Towards a Wellbeing-driven System Design for Intergenerational Collaborative Innovation: A Literature Review

Researchers have previously utilized the advantages of a design driven by well-being and intergenerational collaboration (IGC) for successful innovation. Unfortunately, scant information exists regarding barrier dimensions and correlated design solutions in the information systems (IS) domain, which can serve as a starting point for a design oriented toward well-being in an IGC system. Therefore, in this study, we applied the positive computing approach to guide our analysis in a systematic literature review and developed a framework oriented toward well-being for a system with a multi-generational team. Our study contributes to the IS community by providing five dimensions of barriers to I…

Internationalization pathways of family SMEs:Psychic distance as a focal point

Purpose: The purpose of this paper is to investigate how psychic distance affects the internationalization process, foreign market entry (FME), and entry mode choice of Finnish small and medium-sized family enterprises (family SMEs) operating in France. Design/methodology/approach: The paper reports findings from an in-depth case study covering four Finnish manufacturing family SMEs operating in the French market. The data were analyzed using the Uppsala model and distance creating and distance-bridging factors encountered in the FME to France. Findings: The findings reveal that the family SMEs mainly followed a sequential process and favored indirect entry modes before entering the French …

Tietoyhteiskunnan haasteita yrittäjyys- ja teknologiakasvatukselle peruskoulussa

[Johdanto] Summary submission is electronic only. The submission process consists of entering the paper title, author(s) and affiliation(s), and an abstract no longer than 35 words. Authors are prompted to state their preference for presentation type (oral presentation, poster or data workshop poster) and for session. Details for the submission process will be provided later on. The final category of all papers will be determined by the Technical Program Committee, which is responsible for selecting final papers from initial submissions. Papers accepted for oral or poster presentation at the technical program will be eligible for publication in the IEEE Transactions on Nuclear Science. Sele…

Culture, international business, and knowledge systems minitrack

This minitrack explores the impact and role of culture on managing knowledge and designing and implementing knowledge systems within local and global groups and organizations. This is crucial for instance for internationalizing firms and already global organizations. Success of their international business operations and marketing is depending on effective learning and knowledge coordination. Our minitrack covers broad issues related to culture (sub- cultures as well as national cultures) and knowledge systems. We are open to all methodological and theoretical approaches and welcome papers as well as research-in-progress papers from researchers and practitioners.

Causation and Effectuation in the Foreign Market Entry and Selection of Software SMEs

Current research emphasizes several factors impacting on SME internationalization. However, it remains unclear that how entrepreneurs in SMEs think and implement their internationalization and select target countries for foreign operations. In this qualitative case study, foreign market selection and entries of five Finnish software firms are analyzed by using the theory of causation and effectuation. The findings imply that software SMEs used more causation logic in their foreign market selection and effectuation logic in their foreign market entries. The case firms that followed causation logic in FMS entered more distant countries. peerReviewed

Challenges of the Information Society to Entrepreneurial and Technology Education in the Finnish Comprehensive School

Even if the concept Information Society has versatile menings for its details, there is an approximate agreement about its general essence. There is an understanding e.g. about its emphasis on utilizing the computers, software and networks diversified and about the participatory, self originated activity culture of the citizens. As a result of these the central essence of Work has been changed from reproduction to thinking, understanding and planning. This is seen e.g. in many industries as transfer of the route works to the countries of cheap labour as increasing focus for research and development of new products in the home country. Today emphasized are teamwork, spontaneous, self-directe…

Market entry decisions of US small and medium‐sized software firms

PurposeThe purpose of this paper is to investigate market entry decisions of the US software SMEs by analyzing the impact of the most obvious factors (cultural distance, geographical distance, country risk, and three market size variables) in traditional internationalization theories to target country selection. By investigating the influence of these commonly cited macro‐level factors, this study proposes the best indicator for market entry decisions of the US small and medium‐sized software firms.Design/methodology/approachThis study uses a quantitative research approach applied to a sample of 100 US small and medium‐sized software firms.FindingsEmpirical findings in this study indicate t…

Effectuation and foreign market entry of entrepreneurial firms

Purpose – The purpose of this study is to examine the decision-making process for entrepreneurial firms when entering foreign markets and how and why they entered those markets. Design/methodology/approach – A nascent theory in entrepreneurship called effectuation is combined with internationalization process theory as the conceptual framework to study decision-making under uncertainty. The central concept in both these theories is relationships and how they can be used to gain knowledge and thus reduce uncertainty and in the case of effectuation to co-create opportunities to enter foreign markets. The research design involves a multiple case study of software firms from Finland and New Ze…

3D Printing : Challenging Existing Business Models

Technologies labelled as “disruptive” challenge conventional business procedures. The development of 3D printing technology and additive manufacturing (AM) is expected to transform product design and manufacturing. 3D printing technology makes it possible to produce complex and unique physical products from digitally designed CAD models. It is estimated that the effects of 3D printing on business will be diverse and far‐reaching. Hence, it is vital for business owners to observe how 3D printing may impact on business models and business networks, considering also the effects on stakeholders’ value propositions and on value creation. This paper reports on the potential impact of 3D printing …

Business models and opportunity creation: How IT entrepreneurs create and develop business models under uncertainty

How can entrepreneurs develop business models for markets in which the technology is constantly changing-or create business models for markets that do not exist? These are fundamental questions for information technology IT entrepreneurs, and for information systems IS scholars who seek to develop a theoretical understanding of business models. The case study presented in this paper addressed these questions, demonstrating how a small software firm developed its business model over a 15-year period in cloud gaming markets. Based on the empirical findings, a preliminary theoretical model is presented. The aim of the model is to increase scholarly understanding of how business models are crea…

Market entry decisions of US small and medium-sized software firms

Purpose: This paper investigates market entry decisions of the U.S. software SMEs by analyzing the impact of the most obvious factors (cultural distance, geographical distance, country risk, and three market size variables) in traditional internationalization theories to target country selection. By investigating the influence of these commonly cited macro-level factors, this study proposes the best indicator for market entry decisions of the U.S. small and mediumsized software firms. Design/methodology/approach: This study uses quantitative research approach applied on a sample of 100 U.S. small and medium-sized software firms. Findings: Empirical findings in this study indicate that verti…

Technology Education - the Ethical Challenge

Introduction: In everyday thinking and discussion, the concepts of technique (technical methods, as in a craft or in scientific research) and technology are often regarded as synonymous. On closer analysis, one realizes that this is not the truth of the matter. On the contrary, the difference in the concepts introduces the ethical viewpoint. Technique, which generally refers to tools, equipment and machines or know-how about their use or control, is an instrument which, as such, does not does not inherently have good or bad qualities. However, the results depend on where and how it is used (Parikka & Rasinen, 1994). Technique becomes technology when it is applied to a certain task. Thus, on…

Revenue models in cloud computing

Cloud computing brings new possibilities, allowing software firms to sell their software products using the Software-as-a-Service (SaaS) model. SaaS provides opportunities for flexible pricing but creates challenges on how to achieve a profitable revenue stream. In this multicase study, the revenue models of five SaaS providers were examined. The main interest of the study was to investigate the different revenue models and the reasons for using particular revenue models. The revenue models were found to be mainly based on software renting, with a variety of pricing strategies. For SaaS providers, software renting generates a steady and predictable stream of revenue. The software renting mo…

Software Complexity and Organization of Firms’ Offshoring Activities

How does software complexity shape software providers’ offshoring tasks, and how do such firms organize their offshoring activity? These questions are important, since the global software development market is growing rapidly, offering new opportunities for software managers and entrepreneurs to distribute their activities geographically. Based on a multi-site case study of 12 software firms, we study connections between software complexity and the offshoring strategies selected. Our findings suggest that software firms select a variety of organizational structures for their offshoring activity, and that the selection is shaped by the complexity of the software in question. peerReviewed

Adjusting Software Revenue and Pricing Strategies in the Era of Cloud Computing

Competitive forces shape software revenue and pricing models in cloud computing.Different revenue and pricing models lead to different competitive strategies.Software firms apply mixed revenue models, or a hybrid pricing mechanism.Software renting provides flexibility for software providers against competition.Software architecture may either limit possibilities for different revenue models. Recent research has recognized cloud computing as a new paradigm of servitization in which software products are offered based on service contracts. Thus, instead of selling software licenses, software vendors can rent software as a service to customers. However, it is still unclear how software provide…

A framework for explaining distant foreign market entry by small and new ventures

Paper presented at the 36th Academy of International Business (UK and Ireland chapter) Conference (AIB-UKI), Glasgow, UK, April 2-4.2009. peerReviewed

SaaS architecture and pricing models

In the new era of computing, SaaS software with different architectural characteristics might be priced in different ways. Even though both pricing and architectural characteristics are responsible for the success of the offering; the relationship between architectural and pricing characteristics has not been studied before. The present study fills this gap by employing a multi-case research. The findings accentuate that flexible and well-designed architecture enables different pricing models; however, poorly designed architecture limits also the pricing. Scalability and high level of modularity are the major enablers of a great variety of pricing models. Using public cloud services may lea…

Schemata, Acculturation, and Cognition : Expatriates in Japan's Software Industry

This multiple case based empirical study expands the knowledge around North American software and IT workers in Japan as well as the expatriate literature and discussion of cognitive schemata in cross cultural settings. The study includes eleven individuals, nine of them in software. Evidence of selection, rejection, and adjustment of cognitive schemata found in Japan's business world is presented. Changes in schemata drive cultural adjustment and acculturation. North American software and IT workers in Japan must maneuver through unfamiliar and often complex schemata to motivate, lead, manipulate, and communicate with coworkers and partners and thereby gain success. peerReviewed

Effectuation Logic in Digital Business Model Transformation : Insights from Japanese High-Tech Innovators

Purpose The purpose of this paper is to study how digital business models evolve when entrepreneurs move to new digital platforms and how this evolution is related to effectuation and causation logics. Design/methodology/approach This study applies a multiple case study approach to investigate how digital business models change in small, Japanese high-tech firms providing their innovations through different digital platforms. To investigate digital business models, this study considers the elements that comprise general business models. The case firms were selected based on size, products and transitions from physical to various digital platforms. Semi-structured interviews were conducted …

Extending the international new venture phenomenon to digital platform providers : A longitudinal case study

People increasingly interact with services enabled by digital platforms. This has been a consequence of the digitalization of artifacts, which has transmuted traditional businesses into digital forms. With the increasing digitalization and modularization of services, digital platforms have given many digital service providers possibilities to scale globally, and to rapidly transcend national borders by serving multi-sided markets. However, we still know very little about how digital platform providers actually internationalize their services, or how they make their platforms available for global markets. In this paper, we contribute to the increasing literature on digital-based INVs, examin…

Value Creation and Evolution of a Value Network: A Longitudinal Case Study on a Platform-as-a-Service Provider

Current research on cloud computing emphasizes the important role of Platform-as-a-Service (PaaS) providers. However, little is known about how PaaS providers can offer value to the content providers and firms operating the platform. The findings demonstrate how a small PaaS provider in the cloud gaming market was able to develop a strong position in the value network by offering direct and indirect value to its partners. The findings also reveal how the firm developed its value network over fourteen years, from a complex network with several actors to a very simple value network which included only partners of prime importance. peerReviewed

Developing cloud business models: A case study on cloud gaming

Cloud computing offers new ways for firms to operate in the global market so that even small firms can compete in markets traditionally dominated by multinational corporations. A case study considers how, over ten years, a small firm developed a successful business model to compete in computer gaming. peerReviewed

Entry Barriers of Small and Medium-sized Software Firms in the Japanese Market

The Japanese software market size was 131,773 million U.S. dollars in 2004. Due to limited domestic software production, Japan is highly dependent on imported software products. Despite the market potential for foreign software firms in Japan, almost no research exists on what kind of challenges foreign software firms encounter when they are entering the market. To fill this gap, this paper investigates the entry barriers of small and medium-sized software firms in the Japanese market by using a multi case-study. The findings suggest that most of the barriers are firm-specific and mainly related to firms’ resources and capabilities to operate in the market. The entry barriers encountered al…

Competition Logics during Digital Platform Evolution

How are platforms built and how do they evolve? This is a salient question in digital ecosystems, where the competition has moved from traditional one-sided business logics to multi-sided platforms. In this paper, we explore how a digital platform evolves when the organization of the multilayered platform architecture, and related control points, is modified through competitive moves. We also examine how a firm may be able to manage the increased complexity of the platform. We show that when technical and strategic bottlenecks are solved, the platform owner can expand control to strategically important layers of the platform stack. The findings indicate that the complexity of the platform i…

Case Studies in Family Business Research

Based on a review of 63 case studies from the family business field, the authors emphasize the potential of critical realist case studies for family business scholars. The review revealed that the positivistic case study introduced by Yin and Eisenhardt is the disciplinary convention of family business field. Since there are several events and mechanisms underspinning social phenomena, such as succession, they need to be both explanained (erklären, matching the positivist view) and understood (verstehen, matching the constructivist/interpretive view) which is the staring point of critical realism (Bhaskar, 1998; Sayer, 1992). Hence critical realis ontology can be very fruitful for future st…

Advantages of Public Cloud Infrastructure in Different Technology Adoption Lifecycle Stages

Independent software vendors (ISV) utilize cloud infrastructure for different reasons. We hypothesize that the motivation to adopt cloud infrastructure-as-a-service (IaaS) changes as the ISV’s product is getting adopted by the market. In this paper we consider how the infrastructure needs of ISVs change along the stages of ISV product’s adoption lifecycle, and analyze the potential benefits of utilizing IaaS in different stages. The analysis is illustrated with the cases of ISV firms with documented use of IaaS. These cases support the hypothesis that different benefits of IaaS are gaining importance along the adoption lifecycle.

Impact of psychic distance to the internationalization behavior of knowledge‐intensive SMEs

PurposeThe purpose of this paper is to investigate the internationalization behavior of knowledge‐intensive small‐ to medium‐sized enterprises (SMEs) by using macro‐level psychic distance indicators and managers' perceptions of psychic distance.Design/methodology/approachThis study uses both quantitative and qualitative approaches. In the quantitative approach, the impact of psychic distance to the internationalization behavior is analyzed by using bivariate correlation analysis. The qualitative case study approach is employed to investigate managers' perceptions of psychic distance as regards market entries.FindingsFindings of this study indicate that psychic distance has an impact on the …

Entrepreneurship training for new ventures

Several studies in the field of international entrepreneurship have indicated the inadequacy of public policy support for new ventures and called for more tailored training programs. This paper introduces a training program created for new ventures in Central Finland and analyzes its benefits and shortcomings using a qualitative case study. The findings reveal that the training program provided useful knowledge on how to develop a business further and how to make it understandable and attractive to a funder. However, the findings also indicate that there is a need for cultural adaptation: the training program developed originally for U.S. new ventures was not fully adapted for the needs of …

Internationalization of software firms : Finnish small and medium-sized software firms in Japan

Globalisaation sanotaan kaventavan kulttuurieroja sekä välimatkoja maiden välillä. Tämä on ollut seurausta erilaisten kommunikaatioteknologioiden kehittymisestä ja lisääntyneistä liikenneyhteyksistä ympäri maailmaa. Voisi ajatella että globalisoituminen on tehnyt myös yritysten kansainvälistymisen entistä helpommaksi. KTM Arto Ojala osoittaa kuitenkin väitöskirjatutkimuksessaan, että sekä suomalaiset että yhdysvaltalaiset ohjelmistoyritykset suosivat ensisijaisesti ns. psyykkisesti läheisiä maita. Näissä maissa yrityksen on helppo toimia pienen kulttuurieron sekä samankaltaisten liiketoimintakäytänteiden ja yhteisen kielen vuoksi.Ojala tutki väitöskirjassaan ohjelmistoyritysten markkinavali…

IT-Supported International Subsidiary Establishment Process for the Japanese Market: A Case Study on Finnish High Technology SMEs

The large size of the Japanese IT market makes it attractive to and important for foreign high technology companies. However, the Japanese market is very challenging, highly competitive, and difficult to penetrate for foreign small and medium-sized enterprises (SMEs). Most SMEs fail to penetrate into the Japanese market effectively by using modern IT-tools in the international subsidiary establishment process. No earlier in-depth empirical research exists on the IT-supported international subsidiary establishment process for this market. This study investigated and analyzed how a Finnish high technology SME implemented the ITsupported international subsidiary establishment process for the J…

Business Models and Internationalization of Software Firms: A Comparative Case Study

This paper investigates the impact of software firms’ business models to internationalization behavior by using a comparative case study. The selection of the firms for this study was based on their level of internationalization. The case firm Alpha had foreign operations only in the Nordic countries whereas the case firm Beta sold their product to many distant markets. The findings, related to the general business model framework that was used, indicate that there were very few differences between the firms’ business models. However, a more detailed examination revealed that product regulations for the firms’ products were the major distinctive factor that impacted the internationalization…

We are “not” too (young/old) to collaborate : Prominent Key Barriers to Intergenerational Innovation

In this study, we analyzed the barriers to technology-supported intergenerational innovation to understand better how young and old can collaborate towards global innovations. Researchers in different disciplines have already identified various barriers to intergenerational collaboration. However, barriers are changing depending on the context of collaboration, and difficulties still exist to support intergenerational innovation in global settings. Therefore, we investigated the barriers that emerge when people work with someone decades older or younger. The results of our study have shown what barriers are influenced by age, what barriers exist only for senior and younger adults. The study…

Market Entry and Priority of Small and Medium-Sized Enterprises in the Software Industry: An Empirical Analysis of Cultural Distance, Geographical Distance, and Market Size

This paper investigates the influence of cultural distance, geographical distance, and three market size variables to the target country preference of SMEs in the software industry. In addition, we examine the shift of priorities in SMEs’ country selection by analyzing how these factors impact the selection of the first, second, and third target countries. Empirical findings of this study suggest that almost 70% of country choices can be explained by software market size and geographical distance alone. The findings adduced also that entry priority of SMEs shifts very fast from countries within a short geographical distance to countries with high purchasing power and within a greater geogra…

Business models and opportunity creation: How IT entrepreneurs create and develop business models under uncertainty

How can entrepreneurs develop business models for markets in which the technology is constantly changing – or create business models for markets that do not exist? These are fundamental questions for information technology (IT) entrepreneurs, and for information systems (IS) scholars who seek to develop a theoretical understanding of business models. The case study presented in this paper addressed these questions, demonstrating how a small software firm developed its business model over a 15-year period in cloud gaming markets. Based on the empirical findings, a preliminary theoretical model is presented. The aim of the model is to increase scholarly understanding of how business models ar…

A bibliometric approach to finding fields that co-evolved with information technology

Among the declining industries, for example music industry, some have been revived by information technology (IT). At the same time, in academic fields, some have expected co-evolutions between IT and other fields to cause the resurgence of either field. In this research, the clustering of citation networks with 14,438 academic papers resulted in the identification of 28 academic fields in the areas “Computer Science” or “Information Science and Library Science.” Co-evolutions between these 28 fields and citing fields to the 28 fields were evaluated by an investigation of contents; a methodology to search co-evolutions was also proposed. This paper proposes that pairs of academic fields (wi…

Pricing of Digital Innovations as an Entrepreneurial Process

How do entrepreneurs set a price for digital innovations they develop and market? This is an important question in current information society where digitalization is making established pricing models outdated. In this study, we focus on this issue by examining what kinds of activities and resources entrepreneurs possess when pricing digital innovations. Based on five case studies, including 37 interviews with key decision makers involved in the pricing process, we found that pricing of digital innovations can be conceptualized as an entrepreneurial process in which the pricing capabilities are developed based on the resources at hand. In this view, the pricing model is adjusted through neg…

Software Renting in the Era of Cloud Computing

In the new era of computing, software can be sold and delivered as a cloud service, and software renting has become as a strategic tool to compete in the market. Software renting has several advantages from the customer's point of view. However, for software providers it is challenging to ensure a profitable revenue stream when a license fee is replaced by a periodic rental fee. In this study, software renting was found to help the case firms to differentiate themselves from competitors; it also increased their competitive advantage by making the software available for a larger customer group. However, the negotiating power of larger customers impacted on software pricing, rental agreements…

Business Models and Market Entry Mode Choice of Small Software Firms

So far the critical choice of the entry mode for a target country has been examined ignoring the special features of firms. Particularly, the impact of the wide variation of business models of software firms has been ignored. This multi-case study investigates the relation between the business model and the entry mode of eight software firms. The results imply that the product strategy and the service and implementation model of a software firm are closely connected to the entry mode choice, while the distribution model of intangible software products does not seem to have impact on the operation mode. peerReviewed

Is globalization reducing distances between countries? Some empirical evidence from foreign software firms operating in Japan

Introduction: Nowadays, one of the most discussed topics is globalization and how it reduces cultural differences and distances between countries. This has been seen as a consequence of the development of communication technologies, improvement of transportation connections between countries, establishment of free trade areas, and emergence of global cultures. It is also a commonly held view that, with the help of information technology, business can be conducted regardless of time or place. In addition, travel connections between and within countries have increased becoming faster and cheaper. From all of this, it is easy to conclude that internationalization of firms has also become easie…

Digitalization and Evolution of Business Model Pathways Among Japanese Software SMEs

This chapter analyzes five Japanese software small and medium-sized enterprises (SMEs) to better understand how their decision-making pathways inside the organization evolve as they develop new business models. Event-state mapping method was applied to analyze the business model pathways of the case firms. We found that once triggered, pathways included various actors and a series of steps until an outcome, the new business model, was reached. The findings indicate that the decision pathways to new models became increasingly complex over the years and the number of individuals and teams involved increases as business model evolved further. peerReviewed

Comparison of different revenue models in SaaS

Cloud computing brings new possibilities for software firms to sell their products within a Software-as-a-Service (SaaS) model. However, although SaaS provides new revenue models, it may not easily achieve a profitable revenue stream. For customers, SaaS promises cost savings related to IT expenses. However, it may be difficult to estimate which revenue model will be best for a given situation. In this paper I present the common revenue models used in SaaS, examining their advantages and disadvantages from the point of view of the software provider and the customer. Keywords-Revenue models, SaaS, Cloud computing, Business in cloud

Advantages of Public Cloud Infrastructure in Different Technology Adoption Lifecycle Stages

Independent software vendors (ISV) utilize cloud infrastructure for different reasons. We hypothesize that the motivation to adopt cloud infrastructure-as-a-service (IaaS) changes as the ISV’s product is getting adopted by the market. In this paper we consider how the infrastructure needs of ISVs change along the stages of ISV product’s adoption lifecycle, and analyze the potential benefits of utilizing IaaS in different stages. The analysis is illustrated with the cases of ISV firms with documented use of IaaS. These cases support the hypothesis that different benefits of IaaS are gaining importance along the adoption lifecycle. peerReviewed

From Regulatory Barriers to Business Model Requirements: Case of Finnish Software Firms in Japan

In the existing literature, the Japanese market is often characterized with different barriers to entering and doing business. Although these barriers are well documented and researched, earlier investigations focus mainly on barriers related to manufacturing firms, conflicts with distribution channels or give only a general description of the barriers. Most of the previous studies are also cross-industrial and they lack an industry-specific focus. However, almost no research exists on what kinds of challenges foreign small and medium-sized software firms have encountered in the Japanese market. In this research, a multi-case study method was used to investigate the kinds of challenges four…

Best practices in the Japanese software market

Globalization of software markets is driving software firms to seek market share and growth opportunities from leading software markets in the world. As the second largest software market, Japan offers high growth potential for foreign software firms. In Japan, the information and communication technology industry is the largest market sector, and the size of the software market in Japan was US$131.8 billion in 2004. Despite great opportunities in the Japanese market, entering the market and conducting successful business there can be difficult due to cultural differences between Japan and Western countries. In this multi-case study we focus on nine software firms in order to examine the be…

Social capital in the international operations of family SMEs

PurposeThe aim of this study is to discuss how social capital is developed in the internationalization process of small and medium‐sized family enterprises (family SMEs).Design/methodology/approachThis paper reports findings from an in‐depth multiple case study with four Finnish manufacturing family SMEs. The data were analyzed through the perspectives of structural holes, network closure, and the interplay between these two mechanisms.FindingsThe material in the paper demonstrated that family entrepreneurs had a large number of structural holes when launching international operations, but also after several years of running international operations. Instead of trying to span structural hol…

A Conceptual Model for the IT-supported International Subsidiary Establishment Process

This study examines how the IT-supported international subsidiary establishment process can be implemented. An in-depth literature review uncovered that there is a significant lack of literature to guide managers about how to execute the establishment process of a subsidiary through the support of various IT-tools. This study, by answering the research question “What are the phases in the establishment of a subsidiary through IT-support and how have the phases been executed?” introduces a conceptual model for the IT-supported international subsidiary establishment process. The research findings are useful for both practice and further research. peerReviewed

IT Negotiators : What’s your approach?

The IT and software industries appear to be collaborative in projects in house and among organizations as they plan and negotiate for mutual benefit. Yet individual negotiators do not always proceed with the same thought patterns or even with success. This article sheds some light on how skilled, aware negotiators can better match up their thinking to avoid communication and process failures. The research behind this article shows that those with greater decision making authority and experience have more ways of thinking about negotiation than others. nonPeerReviewed

Entrepreneurship training for new ventures: Experiences from the training program implemented in Central Finland

Paper presented at the 36th Academy of International Business (UK and Ireland chapter) Conference (AIB-UKI), Glasgow, UK, April 2-4.2009. peerReviewed

Benefits of Software Renting in Cloud Business

In the new era of computing, software can be sold and delivered as a cloud service, and software renting has become a strategic tool to compete in the market. In this multi-case study, software renting was found to help the case firms to (i) differentiate themselves from competitors; (ii) increase their competitive advantage by making the software available for a larger customer group, and (iii) decrease the price of software by using centralized software delivery and maintenance. peerReviewed

Entry into Geographically and Psychically Distant Foreign Markets by Small and New Ventures

Paper presented at the 16th Conference on Pacific Basin Finance, Economics, Accounting and Management (PBFEAM), Brisbane, Queensland, Australia, July 2-4.2008. (Key-note paper) peerReviewed

Entrepreneurship- and technology education in the context of the information society

Introduction: In Finland, a national “Entrepreneurship decade 1995–2005” project was implemented. The purpose of this project was to emphasize the importance of local work and production to the survival of the locality, as well as to stimulate cooperation between schools and local enterprises. At the same time there was increasing discussion about the information society, its essential, and characteristics, and what kinds of changes it necessitates at all levels of education. As a consequence of these, new subjects were introduced into comprehensive and upper secondary school curricula. These subjects were called: Entrepreneurship and active citizenship, Humanity and technology, and Technol…

Marketing software in Japan: Success factors in different product strategies

This paper investigates small and medium-sized software firms’ success factors in the Japanese market. Findings of this study suggest that, due to the immaterial nature of software products, distribution and packaging has a less important role, while understanding Japanese business practices is ranked high along with customer satisfaction, honesty, and characteristics of a product. The findings also highlight the importance of distinguishing different kinds of software businesses based on their product strategies when analyzing success factors in a target country. For instance, the Japanese language assumed an important role in enterprise solution firms and in mass market software business,…

Market Entry and Priority of Small and Medium-Sized Enterprises in the Software Industry: An Empirical Analysis of Cultural Distance, Geographic Distance, and Market Size

This article investigates the influence of cultural distance, geographic distance, and three market size variables in the target country preference of small and medium-sized enterprises (SMEs) in the software industry. In addition, the authors examine the shift of SMEs’ priorities in country selection by analyzing how these factors affect the selection of the first, second, and third target countries. The empirical findings suggest that approximately 70% of country choices can be explained by software market size and geographic distance alone. The findings also show that SMEs’ entry priorities shift quickly from countries within a short geographic distance to countries with high purchasing …

The Internationalization of B2B Digital Platform Providers : The Role of Cross-National Distance and Digital Characteristics

Digitalization offers new opportunities and changes how firms can explore and enter new markets. Current literature has deepened our understanding of the internationalization process of digital-based firms, but it provides very little guidance on how the specific characteristics of digital artifacts enable and accelerate internationalization or of the role of crossnational distance and cultural difference. We use a longitudinal single-case approach to explore how a Business-to-Business (B2B) platform provider internationalized its operations from inception. The case study illustrates that the ongoing development of the digital service and the integration with new devices played an important…

Innovation as a driver of internationalization in the software industry

Innovation and internationalization are two important factors for growth. This study analyzes whether innovativeness has an effect on the internationalization of software firms, and if so, how strong this effect is. Innovation and internationalization have rarely been studied together, with research tending to focus more on the relationship between innovations and growth. However, internationalization is a key prerequisite for growth for companies operating in small domestic markets. This paper analyzes the innovativeness and internationalization of firms, using data from the Software Industry Survey conducted in Finland. Since the speed of firm growth and internationalization are dependent…

Software Business

Value Creation and Power Asymmetries in Digital Ecosystems : A Study of a Cloud Gaming Provider

Digital platforms connecting users and service providers have a central role in determining the value creation structure of ecosystems. Platform developers try to achieve a dominant position for the platform with a strong ecosystem around it. The size and attractiveness of the services can attract new users, and growing user volume can bring new co-operative service providers to the service partner network. An interesting question is how the presence of power and potential power asymmetry affect the value creation capability and the structure of a network around a platform? This chapter describes an example of value creation and the influence of power asymmetry in a digital ecosystem built …

Impact of psychic distance to the internationalization behavior of knowledge-intensive SMEs

Purpose: The purpose of this paper is to investigate the internationalization behavior of knowledge-intensive small- to medium-sized enterprises (SMEs) by using macro-level psychic distance indicators and managers' perceptions of psychic distance. Design/methodology/approach: This study uses both quantitative and qualitative approaches. In the quantitative approach, the impact of psychic distance to the internationalization behavior is analyzed by using bivariate correlation analysis. The qualitative case study approach is employed to investigate managers' perceptions of psychic distance as regards market entries. Findings: Findings of this study indicate that psychic distance has an impact…

Entrepreneurship and small businesses in Russia: A review of empirical research

PurposeEntrepreneurship and small businesses in Russia have been of academic interest for over 15 years. This paper seeks to bring together current knowledge concerning the phenomenon, and to suggest further directions for research.Design/methodology/approachThe study consists of a systematic review of 48 refereed empirical articles on entrepreneurship and small businesses in Russia.FindingsFrom the articles reviewed it appears that entrepreneurs in Russia use non‐material resources to overcome the financial and institutional obstacles, which still seem to afflict the market. However, theoretical and methodological issues are, in many cases, poorly reported and this undermines the scientifi…

Pricing of digital goods and services

Paper presented at 41st Information Systems Research Conference in Scandinavia (IRIS), Odense, Denmark. peerReviewed

Software-as-a-Service Revenue Models

This paper give an overview of the three main revenue models, focusing on the advantages and disadvantages for SaaS providers and their customers. Also identify the most effective revenue model for particular situations.

International activities of knowledge-intensive small- and medium-sized enterprises: The example of an open source software firm

Purpose: The purpose of this paper is to develop a framework that explains international activities of open source software (OSS) firms. Design/methodology/approach: This paper reviews relevant literature related to international operations of knowledge-intensive firms, especially in the software industry. Theoretical development is based here on a combination of the network approach, international new venture theory and inward–outward internationalization. Findings: The findings in this study suggest that the international activities of OSS firms can be divided into project activities and business activities. Project activities include inward and outward linkages, and partner identificatio…

Cloud Services Pricing Models

A major condition for commercial success is a well-defined pricing strategy, however, cloud service providers face many challenges around pricing. Clearness and transparency in pricing is beneficial for all the actors in the ecosystem, where the currently existing abundance of different pricing models makes decision making difficult for service providers, partners, customers and competitors. In this paper, the SBIFT pricing model is evaluated and updated to cloud context. As a result, a 7-dimensional cloud pricing framework is proposed that helps clarifying the possible pricing models in order to let companies differentiate themselves from competitors by price. The framework can be used als…

Cross-border IT-support for the Management of International Subsidiary Operations: The Diffusion of Innovations-based Conceptual Model

Rapid and effective internationalization has increasingly become important for high-tech companies. Establishing a foreign subsidiary can facilitate effective internationalization for a high-tech company. This study investigates how IT can provide cross-border support to manage international subsidiary operations and makes important theoretical contributions. The research results exhibit how companies can use cross-border IT-support to effectively share and utilize information from the target country environment for international subsidiary operations. This paper also introduces the diffusion of innovations-based conceptual model which deals with various factors that should be taken into ac…

The internationalization of family businesses: A review of extant research

Abstract Among family businesses (FBs) internationalization has become a strategy for growth, and sometimes even for survival. This review article presents an analysis conducted on 25 refereed journal articles on FB internationalization. The articles typically portrayed the internationalization of FBs as a sequential process following the Uppsala model of internationalization; by contrast, some FBs were regarded as “born-again” global firms. In methodological terms, most of the articles focused on what-questions rather than why/how-questions. The articles did not make much use of internationalization or FB-specific theories. Our study takes a step towards clarifying the following issues: (i…

Transition to Digital Distribution Platforms and Business Model Evolution

How do business models evolve when technology-based firms move from physical distribution channels to digital distribution platforms? This is an important question, since digitalization of distribution platforms provides new opportunities to expand the reach and customer base of technology-based firms. Based on an in-depth multi-case study of four Japanese high-tech firms, we seek to expand our understanding of digital transformation and business model literature. Our findings indicate that that through digital transformation, the case firms’ business models evolved toward more constant interaction with the market, in particular through digital platforms. This interaction includes growing a…

International Opportunity Recognition among Small and Medium-Sized Family Firms*

Current research in the field of entrepreneurship emphasizes the importance of opportunity recognition as a key element in the entrepreneurial process. It has been recognized that network ties, act...

Opportunity Discovery and Creation in Cloud Computing

Cloud computing provides opportunities for firms selling or using cloud services. However, little is known about how entrepreneurs discover or create these opportunities for cloud computing. In this study, we found that the opportunities discovered in cloud computing were related to the development of software for a particular need. By contrast, created opportunities were developed under conditions of technological uncertainty, at a time when the market did not yet exist. It appears that created opportunities, if successful, bring long-term competitive advantages, whereas discovered opportunities are more easily copied and exploited by competitors. peerReviewed

Network ties in the international opportunity recognition of family SMEs

Abstract The importance of network ties is emphasized in the current literature on opportunity recognition. However, it is unclear how firms with limited bridging networks, such as family SMEs, recognize international opportunities through their network ties. In this case study we found that in gaining foreign market entry, those family SMEs that lack existing network ties recognize opportunities through weak ties formed in international exhibitions. The findings also indicate that rather than being proactive, family SMEs respond reactively to opportunities that emerge coincidentally. The trustfulness of the tie is important when they consider these opportunities and form new ties for inter…

Small and New Venture Entry into Distant Foreign Markets

Paper presented at the 13th McGill International Entrepreneurship Conference, Montreal, Canada, September 16-18.2010. peerReviewed

Pricing of digital services as an effectual co-creative process

Entrepreneurs have to price their innovations under the unpredictability of customers’ reactions. While predictive pricing methods are prevalent in business-to-business pricing literature, we argue for the critical importance of control-oriented pricing strategies for digital services. By applying effectuation theory, our study investigates how entrepreneurs co-create their pricing strategies for their digital services as a co-evolutionary, iterative process with their customers. We found that pricing is the co-evolutionary process where entrepreneurs learn from their interactions with customers and use this knowledge to develop and improve their pricing practices further. The findings cont…

Value networks in cloud computing

PurposeThe purpose of this paper is to examine value networks in cloud computing. It demonstrates the kinds of value offered by such networks to firms within a given network, and considers how and why the network may change over time.Design/methodology/approachThe paper reports on a longitudinal case study, including a total of seven semi‐structured open‐ended interviews, conducted with five informants from the case firm.FindingsIt was found that cooperation in value networks provides not merely financial benefits, but also knowledge, among other intangible benefits. Value networks should be evaluated as a whole, since there may be indirect connections – i.e. the value comes not directly fr…

Contrasting Internationalization Paths of Product- and Service-oriented Software Firms

The internationalization of software firms has been widely researched topic over the last two decades. However, the most of the studies have treated software firms as a homogeneous group, ignoring the fact that software firms actually differ greatly in terms of having either a product or a service orientation. Based on earlier literature, we hypothesized that software product firms would show a tendency to internationalize earlier and at a smaller size than software service firms, and that product firms would show a greater tendency to target countries that are both geographically and culturally distant. In fact, we found no support for most of our hypotheses, with relatively strong and sta…

The pricing capability lifecycle of digital innovations

The pricing capability provides a basis for firms’ competitive advantage. However, to date, the literature has not investigated how this capability forms, develops, and matures. In this study, we define the pricing capability as a dynamic capability consisting of three operational building blocks (tools and data, human and relational resources, and processes, routines, and mechanisms) as well as two dynamic capability building blocks (alertness and responsiveness, and value-based strategic thinking). Furthermore, we propose the pricing capability lifecycle of digital innovations that incorporates insights of the dynamic capabilities view (DCV). Based on a longitudinal multi-case study of fi…

Evolution of Digital Innovations Based on Entrepreneurial Opportunities

Digital innovations evolve unpredictable as the characteristics of digital technology provide diverse opportunities for entrepreneurs. The flexible, malleable, and unbounded nature of digital technologies makes the evolution process unpredictable as entrepreneurs can rarely estimate beforehand how new digital technologies might impact the evolution process. It is also hard to predict how customers will react to the changes enabled by digital technologies. In this longitudinal case study, we were interested in different competitive moves that entrepreneurs apply to effectuate changes in the evolutionary pathway of digital innovations. Further, we were fascinated by how the evolution of digit…

Schemata, Acculturation, and Cognition : Expatriates in Japan's Software Industry

This multiple case based empirical study expands the knowledge around North American software and IT workers in Japan as well as the expatriate literature and discussion of cognitive schemata in cross cultural settings. The study includes eleven individuals, nine of them in software. Evidence of selection, rejection, and adjustment of cognitive schemata found in Japan's business world is presented. Changes in schemata drive cultural adjustment and acculturation. North American software and IT workers in Japan must maneuver through unfamiliar and often complex schemata to motivate, lead, manipulate, and communicate with coworkers and partners and thereby gain success.

Geographic, cultural, and psychic distance to foreign markets in the context of small and new ventures

Abstract More often than one might expect, small and new ventures, which already suffer from few resources and a lack of industry legitimacy, take on the additional uncertainties of entry into foreign markets. Some of these foreign entries involve countries that are geographically distant and culturally different from the firm's home country, making foreign market entry all the more difficult and uncertain. Recent studies have criticized prior academic approaches to understanding these difficulties. Insights may be limited if one uses merely the concept of distance and looks primarily for main effects. Entry by new and small ventures into distant foreign markets is complex, and the factors …

Cognitive Negotiation Schemata in the IT Industries of Japan and Finland

The existing literature emphasizes the importance of negotiation skills in the field of IT. However, negotiation and negotiation styles in the IT industry have received limited attention. This original empirical research compares the negotiation schemata of Finnish and Japanese IT business people. The study identifies negotiation schemata used in one or both culture groups. Negotiators with greater experience and power in the negotiation process command more schemata. However, neither population enjoys the full range of negotiation schemata. Business negotiators in or out of IT and these cultures may benefit from knowing the schemata and the results of matching and mismatching. peerReviewed

Discovering and creating business opportunities for cloud services

This study focuses on how the opportunities for cloud services are detected.The study develops a framework to detect and exploit cloud-based opportunities.This study incorporates entrepreneurship theories to extend and enrich IS research. Cloud computing provides new business opportunities for firms selling or using cloud services. However, little is known about how software firms detect and exploit these opportunities. Based on in-depth qualitative case studies, this study identified two different pathways followed by software firms when they detect and exploit opportunities. In the first pathway, the opportunity is based on an existing problem and need in the market. In the case firms, th…

Barriers and wellbeing-oriented enablers of intergenerational innovation in the digital age

AbstractSo far, researchers have used a wellbeing-centered approach to catalyze successful intergenerational collaboration (IGC) in innovative activities. However, due to the subject’s multidisciplinary nature, there is still a dearth of comprehensive research devoted to constructing the IGC system. Thus, the purpose of this study is to fill a research void by providing a conceptual framework for information technology (IT) system designers to use as a jumping-off point for designing an IGC system with a wellbeing-oriented design. A systematic literature study was conducted to identify relevant terms and develop a conceptual framework based on a review of 75 selected scientific papers. The …

Entry in a psychically distant market:

Summary This paper investigates the market entry and entry mode choice of eight small and medium-sized Finnish software firms in the Japanese market. The findings in this study reveal that, despite of the psychic distance between Finland and Japan, most of the firms entered Japan at a very early stage of their internationalization process by using direct entry modes. This was mainly due to the market size, sophisticated industry structure, and requirements for intensive cooperation with the customers during the sales process. The firms were able to overcome psychic distance by hiring local employees and western managers who already had working experience in the Japanese market. This finding…

Building trust in the sharing economy: Current approaches and future considerations

The sharing economy could be an answer to the challenge of sustainability; it can facilitate the sharing and reuse of resources, create new ways of earning money, and enhance social connections. For example, by reducing the use of natural resources without having to acquire or own everything, the sharing economy can positively affect sustainability. At the core of this type of economy lies trust among users and between users and the platform—the system cannot reach its full potential without trust. In fact, businesses or organizations in the sharing economy can even fail due to trust issues, although more information is needed to make better use of the existing platforms. The aim of this sy…

The building blocks of academic writing in the field of information systems

Internationalization pathways among family-owned SMEs

PurposeThe purpose of this paper is to increase understanding of the internationalization of family firms; to investigate how the framework by Bell et al. on the internationalization patterns of firms could explain the internationalization pathways taken by family‐owned small to medium‐sized enterprises (SMEs); and to identify typical patterns and features in the various pathways taken by family‐owned SMEs.Design/methodology/approachThis paper reports findings from an in‐depth multiple case study with eight Finnish family‐owned SMEs.FindingsThe ownership structure had the most important role in defining the internationalization pathways followed by the family‐owned SMEs: a fragmented owners…

Entrepreneurial Decision-Making Logic Related to Software Development in Different Growth Phases of INVs

Software-based innovations with global market-potential are the main product offering of digital-based International New Ventures, an emerging type of rapidly internationalizing firm. Despite increasing research attention on the internationalization phases of these firms, knowledge of how the characteristics of the firm’s software offerings change over time remains scarce. In this paper, we analyze how standardization, customization and localization evolve through the growth and commitment of International New Ventures in foreign markets. Specifically, we posit that an entrepreneurial decision-making logic based on a logic of effectuation or causation acts as a trigger mechanism for specifi…

Distance Factors in the Foreign Market Entry of Software SMEs

Recent studies have indicated that the internationalization process of software SMEs is somewhat independent on the effect of psychic or geographic distance. However, these studies have analyzed the general pattern of entries where software SMEs not commonly follow a step-wise entry route from nearby countries to distant ones. Thus, it remains unknown what the effect of psychic and geographical distance is when these firms enter a distant foreign market. The findings in this case study reveal that psychic and geographic distance inhibited the foreign market entry of software SMEs. However, the distant foreign market entry of these firms was facilitated by distance-bridging and distance-comp…

Entry in a Psychically Distant Market: Finnish Small and Medium-sized Software Firms in Japan

This paper investigates the market entry and entry mode choice of eight small and medium-sized Finnish software firms in the Japanese market. The findings in this study reveal that, despite of the psychic distance between Finland and Japan, most of the firms entered Japan at a very early stage of their internationalization process by using direct entry modes. This was mainly due to the market size, sophisticated industry structure, and requirements for intensive cooperation with the customers during the sales process. The firms were able to overcome psychic distance by hiring local employees and western managers who already had working experience in the Japanese market. This finding indicat…

Selection of the Proper Revenue and Pricing Model for SaaS

Recent research on software revenue and pricing models has revealed important ways in which firms can benefit from software renting. However, it is still unclear how SaaS providers select a proper revenue and pricing model to make their services attractive for customers. Based on 32 interviews with software professionals from four case firms, this study reveals how different factors impacted on the selection of a revenue and pricing model. It can be concluded that customers’ needs were the main driving force to the selection of the most appropriate pricing and revenue model in the market. peerReviewed

Internationalization of knowledge-intensive SMEs: The role of network relationships in the entry to a psychically distant market

Abstract Current research emphasizes the role of extant network relationships in the international development of small- and medium-sized enterprises (SMEs). Inevitably, these relationships are there, most likely, to provide linkages with and facilitate entry into psychically and geographically close markets. But what of firms entering psychically distant markets, for strategic reasons, as is usually the case with knowledge-intensive SMEs? Will existing network relationships remain important, and will they operate in a similar way. In this exploratory case study, in which eight Finnish software SMEs enter the Japanese market, the decision to enter these markets is found to be for strategic …

The internationalization of family businesses: A review of extant research

Among family businesses (FBs) internationalization has become a strategy for growth, and sometimes even for survival. This review article presents an analysis conducted on 25 refereed journal articles on FB internationalization. The articles typically portrayed the internationalization of FBs as a sequential process following the Uppsala model of internationalization; by contrast, some FBs were regarded as “born-again” global firms. In methodological terms, most of the articles focused on what-questions rather than why/how-questions. The articles did not make much use of internationalization or FB-specific theories. Our study takes a step towards clarifying the following issues: (i) the cur…