Jyri Hietala, Riitta Hänninen, Matleena Kniivilä, Anne Toppinen. (2019). Networks in international opportunity recognition among Finnish wood product industry SMEs. Silva Fennica vol. 53 no. 4 article id 10151. https://doi.org/10.14214/sf.10151

Keywords: wood products; business networks; institutional networks; internationalization; opportunity recognition; social networks

Highlights: In line with earlier literature, we found the networks in our study to positively impact international opportunity recognition; Despite the reliance on various network forms and levels, a strategic stance towards opportunity recognition can be characterized as being more reactive than proactive; Institutional networks represented a more systematic way of recognizing international opportunities among case companies.

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Bioeconomy development will create new opportunities for firms operating in the international wood products markets, and identifying and exploiting these opportunities is emphasized as a key concept to achieving business success. Our study will attempt to address a gap in the literature on sawmill industry business development from the viewpoint of international opportunity recognition. The aim of our study is to provide a holistic description on how small and medium-sized enterprises (SMEs) in the wood products industry recognize and exploit international business opportunities, and how they utilize network perspectives in this context. The subject was examined through Finnish wood product industry SMEs by interviewing 11 managers and industry representatives. The results suggest that SMEs recognize international opportunities reactively per se. Social networks formed in professional forums were an important information channel for identifying international opportunities. Through vertical business networks, such as sales agents, firms have been able to increase their international market presence and free their own resources for other important activities. Horizontal dyadic business networks were seen to facilitate new international opportunities through cooperation, while excessive reliance on vertical networks raised concerns and seemed not to be effective in international opportunity recognition. Institutional networks formed a systematic way of recognizing international opportunities, but more so at the initial market entry stage.

Hietala, United Bankers, Aleksanterinkatu 21 A, FI-00100 Helsinki, Finland E-mail: jyri.hietala@unitedbankers.fi
Hänninen, Natural Resources Institute Finland (Luke), Bioeconomy and environment, Latokartanonkaari 9, FI-00790 Helsinki, Finland E-mail: riitta.hanninen@luke.fi
Kniivilä, Natural Resources Institute Finland (Luke), Bioeconomy and environment, Latokartanonkaari 9, FI-00790 Helsinki, Finland E-mail: matleena.kniivila@luke.fi
Toppinen, University of Helsinki, Helsinki Institute of Sustainability Science, Latokartanonkaari 7, P.O. 27, FI-00014 University of Helsinki, Finland E-mail: anne.toppinen@helsinki.fi

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