eThesis - School of Business electronic theses

Objectives of the Study: This study focuses on creating an understanding of how the financial crisis has impacted internationalization premises for Finnish ICT-sector SMEs. Focus is on studying how firms of the focus sector face the internationalization challenge in the financial crisis. The objectives will be approached through comparing literature, analyzing historical references, and constructing empirical insights.

Methodology: The study has been executed through using the multiple-case strategy. The study objectives are addressed through three perspectives: the perspective of an ICT-SME with an internationalization strategy, an ICT-internationalization consulting firm, and a governmental organization promoting SME internationalization. The interviews were based on assessing the literature review and its applicability to the topic. Furthermore, data collected from the three perspectives were compared firstly with each other, secondly to findings from literature and thirdly to the 1990s recession. All respondents of the empirical section were top managers of respective organisations for ensuring that values of the organizations were discussed upon, not only personal views from distinct positions.

Results of the Study: Results of the study indicate that ICT-sector SMEs face internationalization pressures despite the financial crisis. The role of risk management has increased, but this does not necessarily correlate to preferring stage-wise actions, often viewed as a risk-averse approach to internationalization. Tightly monitored partnerships are seen as the most potential and cost-efficient paths for growth and internationalization, and the significance of managerial competence and vision, dynamic capabilities of the firm, and sufficient internal funds for investments create opportunities despite the financial crisis. SMEs dependant on external financing on the other hand are paralyzed regarding growth, as creditors currently view internationalization as a risk rather than an opportunity – terms of credit have tightened. A body of governmental organizations offers firms with international aspirations a wide array of support programs, relating e.g. to credit and consultation, but a clear finding is that the offered programs are organized inefficiently – structure of the programs is not adequately transparent. On the basis of historical perspective, strategies of growth and internationalization seem to characterize successful firms in the financial crisis, as well as in the 1990s recession - shared traits of successful firms in both downturns include a focus on growth and innovations, low need for external financing, and avoidance of downsizing.