Many Kiwi organisations are ill-prepared for the intense competition found overseas. Part four of a six-part series
For any New Zealand organisation conducting business offshore there are unknowns and this uncertainty can sometimes deter an organisation from attempting to internationalise.
Internationalisation is a major decision and even for offshore-seasoned organisations each new foreign market foray offers a different challenge. Such challenges are not specific to New Zealand organisations. Our distance from the rest of the world shouldn't be used as an excuse to avoid going down that track.
In the first three articles in this series I highlighted some key elements of internationalisation that are not unique to New Zealand organisations. First I discussed the importance, when considering a market entry, of learning from similar organisations, local players and foreign players in the potential target market. The second article provided a framework for analysing potential markets and the third advised organisations on embracing cross-cultural differences rather than treating them as a recipe for failure, remembering that organisations from other countries are facing similar cultural challenges.
Many other aspects of cross-border initiatives are also not unique to New Zealand organisations. Managers throughout the world are risk-averse to varying degrees. So the mindset that is stopping some New Zealand managers from internationalising (or internationalising further) is not only found here. Many small and medium-sized enterprises throughout the world are expanding beyond their home countries. There are also more born-global companies that are located in a foreign country from day one.