Challenges and opportunities faced by Finnish ICT company entering African markets through partnership
Raivio, Albertina (2016)
Pro gradu -tutkielma
Raivio, Albertina
2016
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2016121230997
https://urn.fi/URN:NBN:fi-fe2016121230997
Tiivistelmä
The purpose of this thesis is based on the need of finding out the challenges in developing and maintaining strategic partnerships that Finish ICT company face when operating in African markets. In the light of globalization, international partnerships appear to offer an opportunity to capitalize on the particularities of localized skills, knowledge and capabilities within the international environment. Ultimately, the study hopes to find out what resources the business needs to have in possession when aiming to form long-term strategic relationships.
The qualitative research approach used in this study is suitable as the purpose of this study is describing the international partnership challenges that foreign firms face when operating in African markets. This study was conducted by doing semi-structured interviews, and by doing a document analysis of both secondary data.
The results of this study revealed that as difficult as forming and maintaining partnerships can be, the advantages of overcoming the challenges are profound. The most crucial activity is to have managers with international experience as it has effect on the success of the partnership. It was identified that many problems were related cultural differences, psychic distance, communication and trust. An analysis of the Zambian business environment also indicates that the environment is challenging for foreign firms. The familiarity with the Zambian business culture and environment among other issues is vital to achieve the company long-term goals. Building partnerships has emerged as a key factor in ICT firm’s internationalization in recent years.
The qualitative research approach used in this study is suitable as the purpose of this study is describing the international partnership challenges that foreign firms face when operating in African markets. This study was conducted by doing semi-structured interviews, and by doing a document analysis of both secondary data.
The results of this study revealed that as difficult as forming and maintaining partnerships can be, the advantages of overcoming the challenges are profound. The most crucial activity is to have managers with international experience as it has effect on the success of the partnership. It was identified that many problems were related cultural differences, psychic distance, communication and trust. An analysis of the Zambian business environment also indicates that the environment is challenging for foreign firms. The familiarity with the Zambian business culture and environment among other issues is vital to achieve the company long-term goals. Building partnerships has emerged as a key factor in ICT firm’s internationalization in recent years.