Internationalization and knowledge management strategies of service firms: impact of regulatory environment in regional markets

Abstract

PurposeThis study aims to the influence and impact of regulations and highlights the barriers to market entry faced by Australian professional service firms in the European Union (EU) and their strategies to manage and transfer tacit knowledge.Design/methodology/approachThe authors collected data by reviewing relevant regulatory documents and conducting semi-structured interviews with key informants from Australian architecture firms and senior representatives from the professional, trade and regulatory bodies in Australia and Europe.FindingsHistorically, Australian professional service firms use the United Kingdom (UK) as their EU base. The mutual recognition of qualifications and prior experiences are barriers to intra-organizational expatriation and knowledge transfer. The study identifies the dual nationality of the architects as a way of circumventing the residency/nationality restrictions.Originality/valueThe study discusses Brexit and how the uncertainty surrounding the UK and EU’s agreement adds to the complexity for non-European firms’ market entry and operations in the region.