Strategic investment motives into Finland Case: Austria

Abstract

STRATEGIC INVESTMENT MOTIVES INTO FINLAND Case; Austria Objectives of research The main purpose of this research is to explain the strategic investment motives of Austrian companies when making direct investments into Finland. Typically such investing motives are market, resource, efficiency or risk-reduction seeking motives. The secondary purpose of this study is to examine whether the investments from Austria were done into a Finnish cluster industry. Also identifying the linkage between investment motives and whether the investment was done into a cluster industry. Methodology This research is a qualitative study with purposive sample. It aims to explain the investment motives and reasons for investments from Austria into Finland. Structured interviews and questionnaires were used to gather data from the pre-determined sample. Eight of the thirteen Austrian companies that operate in Finland were reached when composing this thesis. In three of the eight companies interviews were conducted with a representative from the Austrian parent company and in the remaining five with the CEO’s of a Finnish subsidiary. Findings The main findings of this thesis suggest that clearly the dominant part of the Austrian companies who invest into Finland, invest due to market seeking reasons. The second most likely investment motive was resource-seeking motives, followed by efficiency seeking motives. The least important motive was risk-reduction seeking motive. In eight out of ten investments looked into in this thesis it has been invested into an industry sector what is defined as a cluster industry in Finland. However only in three cases the company felt that they belong to a cluster. In the remaining cases the investments were simply done in the same industry what are defined as cluster industries in Finland.