A network approach to opportunity exploration and exploitation in an emerging market - A study on Finnish SME's operating in the cleantech sector
Svenfelt, Minna (2021)
Svenfelt, Minna
2021
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2021052131184
https://urn.fi/URN:NBN:fi-fe2021052131184
Tiivistelmä
Emerging markets can provide business opportunities for small and mediumsized businesses. Pursuing opportunities in such markets is a current topic for Finnish cleantech SMEs in particular. The markets for clean technologies are often found abroad, where environmental issues tend to be more prominent. However, small firms often face challenges related to resource constraints that can limit their possibilities to pursue foreign market opportunities.
Research on the topic of how SMEs explore and exploit international opportunities is still rather limited. This thesis aims to develop an understanding of what constitutes opportunity exploration and exploitation among Finnish cleantech SMEs pursuing opportunities in the emerging market of India and the role of business network relationships during the process. A qualitative multiple-case study involving three cases was chosen as the methodological approach. The data was mainly gathered through semi-structured interviews with managers from the case companies.
The findings reveal that the SMEs identify opportunities through a combination of accidental happenstance, discovery, and search. The opportunities are exploited through various activities such as evaluation, networking, product modification, information exchange, and knowledge acquisition. Business network relationships facilitate international opportunity development through resources such as knowledge, advice, and new network contacts. The findings illustrate that SMEs seek support from relationships particularly for opportunity realisation. Drawbacks related to business relationships are few. Cultural differences, passiveness in communication, and difficulties in receiving on-time payments were the challenges experienced among the studied SMEs. The findings provide managerial implications that could be beneficial to consider when managers intend to utilise network relationships in the development of an international opportunity.
Research on the topic of how SMEs explore and exploit international opportunities is still rather limited. This thesis aims to develop an understanding of what constitutes opportunity exploration and exploitation among Finnish cleantech SMEs pursuing opportunities in the emerging market of India and the role of business network relationships during the process. A qualitative multiple-case study involving three cases was chosen as the methodological approach. The data was mainly gathered through semi-structured interviews with managers from the case companies.
The findings reveal that the SMEs identify opportunities through a combination of accidental happenstance, discovery, and search. The opportunities are exploited through various activities such as evaluation, networking, product modification, information exchange, and knowledge acquisition. Business network relationships facilitate international opportunity development through resources such as knowledge, advice, and new network contacts. The findings illustrate that SMEs seek support from relationships particularly for opportunity realisation. Drawbacks related to business relationships are few. Cultural differences, passiveness in communication, and difficulties in receiving on-time payments were the challenges experienced among the studied SMEs. The findings provide managerial implications that could be beneficial to consider when managers intend to utilise network relationships in the development of an international opportunity.
Kokoelmat
- 512 Liiketaloustiede [433]