Distribution as an Internationalization Strategy A case-study on a Swedish SME operating in the Nordic region

Abstract

This study examines which key factors influence the establishment of a cross-border distribution strategy for a Swedish small and medium-sized enterprise (SME) operating in the Nordic region, and how these factors can be prioritized in practice. The study is conducted as a qualitative single-case study of Ebeco AB, a Swedish supplier of electric heating solutions with subsidiaries in Norway, Denmark and Finland. The research is based on an abductive approach and empirical data was collected through five semi-structured interviews with senior managers from both the Swedish headquarter and the Nordic subsidiaries. The empirical material is analyzed using a thematic analysis and interpreted through theories related to supply chain strategy, distribution network design, trade-offs in logistics and internationalization strategies. The findings demonstrate that product availability, delivery time, wholesaler relationships, customer expectations, market-specific differences and organizational maturity are the most influential factors shaping the distribution strategy. The study further shows that distribution strategies cannot be fully standardized across the Nordic region despite the geographical and cultural proximity between the countries. Instead, firms need to adapt their strategies according to the market-specific context. In addition, the findings highlight that maintaining high product availability and responsiveness is perceived as critical for competitiveness. The study concludes that effective cross-border distribution strategies require a balance between centralized efficiency and local responsiveness. The findings contribute practical insights for a Swedish SME operating internationally and highlight the importance of aligning distribution decisions with both market-specific conditions and strategic priorities.