The Uppsala Intemationalisation Model

   We found that the hypothesis is valid for the studied companies. It is very clear that Backer AB and Kron International have followed this pattern. Kron International started the intemationalisation process with export to Norway and Finland, and then Denmark and Iceland. Backer AB began export to the Scandinavian market. Regarding Perstorp AB and Alfa Laval it has been a bite more difficult to determine the earliest stages in the companies' intemationalisation processes. According to the interviewed persons also these companies have in the beginning of their intemationalisation process had export to the Nordic countries. However, other export countries have early been important for Alfa Laval, such as Germany and the U.S. The relatively new founded Furninova has also started through export to markets as Denmark, Norway, Finland and Iceland. The new, interesting aspect is that Furninova choose to start manufacturing products in Poland, which may partly be seen as a deviation from the hypothesis. It has not been possible for us to find out what considerations were made in the early intemationalisation process of the two old companies, Perstorp AB and Alfa Laval. Since the interviewed persons stress that the potential of the market is one of the main reasons for entering a new market it is likely that this has been a determent factor in earlier stages.

   To conclude, we find it very likely that the absence of psychic distance in combination with high market potential have been of decisive importance when beginning intemationalisation. This is often valid when it comes to both export and establishment of own facilities. We think this hypothesis has a high validity when it comes to our five studied companies.

   After establishing in Norway, 1969, Backer AB established in the French market. Since the 1990s and up until today Backer AB established parallely in both a number of Western and Eastern European markets. In Western Europe countries as Germany, Italy and Great Britain were entered and in Eastern Europe countries as Poland and Czech Republic were entered. Then, Backer AB made the first non-European establishment, in China. Kron's internationalisation has followed the hypothesis, after covering the Nordic market the company then entered the German market, while Kron International's entrances on a couple of new markets may be characterised more as coincidences. When Furninova covered the Nordic market it also established in Western European countries as the Netherlands, Great Britain, Germany and Austria. Soon thereafter or partly parallell Furninova established in a couple of Eastern European countries.

   Although the studied companies to a high extent have acted in accordance with the hypothesis, we may state that there is a tendency of the companies that lately have started internationalisation in the Western Europe to deviate from this hypothesis to some extent. The reason is that they have established in some Eastern European countries as Poland, the Baltic countries and Czech Republic at the same time as establishments in Western European countries were made. It is clear that this interest derives from quick political and economic changes in these countries as a result of the fall of the communism. This in a combination with good or increasing market potential within many areas and a lower degree of competition than in the Western European countries. Hereto added a low degree of psychic distance led us to believe that Eastern Europe to a higher extent will be an alternative to establishment in Western Europe. Regarding Furninova the possibility to set up a facility in Poland has been of importance.

   This hypothesis has a high degree of validity when it comes to our study. We think that there is a correlation between the size of the company and to what extent it followed the establishment pattern. Kron International, that is the smallest of the companies, has in our opinion followed the establishment pattern of the Uppsala model regarding the strategic establishments. The first export market for the company was the Nordic market and then later northern Germany. The middle companies, Backer AB and Furninova, follow the establishment pattern of the Uppsala model to a higher extent than Alfa Laval and Perstorp AB. As we earlier mentioned it has been more difficult to determine these companies' earliest establishment patterns abroad.