Changes in networks during SME internationalization : Case 360Mediahouse
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Small to medium sized digital service providers compete globally against bigger companies
with better resources. They have a shortage in economies of scale, finances, foreign market and
industry knowledge and risk aversion. To overcome these lacks of resources these companies
use networks. Relationships in networks can provide industry and foreign market specific
knowledge and resources. During internationalization process these resources and knowledge
are the bases of international opportunity exploration and exploitation.
This case research investigates the changes happening in the networks of a Finnish digital
SAAS (software as a service) provider while they are involved in the process of
internationalization. Data was gathered through interviews, observation, reports, filings and
meeting notes. From three phases of research three network maps were created and these maps
were compared to each other, in order to find out differences and changes that have happened
over time.
The analysis showed the following. That most of the relationships and networks studied were
beneficial towards the case company. One relationship turned out to be taking more resources
than it provided. Relationships might come from serendipitous encounters, but the company
still influenced the chances of serendipitous encounters through their actions. The number of
relationships staid relatively the same in different phases, but the process of internationalization
did evolve. This means that the quality and depth of relationships is more important than the
amount of relationships. The requirements of the case company and the resources traded within
networks changed in different phases. It was also possible for the relationships to change from
social networks into business networks and back.