Arto Ojala | University of Vaasa (original) (raw)

Papers by Arto Ojala

People increasingly interact with services enabled by digital platforms. This has been a conseque... more People increasingly interact with services enabled by digital platforms. This has been a consequence of the digitalization of artifacts, which has transmuted traditional businesses into digital forms. With the increasing digitalization and modularization of services, digital platforms have given many digital service providers possibilities to scale globally, and to rapidly transcend national borders by serving multi-sided markets. However, we still know very little about how digital platform providers actually internationalize their services, or how they make their platforms available for global markets. In this paper, we contribute to the increasing literature on digital-based INVs, examining how firms of this type internationalize their services, and more specifically, how recent technological developments have shaped the firms’ internationalization processes. Drawing on concepts from the network approach to internationalization, resource dependency theory, and INV theory, we extend the scope of INV theory via a model that encompasses the internationalization process of digital platform providers. We report on a longitudinal case study of a digital platform provider (covering the period 2000–2017), which allowed us to gain in-depth insight into the INV phenomenon.

How are platforms built and how do they evolve? This is a salient question in digital ecosystems,... more How are platforms built and how do they evolve? This is a salient question in digital ecosystems, where the competition has moved from traditional one-sided business logics to multi-sided platforms. In this paper, we explore how a digital platform evolves when the organization of the multilayered platform architecture, and related control points, is modified through competitive moves. We also examine how a firm may be able to manage the increased complexity of the platform. We show that when technical and strategic bottlenecks are solved, the platform owner can expand control to strategically important layers of the platform stack. The findings indicate that the complexity of the platform increases through a series of competitive moves. However, complexity can be managed by increasing the standardization of the platform interfaces, and by jockeying for a stronger position in critical parts of the platform stack.

How does software complexity shape software providers’ offshoring tasks, and how do such firms or... more How does software complexity shape software providers’ offshoring tasks, and how do such firms organize their offshoring activity? These questions are important, since the global software development market is growing rapidly, offering new opportunities for software managers and entrepreneurs to distribute their activities geographically. Based on a multi-site case study of 12 software firms, we study connections between software complexity and the offshoring strategies selected. Our findings suggest that software firms select a variety of organizational structures for their offshoring activity, and that the selection is shaped by the complexity of the software in question.

The IT and software industries appear to be collaborative in projects in house and among organiza... more The IT and software industries appear to be collaborative in projects in house and among organizations as they plan and negotiate for mutual benefit. Yet individual negotiators do not always proceed with the same thought patterns or even with success. This article sheds some light on how skilled, aware negotiators can better match up their thinking to avoid communication and process failures. The research behind this article shows that those with greater decision making authority and experience have more ways of thinking about negotiation than others.

Technologies labelled as “disruptive” challenge conventional business procedures. The development... more Technologies labelled as “disruptive” challenge conventional business procedures. The development of 3D printing technology and additive manufacturing (AM) is expected to transform product design and manufacturing. 3D printing technology makes it possible to produce complex and unique physical products from digitally designed CAD models. It is estimated that the effects of 3D printing on business will be diverse and far-reaching. Hence, it is vital for business owners to observe how 3D printing may impact on business models and business networks, considering also the effects on stakeholders’ value propositions and on value creation. This paper reports on the potential impact of 3D printing technology on business models within the metal and machinery industries.

Current research emphasizes several factors impacting on SME internationalization. However, it re... more Current research emphasizes several factors impacting on SME internationalization. However, it remains unclear that how entrepreneurs in SMEs think and implement their internationalization and select target countries for foreign operations. In this qualitative case study, foreign market selection and entries of five Finnish software firms are analyzed by using the theory of causation and effectuation. The findings imply that software SMEs used more causation logic in their foreign market selection and effectuation logic in their foreign market entries. The case firms that followed causation logic in FMS entered more distant countries.

Based on a review of 63 case studies from the family business field, the authors emphasize the po... more Based on a review of 63 case studies from the family business field, the authors emphasize the potential of critical realist case studies for family business scholars. The review revealed that the positivistic case study introduced by Yin and Eisenhardt is the disciplinary convention of family business field. Since there are several events and mechanisms underspinning social phenomena, such as succession, they need to be both explanained. (erklären, matching the positivist view) and understood (verstehen, matching the constructivist/interpretive view) which is the staring point of critical realism (Bhaskar, 1998; Sayer, 1992). Hence critical realis ontology can be very fruitful for future studies. In a critical realist case study, the research question addresses a research phenomenon of interest, in terms of discernible events, and asks what causes them to happen (Easton, 2010). This matches FB research that studies events, mechanisms and processes in special.

This multiple case based empirical study expands the knowledge around North American software and... more This multiple case based empirical study expands the knowledge around North American software and IT workers in Japan as well as the expatriate literature and discussion of cognitive schemata in cross cultural settings. The study includes eleven individuals, nine of them in software. Evidence of selection, rejection, and adjustment of cognitive schemata found in Japan's business world is presented. Changes in schemata drive cultural adjustment and acculturation. North American software and IT workers in Japan must maneuver through unfamiliar and often complex schemata to motivate, lead, manipulate, and communicate with coworkers and partners and thereby gain success.

This paper investigates the impact of software firms’ business models to internationalization beh... more This paper investigates the impact of software firms’ business models to internationalization behavior by using a comparative case study. The selection of the firms for this study was based on their level of internationalization. The case firm Alpha had foreign operations only in the Nordic countries whereas the case firm Beta sold their product to many distant markets.
The findings, related to the general business model framework that was used, indicate that
there were very few differences between the firms’ business models. However, a more
detailed examination revealed that product regulations for the firms’ products were the major
distinctive factor that impacted the internationalization behavior of these firms.

Recent research has recognized cloud computing as a new paradigm of servitization in which softwa... more Recent research has recognized cloud computing as a new paradigm of servitization in which software products are offered based on service contracts. Thus, instead of selling software licenses, software vendors can rent software as a service to customers. However, it is still unclear how software providers can use software renting as a competitive strategy in the software market. Based on 37 interviews with software professionals from five case firms, this paper focuses on the connection between competitive forces and the factors influencing the selection of a pricing model. The findings indicate that servitization of the software offering makes it possible to adjust revenue and pricing strategies relative to market competition. Depending on the competitive situation in the market, firms apply mixed revenue models, or else a hybrid pricing mechanism, to protect their business against rivalry and substitutes. The software renting model has several advantages which significantly help software vendors to expand their business opportunities. However, in some cases, powerful customers are able to limit the revenue and pricing options. The findings also indicate that software renting is related to cost leadership and differentiation strategies, whereas software licensing is linked to a focus strategy.

The existing literature emphasizes the importance of negotiation skills in the field of IT. Howev... more The existing literature emphasizes the importance of negotiation skills in the field of IT. However, negotiation and negotiation styles in the IT industry have received limited attention. This original empirical research compares the negotiation schemata of Finnish and Japanese IT business people. The study identifies negotiation schemata used in one or both culture groups. Negotiators with greater experience and power in the negotiation process command more schemata. However, neither population enjoys the full range of negotiation schemata. Business negotiators in or out of IT and these cultures may benefit from knowing the schemata and the results of matching and mismatching.

Cloud computing provides new business opportunities for firms selling or using cloud services. Ho... more Cloud computing provides new business opportunities for firms selling or using cloud services. However, little is known about how software firms detect and exploit these opportunities. Based on in-depth qualitative case studies, this study identified two different pathways followed by software firms when they detect and exploit opportunities. In the first pathway, the opportunity is based on an existing problem and need in the market. In the case firms, the opportunity was exploited by adapting the software to the cloud environment. In the second pathway, the opportunity arises from the founders’ prior knowledge and imagination, in the absence of any existing problem or need in the market. In this case, the opportunity was exploited through the features offered by cloud computing. This research contributes to Information Systems (IS) literature by incorporating relevant entrepreneurship theories in such a way as to enrich and extend IS research.

Purpose: The purpose of this study is to examine the decision-making process for entrepreneurial ... more Purpose: The purpose of this study is to examine the decision-making process for entrepreneurial firms when entering foreign markets and how and why they entered those markets.

Design/methodology/approach: We combine a nascent theory in entrepreneurship called effectuation with internationalization process theory as the conceptual framework to study decision-making under uncertainty. The central concept in both these theories is relationships and how they can be used to gain knowledge and thus reduce uncertainty and in the case of effectuation to co-create opportunities to enter foreign markets. The research design involves a multiple case study of software firms from Finland and New Zealand.

Findings: We found that entrepreneurs differentiate between foreign market selection and foreign market entry during their internationalization process, potentially using different decision-making processes in them. They tend to interweave effectuation and causation logics as substitutes in their decision-making. Uncertainty during foreign market entry is not always a barrier because it can provide opportunities depending on the logic used. In addition, we have evidence that entrepreneurs who have existing relationships in foreign markets tend to use effectuation to select and enter foreign markets.

Originality/value: This paper transposes effectuation from its original field of entrepreneurship research to the context of internationalizing entrepreneurial firms. Consequently, it contributes towards understanding the decision-making process for selecting and entering foreign markets.

The development of additive manufacturing (AM) technology is expected to transform product design... more The development of additive manufacturing (AM) technology is expected to transform product design and manufacturing. It is predicted that the effects of AM on business will be diverse and extensive. It will be critical for business owners to observe how AM impacts on conventional supply chains and business networks, plus the effects on customers’ value propositions and on value creation. Value creation and value capture are concepts strongly linked to business relations and to stakeholder management. However, the concept of value is inherently complex and multifaceted, and so are the structures within which value potential exists in business networks and business environments. The critical issue for business managers is to identify where and how value is created in business relations. In this study, the primary purpose was to observe how AM technology impacts on company value creation within complex business relations.

How can entrepreneurs develop business models for markets in which the technology is constantly c... more How can entrepreneurs develop business models for markets in which the technology is constantly changing – or create business models for markets that do not exist? These are fundamental questions for information technology (IT) entrepreneurs, and for information systems (IS) scholars who seek to develop a theoretical understanding of business models. The case study presented in this paper addressed these questions, demonstrating how a small software firm developed its business model over a 15-year period in cloud gaming markets. Based on the empirical findings, a preliminary theoretical model is presented. The aim of the model is to increase scholarly understanding of how business models are created and developed in markets in which the future directions of a technology are uncertain. It demonstrates the ways in which a business model may evolve through reassessment and development phases, which can be seen as transition elements linking old and new business models.

More often than one might expect, small and new ventures, which already suffer from few resources... more More often than one might expect, small and new ventures, which already suffer from few resources and a lack of industry legitimacy, take on the additional uncertainties of entry into foreign markets. Some of these foreign entries involve countries that are geographically distant and culturally different from the firm’s home country, making foreign market entry all the more difficult and uncertain. Recent studies have criticized prior academic approaches to understanding these difficulties. Insights may be limited if one uses merely the concept of distance and looks primarily for main effects. Entry by new and small ventures into distant foreign markets is complex, and the factors influencing it are interactive. The aim of this conceptual paper is to contribute to an understanding of the stability of the distance factors, and also the interactive effects between distance factors, market attractiveness, and network relationships, with particular attention to small and new ventures.

Recent research on software revenue and pricing models has revealed important ways in which firms... more Recent research on software revenue and pricing models has revealed important ways in which firms can benefit from software renting. However, it is still unclear how SaaS providers select a proper revenue and pricing model to make their services attractive for customers. Based on 32 interviews with software professionals from four case firms, this study reveals how different factors impacted on the selection of a revenue and pricing model. It can be concluded that customers’ needs were the main driving force to the selection of the most appropriate pricing and revenue model in the market.

In the new era of computing, SaaS software with different architectural characteristics might be ... more In the new era of computing, SaaS software with different architectural characteristics might be priced in different ways. Even though both pricing and architectural characteristics are responsible for the success of the offering; the relationship between architectural and pricing characteristics has not been studied before. The present study fills this gap by employing a multi-case research. The findings accentuate that flexible and well-designed architecture enables different pricing models; however, poorly designed architecture limits also the pricing. Scalability and high level of modularity are the major enablers of a great variety of pricing models. Using public cloud services may lead to introducing usage-based pricing or in the contrary, making the pricing simpler. Applying multi-tenancy lowers the customizability, consequently the customers’ negotiation power decreases. Pricing may give special requirements to the architectural design, such as scalability, customizability and additional components.

Hawaii International Conference on System Science, 2014

Current research on cloud computing emphasizes the important role of Platform-as-a-Service (PaaS... more Current research on cloud computing emphasizes the
important role of Platform-as-a-Service (PaaS)
providers. However, little is known about how PaaS
providers can offer value to the content providers
and firms operating the platform. The findings
demonstrate how a small PaaS provider in the cloud
gaming market was able to develop a strong position
in the value network by offering direct and indirect
value to its partners. The findings also reveal how
the firm developed its value network over fourteen
years, from a complex network with several actors to
a very simple value network which included only
partners of prime importance.

Hawaii International Conference on System Science, 2014