Finnish Companies' Business Operations in the Baltic Sea Region: Locational Sources of Firm-Specific Competitiveness

Lindstroem, M. (2002). Finnish Companies' Business Operations in the Baltic Sea Region: Locational Sources of Firm-Specific Competitiveness. IIASA Interim Report. IIASA, Laxenburg, Austria: IR-02-075

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Abstract

The paper analyzes the locational sources of firm-specific competitive advantages of Finnish companies in the Baltic Sea region. Views of managers responsible for foreign operations in 100 Finnish companies form the base of the study organized in systematic way in the framework of a survey and interviews conducted in Finland in the Spring of 2002. The analysis of the survey data is implemented via statistical analysis.

Evidence was found for the claim that a major part of the Finnish companies' created assets, especially technological ones, are of home country origin. Nevertheless, certain other sources of competitiveness, such as consumer demand for upgraded product quality; inter-firm competition; and links with companies operating in the same industry are originating to a significant extent in other Baltic Rim countries, especially EU member countries.

It was also found that technology intensity and the degree of transnationality of the companies are company characteristics that explain to what extent companies are taking advantage of foreign sources of competitiveness.

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