International Expansion of a Public Sector Consultancy Company

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International Expansion of a Public Sector Consultancy Company

An in-depth analysis of Rambøll Management’s internationalization process and market entry to Holland

Paul van Balen

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International Expansion of a Public Sector Consultancy Company

An in-depth analysis of Rambøll Management’s internationalization process and market entry to Holland

Author Organization Supervisor Rambøll Management

Paul van Balen Rambøll Management GmbH Tobias Bergmann

Admiraal de Ruyterweg 316A Kielerstrasse 303A Tel: +49 40 54 80 91-0

1016 MV Amsterdam D-22525 Hamburg tbe@ramboll-management.com

Tel: +31 (0)6 4212 9679 Tel: +49 40 54 80 91-0 Student nr. 1084631 Fax: +49 40 54 80 91-19

paulvb@hotmail.com hamburg@rambollmanagement.com

Institute First Supervisor Second Supervisor

University of Groningen Mr. Drs. H.A. Ritsema Msc. N. Campbell

Faculty of Management & Tel: +31 (0) 50 363 3844 campbell_nicola2002@yahoo.co.uk Organization h.a.ritsema@rug.nl

Postbus 800 9700 AV Groningen

Amsterdam, May 2005

No part of this paper may be reproduced, stored in a retrieval system, or transmitted in any form, or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the

author or Rambøll Management GmbH.

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Management summary

By opening a new subsidiary in Hamburg, Germany in 2000, the Danish based public sector consultancy company Rambøll Management took its first major step in becoming active internationally. The opportunity for a German market entry arose rather unexpectedly and was considered to be a pilot project for future foreign market entries throughout Northern Europe.

Now, almost five years after the successful market entry to the German public sector market, management of the company is considering further internationalization by entering the Dutch market. Management believes that further internationalization is necessary to keep up with competition, to be able to spread risk, and to be able to offer international experience to its customers in the public sector. Management is interested in the strategy that the company should adopt in order to realize a successful Dutch market entry. Of special interest is the question what the factors were that made the pilot project of the entry to Germany so successful and whether these factors can and should be copied when entering the Dutch market. Next to this question, three other groups of factors have been established to be of relevance to the internationalization process of Rambøll Management.

Together, these four concepts are the basis for the central question of the research:

‘How should Rambøll Management approach the market entry to the Dutch market for public sector consultancy, given the opportunities offered by the experiential knowledge that the company has gained in the previous market entry to Germany, while also considering the influence of company characteristics, management’s views on internationalization and the characteristics of the Dutch market for public sector consultancy?’

The first concept that is researched in order to arrive at an answer to the above research question concerns the influence of the company’s characteristics on the internationalization process and foreign market entry strategy.

The first company characteristic that has been researched is that the company is a Professional Service Firm, which has proven to have some profound effects on the possibilities for international expansion and the choice in market entry strategy. Especially the intangible nature of consultancy services has made it clear that close geographic proximity to the market should be preferred; regular face-to-face contact and intensive cooperation with clients are important to generate a reputation for high quality and to take away the uncertainty that intangibility of services induces among clients. The fact that Rambøll Management is serving the public sector market is a second company characteristic that has consequences for the international expansion possibilities of the company. Developments in the public sector are found to be heavily determined by national political issues and social and cultural circumstances in a particular country. Being aware of changes in these factors requires a company to be physically present on a national market. A third characteristic of Rambøll Management in the context of internationalization is the fact that the company is a knowledge intensive firm, which means that the main asset of productivity is human intellectual capital. The existing knowledge base in Rambøll Management is not sufficient to successfully establish a competitive position in a new foreign market. This requires the company to be locally present and attract local experienced consultants who do have the required knowledge to become competitive. Based on the findings of this chapter, the options for the mode of market entry have been limited to three possibilities: investing in a new subsidiary, investing in a merger with an existing company or acquiring an existing company.

The second concept that has been researched concerns the views that those responsible for further internationalization, being top-level management, have on the internationalization process and market entry strategy of the company. The influence of their ideas and opinions on the next step in the process has been assessed. It was found that those involved in making a strategy for further internationalization have a preference for the entry mode that was realized when entering the German market, in which the market was entered by having a local experienced consultant with a Danish background start a new subsidiary in Germany.

Furthermore, it was found that an approach is preferred in which internationalization happens by entering foreign

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markets successively instead of simultaneously. The underlying idea is that those involved in a next market entry should be able to benefit from the experiential knowledge gained in previous steps in the process. Furthermore, it has been found that the entry to the German market was the result of seizing a golden opportunity, not of realizing a carefully planned strategy. The approach that top-level management has taken until now has been found to be lacking the pro-activeness required to realize successive market entries. A carefully planned strategy is still lacking. The company has until now not drawn up a real plan of action on how to enter foreign markets such as the Dutch market. The experiential knowledge that can be gained from the previous market entry to Germany has so far not been researched and formalized. Finally, it has been found that the cooperation and communication between Rambøll Management and the Rambøll Group concerning the topic of further internationalization needs to be more structured and that clear agreements have to be made in order to realize a successful future market entry to Holland.

The third concept that has been researched concerns the mapping of the success and failure factors that played a role in the period of the German market entry. The goal has been to capture the experiential knowledge that is embedded in the company concerning the right and wrong decisions and actions taken in the period of foreign market entry, in order to find out how knowledge about this can be of help in the market entry to Holland. The method that was used to find and structure these success and failure factors has been to interview the starters and early employees of the German subsidiary and have them put the found factors in the McKinsey Seven S model. Not all success factors that were found can actually be copied to a next foreign market entry, and not all failure factors are easily avoided. However, some interesting factors have been found that can be of potential value to future foreign market entries in general and therefore also to the market entry to Holland. To assess the true value of the found success and failure factors for a Dutch market entry particularly, information about the Dutch public sector consultancy market was required.

Therefore, the fourth concept that has been dealt with concerns the characteristics of the Dutch market for public sector consultancy and the developments on this market. The goal has been to assess those characteristics and developments that are of influence on the choice in market entry strategy of Rambøll Management and to establish the value of the found success and failure factors in the context of a Dutch market entry strategy.

Experts on the Dutch public sector consultancy market have been interviewed and desk research has been conducted on this topic. It has been established that the government-initiated program ‘Different Government’

heavily influences the Dutch public sector and the market for consultancy. The action program Different Government has been initiated because of the increasing demand from society to change the role and effect of the government on citizens and businesses. As has become clear from the expert interviews, consultancy companies working in the Dutch public sector need to have in-depth knowledge of this program. This knowledge can only be gained by people who have extensive experience in the Dutch public sector and have a profound knowledge of the Dutch public sector organization.

Three areas of opportunities that provide possibilities to generate projects for Rambøll Management on the Dutch market have been suggested. These areas are: Public Private Partnerships, E-government and Shared Service Centers. These three fields of opportunities are in line with the competence areas that the company is involved in at the Hamburg office. Possibilities for sharing of experiences and reference lists between the Hamburg office and the starters in the Dutch market are thus conceivable.

In the Dutch public sector, the consultancy function of legitimation is very important, also due to the extensive use of consultants in Holland. In this function, consultants are considered to be ‘justifiers’ of decision-making processes and policymaking of public administrators. In the context of this function, reputation and brand name are emphasized as being very important assets to be gained by Rambøll Management when starting in the Dutch market.

The competitive situation of the Dutch market for public sector consultancy is moderately favorable for smaller niche players focusing purely on the public sector like Rambøll Management. Competitive pressure is growing

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especially for the larger consultancy companies due to new small players on the market, due to larger companies shifting from private- to public sector consulting and due to the decreasing resources that are available in governmental institutions for the hiring of external third parties, such as management consultants. Due to the increased emphasis on cost cutting in the public sector, the challenge for Rambøll Management will be to win in tendering procedures by emphasizing the contribution the company can make in further enhancing the efficiency and the lowering of costs in public administrations. The fact that Rambøll Management has extensive experience in the Danish public sector, which is perceived as progressive and innovative in the Dutch public sector, will provide the company with the opportunity to raise interest from potential customers. The starters involved in a Dutch market entry can furthermore use the existing references of Rambøll Management to proof the required professionalism and reliability.

Based on the research that was conducted on the abovementioned four concepts, recommendations are made concerning the market entry mode and entry strategy that Rambøll Management should adopt when entering the Dutch market.

The starters involved in a Dutch market entry should copy the approach of the German starters in which they profiled the company as a ‘public sector full service strategy consultancy’, in which it was suggested to the market that the starting subsidiary was larger than it in fact was. It should be strongly communicated to potential customers, that Rambøll Management in Holland is part of a large, internationally operating company with 35 years of experience in public sector consulting. A criterion for the hiring of new employees should be to have an affiliation with the goal of contributing to the improvement of the public sector. In the early phase of the Dutch market entry, it is recommended that the starters aim for a large project that receives widespread attention from potential clients in the market. In the German market entry, the winning of such a project has heavily contributed to the establishing of a strong name and reputation on the market. It is furthermore recommended that the starters involved in a Dutch market entry receive a similar degree of independence from the Danish mother company, as was the case in the German market entry.

It is recommended that the structure of employees in a Dutch office is according to the ‘Grey wolf, leading young, eager wolves’-structure, in which a few older, more experienced consultants are superiors of a group of young employees who are close to academic thinking and therefore likely to contribute to the development of innovative and creative solutions to problems. However, it is also recommended that the amount of experienced consultants is relatively larger than in the Hamburg office, and the amount of young academics is relatively smaller. This is recommended because of the growing emphasis that clients in the Dutch public sector put on expert knowledge and personal reference lists of consultants.

The failure factor of lacking administrative discipline should, and can be avoided in a Dutch market entry. The lack of attention for correctness in reports especially -reports being one of the very few tangible products that the management consultancy delivers- will be a failure factor in Holland as well. The effects of being an innovative company with a different style of consultancy are uncertain in the context of the Dutch market.

Finally, the recommended entry mode to the Dutch market is to invest in a new Rambøll Management subsidiary with Dutch experienced consultants. Rambøll Management should find the right local man by intensifying the activities aimed at this purpose. This includes scanning the market, hiring a headhunter and continue to develop a strategic plan to enter the Dutch market.

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Preface

A period of freedom, fun and personal development has come to an end. Things are not meant to last forever.

Besides, I feel ready for a new challenge; there are plenty of places to go and people to meet. Looking back, it’s been a hell of a ride! A few people in particular have made the period in Groningen unforgettable. Especially my friends from ‘Bob’ have greatly contributed to making it all happen. I would like to thank them for that. I would like to thank especially my friends Roel, Freek, Ruben, Bert and Adwin for being there. Finally, a special thanks goes out to my parents, Esther & Arnold and my girlfriend Nynke for supporting me throughout my studies and in the last period of writing my final thesis.

The following research report is written as a final thesis for my studies at the faculty of Management and Organization, specialization Marketing at the University of Groningen. This thesis deals with the internationalization process and market entry strategy of the Danish based public sector consultancy company Rambøll Management. The research for this thesis was conducted from the company’s subsidiary in Hamburg, Germany. I am grateful for the opportunity that Rambøll Management Hamburg has given me to learn about the consultancy business and for the opportunity to conduct research for my graduation while being surrounded by some of the nicest colleagues I have had. During my stay at Rambøll Management in Hamburg, a few people have been especially helpful by putting in time and effort into the crafting and structuring of my ideas for this thesis. I would like to thank the following people at Rambøll Management: Tobias Bergmann, Jens Loff, Jytte Marquardt, Oliver Wolgast, Christine Schaerffer, Sebastian Niedlich and all the people who have given up their precious time to make it possible for me to conduct the necessary interviews.

The realization of this thesis would not have been possible without the help of the experts on the Dutch market. I would like to thank Dr. van der Zee, Jaring Hiemstra en Niels Kastelijn for the possibility they have given me to get my information from the best.

With reference to the supervision of my graduation process I would like to thank Miss Nicola Campbell and Dhr.

Ritsema from the university of Groningen, whose critics and ideas have contributed to the shaping and crafting of my thesis.

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INTRODUCTION 4

PART I: INTRODUCTION TO THE RESEARCH 4

Chapter 1: Introduction to the company 4

1.1. The Rambøll Group 4

1.2. Rambøll Management 4

1.2.1. INTERNAL ORGANIZATION 4

1.2.2. THE HAMBURG OFFICE 4

1.2.3. COMPETENCE CENTERS 4

Chapter 2: Research design 4

2.1. Motives for research 4

2.2. Purpose and significance of the research 4

2.3. Theoretical starting points 4

2.3.1. PREVIOUS RESEARCH 4

2.3.1.1. FINDINGS FROM THE UPPSALA INTERNATIONALIZATION THEORY 4

2.3.1.2. FINDINGS FROM OTHER RESEARCH 4

2.4. Conceptual framework 4

2.4.1. EXPLANATION OF THE CONCEPTUAL FRAMEWORK 4

2.4.1.1. INTERNAL ISSUES 4

2.4.1.2. EXTERNAL ISSUES 4

2.5. Problem statement 4

2.5.1. RESEARCH OBJECTIVE 4

2.5.2. RESEARCH QUESTION 4

2.5.3. OPERATIONALIZATION OF THE RESEARCH QUESTION 4

2.6. Research process 4

2.7. Methodology 4

2.7.1. METHOD USED IN THE INTERNAL ANALYSIS 4

2.7.2. METHOD USED IN THE EXTERNAL ANALYSIS 4

2.7.3. METHOD AND RECOMMENDATIONS 4

2.8. Research definitions 4

2.9. Research limitations 4

2.10. Employer 4

PART II: INTERNAL ANALYSIS 4

Chapter 3: Company Characteristics and Internationalization 4

3.1. Rambøll Management: a Professional Service Firm 4

3.1.1. CHARACTERISTICS OF A PROFESSIONAL SERVICE FIRM (PSF) 4

3.1.2.

^CHARACTERISTICS OF MANAGEMENT CONSULTANCY AS A PROFESSIONAL SERVICE 4

3.1.2.1. INTANGIBILITY 4

3.1.2.2. INSEPARABILITY 4

3.1.2.3. PERISHABILITY 4

3.1.2.4. HETEROGENEITY 4

3.2. The State as customer 4

3.2.1. THE PUBLIC SECTOR 4

3.2.2. FUNCTIONS OF CONSULTANCY IN THE PUBLIC SECTOR 4

3.3. Rambøll Management: a knowledge intensive organization 4

3.3.1. KNOWLEDGE-SHARING IN THE INTERNATIONALIZATION PROCESS 4

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3.4. Possible entry modes 4

3.5. Conclusion 4

Chapter 4: Management’s views on internationalization 4

4.1. Method 4

4.2. Motives underlying the internationalization of Rambøll 4

4.3. Internationalization strategy 4

4.3.1. WATERFALL STRATEGY 4

4.3.2. EMERGENT VERSUS DELIBERATE APPROACH 4

4.4. Preferred entry mode 4

4.5. Conclusion: effects on internationalization and market entry 4

Chapter 5: Evaluation of the German market entry 4

5.1. Rationale behind evaluating the German market entry 4

5.1.1. LEARNING FROM PREVIOUS EXPERIENCE 4

5.2. Finding the success and failure factors 4

5.2.1 PROBLEMS WITH DATA GATHERING 4

5.2.2. METHOD USED TO OVERCOME PROBLEMS 4

5.2.3. STRUCTURING TOOL:MCKINSEY’S SEVEN-S FRAMEWORK 4

5.3. The first phase of the German market entry 4

5.4. Results of the evaluation 4

5.4.1. THE ‘S’ OF STRATEGY: SUCCESS FACTORS 4

5.4.1.1. SUCCESS FACTOR 1 4

5.4.2. THE ‘S’ OF STRATEGY: FAILURE FACTORS AND DIFFICULTIES 4

5.4.2.1. FAILURE FACTOR 1 4

5.4.3. THE ‘S’ OF SKILLS 4

5.4.4. THE ‘S’ OF STRUCTURE: SUCCESS FACTORS 4

5.4.5. THE ‘S’ OF STRUCTURE: FAILURE FACTORS AND DIFFICULTIES 4

5.4.6. THE ‘S’ OF SYSTEMS: SUCCESS FACTORS 4

5.4.7. THE ‘S’ OF SYSTEMS: FAILURE FACTORS AND DIFFICULTIES 4

5.4.8. THE ‘S’ OF STYLE:SUCCESS FACTORS 4

5.4.9. THE ‘S’ OF STYLE:FAILURE FACTORS AND DIFFICULTIES 4

5.4.10. THE ‘S’ OF STAFF:SUCCESS FACTORS 4

5.4.11. THE ‘S’ OF SHARED VALUES:SUCCESS FACTORS 4

5.5. Conclusion: effects on internationalization and market entry 4

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PART III: EXTERNAL ANALYSIS 4

Chapter 6: The Dutch market 4

6.1. Method 4

6.2. Trends and developments in the Dutch public sector 4

6.2.1. TRENDS AND DEVELOPMENTS IN PUBLIC ADMINISTRATION 4

6.2.2. TRENDS AND DEVELOPMENTS IN EDUCATION AND CULTURE 4

6.2.3. TRENDS AND DEVELOPMENTS IN CARE AND WELFARE 4

6.2.4. TRENDS AND DEVELOPMENTS IN THE POLICE FORCE AND DEFENSE 4

6.2.5. THE DUTCH PUBLIC SECTOR IN TRANSITION: THE DIFFERENT GOVERNMENT PROGRAM 4

6.2.5.1. ACTION LINE 1 4

6.3. Resulting opportunities for Rambøll 4

6.3.1. OPPORTUNITY 1:PUBLIC PRIVATE PARTNERSHIPS 4

6.3.2. OPPORTUNITY 2:E-GOVERNMENT 4

6.3.3. OPPORTUNITY 3:SHARED SERVICE CENTERS 4

6.4. Public sector consultancy in Holland 4

6.4.1. CHANGED POSITION OF CONSULTANTS 4

6.4.2. FUNCTIONS OF CONSULTANTS 4

6.5. Competition 4

6.6. Success and failure factors in the Dutch market 4

6.6.1. COPY FACTORS TO HOLLAND OR NOT? 4

6.7. Conclusion 4

PART IV: CONCLUSIONS AND RECOMMENDATIONS 4

Chapter 7: Conclusions and recommendations 4

7.1. Conclusions concerning the topic of Rambøll’s characteristics 4

7.2. Conclusions concerning the topic of Management views 4

7.3. Learning points from the German market entry process 4

7.4. Conclusions from the research on The Dutch market 4

7.5. Recommendations with reference to the Dutch market entry strategy 4

Bibliography 103

Appendix: List of interview-partners 107

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Introduction

In this thesis a practical problem is researched for the management of Rambøll Management, a Danish based consultancy company. The company provides management consultancy services to customers primarily in the public sector. This thesis is based upon research that was conducted from the company’s subsidiary in Hamburg, Germany. The conducted research concerns the internationalization strategy of the company and its possibilities for a market entry to the Dutch market for public sector consultancy.

The rationale underlying the thesis is different than the ideas that can be identified in previous studies on internationalization and foreign market entry strategies of companies. As often seen in previous studies, a forward-looking perspective is adopted to identify the right foreign market entry strategy. Most companies thus conduct extensive market research to assess the developments and opportunities that arise on new foreign markets in the future. Although the research underlying this thesis also contains an element of market analysis, the recommendations for a market entry strategy that are made in this thesis are largely based on a backward looking perspective. In this research, a previously realized foreign market entry is analyzed and evaluated to result in learning points for the next foreign market entry. In this case, the next foreign market entry concerns the Dutch market for public sector consultancy. A second distinction between previous studies and this research is that previous studies on internationalization have shed insufficient light on the specific characteristics of service firms and the influence thereof on the process of internationalization and market entry. Moreover, little attention has been paid in previous studies to the influence of management views on the internationalization process. In this thesis, both the influence of the company’s characteristics, as well as the effects of management views are assessed in light of the internationalization process.

The thesis is divided into four parts. In the first part, the company for whom the research is conducted is shortly introduced the reader. Furthermore, the research problem and the research design are established. In the second part of the thesis, the findings of an analysis of company specific issues that are of influence on the internationalization process are described. This concerns factors originating from within the company that influence the company’s possibilities for internationalization and foreign market entry. The third part of the thesis concerns an external analysis, in which the Dutch market for public sector consultancy is analyzed and opportunities for Rambøll Management on this market are established. In the last part of the thesis, concrete recommendations are made to the management of Rambøll Management on how the Dutch public sector consulting market can best be entered. These recommendations are based on the findings of the internal and external analysis as established in the second and third part.

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Part I: Introduction to the research

In the first part of the thesis, the company Rambøll Management is described as an introduction to the reader.

The reader is given insight in the context of the research problem. The theoretical background on which the research is based is established in this part and the research problem and research design are defined and operationalized.

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Chapter 1: Introduction to the company

In this introductory chapter, the company for whom the research has been conducted will be described shortly.

1.1. The Rambøll Group

The Rambøll Company was founded in 1945 in Copenhagen and was named after its founders Rambøll and Hannemann. It was originally set up as an engineering consultancy company. The company was later named Rambøll Company and gradually developed into the Rambøll Group that consists of six Business Units, all of which are involved in consultancy. Four of the six Business Units cover the business areas of technical and engineering consultancy and are focused on four separate national markets. These four Business Units of the Rambøll Group that deal with technical and engineering consultancy, undertake projects in the fields of infrastructure, telecommunications, building, oil & gas industry and energy & environment. The remaining two Business Units operate internationally and are focused on a specialized field within the consultancy industry.

One unit specializes in management consultancy, the other in IT consultancy. The Rambøll Group has a strong market position in the Nordic region, with over 500 international projects annually and has until now carried out projects in more than 100 countries. In 2003, the Rambøll Group bought Scandia Consult, a Swedish engineering consultancy company. With this takeover, the total number of employees doubled to 4000 divided over 70 offices.

The six Business Units that together form the Rambøll Group are owned by the Rambøll, Hannemann & Højlund Foundation. According to the CEO of the Rambøll Group, the advantage of having a foundation as the owner is that the continuity of the Group is better secured. The rationale behind this is that the foundation has a long-term interest in the survival of the Business Units in the Rambøll Group, whereas ownership by shareholders would put emphasis on short-term results, which could jeopardize the continuity of the firm. Moreover, the foundation reinvests the profits in the Rambøll Group without having external financial interests. (Pederson, CEO Rambøll Group, 2004)

The six Business Units of the Rambøll Group are shown in fig. 1.1.

1.2. Rambøll Management

The research for this thesis has been conducted for the Business Unit Rambøll Management as highlighted in figure 1.1. This Business Unit is engaged in management consultancy primarily for customers in the public sector. The company originates from a take-over in 1981, when the Rambøll Group bought the Danish based consultancy company Gert Hansen A/S. Today, with an average staff of more than 250, a 30% market share in Denmark and approximately 500 projects annually, Rambøll Management is the largest consultancy company in the market for public sector consultancy in Scandinavia. The company is represented in Scandinavia by offices located in Aarhus, Copenhagen and Stockholm.

Rambøll Norway Rambøll

Finland

Rambøll Informatik

Rambøll Management Rambøll

Sweden Rambøll

Denmark

Fig 1.1: The 6 Business Units of the Rambøll Group Rambøll Group

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1.2.1. Internal organization

Outside Scandinavia, there are offices in Hamburg, Brussels and a small office in Berlin. This research project has been conducted from the Hamburg office in Germany as highlighted in figure 1.2.

Figure 1.2 shows the locations of the various offices of Rambøll Management and the spreading of consultants over these offices. The office in Berlin originally had a somewhat different function than the other offices. The Berlin office was opened on 1 May 2004 and the sole employee had the agent-function of scanning the market for opportunities, supporting the project acquisition activities of the Hamburg office. Now, beginning of 2005, the Berlin office has been reinforced by transferring consultants from the Hamburg office to Berlin. During 2005, the Berlin office will become fully operational and will be competing for projects in the market instead of merely scanning the market for the Hamburg office.

The office in Brussels has grown from 3 to 20 employees as the result of a take-over of a small Belgian consultancy company by Rambøll Management in 2004. Before this take-over, the Brussels office had a supporting role for the headquarters in Aarhus. Many projects that Rambøll Management competes for are funded by the European Commission in Brussels. The presence of Rambøll Management in Brussels was a matter of ‘being close to the fire’. The employees in Brussels had the assignment to monitor the developments in EU-funded projects and to develop a network in the different departments and organizations of the European Commission. After the takeover in the first half of 2004, the Brussels office is now, besides having a monitoring function, also competing for projects in the Belgian market for public sector consultancy.

As described in the above, the company is currently represented in 4 European countries. In a strategy paper that was drawn up in the year 2000, it is stated that the company wants to be present in 5 North-European countries by the year 2005 (2005 strategy paper, Rambøll Management, 2000). In August 2004, the decision was made to enter the Norwegian market. Concrete plans are currently being made for that market entry. It is therefore almost certain that the goals that were set for the year 2005 will be met.

The research has been conducted for Rambøll Management, hereinafter referred to as Rambøll.

1.2.2. The Hamburg office

In 2000, the headquarters of Rambøll in Denmark decided to enter the German market. One of the drivers for this desire to further internationalize is the growing importance of international experience and references as project-winning factors when competing for projects.¹

1 In chapter 4 the motives of the company to further internationalize are investigated extensively.

Fig 1.2: The locations of the 6 offices of Rambøll Management and the number of consultants in each office.

Rambøll Management (220)

Rambøll Management Sweden

Rambøll Management Germany Rambøll Management

Denmark

Rambøll Management Belgium

Copenhagen (75)

Aarhus (75)

Stockholm (10) Hamburg (30)

Berlin (10)

Brussels (20)

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This first step outside of Scandinavia in the form of a new office in Hamburg was considered to be a ‘pilot-project’

for further internationalization throughout Northern Europe. The Hamburg subsidiary has since 2000 grown to 45 employees, of which over 30 are consultants or chief consultants.

1.2.3. Competence Centers

To be able to differentiate between different customer groups in the public sector and the according different approaches that are being taken, the offices of Rambøll have been organized in ‘Competence Centers’, each providing consultancy in different areas of specified knowledge and methods, also referred to as policy fields.

The Danish offices of Rambøll are by far the largest and therefore have a broader range of activities than the other offices. Because of differences in size between the various offices, as shown in figure 1.2, the number of activities and therefore the number of Competence Centers differ per office. The Hamburg office is of a medium size and covers the most important areas of activity in the public sector consultancy market for Rambøll.

Clarifying the role and activities of the Competence Centers in the Hamburg office, gives a good overall picture of the most important activities of the company and of the areas in the public sector in which the company provides consultancy services.

The Hamburg office of Rambøll is divided in 5 Competence Centers, each focusing on a specific knowledge area in which the company is active. These Competence Centers are:

Strategy and Organization; this Competence Center deals with support and consultancy of public sector organizations concerning strategic issues, such as quality improvement, productivity enhancement, partnerships between public sector organizations and private sector organizations (Public Private Partnerships), Business Process Reengineering and Strategy Analysis.

Personnel and Organization; deals with the human resource side of public sector organizations and consults organizations in the field of developing customer oriented service-offerings, implementing new management systems, training of personnel and cultural change management.

Research; deals with the evaluation of public sector development programs, estimations of consequences of legal acts in the public sector, scenario analysis, branch- and market studies in the fields of labor, health, education and integration.

IT; is concerned with the strategic decision-making in IT questions, such as change management in case of switching to new IT systems, combining IT systems in case of partnerships, but also issues such as the decisions around the introduction of e-learning systems, e-business development, e-government and IT and project management.

Survey; is until now mainly concerned with the internal support of projects that are running in other Competence Centers, but is growing in the fields of design and conduct of customer surveys, employee satisfaction surveys, citizen surveys and cultural analysis in public sector administrations.

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Chapter 2: Research design

In this chapter, the formulation of the research problem is the main issue. This chapter deals with the type of research, the purpose and significance of the research project, the problem statement and the strategy that is used to reach the research goal and finally answer the research question. Furthermore, the theoretical starting points underlying this thesis are discussed and the boundaries of the research are defined.

2.1. Motives for research

The entry to the German market for public sector consultancy as mentioned in chapter 1, formed a ‘pilot project’

for the activities of Rambøll outside Scandinavia. It was considered a pilot project since the company had not before opened a wholly owned subsidiary outside Scandinavia that was actively involved in selling consultancy projects. With this entry to the German market, the company’s strategy changed from a narrow focus on the Scandinavian market to a broader, more international outlook.

The desire of Rambøll to be present in new foreign markets has become stronger in recent years. The resulting change from a strong domestic focus towards a focus on becoming a company represented in a growing number of Northern European countries corresponds with the views of the whole Rambøll Group. The recently revised vision statement of the Rambøll Group as well as the revised vision statement of Rambøll Management clearly state that the company as a whole is planning to become more internationally active and represented.

Consequently, the intended shift towards becoming more internationally active and present in a growing number of new foreign country markets involves the challenge of developing and realizing successful market entry strategies.

Among other markets, Rambøll is planning an entry to the Dutch market for public sector consultancy. The company has already entered a market outside Scandinavia in the form of the pilot project in Germany. The main motive for this research is that Rambøll is now interested in what can be learned from this successful previous experience and how it can contribute to strategic decision-making in the ongoing internationalization process and the intended market entry to Holland.

2.2. Purpose and significance of the research

Five years after the initial plans to test the success of the company outside Scandinavia, top-level management of Rambøll in Denmark as well as management in the German subsidiary are planning to jointly take further steps in the internationalization process throughout Northern Europe. In a strategy meeting in 2004 held by the board of directors it was decided that Rambøll wants to be present in nine or ten North-European countries by the year 2010 (2010 Strategy Paper, Rambøll Management, 2004). Among these nine or ten countries, it was decided that there should be one or more of the countries Holland, Poland and the UK. This research will focus on the possibilities for a market entry to Holland.

Purpose

The purpose of this study is descriptive and exploratory. Starting point is the description of factors influencing the internationalization process, with the goal to explore the possibilities that Rambøll has in a next foreign market entry and to design a set of guidelines for the strategy for a future foreign market entry to Holland.

Significance

The company has already successfully entered the German market for public sector consultancy. The opportunity to enter the German market for public sector consultancy arose rather unexpectedly. As a result, the decision to enter the German market was an ‘ad hoc’ decision made by top-level management. Although this ad hoc decision resulted in a successful market entry to Germany, future market entries may benefit from a more

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structured and deliberate approach in the internationalization process. Literature provides many insights and research results that favor a more deliberate strategy over an emergent approach such as the approach Rambøll has taken in the internationalization process (see for example: Johansson and Vahlne, 1977; Yip, Biscarri and Monti, 2000). This research focuses on possibilities for Rambøll to adopt a more deliberate approach based on the previous experience that the company has with foreign market entry and an analysis of how the internationalization process can best be approached. The research is significant because management of Rambøll is provided with the required concrete recommendations concerning a strategy for the market entry to Holland.

2.3. Theoretical starting points

In this paragraph, theoretical starting points concerning the research topics are established. This means that choices are made between different schools of thought that have been described in literature on internationalization and market entry of service firms.² Theoretical starting points are established because of the following two reasons:

First, theories on internationalization and market entry of service firms provide a starting point for the study of the internationalization process of Rambøll. The study of literature that was conducted in this context has provided theories that can help to structure and understand the research problem that deals with the internationalization process of Rambøll.

A second reason for the establishment of theoretical starting points is to clarify the position of this thesis in the existing literature on internationalization of service firms. Different approaches have been described and accepted in literature for the explanation of the internationalization process of companies. The approaches originate from different and sometimes contradictive schools of thought, which makes it necessary to make choices in the theoretical approach in this thesis. Therefore, a closer look will be taken into previous research that has been conducted in the field of internationalization of service firms.

2.3.1. Previous research

The topic of internationalization and choice in entry mode of companies has been researched extensively over the past decades. The internationalization of manufacturing companies especially has been studied for a long time and a number of different theories on the internationalization of manufacturing companies have been accepted. Internationalization of service firms on the other hand, has long been neglected. The development of conceptual models for the internationalization of service firms has therefore been limited. However, some internationalization approaches originally developed for manufacturing companies also provide starting points for the studying of the internationalization process of service firms such as Rambøll.

By far the most well known theories on internationalization of firms are the Innovation theory by Bilkey and Tesar (1977) and the Uppsala internationalization theory by Johanson and Vahlne (1977). The Innovation theory by Bilkey and Tesar (1977) is mainly concerned with the explanation of internationalization of manufacturing firms as a step-by-step process (Majgård, 1998:12). The Innovation theory has been proven not to be applicable to the internationalization process of service firms. The Uppsala internationalization theory was originally also developed for the explanation of the phenomenon of internationalization in manufacturing firms, but has been proven to be applicable to the internationalization of service firms as well (Majgård, 1998:9). Furthermore, the Innovation theory has been found to be especially appropriate for small firms, whereas the Uppsala internationalization theory is a more general and further developed theory and is applicable to both small and large firms (Anderson 1993:214). Given the fact that this thesis is dealing with the internationalization of a service firm, the Innovation theory is less helpful than the Uppsala theory as a tool to help structure the internationalization process of Rambøll.

2 See Chapter 3 for a typification of Rambøll as a service firm.

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Since the Uppsala theory on the internationalization process of firms is the most well known theory that is relevant to this research area, the theory is studied for its applicability and usability in this research. First, the theory is briefly explained. Then, the useful elements of the theory for the research are assessed. Other research relevant to the subject is also discussed to establish the theoretical points of departure of this thesis.

2.3.1.1. Findings from the Uppsala internationalization theory

In the Uppsala theory, the internationalization of the firm is seen as a process in which the company gradually increases its international involvement by going through different stages. The theory is therefore also referred to as the ‘Stages theory of internationalization’. In the theory, a distinction is made between ‘state’- and ‘change’

aspects of the internationalization process. These ‘state’- and ‘change’ aspects influence each other and together determine the internationalization process of a company (Johanson and Vahlne, 1990:11). The state aspects are firstly the resources that a company has committed to be active on a specific market, and secondly, the knowledge that a company has about that market. The committed resources and acquired knowledge are interdependent, meaning that the acquired knowledge about a foreign market grows with the amount of resources committed to the intention of becoming active on that market. The change aspects are referred to in the theory as ‘current business activities’ and ‘commitment decisions’. The state and change aspects are assumed to influence each other in the following way: The knowledge that a company has about a foreign market and the strength of the commitment that a company has made to enter a new market are assumed to affect decisions regarding commitment of resources and the way current activities are performed. Market knowledge and market commitment in turn are affected by current activities and commitment decisions. The model can thus be seen as a causal cycle (Johanson and Vahlne, 1990:11). Important aspects of the theory are the following:

The Uppsala internationalization theory is rooted in the behavioral theory of the firm (Eriksson, Johanson, Majgård, 1997:338). This means that the theory regards internationalization as a process and stresses the importance of internally perceived problems and opportunities in the process, whereas the attention for external factors such as market circumstances are considered to be of less importance.

A second important aspect is that the theory emphasizes the importance of experience and experiential knowledge in the internationalization process of firms. According to the Uppsala model, experiential knowledge is a prominent factor in the internationalization process. The Uppsala internationalization theory is based on the idea that firms have limited access to information and that internationalization is a process of increasing experiential knowledge. This means that the more experienced firms get with internationalization, the easier the next step in the process will become. Firms having extensive experience with direct or indirect activity in foreign markets, through exporting or local foreign presence, are more likely too have fewer problems in becoming active in the next foreign market they enter.

A third aspect is that the Uppsala model recognizes a historic causality in the development of experiential knowledge concerning the internationalization process. This means that experience that has been gained in the past, forms input for the further development of the internationalization process of the firm (Majgård, 1998:10). The theory is thus considered to be of a dynamic nature; the experiential knowledge that is gained in the internationalization process increases when firms become more active in international markets and the outcome of one decision in the internationalization process and choice of market entry constitutes the input of a following decision. The knowledge base in the firm concerning internationalization will grow over time and will form more input for successive steps in the process.

The study by Johanson and Vahlne (1977) and the resulting Uppsala internationalization theory suggest that experiential knowledge that is gained in previous steps in the internationalization process plays an important role in the next steps in that process. In other words, experiential knowledge concerning market entry strategy and the decisions that have been taken in the process of market entry can provide important learning points for future

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market entries. This implies a learning process in internationalization and successive market entry. Johanson and Vahlne (1977) are not the only researchers of the internationalization process of firms to emphasize the value of learning and experience. Other researchers have also suggested that the learning process of firms is vital in the internationalization process. As Welch and Welch (1996:15) state in this context, ‘the role of so-called strategic learning, which occurs as the result of a company’s experience in international operations, is an important link in the strategic chain’. The empirical findings of the study by Johanson and Vahlne are of importance in the context of the research, since an important issue is the establishing of the learning points that can be gained from the previously realized market entry for a successive market entry to the Dutch market. The Uppsala internationalization theory by Johanson and Vahlne (1977) thus partly provides this research with a theoretical starting point. The emphasis that Johanson and Vahlne (1977) have put on experiential knowledge is therefore accepted as a relevant factor in the context of this research. Derived from literature, the first factor that forms a starting point in this research can therefore be stated as follows:

1. An important factor in the internationalization process and future foreign market entries of a firm is the experiential knowledge that the firm has gained in previous steps in the process. Experiential knowledge that is gained previously should be established and evaluated for its value in future market entries.

2.3.1.2. Findings from other research

Other researchers have identified shortcomings in the Uppsala theory and have found other factors besides those found by Johanson and Vahlne (1977, 1990) that are also of important influence on the internationalization process of service firms. Findings of other researchers imply that the Uppsala internationalization theory alone does not provide enough support for the research on the internationalization process of service firms such as Rambøll. The established shortcomings in the Uppsala theory are taken into consideration when studying the internationalization process and possibilities for foreign market entry of Rambøll. In the following section, the found shortcomings and their implications for this research are identified.

A first shortcoming that researchers have found in the Uppsala internationalization theory is that it explains the process of internationalization with the help of only one single construct, that of experiential knowledge. This makes the model too deterministic (Rosson 1987, as cited in Johansen and Vahlne, 1990:14). As Majgård points out in this context: ‘There is no attention for the decision-making process of the firm’s management’ (Majgård, 1998:13). Rajshekhar et. al. (2003:190) also found that management attitudes towards internationalization and the decision-making of management are important factors in the internationalization process besides the factor of experiential knowledge. Due to the focus on experiential knowledge, there is a lack of attention for the motives that management has for internationalization in the Uppsala theory. The role of strategic decision-making of management as an explanatory variable for the internationalization process is thus neglected. Contradictorily, other researchers have emphasized the importance of the role of management in the internationalization process. Wind et. al. (1973) for example, developed a model that is built upon the ‘attitude of the manager’

towards the international activities of the firm. As Wind et. al. (1973:15) state, ‘A key assumption underlying our model is that the degree of internationalization to which management is committed (or willing to move toward) affects the specific international strategy and decision rules of the firm.’ If we consider the importance that other researchers such as Wind et. al. (1973) and Lam & White (1999) have put on the role of management, the lack of attention for this factor in the Uppsala internationalization theory becomes questionable. This paradox in literature provides a strong argument to at least take a closer look at the role of management as a possible relevant factor in the process of internationalization of service firms in general and in this case of Rambøll. This consideration results in the following theoretical starting point for the research:

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2. Management views on, and decisions regarding the internationalization process are considered to be factors of influence in the internationalization process and choice in foreign market entry mode.

A second shortcoming in the Uppsala internationalization theory is that studies have shown that it does not take the service sector or characteristics of services into account (Johansen and Vahlne, 1990:15). Although the importance of experiential knowledge has been proven to hold for service firms as well, the theory neglects the specific characteristics of service firms and the role thereof in the internationalization process. Many researchers of service firms have claimed that the characteristics of services have important implications for the internationalization process of service firms (see for example: Bradley, 1995:435). Other researchers state that the differences between services and goods and the distinct features of services are of little effect on the process of internationalization (e.g. Boddewyn, Halbrich and Perry 1986: 42, as cited in Majgård, 1998:8). Thus, the influence of the characteristics of services and service firms on the internationalization process is debated in literature. For the research on the internationalization process of Rambøll this difference in opinion by different researchers strongly implies that there is reason to further investigate the influence of service characteristics in context of the internationalization of Rambøll. The implication for the research is that the role and importance of company characteristics in the internationalization process of Rambøll are included in the research as a relevant factor. This factor provides a third theoretical starting point to be included in this research:

3. Distinctive company characteristics, such as the company being a service firm, influence the internationalization process and foreign market entry process.

The above theoretical starting points have been derived from literature are included in the research, since they provide important factors to consider in light of the internationalization process and market entry strategy of Rambøll. The three established points are included in the conceptual model underlying this research, which will be presented in paragraph 2.4.

Besides the theoretical starting points that have been established above, there are a few more shortcomings in the Uppsala theory that should be taken into consideration in this research. These remaining factors of relevance however do not result in clear theoretical starting points or factors to be included in the conceptual model.

Although these remaining shortcomings of the Uppsala theory are relevant for this research, their nature is more conditional than directive for the research process. These shortcomings should nevertheless be kept in mind throughout the research process. They are the following:

Following the previously established shortcomings, a third shortcoming is that the Uppsala internationalization theory lacks practical relevance and has been widely criticized for this. Noticeably, Johansen and Vahlne themselves state: ‘although our model for the internationalization process has captured the interest of many researchers, there have been only a few attempts at developing the concept’ (Johanson and Vahlne, 1990:22).

Thus, the model provides a theoretical explanation for the phenomenon of internationalization of firms but does not provide any managerial implications for the process in practice. In the context of the research for Rambøll therefore, the Uppsala internationalization theory does not provide guidelines for the approach the company should take in the internationalization process. The fact that the concept has not been developed leaves room for investigating how the concept of experiential learning that the theory emphasizes can be applied to a practical case such as the internationalization and market entry process of Rambøll.

A fourth shortcoming in the Uppsala internationalization theory is that it proposes a four-stage model of internationalization, which does not hold true for service firms. As said before, the model was originally developed with a focus on the needs of manufacturing firms. In their four-stage model, Johanson and Vahlne (1977) describe how in manufacturing firms the internationalization process often starts on a small scale using

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indirect exporting channels followed by a slow move towards more direct channels as a mode for internationalization. However, the process of internationalization of service firms does not seem to go through the stages model that Johansen and Vahlne (1977) suggest in their Uppsala internationalization theory. Coviello and Martin (1999:58) for example, have found that firms in the engineering consulting sector, a typical service sector, do not go through the stages as proposed in the Uppsala internationalization theory. In fact, they found that service firms ‘leapfrog’ early stages of the internationalization process. As Grönroos (1999) points out in this context, the emphasis that the stages model (Johansen and Vahlne, 1977) puts on exporting products to new foreign markets as an early phase of internationalization of manufacturing firms, does not apply to firms in the service sector. Service firms tend to find different modes of entry rather than exporting in the early phases of the internationalization process. This means that the stages model as proposed by Johansen and Vahlne (1977) in their Uppsala internationalization theory does not provide solid support for the exploration of the internationalization process of service firms. In the context of this research, this means that the internationalization process of Rambøll does not necessarily go through the stages as proposed by the Uppsala internationalization theory. The possibilities for internationalization of Rambøll should therefore not focus on this stages model. The internationalization process of Rambøll should rather be seen in a broader context in which different entry modes at different stages of the process are possible.

In conclusion it can be said that the Uppsala theory, the most well known theory on the internationalization of firms, provides limited support for this research. The theory emphasizes the importance of experiential knowledge in the process of internationalization. This is accepted in this thesis as a relevant factor to study in the context of the internationalization of Rambøll. Given the limited value of the Uppsala theory in the context of this research combined with the described shortcomings in the theory, the established additional factors that influence the internationalization process are also taken into consideration. These additional factors have been established through studying the research of other authors on the internationalization process.

The findings as described in this paragraph have profound effects on the concepts that are relevant to this research on the internationalization process and choice in market entry mode of Rambøll. The concepts that are established in this paragraph are included in the conceptual framework in the next paragraph.

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2.4. Conceptual framework

The conceptual framework is a graphical depiction of the relevant factors of the research and their interconnectedness. For Rambøll, the relevance of factors is determined by their direct or indirect influence on the internationalization process and the choice in market entry mode. These factors have been established through conducting preliminary desk research prior to the data gathering. The motives for the choice in factors that are considered in this research have been extensively covered in the previous paragraph. The factors that are relevant for this research have been included in the conceptual framework below.

2.4.1. Explanation of the conceptual framework

Paramount in the model is the internationalization process and the market entry strategy that is developed for the company. The arrows in the diagram represent the influence of the factors on the internationalization process and market entry strategy. The factors that are of influence can be divided into two groups.

The first group consists of factors that originate from Rambøll internally, which are dependent on the company’s background, history and characteristics. The studying of the influence of these internal issues is referred to in the framework as the internal analysis.

The second group consists of factors that are independent of Rambøll and cannot be influenced by the company. The studying of these external factors is referred to in the framework as the external analysis.

The factors that are established in the conceptual framework are elaborated on in the next paragraphs, starting with the factors that originate form within the company.

Fig 2.1: Model of concepts that are relevant to the internationalization process and market entry strategy of Rambøll concerning the Dutch market entry.

Conceptual Framework

Company characteristics

Management views and decision-making

regarding internationalization

Experiential knowledge from previous steps in the

internationalization process

Characteristics of Dutch market for

public sector consultancy

Internationalization process and market entry of Rambøll Management to Dutch market

Internal analysis External analysis

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2.4.1.1. Internal issues

Company characteristics

The first factor that is taken into consideration refers to the specific company characteristics that are of influence on the internationalization process and market entry strategy of Rambøll. The importance of this factor in context of this research has been extensively covered in paragraph 2.3. The internationalization of Rambøll has until now not been linked to the company’s specific characteristics. However, the company characteristics are important for making recommendations on a future market entry strategy. In literature the difficulties and barriers in internationalizing resulting from a company’s specific characteristics have been described (see for example:

Svensson, 2000, Clark, 1995).

Management views

The second factor concerns management’s views on, and motives for internationalization. In Rambøll, neither have been researched to determine the possibilities for a next foreign market entry. However, the importance of management’s motives to become internationally active has been emphasized in literature (Winsted & Patterson, 1998; Knight, 1999; Johansson and Vahlne, 1977), and therefore needs to be further researched. The relevance of this factor in light of this research has been discussed in the previous paragraph. The motives for internationalization are important for making recommendations for the market entry to Holland since the recommended strategy has to be able to support the views of top level management and contribute to the realization of the goals that underlie internationalization.

Experiential knowledge

The third factor concerns the fact that the company now has the opportunity to analyze the process of market entry to Germany starting in 2000 and learn from this pilot project for future market entries. The concept of assessing the experiential knowledge that can be gained from the German pilot project corresponds with the importance that is ascribed to this factor in the Uppsala theory by Johanson and Vahlne (1977, 1990). By evaluating the previous market entry to Germany, the reasons for the success of the German subsidiary can be assessed. Besides the reasons for the success of the German subsidiary, an evaluation of the entry period can bring to light those decisions and actions that have been taken in the German market entry process that should be avoided in the future. Such an evaluation of ‘success and failure factors’ can provide important learning points for both Rambøll on corporate level, as well as for future starters in a start-up of the company in Holland. This evaluation has until now not been made but is a very important factor influencing the further internationalization strategy and the market entry to Holland. Another issue in this evaluation is the transfer of knowledge from an existing subsidiary to a new future subsidiary. In this research, the knowledge transfer from an existing subsidiary to a new subsidiary is referred to as ‘the snowball approach’ (see 2.9. and 4.3.1.). An evaluation of the German market entry with the goal to provide new subsidiaries with useful information is part of the realization of this snowball approach.

2.4.1.2. External issues

The characteristics of the Dutch market for public sector consultancy

The market entry strategy that the company should pursue when entering the Dutch market is evidently dependent on the competitive situation and the demand for public sector consultancy in Holland. This fourth factor requires a study on the situation of the Dutch market for public sector consultancy in order to establish the opportunities and threats that influence the market entry strategy for Rambøll to this market. Although a full-scale market research is beyond the scope of this project, making recommendations for the market entry to Holland requires a certain amount of research on the characteristics of the Dutch market for public sector consultancy.

Knowledge of the Dutch market must be acquired to establish possibilities for Rambøll on this market. Moreover, a certain amount of knowledge of the Dutch public sector market is needed to answer the question whether the

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found success and failure factors of the German market entry should be copied to the Dutch entry, given the situation on this market.

2.5. Problem statement

In this paragraph, the problem statement for the research is defined. The problem statement consists of the research objective, the research question and the sub-questions derived from the research question (Baarda &

de Goede 1997:20).

2.5.1. Research objective

The question that the Danish headquarters and the management of the German subsidiary are facing is how an evaluation of the market entry to the German market for public sector consultancy that took place between 2000 and 2002, can contribute to a strategy for Rambøll to enter new countries, in this case Holland. To be able to make recommendations for the entry to the Dutch market, the concepts as mentioned in the conceptual model are taken into consideration.

2.5.2. Research question

The research question is formulated to steer the research in the right direction and to produce the answers that lead to the realization of the research goal that is set above.

2.5.3. Operationalization of the research question

To come to an answer to the research question, the remainder of the thesis is divided into three parts:

Part II: Internal analysis. In the internal analysis, the influence of factors originating from within Rambøll is assessed in context of the internationalization process and market entry strategy.

Part III: External analysis. In the external analysis, the Dutch market is analyzed, which means that the relevant characteristics of the Dutch market for public sector consultancy for the market entry strategy of Rambøll to that market are assessed.

Part IV: Recommendations. In this part, concrete recommendations are made how Rambøll can enter the Dutch market for public sector consultancy, given the results from the internal and external analysis.

In the remainder of this paragraph, a more detailed overview of the abovementioned research parts is given.

Furthermore, the sub-questions that underlie the different research parts are established.

The research objective is to identify the success and failure factors in the German market entry and to assess the usefulness of those factors on the Dutch market for public sector consultancy, in order to make recommendations for a market entry strategy to Holland. These recommendations have to fit with the company characteristics, management’s approach to internationalization and the characteristics of the Dutch market for public sector consultancy.

How should Rambøll Management, with reference to the ongoing internationalization process, approach the market entry to the Dutch market for public sector consultancy, given the opportunities offered by the experiential knowledge that the company has gained in the previous market entry to Germany, while considering the influence of company characteristics, management’s views on internationalization and the characteristics of the Dutch market for public sector consultancy?