The Role of Network Competence in Internationalization of SMEs

Network competence is the ability of firms to manage their network of business relationships and to deal effectively with interactions in these relationships. The relationship between level of business relationship abilities of firms and their internationalization has been researched before, and found to be positive. However, what network competence specifically offers is an established scale with which to perform this examination quantitatively. This master’s thesis examined the role which this network competence plays in the internationalization of firms, more specifically in Finnish small and medium sized enterprises (SMEs). The theoretical part of the thesis consisted of examination into the nature of internationalization of SMEs, their business relationships, network competence and related concepts. The empirical part was conducted statistically with quantitative methods on data gathered from Finnish SMEs through a web-survey during 2008. Network competence was found to result in better internationalization among the examined Finnish SMEs with both subjective and objective performance measures, and firms with higher levels of network competence were found to be more likely to become international. On the other hand, speed of internationalization could not be linked to better network competence, and no clear industry-specific differences were found. The results show that by developing their network competence, Finnish SMEs can increase their chances of success and performance in their internationalization process

Strategic choices and performance – an empirical analysis of largest European and North American energy companies

Energy industry has gone through major changes globally in past two decades. Liberalization of energy markets has led companies to integrate both vertically and horizontally. Growing concern on sustainable development and aims to decrease greenhouse gases in future will increase the portion of renewable energy in total energy production. Purpose of this study was to analyze using statistical methods, what impacts different strategic choices has on biggest European and North American energy companies’ performance. Results show that vertical integration, horizontal integration and use of renewable energy in production had the most impact on profitability. Increase in level of vertical integration decreased companies’ profitability, while increase in horizontal integration improved companies’ profitability. Companies that used renewable energy in production were less profitable than companies not using renewable energy.

Kulttuuriperintöä Derryssä : : 9th SIEF Congress: Transcending “European Heritages”: Liberating the Ethnological Imagination 16.-20.6.2008, Derry, Pohjois-Irlanti

Ajankohtaista

E-Business Intreoperability Frameworks for SMEs

Current e-business standards have been developed and used by large organizations to reduce clerical costs in business transactions by increased automation and higher level of business-to-business integration. Small and medium enterprises (SME's), however, cannot easily adopt these standards due to the SME's lacking the technical expertise and resources for implementing them. Still, large organizations increasingly require their business partners, most of which are SME's, to be able to interoperate by their chosen e-business standards. The research question for the study was, first, which of the existing e-business technologies are most SME-adoptable, and, second, how could those e-business technologies be made easier for SME's to implement. The study was conducted as a literature study that evaluated the available e-business frameworks and SME-oriented e-business architectures based on the implementation complexity and costs incurred for the SME adopter. The study found that only few e-business solutions are SMEadoptable. The technological approaches used in the solutions need to be improved on a number of areas, the most important of which is implementation complexity. The study revealed that this also applies to the special, SME-oriented e-business architectures, which are also still too difficult for SME's to implement. Based on these findings, a high-level e-business interoperability framework concept was proposed as the basis for future research to overcome the found implementation complexities for SME's.

Effects of Foreign Direct Investment inflows on growth in Central and Eastern European transition countries

The aim of this master’s thesis is to analyze the effects of Foreign Direct Investments on growth in selected Central and Eastern European transition countries. The theoretical part of this thesis, introduces growth theories and how FDI is covered in those theories. In addition, the results from previous studies, which have studied FDI’s effect on growth, are presented in this master’s thesis. This work introduces also the economical progress during the transition period in selected countries. In the empirical part’s regression model, it will be searched for the direct effect of FDI on growth with panel data collected from nine transition countries.

Traffic flow development at North European company level with respect of China and Russia

The aim of the thesis is to analyze traffic flows and its development from North European companies` point of view to China and Russia using data from logistics questionnaire. Selected North European companies are large Finnish and Swedish companies. The questionnaire was sent via email to the target group. The study is based on the answers got from respondent companies from years 2006, 2009 and 2010. In the thesis Finnish Talouselämä newspaper and Swedish Affärsdata are used as a database to find the target companies for the survey. Respondents were most often logistics managers in companies. In the beginning of the thesis concepts of transportation logistics is presented, including container types, trade terms, axel loads in roads and in railways. Also there is information about warehousing types and terminals. After that, general information of Chinese and Russian transportation logistics is presented. Chinese and Russian issues are discussed in two sections. In both of them it is analyzed economic development, freight transport and trade balance. Some practical examples of factory inaugurations in China and Russia are presented that Finnish and Swedish companies have completed. In freight transport section different transportation modes, logistics outsourcing and problems of transportation logistics is discussed. The results of the thesis show that transportation flows between Europe and China is changing. Freight traffic from China to European countries will strengthen even more from the current base. When it comes to Russia and Europe, traffic flows seem to be changing from eastbound traffic to westbound traffic. It means that in the future it is expected more freight traffic from Russia to Europe. Some probable reasons for that are recent factory establishments in Russia and company interviews support also this observation. Effects of the economic recession are mainly seen in the lower transportation amounts in 2009.

Market entry patterns of Finnish SMEs entering China

In 2011 China became the world’s second largest economy overtaking Japan. With its rapidly growing middle class buying diverse goods from consumption products to sophisticated technology and luxury products, it is also the fastest growing export market in the world. The purpose of this study is to examine what types of market entry modes Finnish SMEs use in China, which factors affect on their decisions and whether they have switched or combined the strategies after entering China. The goal is to understand the relevance of the entry mode choice related to the internationalization process and to evaluate how well it suits the Chinese business environment. The empirical part of the study is a semi structured qualitative analysis of six case companies that represent different industry fields. The cases were selected based on the recent literature about the Finnish industry fields China is interested in to gain knowledge and expertise from. Companies included in the study are an architect office, two pharmaceutical development companies, an ICT company, a plastic mechanics company and a clean tech company. The results of this study indicated that the market entry patterns of Finnish SMEs in China differ from each other based on the factors related to company’s background, mode concerns and Chinese market influences.

Political participation beyond the vote : how the institutional context shapes patterns of political participation in 18 Western European democracies

Politiskt deltagande är en definierande del av varje demokratiskt politiskt system, även mellan valen. Men det har skett en betydande utveckling i vilka aktiviteter som uppfattas som politiskt deltagande. Det är inte enbart aktiviteter i politiska partier som är i fokus, men också olika protestaktiviteter, delaktighet i nya sociala rörelser och livsstilspolitik i form av politisk konsumtion. Politiskt deltagande mellan valen kan leda till en potentiell legitimitetskonflikt. Den potentiella konflikten mellan ansvarsutkrävande och medborgarnas aktiva medverkan har varit känd sedan länge. Representativa demokratier har genom olika institutionella mekanismer försökt konstruera ett fungerande politiskt system som förenar möjligheten för politiskt deltagande med en tydlig ansvarsstruktur. I detta sammanhang har den institutionella öppenheten haft en central position eftersom denna antas påverka hur lätt det är för medborgarna att påverka de formella beslutfattarna. Avhandlingen undersöker därmed konsekvenserna av institutionell öppenhet för olika former av politiskt deltagande. Resultaten tyder på att demokratiska staters institutionella uppbyggnad har väsentliga konsekvenser för det politiska deltagandet. Men samspelet mellan systemet och deltagandet verkar vara mera invecklat än de dominerande teorierna om politiska institutioner och deltagande ger vid handen. Institutionell öppenhet har inte den förväntade effekt beroende på om den politiska handlingen sker inom eller utanför det formella systemet, och den institutionella effekten är mera uttalad för föreningsaktivism och politisk konsumtion, vilket är de aktiviteter som ligger längst bort från det formella politiska systemet. Resultaten utmanar därmed centrala teoretiska antaganden inom forskningen om politiskt deltagande. I ljuset av de resultat som presenteras i avhandlingen framstår det som särskilt angeläget att omvärdera effekten av institutionell öppenhet.