis of a dataset, I’m able to argue a firm's adaptation in order to mitigate hazards encountered when making implementing an activity abroad. In this sense, I analyze the influence that country-level and intertemporal variations in institutional environments have on a firm’s strategic decisions. In describing these influences, I make reference to several components including the penetration strategy, the mode of investment, the managers’ attitude, the importance of different factors and the competitiveness in foreign markets. Underlying my analysis is the presumption that a SME's managers will act with foresight to mitigate hazards and maximize the opportunities present in multiple institutional environments.