Globalizing Expertise: Decoding the Internationalization Journey of Professional Service Firms
The past two decades have seen a surge of interest in both rapidly internationalising
firms and the nature of professional service firms (PSFs). While rapid internationalisation
pathways are commonly associated with high-tech manufacturing firms there has been
limited research suggesting that PSFs fit this model. The aim of this thesis is to contribute to
this discussion and investigate the following Research Problem: 'Why and how do rapidly
internationalising professional service firms enter foreign markets?' The nature of PSFs, and
their unique characteristics, is discussed and a conceptual framework outlining three specific
aspects of the internationalisation process - the drive to internationalise, the choice of
markets and the choice of market commitment - is presented.
The research problem was investigated by means of a multiple case study design.
More specifically, in-depth interviews with founders and key employees of seven Australian
PSFs were carried out. By investigating the case firms within a conceptual framework, the
internationalisation process of each case study was explored and examined.
The findings in this study demonstrate that the case study companies have key
differences in their rapid internationalisation processes, particularly the firms' choice of
markets and choice of market commitment. The findings present several reasons behind these
deviations. Operational knowledge of founders is a key factor in the firms'
internationalisation and is considered more important than market knowledge, cultural
similarity or founders' previous experience when selecting markets. Entrepreneurs have a
critical role to play throughout the internationalisation process as they embody the firms'
knowledge enabling them to choose exporting before shifting to higher levels of market
commitment. The need for continuous, client interaction combined with specialised complex
knowledge presents exceptional challenges for PSFs in their rapid internationalisation and
influences their internationalisation strategies.
The research findings extended the body of knowledge for both rapid
internationalisation and PSF literatures by exploring key factors that are present in rapid PSF
internationalisation. Rapid internationalisation theory needs to be updated to account for
PSFs and their characteristics, including the need for face to face communication with the
client and the importance of client relationships. This will build on the insights and new
knowledge found for links between internationalisation processes present in this research and
will further benefit service firms and industries looking to internationalise rapidly.
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