Changes in networks during SME internationalization : Case 360Mediahouse

Abstract

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.