Linking knowledge and internationalization in small and medium-sized enterprises in the ICT sector

This paper examines the internationalization of Finnish information and communication technology (ICT) firms from the knowledge-based perspective. Building on transaction cost economics and modern economics-based strategy research, this study presents a model that explores the influence of six impor...

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Bibliographic Details
Published in:Technovation 2008-09, Vol.28 (9), p.591-601
Main Authors: Saarenketo, Sami, Puumalainen, Kaisu, Kyläheiko, Kalevi, Kuivalainen, Olli
Format: Article
Language:English
Subjects:
Business management
Competition
Diversification
Finland
Globalization
ICT
Information and communication technologies
Information technology
Internationalization
Knowledge
Knowledge-based view
Market entry
Small & medium sized enterprises-SME
Small and medium sized enterprises
SMEs
Strategic planning
Studies
Transaction costs
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Summary:This paper examines the internationalization of Finnish information and communication technology (ICT) firms from the knowledge-based perspective. Building on transaction cost economics and modern economics-based strategy research, this study presents a model that explores the influence of six important knowledge determinants on two key elements of the internationalization strategy, i.e. on the choice of entry mode and market concentration/diversification. We tested the model among 78 internationally operating Finnish ICT SMEs. The survey results indicate that the internationalization strategy is linked with uncertainty, asset specificity, appropriability of knowledge assets through tacitness and legal means, and economies of scale and scope. However, no link was found between opportunism and internationalization strategy of the firm. The paper concludes with implications to managers and future research.
ISSN:0166-4972
1879-2383
DOI:10.1016/j.technovation.2007.12.003