The Internationalization Process of Estonian Software Companies
Author
Koppelmann, Heiki
Term
4. term
Publication year
2014
Submitted on
2014-03-06
Pages
74
Abstract
Denne afhandling undersøger, hvordan estiske virksomheder inden for information og kommunikationsteknologi (IKT) udvider til udlandet – et emne, der kun i begrænset omfang er blevet studeret. Studien anvender Porters diamantmodel – en ramme til at vurdere et lands konkurrencefordele – til at strukturere og fortolke sekundære data fra internet, bøger, tidsskrifter og statistiske kilder. Målet er at identificere de eksterne faktorer, der påvirker internationaliseringen af Estlands IKT-branche, og at vurdere branchens konkurrenceevne. For at beskrive internationalisering trækker afhandlingen på virksomhedsteorier, der gælder bredt (Uppsala-modellen om gradvis internationalisering og produktlivscyklus-teorien) samt på et perspektiv for multinationale virksomheder (OLI-paradigmet: ejerskab, lokation, internalisering). Selvom disse teorier ofte bruges om store virksomheder, anvendes de her med et SMV-perspektiv. Hovedresultatet er, at Estland tilbyder et af de bedste miljøer til at starte IKT-virksomhed på grund af en åben og højt udviklet infrastruktur. Landets IKT-industri hører til de mest konkurrencedygtige i Østeuropa. Fremadrettet forventes Estlands IKT- og softwaresektor at forblive – og sandsynligvis blive – endnu mere konkurrencedygtig i den nærmeste fremtid.
This thesis explores how Estonian information and communication technology (ICT) companies expand abroad—a topic that has received limited attention. It uses Porter’s Diamond Model—a framework for assessing a country’s competitive advantages—to organize and interpret secondary data from online sources, books, journals, and statistics. The aim is to identify external factors that shape the internationalization of Estonia’s ICT industry and to assess the industry’s competitiveness. To explain internationalization, the study draws on firm-level theories that apply broadly (the Uppsala model of gradual internationalization and the product life cycle theory) and on a multinational enterprise perspective (the OLI paradigm: Ownership, Location, Internalization). Although these theories are often applied to large firms, they are used here from a small and medium-sized enterprise (SME) viewpoint. The main finding is that Estonia offers one of the most favorable environments for launching ICT businesses due to its open, highly developed infrastructure. The country’s ICT industry is among the most competitive in Eastern Europe. Looking ahead, Estonia’s ICT and software sectors are expected to remain—and likely become—even more competitive in the near future.
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