The effect of NATO membership on internationalization of the Finnish defense industry
Danwongdorn, Surajit (2026)
Pro gradu -tutkielma
2026
School of Business and Management, Kauppatieteet
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2026060261235
https://urn.fi/URN:NBN:fi-fe2026060261235
Tiivistelmä
This thesis investigates how Finland's NATO accession has affected the internationalization activities and strategies of Finnish defense firms. It examines how membership affected the firms' strategies, how regulatory requirements affected them, and how these factors influenced their internationalization process. It also assesses the liability of outsidership reduction through the NATO procurement agencies.
The study is an interpretative qualitative single-case study using semi-structured interviews with Finnish defense firms and defense industry experts. The qualitative data were analyzed and mapped according to Gioia's qualitative analysis approach. The findings were abductively analyzed using the theoretical framework of the Uppsala model of Internationalization and Institutional theory to understand how firms and experts responded to changes in the defense industry following NATO accession.
The findings indicate that Finnish defense firms are undergoing a shift toward rapid institutional alignment. Compliance with NATO standards has become a prerequisite for market participation. At the same time, firms must actively engage in network-building activities to establish trust, reputation, and insider status, thereby helping them overcome the liability of outsidership.
This study contributes to the understanding of the Uppsala model in the highly institutionalized market by applying institutional theory to explain the internationalization process in the security-sensitive industry. The findings highlighted the importance of regulatory compliance, network activities, and institutional alignment as mechanisms that reduce institutional barriers to internationalization for firms in highly institutionalized markets.
The study is an interpretative qualitative single-case study using semi-structured interviews with Finnish defense firms and defense industry experts. The qualitative data were analyzed and mapped according to Gioia's qualitative analysis approach. The findings were abductively analyzed using the theoretical framework of the Uppsala model of Internationalization and Institutional theory to understand how firms and experts responded to changes in the defense industry following NATO accession.
The findings indicate that Finnish defense firms are undergoing a shift toward rapid institutional alignment. Compliance with NATO standards has become a prerequisite for market participation. At the same time, firms must actively engage in network-building activities to establish trust, reputation, and insider status, thereby helping them overcome the liability of outsidership.
This study contributes to the understanding of the Uppsala model in the highly institutionalized market by applying institutional theory to explain the internationalization process in the security-sensitive industry. The findings highlighted the importance of regulatory compliance, network activities, and institutional alignment as mechanisms that reduce institutional barriers to internationalization for firms in highly institutionalized markets.