Financing of internationalisation process and its effects on Finnish SME

This research focused on a study of how small businesses can launch their foreign operations, with a focus on the internationalisation process by Akukon OY. The study examined the factors and theories of internationalisation and it was found that the main forms of financing used by SMEs were self-fu...

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Main Author: Saralidze, Mariam
Other Authors: Kauppakorkeakoulu, School of Business and Economics, Taloustieteet, Business and Economics, Jyväskylän yliopisto, University of Jyväskylä
Format: Master's thesis
Language:eng
Published: 2020
Subjects:
Online Access: https://jyx.jyu.fi/handle/123456789/69080
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author Saralidze, Mariam
author2 Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics Jyväskylän yliopisto University of Jyväskylä
author_facet Saralidze, Mariam Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics Jyväskylän yliopisto University of Jyväskylä Saralidze, Mariam Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics Jyväskylän yliopisto University of Jyväskylä
author_sort Saralidze, Mariam
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description This research focused on a study of how small businesses can launch their foreign operations, with a focus on the internationalisation process by Akukon OY. The study examined the factors and theories of internationalisation and it was found that the main forms of financing used by SMEs were self-funding, debts, equity, venture capital and grants by government and other associations. The study further examined how the various theories of internationalisation (Uppsala model, Dunning Eclectic Paradigm, and the Born Global theories) influenced the internationalisation of small and medium enterprises. Previous studies indicate that the Uppsala model influenced SMEs to internationalise slowly by first exporting to other markets. This means that the companies start by self-financing before graduating to other forms of financing such as debts and equity. In contrast, Dunning Eclectic Paradigm holds that internationalisation process should commence in instances where the company is likely to benefit or possess ownership, location and internalisation capabilities. Taking a different approach, Born Global theory looks at firms that start out as global organisations. The theory argues that such firms have advantages such as globally skilled founders that gives them an edge over domestic firms which expand later. By taking a qualitative approach, the study used extant theoretical approaches to develop interview questions, which were used to collect responses from face to face interviews. Four interviewees from the case company were sampled and targeted, and the data was analysed using content analysis. Three findings are notable. First, Akukon company gradually internationalised some of its operations and used minimal market commitment in its international operations. This proved that it was applying some aspects of Uppsala theory. It also invested in countries where the SME would have ownership advantages and market advantages by acquiring the best talent. This demonstrated that Akukon applied the eclectic paradigm. Akukon also had founders with international experience and possessed intangible assets. This proved that Akukon used Born Global strategy to some degree. The study demonstrates that SMEs that combine various approaches leverage their strengths and minimise their weaknesses.
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spellingShingle Saralidze, Mariam Financing of internationalisation process and its effects on Finnish SME Taloustiede Economics 2041 rahoituspalvelut kansainvälistyminen yritykset pienet ja keskisuuret yritykset liiketoiminta tapaustutkimus kansainväliset markkinat financing services internationalisation enterprises small and medium-sized enterprises business case study international market
title Financing of internationalisation process and its effects on Finnish SME
title_full Financing of internationalisation process and its effects on Finnish SME
title_fullStr Financing of internationalisation process and its effects on Finnish SME Financing of internationalisation process and its effects on Finnish SME
title_full_unstemmed Financing of internationalisation process and its effects on Finnish SME Financing of internationalisation process and its effects on Finnish SME
title_short Financing of internationalisation process and its effects on Finnish SME
title_sort financing of internationalisation process and its effects on finnish sme
title_txtP Financing of internationalisation process and its effects on Finnish SME
topic Taloustiede Economics 2041 rahoituspalvelut kansainvälistyminen yritykset pienet ja keskisuuret yritykset liiketoiminta tapaustutkimus kansainväliset markkinat financing services internationalisation enterprises small and medium-sized enterprises business case study international market
topic_facet 2041 Economics Taloustiede business case study enterprises financing services international market internationalisation kansainväliset markkinat kansainvälistyminen liiketoiminta pienet ja keskisuuret yritykset rahoituspalvelut small and medium-sized enterprises tapaustutkimus yritykset
url https://jyx.jyu.fi/handle/123456789/69080 http://www.urn.fi/URN:NBN:fi:jyu-202005193334
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