Managing Risk and Turbulence in Internationalization of Foreign Companies to South Africa: Lessons from Seven Finnish Business-to-Business Firms

Abstract

In this article the authors examine how seven Finnish business-to-business firms have managed risk and turbulence in their internationalization to South Africa. Thirty interviews with managers and other relevant informants were conducted. The study finds that the levels of perceived risk and turbulence were high in the market and the firms have used networks, alliances, gradual involvement, and a combination of entry modes to deal with the situation. The study contributes to the literature on business in Africa by providing implications for why and how firms develop their involvement in African markets and how they deal with challenges and opportunities.

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