The impact of cultural factors on the internationalization process of Finnish SMEs in the food and beverage industry
Jayasekara, Chethana Gimhani (2024)
Pro gradu -tutkielma
2024
School of Business and Management, Kauppatieteet
Kaikki oikeudet pidätetään.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2024061452643
https://urn.fi/URN:NBN:fi-fe2024061452643
Tiivistelmä
This study investigates the role of culture in the internationalization process of Finnish SMEs in the food and beverage industry, addressing a notable gap in scholarly research, given the importance of the industry to the Finnish economy. The objectives of this research are to identify the cultural barriers faced by these SMEs and to understand the cultural adaptations and actions they take to overcome these barriers to support internationalization. The study employs a qualitative multiple-case study approach, analyzing data gathered from five case companies to draw its conclusions. The research reveals that Finnish SMEs in the food and beverage industry predominantly internationalize through networks, driven largely by the industry's limited market size and culture is widely recognized as an important factor in the process of internationalizing and most prefer exporting as their entry mode, leveraging their networks and the international experience of senior management.
While cultural differences do not restrict market selection where no pattern was recognized in the process of market selection, senior management's industry knowledge and international exposure help generate networks and address challenges in diverse cultural markets. The study discovered that, in the Finnish SMEs in the food and beverage industry, business-to-consumer (B2C) SMEs face more cultural challenges compared to business-to-business (B2B) SMEs. B2C firms encounter challenges related to product adaptation, packaging, advertising, branding, and business partner behaviors, with the severity of these challenges varying according to product type so do the cultural adaptations. In contrast, B2B firms tend to rely on local connections without extensive cultural adaptations. Overall, the study concludes that Finnish SMEs in the food and beverage industry engage in a continuous "cultural learning process," gaining experiential cultural knowledge over time with their expansions.
While cultural differences do not restrict market selection where no pattern was recognized in the process of market selection, senior management's industry knowledge and international exposure help generate networks and address challenges in diverse cultural markets. The study discovered that, in the Finnish SMEs in the food and beverage industry, business-to-consumer (B2C) SMEs face more cultural challenges compared to business-to-business (B2B) SMEs. B2C firms encounter challenges related to product adaptation, packaging, advertising, branding, and business partner behaviors, with the severity of these challenges varying according to product type so do the cultural adaptations. In contrast, B2B firms tend to rely on local connections without extensive cultural adaptations. Overall, the study concludes that Finnish SMEs in the food and beverage industry engage in a continuous "cultural learning process," gaining experiential cultural knowledge over time with their expansions.