dissertation in pdf-format - Aalto-yliopisto

422 M. Virtanen and T. Heimonen
the entrepreneurs described their relationships with their main customers and their
reputation regarding professionalism and timely deliveries.
Even if the case firms have different customer orientation and focus, they emphasised
the importance of the recognition of customer needs and listening to customers. This
finding is in line with Barringer et al. (2005) who proposed customer knowledge as
one new variable for business practices. Sales organisation and distribution channels in
international markets were suggested to be of major importance, similarly as in
Chetty and Campbell-Hunt (2003). Resource-based view and direct impact of resources
was evident in BP Asennus Oy where subcontracting is the main business.
4.5 Firm’s strategic choices and growth strategies
When we analysed the development of the case firms, we identified certain critical events
which had a large impact on the firms’ performance. In Blancco Oy Ltd. the critical event
was the disagreement over the focus of the firm. The other owner wanted to have a wide
selection of software products whereas the current CEO Kim Väisänen required the firm
to focus on data erasure only. “My ex-partner would have liked to continue with several
product lines. I wanted to concentrate on data erasure. We had several consultants
who supported my view on concentration”. This development follows with Greiner’s
(1972, 1998) arguments: “in the first entrepreneurial phase, the professional service firm
pursues and tests the variety of market paths. The phase ends with the partners arguing
about whether or not to stay together to concentrate on one partner’s vision for the
future”.
From the perspective of the current owners of BP Asennus Oy bankruptcy of the
IT-business was a critical event which led to the acquisition of BP Asennus Oy. In
Mipro Oy, the change of ownership at the end of the 1990s could be seen as a critical
event. The strategy was changed from sales and agency efforts to focusing on the projects
in the two niche markets, infrastructure of waterworks and safety systems in railways.
“The other owner who was mainly responsible for sales of appliances was bought out and
we started to focus strictly on the projects where we took the holistic responsibility”.
The change of location from Nurmes to Joensuu was a critical event in the activity of
Mummon Turva Oy. This change caused a hiccup in sales in 2005.
“It had started already in 2004 when I ceased to work the night shift. That
caused displeasure among employees who said that he does not really sing for
his supper. As long as I acted as a friend-manager the company was fair but
after I began to behave as a professional leader things became more
complicated. They said that you do not know anything about this work even
though I had more than ten years’ experience of ordinary work.”
The death of the lead entrepreneur Pentti Häikiö was a critical event in Pentin Paja Oy.
The successors had to consider the continuation of the business. After the recession the
financial situation was difficult but the firm had good innovative products and more than
one million Finnish marks ($200,000) in orders.
“When father died in February 1996, we had to decide what to do. I had been
educated as an anaesthesia nurse during the recession but decided to continue
father’s work because we had a full order book. In the small village we had to
retain our reputation and thus we settled the debts of the firm.”