Strategic Internationalization : A study on Swedish AI-SMEs’ considerations in international expansion

This study examines which strategic considerations are most important for Swedish AI-drivensmall and medium-sized enterprises (SMEs) during internationalization and how these affectentry mode choice. Drawing on the Uppsala model, the Born Global/International New Ventureperspective, and the network perspective, the study adopts a qualitative research design basedon semi-structured interviews with six Swedish AI SMEs. The findings show thatinternationalization often occurs early but is typically executed cautiously and incrementally.The firms generally prefer low-commitment entry modes such as exporting, local distributors,partnerships or joint ventures. Financial resources emerge as a critical consideration, as limitedcapital constrains firms’ ability to pursue resource-intensive entry modes, even when strongtechnological capabilities are present. Market uncertainty, mainly driven by regulatory andinstitutional differences, plays a central role in strategic decision-making. Networks facilitateinternationalization by providing opportunities, legitimacy, and market knowledge, but mainlyinfluence market selection rather than entry mode choice.