A Strategic Roadmap for Finnish SMEs Entering the Chinese Market
Heinonen, Elias (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025052817494
https://urn.fi/URN:NBN:fi:amk-2025052817494
Tiivistelmä
This thesis explored the various factors affecting the strategic decision-making of Finnish SMEs during the market entry process to China. The research scope was limited to the general strate- gic and operative planning approaches to entering the Chinese markets for Finnish SMEs oper- ating in the B2B sector.
The primary objective of the study was to determine the optimal approach for developing and implementing a market entry strategy to the Chinese markets for Finnish SMEs. The primary ob- jective was accomplished by investigating the factors contributing to the selection of entry modes and positioning strategy, the main obstacles in the Chinese market, and identifying the most valuable supporting networks and resources available for Finnish SMEs during market en- try, as secondary objectives.
The theoretical framework followed a structure that attended directly to the secondary objectives of the thesis. The theoretical framework consisted of a chapter on market entry to China for Finnish SMEs and a chapter on the restrictive factors in the Chinese Market. The first chapter examined market entry to China for Finnish SMEs in the light of the Uppsala model internation- alization theory and various literature on foreign market entry modes, positioning strategies, segmentation of the Chinese market, and Finnish market entry facilitator organizations in China. The second chapter of the theoretical framework evolved around the restrictive factors of the Chinese market, implementing institutional theory, cultural dimensions theory, and identifying the regulatory and cultural barriers of the Chinese business climate.
The thesis employed qualitative research methods. The data collection process consisted of two semi-structured interviews that involved a representative from a Finnish SME and a representa- tive of a Finnish market entry facilitator organization based in China. The interviews took place in April and May 2025. The collected data was analyzed through the implementation of thematic data analysis methods that followed a six-phase model.
The key findings of the thesis imply that the strategic planning of market entry to China for Finn- ish SMEs should implement a gradual approach, which focuses initiating the process with exter- nal entry modes and transitioning to intermediate and internal modes in the later stages to es- tablish maximized organizational capacity and operative control in the long term. The suggested approach composed in the thesis advocates conducting comprehensive market research, pro- active planning, utilization of soft-landing platforms, and targeting niche markets relevant to the economic development initiatives of China.
Future research should implement industry specific demarcations and examine the strategic im- plications of Chinese consumer behavior on Finnish SMEs entering the Chinese markets in the B2C sectors.
The primary objective of the study was to determine the optimal approach for developing and implementing a market entry strategy to the Chinese markets for Finnish SMEs. The primary ob- jective was accomplished by investigating the factors contributing to the selection of entry modes and positioning strategy, the main obstacles in the Chinese market, and identifying the most valuable supporting networks and resources available for Finnish SMEs during market en- try, as secondary objectives.
The theoretical framework followed a structure that attended directly to the secondary objectives of the thesis. The theoretical framework consisted of a chapter on market entry to China for Finnish SMEs and a chapter on the restrictive factors in the Chinese Market. The first chapter examined market entry to China for Finnish SMEs in the light of the Uppsala model internation- alization theory and various literature on foreign market entry modes, positioning strategies, segmentation of the Chinese market, and Finnish market entry facilitator organizations in China. The second chapter of the theoretical framework evolved around the restrictive factors of the Chinese market, implementing institutional theory, cultural dimensions theory, and identifying the regulatory and cultural barriers of the Chinese business climate.
The thesis employed qualitative research methods. The data collection process consisted of two semi-structured interviews that involved a representative from a Finnish SME and a representa- tive of a Finnish market entry facilitator organization based in China. The interviews took place in April and May 2025. The collected data was analyzed through the implementation of thematic data analysis methods that followed a six-phase model.
The key findings of the thesis imply that the strategic planning of market entry to China for Finn- ish SMEs should implement a gradual approach, which focuses initiating the process with exter- nal entry modes and transitioning to intermediate and internal modes in the later stages to es- tablish maximized organizational capacity and operative control in the long term. The suggested approach composed in the thesis advocates conducting comprehensive market research, pro- active planning, utilization of soft-landing platforms, and targeting niche markets relevant to the economic development initiatives of China.
Future research should implement industry specific demarcations and examine the strategic im- plications of Chinese consumer behavior on Finnish SMEs entering the Chinese markets in the B2C sectors.