Internationalization of Dutch SME to Russia. Case: MPC Industries B.V.

Abstract

This thesis was commissioned by a Dutch company MPC Industries, specializing in the produc-tion of clamps and fixing devices. Currently the company has plans to enter the Russian market but lacks information about the market and the country’s special requirements. The purpose of the paper was to provide MPC Industries with the basic information regarding the Russian mar-ket of the devices manufactured by the company, as well as offer an optimal mode of entry.

The theoretical part of the thesis is based on the Dunning’s Eclectic Framework of internationali-zation, which proposes that an overseas expansion of firms is mediated by three factors: own-ership specific advantage, location specific advantage and internalization advantage. For analyz-ing all these aspects, the author used the VRIO framework, PEST analysis and Porter’s Five Forces.

The methodology of the thesis includes qualitative and quantitative methods. In the qualitative part, the author researched secondary sources and in the quantitative section the structured in-terview was applied. Based on the acquired information an optimal method of entry was pro-posed.