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Article
Publication date: 7 March 2008

Arto Ojala and Pasi Tyrväinen

The purpose of this paper is to investigate market entry decisions of the US software SMEs by analyzing the impact of the most obvious factors (cultural distance, geographical…

3875

Abstract

Purpose

The purpose of this paper is to investigate market entry decisions of the US software SMEs by analyzing the impact of the most obvious factors (cultural distance, geographical distance, country risk, and three market size variables) in traditional internationalization theories to target country selection. By investigating the influence of these commonly cited macro‐level factors, this study proposes the best indicator for market entry decisions of the US small and medium‐sized software firms.

Design/methodology/approach

This study uses a quantitative research approach applied to a sample of 100 US small and medium‐sized software firms.

Findings

Empirical findings in this study indicate that vertical (software) market size in a target country is the best single indicator for market entry decision and in themselves explain 63 percent of market entries. Thus, the findings in this study suggest that the vertical market size gives a better explanation for market entry decisions of software SMEs than the earlier widely used variables.

Research implications/limitations

Integrating earlier findings related to firm‐level factors with findings of macro‐level factors will help theory development and will facilitate obtaining a more holistic view of internationalization of knowledge‐intensive SMEs.

Practical implications

Findings in this study imply that managers should take an active role when they develop network relationships for the market entry. If a firm takes a passive role in networking, it might lose market opportunities available in the leading markets and end up in countries where the real market potential is low.

Originality/value

This paper highlights vertical market size, which has been largely ignored in earlier studies, as the most important indicator for international market entry decision.

Details

Management Decision, vol. 46 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

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Article
Publication date: 31 October 2011

Arto Ojala and Pasi Tyrväinen

The purpose of this paper is to examine value networks in cloud computing. It demonstrates the kinds of value offered by such networks to firms within a given network, and

6346

Abstract

Purpose

The purpose of this paper is to examine value networks in cloud computing. It demonstrates the kinds of value offered by such networks to firms within a given network, and considers how and why the network may change over time.

Design/methodology/approach

The paper reports on a longitudinal case study, including a total of seven semi‐structured open‐ended interviews, conducted with five informants from the case firm.

Findings

It was found that cooperation in value networks provides not merely financial benefits, but also knowledge, among other intangible benefits. Value networks should be evaluated as a whole, since there may be indirect connections – i.e. the value comes not directly from customers, but through the partners in the network. The study also shows the dynamic nature of value networks, as illustrated by changes in a network that were based on transformations in the market environment, and on product development.

Originality/value

This paper contributes to an understanding of value networks and their dynamics, and of cloud computing. In addition, the paper looks at a value network in cloud computing from the service provider's point of view – an aspect that has been neglected in previous studies.

Details

Journal of Business Strategy, vol. 32 no. 6
Type: Research Article
ISSN: 0275-6668

Keywords

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Article
Publication date: 15 May 2009

Arto Ojala and Pasi Tyrväinen

The purpose of this paper is to investigate the internationalization behavior of knowledge‐intensive small‐ to medium‐sized enterprises (SMEs) by using macro‐level psychic…

3726

Abstract

Purpose

The purpose of this paper is to investigate the internationalization behavior of knowledge‐intensive small‐ to medium‐sized enterprises (SMEs) by using macro‐level psychic distance indicators and managers' perceptions of psychic distance.

Design/methodology/approach

This study uses both quantitative and qualitative approaches. In the quantitative approach, the impact of psychic distance to the internationalization behavior is analyzed by using bivariate correlation analysis. The qualitative case study approach is employed to investigate managers' perceptions of psychic distance as regards market entries.

Findings

Findings of this study indicate that psychic distance has an impact on the market entry of knowledge‐intensive SMEs. However, there are other factors, such as market size, opportunity seeking behavior, and actions taken by managers, which make the effect of psychic distance less visible in macro‐level quantitative analyzes.

Research limitations/implications

This study is limited by small sample size in both quantitative and qualitative studies. However, the findings offer interesting insights for further studies related to this phenomenon.

Originality/value

This study compares macro‐level and individual‐level analyses of psychic distance and indicates reasons why psychic distance should be analyzed with the help of individual‐level perceptions of psychic distance.

Details

European Business Review, vol. 21 no. 3
Type: Research Article
ISSN: 0955-534X

Keywords

Available. Content available
Article
Publication date: 1 January 2008

1234

Abstract

Details

Management Research News, vol. 31 no. 1
Type: Research Article
ISSN: 0140-9174

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