SME internationalisation from an emerging market to a developed market : a case study from Ghana

This study focuses on understanding the internationalisation of small and medium-sized enterprises (SMEs) from an emerging market to a developed market. In particular, it examines the internationalisation process of a firm in the clothing and textile manufacturing industry in Ghana. Theoretically, the study is limited to the network internationalisation approach (e.g. Johanson & Mattsson, 1988; Johanson & Vahlne, 2009) and the industrial network approach (Håkansson & Snehota, 1995). Methodologically, a qualitative abductive case study approach is employed. The research process relies on a longitudinal method involving primary and secondary data and critical event analysis. Primary data has been collected from relevant informants at two different times in the internationalisation process. The research findings highlight the significance of both domestic and foreign business relationships in the internationalisation of an SME from an emerging African market to a developed country market. They show the greater importance of exogenous critical events than has been found in the research regarding firms in developed countries. Institutional actors were essential in the network and as sources of exogenous critical events. In addition, the successful SME should possess unique resources in the form of an entrepreneurial spirit, sufficient knowledge of internationalisation, and specific product knowledge. Theoretically, the present study contributes to business network research through providing an understanding of the process of developing network relationships and their impact in an African context. By focusing on SMEs, a contribution has been made in relation to the advancement of SME research. This research reveals empirical insight into SME internationalisation in a setting where an SME is internationalising to a developed country market from a newly emerging African market. Methodologically, the study provides an example of longitudinal research based on abductive methodology. The results provide implications for firms, managers, and policy-makers within the industry, especially on how to manage and use network relationships to promote SME internationalisation from newly emerging markets.

Integrated reporting – a new form of a firm’s interaction with stakeholders

This study examines a new kind of public reporting, called integrated reporting as a form of a firm’s interaction with stakeholders. The study concerned issues such as how the studied organization defined its stakeholders and how this definition evolved during the transition period from 2009 to 2013, how has the integrated reporting of the organization evolved as an instrument of interaction with stakeholders over the transition period, and how the organization reported its value creation according to the international integrated reporting framework in the final, full-featured report. In examining the theory, the study used a qualitative analysis method that allowed deriving conceptual tools necessary to carry out the study. This study is based on the material of the five integrated reports written in Russian from a subsidiary of a Russian public company. The subsidiary carried out the transition to an integrated reporting for the five years from 2009 to 2013. A comparative qualitative method was used in reviewing the empirical material. During the research, an active cooperation of the organization with key stakeholders was revealed, which occurred during the whole period of development of integrated reporting. As a result, integrated reports were produced in cooperation with various key stakeholders, allowing balancing the financial and non-financial information in the reports. The study found that during the transition period, integrated reports gradually changed in the direction of greater clarity and ease of access to perception, consistency of presentation and materiality. The integrated reporting of the organization began reflect the basic requirements of the international integrated reporting framework regarding the content elements and guiding principles. Thus, the organization’s reports began including features of financial and non-financial reporting and connecting the three aspects of the organization's activities: economic, environmental and social. This study reveals the importance of identifying key stakeholders and their influence on the creation of organizational value. The new form of reporting suits better the requirements of modern organizations to interact with their stakeholder groups. The integrated reporting, which reflects the principles of the international integrated reporting framework, is an active resource for companies to communicate with stakeholders and a platform of transmission the necessary information on the creation of value in the long term.

The role of import intermediary companies in the Russian imports from the EU A case study of a Russian industrial company’s point of view on import intermediaries

The literature on agency suggests different implications for the use of export intermediaries. However, only few studies provide a view on import intermediaries. This thesis tries for its part to fill this research gap by studying the import intermediaries in the EU–Russia trade from a Russian industrial company’s point of view. The aim is to describe import intermediation and explain the need for import intermediary companies in the EU–Russia trade. The theoretical framework of this thesis originates from an article by Peng and York (2001), in which they study the performance of export intermediaries. This thesis applies resource-based theory, transaction cost theory and agency cost theory, following the idea of Peng and York. The resource-based theory approach is utilised for describing an ideal import intermediary company, and transaction cost theory provides a basis for understanding the benefits of using the services of import intermediary companies, while agency cost theory is applied in order to understand the risks the Russian industrial company faces when it decides to use the services of import intermediaries. The study is performed in the form of a case interview with a representative of a major Russian metallurgy company. The results of the study suggest that an ideal intermediary has the skills required specifically for the imports process, in order to save time and money of the principal company. The intermediary company helps reducing the amount of time the managers and the staff of the principal company use to make imports possible, thus reducing the salary costs and providing the possibility to concentrate on the company’s core competencies. The benefits of using the services of import intermediary companies are the reduced transaction costs, especially salary costs that are minimised because of the effectiveness and specialisation of import intermediaries. Intermediaries are specialised in the imports process and thus need less time and resources to organise the imports. They also help to reduce the fixed salary costs, because their services can be used only when needed. The risks of being misled by intermediaries are minimised by the competition on the import intermediary market. In case an intermediary attempts fraud, it gets replaced by its rival.