In today’s fast-changing business landscape, innovation is more than just a buzzword—it’s a necessity. Companies that innovate successfully gain a competitive edge, attract global customers, and drive economic growth. But innovation doesn’t happen in isolation, and when businesses expand internationally, they face new challenges in adapting their innovation strategies to different cultural and institutional environments.
My research explores the intersection of innovation and internationalization, with a special focus on how Finnish companies—especially those in the platform economy—can enhance their global competitiveness. By comparing innovation-enhancing practices across different national contexts, I aim to uncover what works best for Finnish firms looking to expand internationally.
Why Innovation Matters More Than Ever
A global survey of over 1,300 CEOs across 79 countries found that innovation is the top priority for business leaders worldwide. However, what makes innovation effective in one country may not work in another. Cultural norms, regulatory frameworks, and digital infrastructures all shape how businesses create and implement new ideas. Understanding these differences is crucial for Finnish companies aiming to scale their business beyond national borders.
The rise of remote work has further transformed how organizations operate. With employees collaborating across different locations and time zones, businesses need to foster creativity in virtual environments and establish processes that support seamless innovation. This shift is particularly significant for Finland, where its advanced digital infrastructure and tech-savvy workforce offer a strong foundation for building effective virtual environments—making it a key focus for Finnish companies aiming to succeed globally.
The Power of Platform Economy for Finnish Firms
The platform economy—where digital platforms facilitate interactions between businesses, consumers, and developers—has become a major driver of international expansion. Companies like Airbnb and Spotify have successfully leveraged platform models to connect with global audiences, streamline operations, and create new revenue streams. However, despite Finland’s strong position in digitalization, many companies are still in the early stages of fully embracing platform-based global expansion.
My research investigates how Finnish firms can build and scale platform businesses internationally, identifying key capabilities, partnerships, and strategies that drive success. A 2022 survey by Finland’s Ministry of Economic Affairs and Employment highlights that while platform business models are growing in the country, they have yet to reach their full global potential. Many established firms still struggle with adopting collaborative innovation within these ecosystems.
Unlocking Finland’s Global Potential
To stay competitive, Finnish companies must:
- Adopt innovation-enhancing practices that are adaptable across different markets.
- Foster work environments that support collaboration and creativity, especially in remote settings.
- Build robust digital ecosystems that drive value creation and support global expansion.
My research bridges the gap between innovation and internationalization, offering actionable insights to guide Finnish companies through global expansion. I conduct comparative studies across Finland, Sweden, and China to identify innovative practices Finnish firms can adopt. I also explore how to create work environments that enhance remote innovation and examine how Finnish companies build and internationalize digital ecosystems. Ultimately, my work aims to unlock the full potential of innovation, strengthening Finland’s position in the platform economy.
PhD Xiaoshi Kinnunen is Postdoctoral Researcher at Aalto University School of Business. In the grant round 2024 she received €15,000 for her project ”Advancing Finnish Expertise in Platform Business and Innovation: Internationalization and Organizational Capability Development.” Kinnunen’s research is a thematic special project of the Foundation for Economic Education in the focus area Business Renewal.