The role of governmental and other internationalization

As seen in analysis of case SMEs, governmental internationalization support plays vital role in SME internationalization by providing most importantly funding and networks. For EIC companies it allows doing more things faster, i.e.

speeding up internationalization. For other company types, it initiates for tak-ing the first or further steps toward internationalization by lowertak-ing financial risks, giving initial information needed for internationalization, and providing valuable contacts and access to networks of experienced and skilled experts of internationalization, such as IB consultants. Therefore, it stands in for networks that many companies in the early stages of internationalization lack completely.

Other external support sources provided for case SMEs valuable contacts and networks, access to external skills, experience, views, and competences the companies lack, and especially in case of Kasvu Open and such events, motiva-tion, initiamotiva-tion, inspiramotiva-tion, and sparring for managers, and aid in planning the IB development. Some companies had met an IB consultant through other

ex-ternal support sources, which had led to using services of IB consultants. For EIC companies the role of other external support sources was not as important as for SMEs in earlier stages of internationalization.

Together all external support sources form a strong network supporting SME internationalization in stages preceding the stage of EIC and providing some of the most crucial parts of the puzzle needed for international business development. The three types of external support sources appear to be linked in each other through existing contacts, so it is likely that an SME seeking support from one of these sources will get access to other external support sources sim-ultaneously, and depending on the specific situation of the company, can make use of the most relevant support in its own case. External support sources alto-gether provide initiation, motivation, finance, resources, skills, expertise, inter-nationalization knowledge, and networks relevant for interinter-nationalization.

They help in overcoming barriers, planning internationalization, entering new markets, and growing revenues.

5 CONCLUSION AND IMPLICATIONS

In the late 2010s, SMEs are increasingly internationalizing. Having various backgrounds, features, and situations, many potential SMEs have long history in focusing solely on domestic market, while others treat even the whole world as their home market. This makes SMEs face a variety of barriers hindering their internationalization or even preventing it.

Public internationalization support has existed in some forms for decades, but it has developed during the last two decades to more effectively support internationalization of SMEs, especially offering different funding instruments for them. Lately, many additional external support sources have appeared, most importantly different internationalization events, programs, and interna-tionalization consultancy for SMEs. This study set to shed light on what is the role of these external support sources, particularly internationalization consul-tancy, how it helps different types of SMEs overcome their diverse barriers, and how all external support sources are linked to each other.

The results of the study show that SMEs that use the services of interna-tionalization consultancy, among other external support sources, are able to effectively speed up their internationalization, leverage on the internationaliza-tion knowledge of internainternationaliza-tionalizainternationaliza-tion consultancy, create valuable contacts and networks, and enter new markets. In case of established international SMEs, they use internationalization consultancy mostly to overcome external barriers and see the role of consultancy as effective way to gather information on mar-kets, that helps in decision making or speeds up possible market entry. For born again global family companies having history of passive internationalization, the role of internationalization consultancy is in lowering various barriers, es-pecially internationalization knowledge, networks, and managerial perceptions related, substantially helping them setting on to new markets, and start actively seeking for new international business possibilities. Born again global family companies and other types of SMEs with relatively little internationalization experience use and need setting up for internationalization support from IB consultancy, and all company types may need and use various market knowledge and market entry services of internationalization consultancy. These

services may lower significantly various barriers of internationalization, de-pending on the SME type and barriers faced.

Public external support was found having important role as initiating SME international development by providing funding for internationalization and IB related investments, as well as networks and contacts to other external support providers like IB consultancy. Internationalization programs provide SMEs ini-tiation, motivation, sparring and planning support, valuable contacts, and ex-ternal skills, expertise, and competences. Together all these exex-ternal support sources, i.e. public support, internationalization consultancy, and other support sources, form a linked and effective internationalization network for any SME seeking to internationalize further.

Through these results this study succeeds in adding to our knowledge in how to better support the internationalization process of SMEs which is crucial to boosting economies on many developed countries, such as Finland. SMEs that have history of focusing more to domestic market than international mar-kets, or companies facing stagnation in internationalization, are encouraged to seek external support from various or even from single first source, including the young industry of SME internationalization consultancy, as it may lead to rapid development of internationalization, as well as increase the firm’s interna-tionalization knowledge, and increase of revenues. Many SMEs have great hid-den internationalization potential that can be discovered by taking the first or further steps towards internationalization with the help of external support.

Additionally, public decision makers are encouraged to continue developing the support available for internationalizing SMEs.