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Distribution of value added in a global service production; The case of a Finnish service provider
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School of Business |
Master's thesis
Ask about the availability of the thesis by sending email to the Aalto University Learning Centre oppimiskeskus@aalto.fi
Authors
Serbessa, Tsegahun
Date
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Mcode
Degree programme
Language
en
Pages
119
Series
Abstract
ABSTRACT
The objective of the research is to show the role of Finnish companies in the global value
chain. One intention is to map out the Case Company translation and localization service
value chain and show all the participants involved in the creation of value added. Another
intention is to show how value added is distributed among the value chain participants as
well as geographically. Furthermore it also analyzes the governance relationship between
the lead firm and the rest of the value chain members.
The theoretical framework was based on Global Value Chain (GVC) analysis tailored to the
unique characteristics of services. Theory of GVC analysis was chosen because it provides
a suitable framework to analyze the structure and dynamics of global industries. The
research is a micro-level representation of the GVC analysis. Moreover the focus was
mainly on three dimensions of GVC analysis; input output structure, geographical analysis
and governance.
The research was carried out in a case study format. The analytical approach was a mixed
research method where both qualitative and quantitative data were gathered. The main
sources of information were the multiple interviews conducted with the Case Company
representative. Moreover public offices and other databases are used to collect the
necessary data.
The findings revealed that the Case Company, Sanoma Group, Elisa, Across and Freelance
translators take part in the creation of value added. The result also indicated that the Case
Company captures significantly higher proportion of the value added created followed by
the freelance translators. Furthermore Finland captures the utmost share of value added
created from the Case Company translation and localization service.
In conclusion the research showed contribution of the Case Company to the Finnish
economy using service GVC analysis framework.