Perceptions of Finnish technology SMEs on export assistance from public and private networks

Abstract

A startup-friendly atmosphere has grown in the 2010s. Many of the new technology companies in small countries are developing products that require a much more extensive customer base than what exists in the home country. International business opens scalable opportunities, but new and small companies typically face challenges when starting to export. Public export promotion can help to overcome such challenges. From the national perspective, public investments in export promotion can be wise. However, public support alone does not guarantee success. The characteristics of the firm have an impact and support from private networks help.

The aim of this study is to understand how different networks are helping technology SMEs to succeed in exports. This study analyses the impact of assistance provided by actors in governmental and private networks. Executives from exporting SMEs were interviewed, and their perceived benefits of the support were analyzed. In comparison with earlier studies, this research assessed how the structural model of network relationships and export performance developed by Faroque and Takahashi (2012) applies to high-tech companies in a small developed country.

The main finding is that SMEs are actively advising their networks to find the support needed. Typical public support instruments combine funding and other modes of support. Public instances and programs require or encourage companies to network with private partners and thus relatively small public investments enable larger investment or other support from private partners. The support needed depends on the capabilities of the company, entrepreneurs, and employees. Policy makers and company managers should have adequate focus on international marketing by the earlier phases of technology development in order to ensure that the views of the international customers will be considered.