Empirical findings and proposition assessment

In this section, empirical results will be summarized and evaluated in view of research questions and four propositions in the thesis’ conceptual framework.

The case firms are machinery manufacturing companies with three relatively different sizes, based on which the findings are fairly intriguing. In general, the key findings of this study, in comparison to my research questions, are that the business networks are crucial in gaining knowledge of markets as well as eliminating possible challenges while expanding into new markets, at the same time building strong networks requires time and commitment from all parties. Table 2 recaps my propositions assessment.

Supported Export challenges are varied among firms.

Networking is highly evaluated in eliminating possible barriers.

Resource-based challenge in term of production capacity is recognized having relationship with networking, while other components are mostly put aside. Networking strongly supports firms in

firms have strong business

Governmental and political factors are seriously taken into account by firms, but networks do not change the fact of those in foreign markets. Legal challenges happen in some markets, but firms usually choose not to react to keep their products original intact or focus more effort on other markets. Overseas traveling relates closely with networking but does not exclude even after long time of partnership.

Relationship between networking and firms’

marketing strategy depends largely on how firms operate business, mostly directly by own salespeople or dealers/agents. However, firms tend to grow less dependently on intermediates and prefer their own marketing plans.

Export challenges are reported vastly differently among interviewees. The way firms operate their businesses imposes a great influence on how export barriers are perceived. Firms mostly handling and performing sales by their own people would encounter more challenges in approaching more closely foreign markets, rather than firms working more tightly with dealer and agent network.

This could be effortlessly explained that local intermediates are commonly more knowledgeable, easily and better connected with local end-customers which would help manufacturing firms save time and capital in noticing and handling possible challenges with customers. Besides, experienced salespeople could consider no challenges as real barriers, while ones engaging in international business in few years call up more factors as challenges. For instance, different languages and culture are highlighted among less experienced salespeople, even though it is widely agreed that

knowing local language and certain cultural customs is an advantage in networking and organizing business. All in, the importance of network is widely acknowledged in eliminating export challenges, which supports proposition 1 and also previous researches such as Freeman, Edwards and Schroder (2006) presenting that networks provide grounds to deal with gaining market knowledge and lessen financial factors when penetrating foreign markets.

All interviewees claimed to have strong networks whether their sales are conducted by their own salespeople from Finland or through intermediates. Networking is created and developed via a variety of channels including direct meetings at exhibitions, conferences, seminars, and indirect ways through social media channels or a third party which is considered as a weak-tie-based relationship. The case firms have devoted their time and effort to build and strengthen relationships with frequent enough calls, emails, messages and meetings. Social media channels are regarded as an important and efficient tool to maintain the connection especially in international business. The networking process taking a longer or shorter time would depend on how responsive each party is to the other and how the win-win situation is built and proved. Clearly, both sides of the equation want the most benefits out of the network and it is required to be seen by more than beautiful empty words. Commitment and trust are demonstrated with market knowledge about local business practices and projects, helping in industry know-how and being a useful hand in need, adequate training to partners’ engineers and so on. The result supports Milanzi (2012) and others for proposition 2 that strong network ties help firms save time and collect more beneficial market knowledge and experience-related challenges, and partial resource-based factor in terms of productive capacity. Other components were dismissed or not mentioned since all case firms recognize their restraints in personnel and labor cost in Finland.

Proposition 3 is mostly supported since local legal restrictions are moderately mentioned by case firms. External factors of governmental, political component present a relatively fixed element in foreign markets in terms of sustainability levels and networking has mostly no impact on. The case firms still take such external factors seriously but in the light of accepting what and how it would be, which conforms with Kahiya and Dean (2016). Even though legal restrictions on machinery characteristics in foreign markets are emphasized to some extent by interviewees, case firms in the end would rather choose ignoring such markets to keep their products original and save time for other markets. Getting in touch with partners and customers frequently enough is important in

networking and direct meetings are still necessary to create and strengthen trust in this digital world. Hence, cost of travelling either within Europe or to other regions of the world is part of the business deals and networking, that is perceived and prepared by the case firms. This factor and networking have a reciprocal effect while strong network does not eliminate meetings in person.

This is a very interesting subject given the year 2020 situation with Covid-19 pandemic.

The empirical results partially support Proposition 4. The case firm C strongly demonstrates their international business operation with their own marketing capabilities that they have sold hundreds of machines throughout the world, confidence that their machines with European standards would be easily accepted worldwide, self-managing after-sales service by training customers’ engineers thoroughly or having no exclusive distributors. Business network comes along with their business growth but does not have influence on their marketing strategy. However, the other case firms show more dependency on networking in terms of marketing factors in which after-sales services are strongly put in the hand of dealers or part suppliers. Firm B has a wide network of dealers and agents to operate their business; therefore, their marketing strategies have relied largely on their partnerships. However, the firm has been diverting their business strategy into opening their subsidiaries to lessen dependence and provide better support to end-customers, which to a certain extent would support previous researches of Coviello and Munro (1995) and others.

Motives to establish networks are to have more sales volume, to exploit markets better by supporting each other in manufacturing, to build and develop a new market by locating dealers, and to gain more market/project knowledge to facilitate penetration. In brief, the results are in line with the model of networking development. The networks develop on the grounds of win-win situation that both sides of the equation see or project their benefits. Case firms has been operating their business in foreign markets, then networking is to obtain more market knowledge and opportunities in international business. The process needs commitment and trust building actions from all sides which could be partially sharing infrastructure by the firm working closely with dealers, supporting in production capacity or simply sharing know-how, market knowledge, ongoing projects to each other. As a result, the outcome of networking has been confirmed as positive by case firms with more sales opportunities and more market knowledge obtaining. So far, empirical results support the model of how networks develop in terms of eliminating export challenges.

To form a relationship is something that cannot be taken lightly. It involves personal interaction and time. But once the direct relationship is formed, doing business gets a lot easier. But forming a relationship is not enough, one need to be able to take care (nurture) the relationship to gain the full benefits out of it. Once the relationship is formed, there are many different causes of action one might take.

Business networks play a vital role in overcoming export barriers. All of the interviewed firms have taken several steps to form both formal and informal business networks. Based on my research, the stronger the network, the easier it is to overcome possible challenges. This has to start mainly with personal connections, then to develop a strong relationship in the name of companies.

Building and strengthening networks will become quite a challenge and bring on interesting discussions given the year 2020 of Covid-19 pandemic worldwide.

5. CONCLUSIONS