Foreign operation entry mode of wholly-owned subsidiary as the choice of Finnish hard-service firms in Spain: A grounded theory approach

Dafnis N. Coudounaris*, Antti Valtonen

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

The purpose of this study is to investigate wholly-owned subsidiary (WOS) vs. exporting as the choice of foreign operation modes of Finnish hard-service firms in Spain, and the relations between the selected entry and operation modes based on objectives set for the Spanish markets. The methodology uses the grounded theory approach in IB. The data was collected by interviewing seven managers from four Finnish hard-service firms operating in Spain and the CEO of the Finnish Chamber of Commerce in Spain. The findings reveal that Finnish hard-service firms should establish a WOS in Spain if aiming to increase their global market share, and profit. Finnish subsidiaries in Spain should focus on the local business culture i.e., knowledge of the local language and business practices. The study offers various contributions for example, with methodology, in using the rarely employed grounded theory approach in IB; it reveals insights into the WOS and exporting choices as appropriate operation modes of hard-service Finnish firms in Spain.
Original languageEnglish
Peer-reviewed scientific journalInternational Journal of Globalisation and Small Business
Volume12
Issue number4
Pages (from-to)341-368
Number of pages28
ISSN1479-3059
DOIs
Publication statusPublished - 2021
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • foreign operation modes
  • wholly-owned subsidiary
  • grounded theory approach
  • internationalisation
  • hard-service firms
  • transaction cost theory
  • TCT
  • Uppsala model II
  • born global phenomenon
  • Spain

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