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

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.