Influencer Marketing During the Internationalization of SMEs

Abstract

As consumers are spending more and more time on social media and becoming increasingly skeptical of brand-generated advertising, companies have begun to turn to social media influencers to disseminate brand messages on their behalf. This is known as influencer marketing and it has gained growing relevance in companies communication strategies. However, the academic literature regarding this topic is only beginning to emerge and especially little attention has been paid to how SMEs utilize this way of marketing. Moreover, since these types of enterprises are increasingly becoming international players, there is considerable scope to study influencer marketing in the international context. Therefore, this study aims to discover why and how SMEs utilize influencer marketing during their internationalization.

The research was initiated conducting a literature review in the fields of influencer marketing and marketing as well as internationalization of SMEs. Based on this review a theoretical framework was formulated to provide guidelines for the empirical research. The empirical part of this research paper was conducted as a qualitative study using the case study strategy. The primary data was collected through semi-structured interviews. Altogether seven interviews were held with representatives from Finnish SMEs operating in various different industries. In addition, this study utilized secondary data from the case companies' websites and social media platforms to support the interview responses. The collected data were analyzed using a pattern-matching technique called explanation building.

The findings of this study suggest that influencer marketing can support SMEs in their internationalization efforts. SMEs collaborate with local social media influencers in order to reach their target customers in foreign markets. Moreover, local social media influencers are used as partners to establish trust and credibility among consumers as well as to gain knowledge and insight related to the overseas market. According to the findings SMEs conduct influencer marketing primarily through Instagram and choose to work with influencers who match with their brand and values as well as are authentically interested in their company.