This thesis critically examines the internationalization models for SMEs alongside localization strategies. It investigates triggers and motivations for going international, the theoretical frameworks underpinning these strategies, and the key internal and external factors influencing both paths. Strategic planning emerges as essential: setting long-term programs, organizational goals, and implementation plans to guide SMEs toward performance improvement (Stonehouse & Pemberton, 2002; Wang et al., 2007).

To shed light on strategy selection, the thesis poses the following research question: Should SMEs internationalize or localize—and under what conditions? The study culminates in a case analysis of a Norwegian firm entering the Chinese market, highlighting the decisive factors shaping its strategic choice.

Detailed Outline

I. Internationalization as a Strategy

A. Definition

B. The Internationalization Process

C. Limitations

D. Commercial Strategy

II. Localization as a Strategy

A. Definition

B. Advantages and Processes

C. Determining Factors

D. Organizational Requirements

III. Case Study: A Norwegian Company

A. Profile and Strategic Approach

B. Influencing Factors Behind Its Decision

C. Internationalization Strategy Applied

Conclusion