The Role of the Characteristics of the CEO in the Internationalization of SMEs : Evidence from Finland

Abstract

This bachelor’s thesis explores the role of the characteristics of the CEO in the internationalization of Finnish SMEs. The study was approached by addressing three primary research questions focusing on the networking capabilities, age, and soft skills of the CEOs. The research referred to various theoretical frameworks, such as the Traditional Internationalization Theory, the Network Theory, the International Entrepreneurship Theory, the Modern Approach Theory, and the Human Capital Theory, to provide a nuanced understanding of the phenomena under investigation. A qualitative approach was utilized and the data was collected through semi-structured interviews with five CEOs of Finnish SMEs. The key findings highlight the crucial influence of CEO characteristics on the successful expansion of Finnish SMEs into foreign markets. Factors such as networking, age, soft skills, and higher education were identified as significantly impacting this process. Additionally, this study identified further relevant CEO attributes that were particularly significant for the interviewed participants. These include the capacity for visionary leadership, the demonstration of patience and humility, a commitment to continuous learning, negotiation abilities, reflective capacities, openness to support while maintaining consideration for others, a strong work ethic and perseverance, proficiency in the English language, and the ability to effectively interpret nonverbal communication. The findings of this research provide a foundation for future research in this area, including exploring specific regional contexts within Finland, examining different industries, and micro-SMEs, or investigating the influence of gender and generational differences among CEOs. Additionally, the results emphasize the need to develop suitable initiatives to cultivate the essential skills that leaders should possess for effective international expansion.