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

Technology park as an element of innovative infrastructure- its role in internationalization support.

The Thesis concentrates on two central terms – Technology park and the resource-based view of the organization. General attention is devoted to competencies and capabilities of organizations that operate in foreign environment. It is difficult to go abroad without any experience and support from local government, especially for small or medium company. Technology and Science parks are the main sources of competitive advantage for this kind of organizations. They provide a huge range of services as well as business consultations and financial support on different stages of companies’ development. The Thesis was made with the assistance of Technopolis Oy in Lappeenranta. During the research companies in Finland and Russia were interviewed. Based on empirical findings important capabilities for entering foreign market were identified and some recommendations for the Technology park were given.

The Utilization of Chinese Social Media in Internationalization into China: Perspective of a Western Company

The purpose of this qualitative research is to analyze western-based companies’ social media usage in internationalization into China and to identify social media presence’ impact on the internationalization process. Additionally, the benefits and challenges a western company may face while using social media in China will be illustrated. Competitive advantages, knowledge, networks and relations, and costs and risks could be identified as the key antecedents for successful internationalization. A great social media presence could create a competitive advantage for a western company while competitive advantages may be communicated in social media marketing, knowledge and networks can be enhanced and utilized in internationalization via social media two-way communication. The biggest benefit for internationalization resulted from decreased marketing costs due to cost-effectiveness of social media. The results revealed that cost effective brand awareness was the main benefit from the social media usage in internationalization into China. However, companies struggled with the limited resources and despite of understanding the importance of Chinese social media, lacked sufficient resources for the social media operations. Companies should determine clear strategy and goals that they are willing to achieve via social media in internationalization process, and allocate required resources according to the social media strategy. Localization of the social media operations is important in China, and business-to-consumer companies tend to benefit more from the social media presence. Business-to-business companies may increase the brand’s credibility by successful Chinese social media operations.

Professional service productization and its implications to knowledge transfer in internationalization processes –Case: Company X in Finnish, Swedish and Norwegian markets

As a result of globalization, two thirds of the world’s business takes place nowadays in the service sector. In line, professional service firms are growing their share of the global service production. However, saturation of the professional service sector has forced professional service firms to search for more heuristic ways to conduct business in the international markets. By leveraging effectively the firm’s professionals, a professional service firm can lower its costs to clients and simultaneously generate additional value for the company and thus gain competitive advantage. Even though the academic field has shown growing interest towards services for decades, the fields of service productization and service internationalization are heavily understudied even today. Hence, the objective of this study was to contribute to the research on professional service internationalization and productization. The study concentrated on examining the impact that productization has on knowledge sharing and leveraging in professional service firms operating internationally. The research question focused on examining what implications productization has on knowledge transfer and leveraging during professional service internationalization by leaning on the existing research and on an empirical research. The empirical research was conducted as a single case study within a professional service firm operating in debt-related administrative service business. The case company is one of the leading operators in its field of business and therefore offered a fruitful environment to observe and analyze the topics in question. Additionally, the case company has a strong international presence and a large scale of operations in the selected markets, Finland, Norway and Sweden. Based on the previous literature and on the empirical research, this study found that for professional service firms to efficiently utilize individual, tacit knowledge, in its internationalization processes, it must be shared with the whole organization. By exploiting productization as a knowledge leveraging mechanism, a PSF can apply and transfer knowledge profoundly during its internationalization processes that would otherwise be difficult to tap into. Productization might not be sufficient alone, but by complementing it with a favorable organizational structure and culture, and by encouraging open communication, a PSF may take advantage of the whole potential that productization has to offer.

The Role Of Social Networks In New Venture Internationalization: Case Of Russian And Finnish Firms

The purpose of current master thesis research is to investigate the role of social networks in internationalization of Russian and Finnish firms. Literature review of existing empirical researches on the topic is conducted in order to identify the gap, which is fulfilled by empirical research of 4 Russian and 1 Finnish firm that have established international operations no later than 8 years since their foundation. In-depth semi-structured interviews have shown that business network has been an influencing factor in firms’ internationalization and that even if social network is not the driver of internationalization, it becomes important when a company has established international presence and is working on its enlargement. The study has both theoretical and practical contribution by contributing to research of Russian and Finnish firms’ internationalization and by showing examples of successful foreign market entry of companies from different industries. General practical implication of current thesis is that it shows the efficient ways of entrepreneurs’ social network usage in business development in international scope.

Market Orientation in Rapidly Internationalizing Small Companies — Evidence from the Software Industry

For more than a decade, researchers have been aware of the increased pace of small-firm internationalization and the greater effect of these rapidly growing small businesses on the wealth, international trade, and job-creation opportunities of countries. Due to the small size of the home market, Finnish companies have been generally considered highly interested in internationalization. One particular domain in which rapid internationalization has been considered feasible is the global software business, with its knowledge-intensive nature and high growth potential. However, over time the failure rate of small entrepreneurial firms has remained especially high in high-technology markets. One of the reasons for this seems to lie in the fact that these companies are often formed by people with a strong technological background but limited competences in other areas. Further, research on the marketing capabilities of rapidly internationalizing high-tech firms has been scarce thus far. In addition, while there is much research on the first years of operations of rapidly internationalizing companies, it is not well known what becomes of them later on. Therefore, there is a need for more investigation into the managerial mindset, competences and decision-making in these small companies, especially from the perspective of how they acquire and exploit market knowledge, and enhance their networking capabilities in order to promote international expansion. The present study focuses on market orientation in small software firms that internationalize their operations rapidly in global software markets. It builds on qualitative data to illustrate how these companies develop their market-oriented product-market strategies during the process of increasing international commitment. It also shows how they manage their network relationships in order to be able to offer better customer service and to thrive in the fierce global competition. The study was conducted in the empirical context of Finnish small software companies, and the main data consists of interviews with top managers in these businesses. The interviews were designed to cover a minimum period of five years of the company's international operations, thus offering a retrospective in-depth perspective on market orientation, internationalization and partnerships in the given context. One particular focus is on less successfully internationalized software companies, and the challenges they face when approaching international markets. This study makes a significant contribution to the literature on market orientation for several reasons. First, building on data from the software industry, it clarifies the existing theory in the context of rapid internationalization and network relationships. Secondly, it provides a good body of evidence on market orientation in both successfully and less successfully internationalized companies, and identifies the key related differences between the two company groups. Thirdly, it highlights the importance of inter-firm networks in the rapid internationalization of small software firms, providing companies with important market knowledge and, in some cases, management challenges. Fourthly, this investigation clarifies market orientation in the context of different software-product strategies, thus, combining the perspectives of market orientation in both manufacturing and services. In sum, the results of the study are significant for both small software firms and public-policy makers since they shed light on the market-oriented managerial mindset and the market-information gathering and sharing processes that are needed in successful rapid internationalization.

International Entrepreneurship in Bottom of the Pyramid Markets – Overcoming institutional constraints

Bottom of the pyramid (BoP) markets are an underserved market of approximately four billion people living on under $5 a day in four regional areas: Africa, Asia, Eastern Europe and Latin America. According to estimations, the BoP market forms a $5 trillion global consumer market. Despite the potential of BoP markets, companies have traditionally focused on serving the markets of developed countries and ignored the large customer group at the bottom of the pyramid. The BoP approach as first developed by Prahalad and Hart in 2002 has focused on multinational corporations (MNCs), which were thought of as the ones who should take responsibility in serving the customers at the bottom of the pyramid. This study challenges this proposition and gives evidence that also smaller international new ventures – entrepreneurial firms that are international from their birth, can be successful in BoP markets. BoP markets are characterized by a number of deficiencies in the institutional environment such as strong reliance on informal sector, lack of infrastructure and lack of skilled labor. The purpose of this study is to increase the understanding of international entrepreneurship in BoP markets by analyzing how international new ventures overcome institutional constraints in BoP markets and how institutional uncertainty can be exploited by solving institutional problems. The main objective is divided into four sub objectives. • To describe the opportunities and challenges BoP markets present • To analyze the internationalization of INVs to BoP markets • To examine what kinds of strategies international entrepreneurs use to overcome institutional constraints • To explore the opportunities institutional uncertainty offers for INVs Qualitative approach was used to conduct this study and multiple-case study was chosen as a research strategy in order to allow cross-case analysis. The empirical data was collected through four interviews with the companies Fuzu, Mifuko, Palmroth Consulting and Sibesonke. The results indicated that understanding of the wider institutional environment improves the survival prospects of INVs in BoP markets and that it is indeed possible to exploit institutional uncertainty by solving institutional problems. The main findings were that first-hand experience of the markets and grassroots levels of information are the best assets in internationalization to BoP markets. This study highlights that international entrepreneurs with limited resources can improve the lives of people at the BoP with their business operations and act as small-scale institutional entrepreneurs contributing to the development of the institutional environment of BoP markets.

Suomalaisten jäte- ja jätevesialan yritysten yhteistyömahdollisuudet sekä uudet tuotekonseptit koti- ja ulkomaisen liiketoiminnan kehittämisessä

Diplomityö on tehty osana InnoEnvi-hanketta, joka on Etelä-Suomen ympäristöalan verkostoitumiseen ja tietoyhteiskunnan kehittymiseen tähtäävä toimintakokonaisuus. InnoEnvi on osa Etelä-Suomen maakuntien valmistelemaa InnoElli-ohjelmaa. InnoEnvi-hankkeen päätavoitteena on kehittyvän ympäristöklusterin luominen Etelä-Suomeen. Monet suomalaiset ympäristöalalle erikoistuneet yritykset ovat vielä tänä päivänä pieniä, nuoria ja pirstaleisia, minkä vuoksi ne tarvitsevat tukea ja yhteistyötä varsinkin vientimarkkinoille pyrkiessään. Tämän työn oleellisimpana tavoitteena oli kartoittaa Etelä-Suomen jäte- ja jätehuoltoalan yritysten yhteistyön mahdollisuuksia ja etuja, sekä yhteistyön tuomaa vaikutusta koti- ja ulkomaiseen liiketoimintaan. Tutkimusongelmaa lähestyttiin kartoittamalla Suomen tämänhetkistä jäte- ja jätevesihuollon tilaa ja käytössä olevaa teknologiaa sekä ympäristöliiketoimintaan vaikuttavia ohjauskeinoja. Ympäristöalan liiketoimintakenttään syvennyttiin tutkimalla alan verkostoitumista ja uusia verkostoitumisen mahdollisuuksia. Verkostoituneita yrityksiä ja yhteistyön lisätarvetta selvitettiin InnoEnvissä tehtyjen aiempien tutkimustulosten sekä tässä tutkimuksessa tehtyjen yrityshaastattelujen avulla. Uudet EU-maat panostavat tiukentuvien ympäristösäädösten takia ympäristönsuojeluun, mikä tekee niistä houkuttelevan ympäristöteknologian vientikohteen. Tässä työssä valittiin tutkimuksen kohteiksi Latvia ja Puola, joiden ympäristöteknologian tasoa ja kehitystarpeita selvitettiin vientipotentiaalin hahmottamiseksi. Molempien maiden jätevesi- ja varsinkin jätehuollossa on paljon kehitettävää, ja maissa panostetaankin kehitystoimiin monin erilaisin valtiollisin ohjelmin. Kotimaisen ympäristöliiketoiminnan kehittämiseksi työssä käsiteltiin neljää tuote- ja palvelukonseptia, jotka valittiin InnoEnvi-hankkeessa tehdystä ajankohtaisesta ympäristöalan investointihankekartoituksesta. Valitut konseptit ovat: REF-valmistuslaitos, jätevesilietteen käsittelylaitteisto, pilaantuneiden maiden käsittelytoimet sekä kaatopaikan lopettaminen. Tuotekonseptit jaettiin osatuotteisiin ja –palveluihin, joita verkostoituneet yritykset voisivat yhdessä tuottaa. Työkaluiksi yritysten kontakteihin nähtiin InnoEnvi-hankkeessa muodostetut miniklusterit ja niiden sisällä kehittyvä toiminta sekä hankkeessa rakennettu www-pohjainen Matching-palvelu. Tutkimuksessa löydettiin uusia mahdollisuuksia yhteistyötoiminnalle. Verkostoitumisessa nähdään haastattelujen mukaan monia etuja: tiedonsaanti, taloudelliset edut, toiminnan luotettavuus sekä uudet virikkeet markkinointiin ja tuotekehitykseen. Lisäyhteistyökumppaneille on haastattelujen mukaan tarvetta. Verkostoituminen tuo vientitoimintaa aloitteleville pk-sektorin yrityksille mahdollisuuden saavuttaa kansainvälistymiseen tarvittavia resursseja. Niin koti- kuin ulkomaisessakin liiketoiminnassa verkoston tärkeimmäksi tekijäksi osoittautui veturiyritys, joka voi vastata verkostossa muun muassa markkinoinnista ja tuotekehityksestä Vientitoiminnassa kohdemaan lainsäädännön ja yleisien toimintatapojen tunteminen on tärkeää. Paikalliset kohdemaan suunnittelu- ja urakointiyritykset ovat tärkeitä yhteistyökumppaneita vientihankkeessa. Latviassa jätehuoltoteknologian kehittämisen tarve on niin yhdyskunta-, ongelma- kuin teollisuusjätteidenkin osalta merkittävä. Puolassa jätesektorin ajankohtaisia aiheita ovat muun muassa kaatopaikkojen vähentäminen ja pakkausjätteen käsittely. Molempien esimerkkimaiden kohdalla jätevesihuollossa tullaan keskittymään lietteiden käsittelyn vaatimiin teknologian tarpeisiin. Vientiosiossa tehtiin vientiyhteistyöesimerkki, jossa tutkittiin kuvitteellista rakennusjätteen käsittelylaitoksen toimittamisprojektia Puolaan. Esimerkkiin saatiin tietoja InnoEnvissä tehdystä Puolan markkinatutkimuksesta. Tulokseksi saatiin viitteitä mahdollisista suomalaisista laitetoimittajista, viisi potentiaalista puolalaista suunnitteluyritystä sekä viisi puolalaista urakoitsijaa. On tärkeää, että kotimaisella yritysryppäällä on kokemusta sujuvasta yhteistyöstä ennen vientiprojektin toteuttamista. Tuotekonseptiesimerkkeihin kartoitettiin pääosa eteläsuomalaisista tuotteiden ja palvelujen tarjoajista. Tarkasteluun otettiin mukaan myös yrityksiä, joiden tuotteet tai palvelut olivat lähellä käsiteltyä konseptia. Tehtyjen yrityslistojen avulla on tarkoitus antaa virikkeitä uusien yritysryppäiden muodostamisesta sekä uusista tuote- ja palveluideoista, joille on nähtävissä markkinapotentiaalia. InnoEnvi-hankkeessa valmisteltujen työkalujen avulla eteläsuomalaiset yhteistyöstä kiinnostuneet yritykset voivat luoda kontakteja ja kokoontua miettimään tulevien investointihankkeiden toteuttamista kotimaassa ja myöhemmin jopa ulkomailla. Työn tuloksia esitellään InnoEnvi-hankkeen toimijoiden kautta jäteminiklusterissa toimiville eteläsuomalaisille yrityksille.

Aurinkosähköjärjestelmien vieminen Afrikan kehittyviin maihin

Aurinkosähköjärjestelmien käyttäminen sähkön tuotannossa on kasvanut viime vuosina teknologian hinnan laskun ja tiukentuvien ympäristömääräyksien seurauksena. Monet aurinkosähköön keskittyvät yritykset etsivät uusia markkinoita Afrikan kehittyvistä maista. Aurinkosähkön avulla voidaan vastata kehittyvien maiden kasvavaan sähköntarpeeseen ja samalla vähentää maiden hiilidioksidipäästöjä sekä nostaa maiden kehittyvää elintasoa. Tässä työssä tutkitaan aurinkosähköjärjestelmien viemistä kahteen Afrikan kehittyvään maahan Tansaniaan ja Etelä-Afrikkaan. Työn tavoitteena on kohdemaiden liiketoimintaympäristöjen tutkiminen ja markkinapotentiaalin selvittäminen suomalaisen sähkö- ja automaatiotekniikkaan keskittyvän pk-yrityksen näkökulmasta. Työssä selvitetään Tansanian ja Etelä-Afrikan liiketoimintaympäristöjen ja aurinkosähkömarkkinoiden erityispiirteet. Tuloksissa käsitellään myös sopivinta kansainvälistymistapaa tutkitulle pk-yritykselle sekä haasteita, joita yritys kohtaa Afrikan markkinoilla. Kansainvälistymismalleista tutkimuksessa käsitellään Uppsala-mallia ja verkostomallia.

Key factors in transforming university internationalization into commercial activity in Finland. Case of University of Turku

Globalization, developments in ICT, emergence of knowledge society and other changes have reformed the environment for international higher education during the past few decades. Consequently, higher education sector has moved towards more marketing-oriented system, and universities have started to undertake commercial activities as part of their internationalization. This development has emerged to Finland as well, which forms the basis for this study. The purpose is to examine commercialization in Finnish university landscape and to investigate the ways Finnish university could capitalize its international activities and educational knowledge for export. The research question of the study is: What are the key factors in transforming university internationalization into commercial activity in the Finnish university landscape? The main problem is further divided into three sub-questions: 1) How can a university internationalize; 2) what are the motivational factors behind university internationalization and commercialization; and 3) how can higher education be developed into export services and products? The research was conducted as a qualitative case study of University of Turku. Methods used for gathering and examining data were interviewing and document analysis. Primary data was collected through four individual semi-structured interviews, which were conducted face-to-face. Secondary data that included reports, articles and electronic materials such as university web pages, was used to complement the primary data. The results were analyzed by theming the data into three broader categories of internationalization activities; drivers and motivations and; education export activities. After the data was organized in themes, analysis continued by comparing different parts of data and finding patterns that would explain the phenomenon in Finnish universities. According to the empirical data, University of Turku is currently on the growth state of internationalization with strategies such as internationalization of curriculum, establishment of international research groups, mobility of students and academics, international networking and support services. Commercialization phenomenon is still rather new to the case university, but it has already developed educational products and services for export. The study concludes that university internationalization cannot be directly transformed into commercial activities in the Finnish context, but the universities need to be active in actually creating educational products. The key factors found in this study include: 1) the Finnish government policies behind the current hype of export education; 2) the potential and knowledge capacity of universities for exports; 3) need for additional profits; 4) further internationalization through commercial activities; 5) recognizing and exploiting the specific areas of strength and 6) establishing of cooperative partnerships for better products.

Growth through internationalization of Russian SMEs in Finland

The study examines Russian SMEs motives, needs, prospects and constrains to enter Finland through Lappeenranta. Russian entrepreneurship is a young phenomenon in Finland. The present research becomes a first guide in understanding of Russian SMEs’ capabilities for establishing their subsidiaries in Finland. The extensive model of different theoretical approaches was created for evaluating Russian SMEs growth and internationalization opportunities. The findings of the research indicated that Russian growing companies chose the internationalization to continue their development. Many Finland’ positive conditions were evaluated as important for the Russian entrepreneurship. Finland was the first European country of the expansion to the European Union, for the Russian SMEs established the subsidiaries in Lappeenranta. Their motives for entering Finland were usually based on market and resource views. Generally, the Russian SMEs establish a new company in Finland only when they have sufficient capabilities and resources for internationalization. Entering Finland the Russian firms make better the allocation of their natural, financial and human resources.

CREATION OF INTERNATIONALIZATION CAPABILITIES IN FINNISH ENVIRONMENTAL TECHNOLOGY SME’S

The purpose of this study is to identify successful capabilities that Finnish SME’s, in the environmental technology industry, use in their internationalization efforts. It is the goal of this study to create a list of guidelines and capabilities that other SME’s in this industry can use to help be more effective in their internationalization efforts. Through a study of three Finnish SME’s, in the growing environmental technologies sector, several common internationalization capabilities were identified to be helpful in their internationalization process. The common capabilities that were identified were then categorized together to show not only what capabilities were identified but if they came from firm, location or network specific advantages. As a result of the study, three dynamic capabilities were formulated as guidelines. These guidelines are designed so that a SME based in Finland, and in the environmental technology industry, could use them to help them in their own internationalization process.

Internationalization of SMEs in the Finnish Food Industry

Food industry in Finland has a long tradition and the new trends and the future of Finnish food industry is going towards functional and healthy food for the consumers in and outside Finland. Small companies operating in this industry face many difficulties in trying to compete and expand to new markets, that is why these companies are the key of innovation and they have done many breakthroughs in the food industry as well. It is therefore important to understand the internationalization process these companies follow and entry strategies they use, and moreover how they use their limited resources in order to be successful in international markets. This thesis via a case study approach deals with the issue of internationalization of SMEs and Finnish food industry. This study supports earlier theories of internationalization, primarily the Uppsala model and acknowledges internationalization as an incremental process. Meaning that psychic distance is indeed the major barrier of internationalization, and acquisition of international knowledge requires significant amount of time which influences the level of resource-commitment in foreign markets. It follows that due to the risks involved in foreign markets, the least resource-intensive modes of market entry such as direct and indirect exports are generally preferred at the start of internationalization process. As of what explains the non-conventional rapid internationalization process, we conclude that in an internationalized industry and country with established trade flows like Finland, the context in which firms operate may be less significant than the varying level of entrepreneurial skills and confidence present therein.

Internationalization of small and medium-sized enterprises and impact of institutions on international entrepreneurship in emerging economies: the case of Russia

The doctoral study presents a comprehensive analysis of the impact of the institutional environment on the internationalization-based growth strategic choices of small and mediumsized enterprises (SMEs) in emerging economies. In responding to the calls for more research on institutions and international entrepreneurship, this dissertation extends the linkages between the two to the context of emerging economies. The study presents a comprehensive analysis of institutional challenges and their impact on the internationalization of SMEs in emerging economies, particularly in Russia. The research contributes to the adoption of the institution-based view in international entrepreneurship. The dissertation is presented through five research papers. Based on primary and secondary data, the study categorizes the possible sources of institutional influences on internationalization and empirically tests their impact by applying a method triangulation research design. The result of the conducted research is a proposed theoretical model of the institutional impact on the internationalization of SMEs in emerging economies. The model is specifically focused on the growth stage of the entrepreneurial process and considers only its internationalization facet. The research identifies and provides empirical support for the existence of a positive influence of a transparent and supportive regulatory environment, an institutionalized pool of general business knowledge, and collectivistic value orientation on the proclivity of SMEs to internationalize. A level of appreciation of entrepreneurial initiatives in home country and a greater positive institutional gap provide a positive impact on the international performance of SMEs. The research provides contextualized knowledge of the institutional impact on the internationalization of SMEs in Russia. The obtained results present theoretical value in terms of showing how the environmental conditions effect the entrepreneurial internationalization-based growth in emerging economies, providing the methodological insights into the measurement of the institutional effects, and empirically contextualizing the linkage between institutions and internationalization in the Russian business environment. The research also provides value for the business and policy making stakeholders by identifying ways of utilizing the conditions in the external institutional environment.

The Role of networks in the internationalization process of Finnish design companies

Finnish design has attracted global attention lately and companies within the industry have potential in international markets. Because networks have been found to be extremely helpful in a firm’s international business operations and usefulness of networks is not fully exploited, their role in Finnish design companies is investigated. Accordingly, this study concentrates on understanding the role of networks in the internationalization process of Finnish design companies. This was investigated through describing the internationalization process of Finnish design companies, analyzing what kind of networks are related to internationalization process of Finnish design companies, and analyzing how networks are utilized in the internationalization process of Finnish design companies. The theoretical framework explores the Finnish design industry, internationalization process and networks. The Finnish design industry is introduced in general and the concept of design is defined to refer to the industries of textiles, furniture, clothing, and lighting equipment in the research. The theories of internationalization process, the Uppsala model and Luostarinen’s operation modes, are explored in detail. The Born Global theory, which is a contrary view to stage models, is also discussed. The concept of network is investigated, networks are classified into business and social networks, and network approach to internationalization is discussed. The research is conducted empirically and the research method is a descriptive case study. In this study, four case companies are investigated: the interior decoration unit of L-Fashion Group, Globe Hope, Klo Design, and Melaja Ltd. Data is collected by semi-structured interviews and the analysis is done in the following way: the case companies are introduced, their internationalization processes and networks are described and, finally, the comparison of the case companies is done in a form of cross-case analysis. This research showed that cooperation with social networks, such as locals or employees who have experience from the target market can be extremely helpful in the beginning of a Finnish design company’s internationalization process. This study also indicated that public organizations do not necessarily enhance the internationalization process in a design company point-of-view. In addition, the research showed that there is cooperation between small Finnish design companies whereas large design companies are not as open to cooperation with competitors.