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

Purpose This 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/approach The 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. Findings Historically, 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/value The 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.

Automated summary

This study explores the impact of regulations on Australian professional service firms' market entry in the European Union, highlighting barriers to knowledge transfer. It discusses using the UK as an EU base, mutual recognition of qualifications, and the dual nationality of architects as strategies to overcome restrictions.