Dilemmas of Proximity: Motives Influencing Portuguese Firms’ Internationalization to Morocco

Abstract

This study aims to identify Portuguese firms’ motives for internationalizing to Morocco. To achieve this objective, we used a mixed-method (quantitative and qualitative) approach, obtaining data from a questionnaire survey and interviewees from Portuguese enterprises involved in this internationalization process. From exploratory factor analysis (EFA), firms’ reasons for entering the Moroccan market were categorized into five dimensions: (a) Price and Business Infrastructure, (b) Regional Hub and Business Environment, (c) Financial Incentives and Raw Material, (d) Skilled Labour Force and (e) Weak Competition and International Business Partners. The study shows that the factors/dimensions identified are associated both with firms’ resources and capacities and with the characteristics that sometimes define the entrepreneur–manager’s perceptions. In addition, our study provides inside knowledge of this topic through small and medium-sized enterprise (SME) managers’ views on key aspects of their presence in Morocco, which leads to a more robust portrayal of this type of process.