International Circular Business Model Innovations for accelerated internationalization

The project seeks to examine how Finnish manufacturing SMEs and mittelstand firms can with scarce resources enter and operate in diverse foreign markets by implementing Circular Business Model Innovations (CBMIs) so that it is also economically viable. The findings of the study can then respond to several challenges the companies face. Because of the small domestic market, in order to grow, many Finnish manufacturing SMEs, which are either engaged in or moving towards circularity, need to accelerate their internationalization into foreign markets. However, this is challenging because implementing the same circular value chain activities in foreign markets as in Finland may not be feasible due to local market differences. These local variations may require adaptations to firm's CBMIs. However, their design and adaptation to different foreign markets requires substantial knowledge and resources, as they impact the entire value chain. Given scarce resources, adapting CBMIs to dozens or even hundreds of individual country markets is highly challenging; therefore, more efficient approaches are needed, based on external ecosystem or internal platform design.  The research group from the University Vaasa together with international collaborators will utilize qualitative data collection techniques and quantitative survey data on Finnish internationalizing firms. The resulting findings generate new knowledge that will assist Finnish manufacturing SMEs and mittelstand firms in accelerating their internationalization by applying these insights to their international business strategies and at the same time contributing for sustainable development.