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.