Internationalisation of circular economy SMEs and the role of AI : evidence from Finnish SMEs
Suraweera Muhandiramge Dona, Chathumini (2025)
Pro gradu -tutkielma
2025
School of Business and Management, Kauppatieteet
Kaikki oikeudet pidätetään.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe20251203113843
https://urn.fi/URN:NBN:fi-fe20251203113843
Tiivistelmä
The dissertation investigates the role of artificial intelligence (AI) for internationalization by the CE SMEs in Finland. There are analysis done for CE, AI, and SME internationalization separately, and there is a lack of understanding of the mutual effects of these three fields in the business. This research was a qualitative investigation examining AI application through a case study of four Finnish SMEs from various CE industry sectors including waste management, insect-based materials, energy from waste, and sustainable greenhouse farming. The research employed semi-structured interviews, corporate documentation, and thematic analysis, underpinned by the dynamic capability and internationalization theories.
Several key aspects were identified, with the most important being that value propositions, which serve as the basis of customer experience (CE), allow SMEs to achieve a robust position in specialized international markets. Once a firm has established its position in the market, it will have to bring about digital transformation besides ensuring access to resources, receiving the help of regulations, and looking for digital markets. Currently AI's usage remains limited, primarily concentrating on data handling, surveillance, reporting, and enhancement, instead of autonomous decision making without human intervention. Nonetheless, it may be argued that these implementations are strengthening the dynamic capabilities. On one hand, the capacity to sense, seize, transform, and sustain capabilities is progressively advancing, whereas on the other hand, it derives advantages from a type of ecosystem support.
The article uses the AI-CE Internationalization Loop as a complete model which unites dynamic capabilities theory with DYSTA and Smart CE and Born Global perspectives. The model shows internationalization as an ongoing cycle which involves AI based decision support for global opportunity identification and operational adaptation across territories while preserving competitive advantage and environmental sustainability. These results offer us the theoretical point of view on how AI can be accomplished by CE based SMEs to be international competition, and through policymakers and business leaders give practical directions on ways of the placement of the circular models in the global markets.
Several key aspects were identified, with the most important being that value propositions, which serve as the basis of customer experience (CE), allow SMEs to achieve a robust position in specialized international markets. Once a firm has established its position in the market, it will have to bring about digital transformation besides ensuring access to resources, receiving the help of regulations, and looking for digital markets. Currently AI's usage remains limited, primarily concentrating on data handling, surveillance, reporting, and enhancement, instead of autonomous decision making without human intervention. Nonetheless, it may be argued that these implementations are strengthening the dynamic capabilities. On one hand, the capacity to sense, seize, transform, and sustain capabilities is progressively advancing, whereas on the other hand, it derives advantages from a type of ecosystem support.
The article uses the AI-CE Internationalization Loop as a complete model which unites dynamic capabilities theory with DYSTA and Smart CE and Born Global perspectives. The model shows internationalization as an ongoing cycle which involves AI based decision support for global opportunity identification and operational adaptation across territories while preserving competitive advantage and environmental sustainability. These results offer us the theoretical point of view on how AI can be accomplished by CE based SMEs to be international competition, and through policymakers and business leaders give practical directions on ways of the placement of the circular models in the global markets.