Market Entry Strategies in Emerging Economies: The Role of Consulting Firms in Supporting the Establishment of Foreign Subsidiaries — A Case Study of an Italian SME Entering India

This thesis will seek to address the internationalization strategies that are implemented by small and medium-sized enterprises (SMEs) when operating in emerging markets, with a focus on the creation of foreign subsidiaries. It will also seek to examine the process by which these challenges are managed by the firm when operating in a complex international environment. This research will be based on theoretical knowledge gathered from the literature on internationalization strategies, foreign direct investment, and entry modes, as well as an empirical study. It will seek to examine the process by which an Italian company entered the Indian market by establishing a subsidiary with the help of an international consulting firm. The case study aims at examining the motivations for market entry, the challenges faced during the market entry process, and the strategic role of the consulting partner in facilitating the entry of the firm into the Indian market and the subsequent establishment of the subsidiary. Of special interest are the organizational form of the subsidiary, the management of cross-cultural issues, and the operational strategies employed by the firm for effective operations within the local market setting. Data collection for the purpose of the case study was conducted using qualitative methods, including interviewing key informants for the purpose of the internationalization process. The findings are instrumental for illustrating the significance of local knowledge and advisory support for facilitating market entry and effective internationalization for the firm. This research aims at providing insight into the internationalization processes of SMEs within emerging economies, focusing on the strategic importance of advisory partners for facilitating foreign market entry processes.