Multiple case study method - Research design

3. METHODOLOGY

3.2 Research design

3.2.2 Multiple case study method

According to Yin (2009) the multiple case study method allows researcher to get understand on dynamic and holistic view of the cases and there by critically investigation of the cases helpful to understand the subject matter. The case study approach is one way of empirical research and several authors argue the suitable number of cases for case study approach where Li (2017) identified it as a difficult task. However, some scholars suggested that cases should be range from 2 to 4 as minimum and 10 to 15 as maximum number (Miles & Huberman, 1994; Creswell, 2007).

Therefore, this study of five cases fits within the range of required number of case studies.

Accordingly, this study uses five case studies to investigate their business models.

The first case study is successful and established digital learning platform for e-materials. This company has marked significant presence in Finland where more than 50% elementary schools used this solution. However, due to numerous factors the company was not able to make international presence yet. However, firm has built semi-presence in selected target markets.

The second case study is successful digital learning platform for foreign languages and the company has started its foreign operations soon after the establishment and entered in to different foreign markets rapidly with the specific nature of their solution and due to wider availability.

The third case is early stage digital platform for learning Mathematics. This company has commenced its international presence in significant foreign countries within a shorter period of time.

The fourth and fifth cases are gaming ventures based in Finland. Among them one firm offers shooter games while other firm offers tycoon games for mobile phones. Due to specific nature and wider availability of their solution, they able to expand more foreign markets in quicker within a shorter period.

The more details about the cases will be discussed in data description chapter.

49 3.3 Data collection and analysis

Data collection is the most important and crucial part of any research. According to Li (2017) the researcher should have a concreate and practical plan to collect data to enhance the quality of the research. In qualitative case study method, data can be collected in many ways including in-depth interviews, focus group discussions, and participant observations (Bryman & Bell, 2007).

In order to collect the data for this study, semi-structured interview method is used. This method is a combination of both structured and unstructured interview methods. Here the researcher follows the pre-designed interview guide to ensure that similar kind of questions are asked from the all respondents (Bryman & Bell, 2007). However, the researcher has the opportunity to be adapt with the respondents answers and the interview situation. For instance, here researcher can be flexible with the responses and should be ready with unpredictable situation if the respondents raise an interesting issue during the interview. Therefore, semi-structured interview is more convenient than other methods which is more flexible but yet controllable. One of the advantages of this method is that researcher has a clear idea of how the collected data will be analysed and ensures the comparability of cross-cases (Bryman & Bell, 2007).

Concerning the interview guide developed for this study to collect data about BM and internationalization, it is consisting of three main themes with 29 questions. First part was analysing background of the company including founder owners, current staff and their experiences related to international business. Then next part designed to gather information about internationalization strategy of the company to obtain understand about motivations for internationalization, current international presence of the company, how and why company select target market, and factors affecting the internationalization speed and scope of a company. Then third part comprise of most and important questions about business model structure and how those features led to fast internationalization of case companies. Here, the questions also focus on different aspects of business model and how digital elements of BM helps for their operation.

Consequently, four CEOs and the Head of Talent were interviewed (see appendix 1 for interview guide). These question were designed to get an understanding of the business model of five Finnish born digital firms to identify leading BM features for rapid internationalization there by answer

the following main research question as “how business models affect the speed and scope of internationalization of a born-digital company?” and following sub research questions.

Sub RQ1- What are key business models’ features and mechanisms that enable internationalization?

Sub RQ2 - How do business models’ features and mechanisms shape the speed and scope of internationalization?

After collecting the data from semi-structured interview and several secondary sources i.e company website, blogs, social media, then study needs to critically analysis the empirical results.

Since this data in qualitative nature, and possibly thoughts of the respondents, the researcher should be analyses the data to answer the research questions developed in the early phase. Several authors identified the ways of analysing qualitative data as using standardized coding system to analyses the interview data (Willis, Schechter, & Whitaker, 1999).A content analysis approach also identified by few authors as a useful way to interpreting the data (Gould, Eklund, & Jackson, 1993; Neale & Nichols, 2001).

Accordingly, both inductive and deductive methods used in this study to analyses the data collected from the interview. In inductive method, researcher start with codes, creating categories and build themes. Likewise, the suitable codes like novelty, scalability, digital elements were used to analyses the data. Moreover, deductive approach used to analyse the propositions within the data based on constructed theories. For instance, data categorized based on different aspects of business model i.e. value creation and delivery, value capture aspects. This way of analysis helps researcher to scrutinize the data in a way to identify relevant quotes and important patterns to answer the research question accordingly.

Moreover, Eisenhardt and Graebner (2007) stated another advantage of multiple case method is empirical data can be analysis in two ways of inside case and cross case. The inside case analysis aims to extract information and develop theoretical relationships of each company whilst cross case analysis used to identify the similarities and variances under different themes across multiple cases in this study. This method of understanding help to obtain new knowledge about influential factors of the business model for rapid internationalization.

51 3.4 Evaluation of research validity and reliability

According to Yin (2003) researcher should focus on four types of validity factors including construct validity, internal validity, external validity and reliability.

The first test, construct validity means “identifying correct operational measures for the concepts being studied” and this is considered as difficult task. In order to reach this test researcher should use multiple sources of evidences, establish chain of evidence and having the key informants to review the case study draft. Accordingly, this study used different sources of information. For example, interview data from the respondents and the secondary sources were examined.

Then the second test of internal validity, examined the casual relationships of variables. This test includes explanation building, address rival explanation and using local models. However, this study does not focus on casual relationships hence internal validity is not valid. On the other hand, external validity is applied for this study where it basically determines the generalization of findings and this can be achieved in the research design phase. Accordingly, this research design to obtain the answers for BM and internationalization based on five Finnish born digital firms.

Finally, the reliability of the study should be design in the empirical data collection phase. It can be considered as challengeable since it demonstrates the operations of the study. For instance, it is unlikely the same results will be obtained with the changes of participants and situations. However, in this study used same case study protocol and processes for all cases and developed complete data base to ensure the reliability.

Another important factor that researcher should focus on trustworthiness of the study. For a case study approach, trustworthiness can be tested through credibility, dependability, confirmability and transferability. (Guba & Lincoln, 1984 & Riege, 2003). Creditability in line with internal validity as it evaluates the truthfulness of the empirical data. The dependability parallel with the reliability which measures the likelihood of same results obtained if study will conduct with same empirical data. To ensure the conformability, research was designed to obtain information from key people in the firms to analysis in meaningful way rather than presenting opinion of the researcher. Lastly, transferability which is similar to external validity where ensure the generalization of the study.

4. DATA DESCRIPTION

This chapter begins with in-depth analysis of five case companies that interviewed for the purpose of this study. The collected data is confidential because it contained sensible information about the firms. Also respondents of the case companies desired to stay anonymous and agreed not to declare real names of the firm, person, products, and use more generalized information. This section provides an analysis of cases in relation to their operations, internationalization presence and the business model. Consequently, the cases were named as A, B, C, D and E.

4.1 Firm A

The first case study A is a digital educational venture which was founded in year 2010 based in Kuopio. The motivating factor for developed this solution, firm A has identified several problems in e-learning materials in digital education sector in Finland. For instance, difficulties to use several kind of learning management systems (LMSs), hard to remember different user login and passwords to younger students. Moreover, hard to manage, share, and supervise strict e- material budgets of elementary schools. In order to provide the concrete solution for existing problems, firm A came up with one customized solution for managing e-materials more efficiently.

As per CEO, the firm builds on effort of all kind of parties like blood, sweat, and tears of founders and the team. There are 30 employees including 25 coders currently working at the firm and they are high calibre at their own subject fields. Firm A has significant presence in Finnish education system which is serving more than 50% of Finnish elementary schools in 30 municipalities with 50 publishers, and also semi-presence in few countries as piloting projects in African countries.

Firm A aims to grow organically that expanding to more schools in Finland and expanding to up- and-rise economics internationally.

However, firm do not have presence in international markets yet but planning to enter few foreign markets. Therefore, firm A’s internationalization strategy still evolving and the main motivation for internationalization decision is see Finland as small market to grow. The reason for selection of target market as African countries, as their population is young when compare to Europe.

Therefore, the firm currently piloting few projects in several countries including Nigeria, Kenya,

and evaluating the potential of few markets like Egypt and Uzbekistan. For example, one reason is to expand operations in to African countries with the hope to support their digital education system besides the business development perspective. Therefore, both human and business perspective taken into account when establishing internationalization strategy of the firm A.

Therefore, this firm eager about next step on their internationalization decision.

Firm A follows same business model since from its inception. Its “Licensing” their solution to municipalities, Finnish schools and charge fixed price yearly from one user agreement. This model doing only in Finland. However, firm is planning to customized the pricing model when internationalization happens, behind the idea that every country cannot pay the same amount. Since this firm has been established 10 years in the industry they have enough resources to grow organically and internationally thanks to the stable income and networking and financing support from Finn partnerships.

4.2 Firm B

The firm B was founded in 2010 and soon to be 11th year of operations. The idea for developing such language learning app came into founder’s mind back in 1980’s when he wanted to learn Japanese language for official purpose but at that time there were no language software to learn foreign languages. So he decided to build a prototype with the help of his mother who was a language teacher. After sometimes later he decided to left the job as an Engineer and started to develop this product and formed a firm called B. The respondent of the firm B - Head of Talent, expressed that company have a clear vision to make an impact of people by improving their language ability and there by quality of lives.

Currently 40 employees serve the firm to achieve the company’s mission of teach the people permanently which includes pedagogical experts, language experts, business development experts and system specialists. Firm B has customers in more than 150 countries and the most popular language is English. The company’s new product English mastering app is planning for faster growth.

At first place, firm had clear vision to expand globally soon after the establishment. As a result, firm able to made first foreign sales in 2010 (founded year) to Italy and France and nearly 50%

sales coming from outside the Finland. Firm B eager to achieve early and faster grow in foreign markets with English learning application. For instance, the firm is planning to launch new product in two English speaking countries. The respondent does not wish to disclose the target countries with the confidential consideration. Further added that not to launch this new app in Finland because they argue Finland is small market in terms of population.

Concerning the business model of the firm, it is widely accepted model within this industry. The subscription based and fixed package model is used which is charging monthly subscription amount from the per user.

4.3 Firm C

Firm C was founded in 2019 as a spin-off of University of Turku to provide the university developed digital learning solution for Mathematics for school children anywhere in the world.

University has been researched and developed digital tools for education over 15 years and found there are problems of how schools help different students to learn mathematics and to succeed in it. Therefore, University has developed an online platform with gaming features for learning Mathematics easily. As Mathematics is one of the hardest and bored subjects for students all over the world, this offers cost-effective solution. Moreover, this solution helps student to learn easily and effectively to overcome struggled from Mathematics problems. The current staff is about 5 including CEO who was the first founder of firm C.

As per CEO, this solution is one of the most popular digital learning app in Finland which is readily available in more than 50% Finnish schools and 25 countries at the moment. However, domestic operation (in Finland) is handled by the University. Therefore, firm C was started for the sole purpose of doing international sales and had a clear vision to enter foreign markets from its inception. As a result, firm has started foreign sales in 2019 (founded year) to Qatar and currently serving 25 countries including Europe, Asia, Middle- East. The history of firm was interesting because at the start, founders did not have any idea about how education systems works in different countries so they have started from the scratch. First step of internationalization was to contact Finnish school around the world and pitch their solution to them. Afterwards, they could make

deals with them successfully. According to CEO, one of the main driving force for fast internationalization is having trusted partner network with the expert knowledge about local education curriculum. The second step was to pitch the solution for local partners and make the deals.

Firm was not give clear answer about next target market since several user agreements were halted due to pandemic situation and they are trying to renew those agreements in the first place and then find local partners. However, CEO has given hint that they have an idea to enter in to India if everything works well accordingly. Subscription is the business model of firm C where school charge subscription from students based on number of students who use the platform. This is annual subscription which is yearly renewable. Moreover, they are now planning to introduce English language as their next product but still under development phase. Further, firm searching trusted partners to expand their business globally and renew existing user licenses.

4.4 Firm D

The next case study is a Finnish mobile game company which was founded in 2012 based in Kajaani. The firm’s main operations consist of developing best online shooter games for mobile phones. The most influential factors behind the firm was CEO wanted to develop shooter game for mobile phone which was interesting to him and the co-founder. With the academic background and professional experiences of the team, firm D was established and operated as a successful digital venture in Finland irrespective of smaller size of the company.

The main inspiration to develop shooter game was firm found niche market for shooter games for mobile phones. Moreover, they received significant applauds from the game community for prototype of the product back then. For instance, all existing firms were developed shooter games for PC or console but firm D thought to design such game for mobile phones which was unserved market at that time. As per CEO, the key reason for successful of the product was right product at the right time. As of now, there is no direct competition from big players in the market.

The faster globalization was clear vision of the firm from its inception. As a result, there were 100,000 downloads in a single day when the product launched in google play and Apple app stores in July 2012. From the successful first day itself, firm has marked special milestones during the

past period. The firm was launched fourth game in 2014 but that was not successful as planned.

However, firm was able to make totally new version of the first game which was successful at the market. The next step is concerning to upgrade existing games to provide better experience to the users. Moreover, currently developing new multiplayer shooter games which in under prototype phase at the time of interviewed.

At beginning firm launched this game as a premium version because premium games work well at that time. However, it was not successful with the Google Play and firm follow premium model to Apple app stores only. However, firm D ended up with free to play model in order to align with the industry practices. Now all their games are freely available in all digital platforms.

4.5 Firm E

The last case of this study is a Finnish gaming venture founded in 2017 based in Tampare. The founders of the firm and the team wanted to offer something new to gaming industry but on the other hand avoid the competition from big players at that time. So, they found blue ocean strategy

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