Internationalisation at home: The internationalisation of location-bound service SMEs

This study explores how location-bound service small-and medium-sized enterprises (SMEs)—such as tourism companies—internationalise. We suggest that key dimensions in the internationalisation of these firms are the available resource base, the company network and its embeddedness and entrepreneurial capabilities, particularly entrepreneur’s language skills, global mindset and cultural awareness. We propose an internationalisation framework model supported by three illustrative case examples from Finland. The framework differentiates between passive developers, emerging developers and international entrepreneurs. The study makes several contributions. First, it provides an advanced view on the internationalisation of service firms and challenges in previously applied theories in a novel context. Second, it highlights the significance of location-bound resources in the process. Third, the findings indicate that the interplay between the resource base, company network and entrepreneurial capabilities is decisive for internationalisation. We also suggest managerial implications for both the industry and policymakers, supporting the internationalisation of location-bound service firms. © Springer Science+Business Media New York 2016.