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In today’s digital era, the integration of technology into traditional sectors such as real estate is reshaping operational standards and market dynamics. This transformation is driven by advancements in data analytics, artificial intelligence, and the Internet of Things. Scandinavian countries, often recognized for their high digital competence and innovative business climate, have incubated a breed of data companies seeking international expansion. However, navigating the complex landscape of formal and informal institutions across diverse European markets presents significant challenges. Therefore, this study examines the following research question:

“How do Scandinavian data companies shape their institutional strategies in relation to the formal business environment and informal business practices when internationalizing?"

The research aims to explore the strategies these organizations employ to overcome institutional barriers and exploit institutional opportunities as they expanded to mainland Europe. It focuses on how these companies adapt to strict regulatory frameworks such as data privacy laws and diverse cultural landscapes, which shape their business operations and strategic decisions.

Employing a qualitative methodology, the study analyzed semi-structured interviews with executives from leading Scandinavian data companies within the real estate industry, complemented by an extensive review of existing literature on institutional theory, institutional strategies, and international business practices. This approach captures insights into the strategic adaptations and innovations that facilitated successful international market entries. The findings revealed that these companies engage in institutional entrepreneurship by leveraging their digital technology and networks to influence regulatory discussions and market norms. They also adopt isomorphism in their institutional strategies, by aligning their business practices with local market norms to gain trust and foster growth. Strategic partnerships with local entities further enabled these firms to navigate the institutional complexities of foreign markets effectively.

The conclusions highlight that Scandinavian data companies within the real estate sector can thrive in foreign markets by proactively engaging with both formal and informal institutional frameworks. The study suggests that flexibility in strategy, a deep understanding of local market dynamics, and active participation in shaping the institutional environment are critical for successful and sustainable market entry. This research contributes to the theoretical understanding of international business strategy under complex institutional pressures and offers practical insights for firms looking to expand internationally in mature industries.