A Perspective on Cultures Role in Internationalization: Leveraging Canadian Cultural Ties to Europe As an Entry Strategy to the North American Market

Stefan Lunn Walls

Student thesis: Master thesis

Abstract

Where to internationalize is one of the least researched topics in international business. For market seeking internationalization the American market is often considered “The Holy Grail” due to its large consumer base. In this study the choice of location is considered in relation to cultural distance, specifically cultures influence in market entries. This is done under the hypothesis that cultural similarity can provide advantages in entering a market. This is investigated in relation to Canada and if Canada’s culture can serve as an alternative entry point to the North American Market for Danish companies. Through several measures of cultural distance and qualitative interviews, it is found that there is substantial evidence suggesting that Canada and Denmark are culturally closer to each other than Denmark and the U.S. Cultures influence on internationalization is investigated in respect to the Network Business Model. It is found to be a complex relationship with many moderating factors and personal bias. It concludes that culture likely influences the internationalization process in two ways: 1) Through interpersonal relationship development and the building of network and 2) through the degree of cultural sensitivity of the company’s product

EducationsMSc in International Business, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2016
Number of pages100