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Publication date: 5 January 2015

Jorma Antero Larimo and Huu Le Nguyen

– The purpose of this paper is to analyse investment strategies and performance of Finnish firms in their international joint ventures (IJVs) established in Baltic States.

1509

Abstract

Purpose

The purpose of this paper is to analyse investment strategies and performance of Finnish firms in their international joint ventures (IJVs) established in Baltic States.

Design/methodology/approach

The paper analyse performance of IJVs in Baltic States based on the IJV theory, international business literature, and foreign direct investments in Central and Eastern Europe (CEE) literature. The analysed factors include firm, investment, and inter-partner relationship-specific factors. To examine the propositions the paper used ten IJVs established by Finnish firms in various Baltic States between the period 1991 and 2005.

Findings

The results show that the level of uncertainties in the countries and the differences between partners are not related to firms’ commitments and the entry mode choice. Several Finnish firms preferred cost leadership to compete with other firms in the local markets. In most cases there was a positive relationship between the level of partners’ equity share, commitment to the IJV, and the level of trust between partners. The results indicated differences in the IJV performance depending on parent firms’ objectives, their competitive strategies, mode of entry, age of IJVs, control strategies, level of trust, and commitment between partners, as well as depending on the performance measures used.

Practical implications

This study suggests four observations that managers may need to take into consideration to improve IJV performance in the Baltic States. First, cost leadership strategy help to increase IJV performance in terms of sales. Second, social control mechanisms and narrow control leaded to better performance than formal and wide control. Third, minority ownership by Finnish firms in IJVs leaded to better performance based on sales, productivity and total performance whereas majority ownership had leaded to better performance in terms of total costs. Finally, the results confirmed that commitment to the IJV operation and trust on the other partner are very essential factors to IJV performance.

Originality/value

The study is the first one to analyse in more detail based on several cases the IJV strategies and performance of Finnish firms in the Baltic States. The analysed factors include several such factors which have not been analysed related to IJV operations in Baltic States (some also limitedly in the CEE context).

Details

Baltic Journal of Management, vol. 10 no. 1
Type: Research Article
ISSN: 1746-5265

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Article
Publication date: 6 July 2015

Salman Saleem, Jorma Antero Larimo, Kadi Ummik and Andres Kuusik

– The purpose of this paper is to investigate whether Hofstede’s (2001) cultural framework and the value paradox explain the use of appeals in advertising in Estonia.

1331

Abstract

Purpose

The purpose of this paper is to investigate whether Hofstede’s (2001) cultural framework and the value paradox explain the use of appeals in advertising in Estonia.

Design/methodology/approach

Hypotheses are drawn in relation to Hofstede’s original four cultural dimensions – power distance, masculinity/femininity, individualism/collectivism and uncertainty avoidance. A sample of 110 print advertisements from four magazines were analyzed using Pollay’s (1983) classification of advertising appeals.

Findings

The results show that Estonian advertising reflects paradoxical values related to low power distance and femininity dimensions, and culturally congruent values related to high-uncertainty avoidance and individualism.

Practical implications

Findings suggest that cultural values (desired) alone are insufficient to predict the reflection of culture in advertising. Rather, consideration of the discrepancies between the cultural values (desired) and practices (desirable) enables a better explanation of the relationship between society and its advertising.

Originality/value

Scholars have shown increasing interest in the consequences of culture on advertising, but the opposing aspect of cultural values and practices has received limited research attention. The paper offers interesting insights regarding the effect of culture and the value paradox on the use of appeals in advertising. Additionally, analyzing the advertising of Eastern Europe is highly important because of the limited research attention that exists with respect to advertising in the region.

Details

Baltic Journal of Management, vol. 10 no. 3
Type: Research Article
ISSN: 1746-5265

Keywords

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