Enhancing our understanding of rapidly internationalising professional service firms: an exploration of post-entry internationalisation strategies

Rapidly internationalising firms represent a growing phenomenon in advanced nations, whose economies are increasingly service based. There has been much research on initial internationalisation of manufacturing based firms, within the ‘international new venture’/‘born global’ literature, yet the rapid internationalisation of professional service firms or their post entry internationalisation stage remains under-explored. This study focuses on the post entry internationalisation processes of rapidly internationalising firms. Using a qualitativecase study approach, the drivers, market selection and entry mode of four professional service firms in their post entry internationalisation are explored. Using an interpretive research paradigm, the findings reveal that these firms initially rely on networks and reputation to internationalise, but are forced to reduce their pace of internationalisation and deinternationalise in their post entry stage due to loss of reputation within the international market and gaining stronger network within the home market. The research extends the body of literature for both rapidly internationalising firms and professional service firms by exploring three key phases of firm internationalisation and their drivers, exploring key drivers of internationalisation in the initial phase of internationalisation and post entry stage of internationalisation. As part of the initial rapid internationalisation phase, each firm advances their network and knowledge of the international environment, before entering the deceleration phase where firms reduce their pace of internationalisation prior to entering the de-internationalisation phase where firms take advantage of stronger home networks. This research will build on the insights and new knowledge found for links between internationalisation phases present in this research and will further benefit professional service firms that are looking to internationalise rapidly.