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
International Business
Kansainvälinen liiketoiminta
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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.
service, value chain, value added, distribution of value added, value capture, language industry
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