Summary: | Abstract
The world is not as divided as it once was, and firm internationalization is becoming commonplace. Many Finnish companies are seeking to internationalize into the North American (NA) markets; however, their efforts may be hindered by the level of cultural distance between NA and Finland which can lead to cultural challenges. Previous research into cultural distance has used Hofstede’s Cultural Dimensions Theory to understand how cultures differ on certain dimensions and to what extent they differ. Prior research into the challenges companies face when internationalizing has utilized the concept of Liability of Foreignness (LOF) to explain the advantage that local firms face over foreign entrants. For this thesis, three new terms were created to better explain the research and communicate the findings: societal cultural challenges, market cultural challenges, and the Finnish Home. This thesis finds themes among the cultural challenges faced by the companies interviewed in this study and in their internationalization process and calls for future Finnish companies to be adequately prepared before entering the NA markets.
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