Foreign Operation Modes of Finnish Service Firms in Spain: Case studies from four Finnish Companies
Valtonen, Antti (2016)
Kuvaus
Opinnäytetyö kokotekstinä PDF-muodossa.
Tiivistelmä
This master’s thesis investigates the foreign operation modes of Finnish hard service firms in Spain, and the relations between the selected entry and operation modes to the accomplishment of the objectives set for the Spanish markets. The previous academic literature has offered a great number of factors that influences on the entry or operation mode selection. Also, the prior research has suggested certain operation modes that the hard service firms tend to adapt. On the other hand, the internationalization models are closely attached to entry and operation modes. Still, in the current academic discussion there is a lack of research concentrating the internationalization models of service firms.
The research is a multiple case study. The primary data has been collected by interviewing eight managers from five organizations. The secondary data has been collected via online sources, including, most importantly, the company websites. The research aims to investigate how the Finnish hard service companies’ operation mode decisions have affected to their achievement of their primary objectives. The study includes cases of four Finnish hard service firms, which operation time in Spain varies.
The findings of the research suggest that the Finnish hard service companies should establish a wholly-owned subsidiary to Spain if aiming to increase their global market share and profit, like the case companies aimed. The Spanish business culture requires knowing the local language and business practices in order to be reliable in the eyes of the customer. Still, the founding of the wholly-owned subsidiary should be conducted carefully, and the market potential tested by entering the country by exporting.
By founding a subsidiary to Spain, a Finnish hard service company may gain benefits also for their operations outside of Spain. In Spain well-educated and relatively low-cost workforce is easy to hire, which can benefit the operations in other countries as well. In addition, Spain can be used as a headquarters to enter the markets of Latin America.
The research is a multiple case study. The primary data has been collected by interviewing eight managers from five organizations. The secondary data has been collected via online sources, including, most importantly, the company websites. The research aims to investigate how the Finnish hard service companies’ operation mode decisions have affected to their achievement of their primary objectives. The study includes cases of four Finnish hard service firms, which operation time in Spain varies.
The findings of the research suggest that the Finnish hard service companies should establish a wholly-owned subsidiary to Spain if aiming to increase their global market share and profit, like the case companies aimed. The Spanish business culture requires knowing the local language and business practices in order to be reliable in the eyes of the customer. Still, the founding of the wholly-owned subsidiary should be conducted carefully, and the market potential tested by entering the country by exporting.
By founding a subsidiary to Spain, a Finnish hard service company may gain benefits also for their operations outside of Spain. In Spain well-educated and relatively low-cost workforce is easy to hire, which can benefit the operations in other countries as well. In addition, Spain can be used as a headquarters to enter the markets of Latin America.