IDEA PAPER

Introduction (DRAFT)
Globalization has been for a while the driving force influencing organizations to operate
internationally. These organizations have been motivated by different needs such as finding new
markets or different supply alternatives (Wood and Wilberger, 2015). However, this recent trend has
its roots in the slower economic growth of the so called first world countries. (Sheth and Sisodia,
2006).
The emergence of new global players such as Brazil, Russia, India and China has shifted the
business focus from these saturated markets. (ONeill, 2001; ScottKennel and Salmi, 2008) This
change has brought new challenges to managers willing to negotiate effectively with such distinct
cultures. The efficient communication between international organizations has become crucial for
successful negotiations (Imai and Gelfand, 2010).
The need of professionals equipped with intercultural communication skills has led to many
managers being sent abroad in order to gain international experience (Suutari and Burch, 2001).
Nonetheless, cross-cultural training and international experience does not necessarily lead to crosscultural adaptation (Harrison and Michailova, 2012).
Some companies that have realized the shortage of skilled workers in the field of cross-cultural
communication have opted to hire foreign employees to establish a channel of communication and
fill the gap. According to Mller et al. (2011), the hiring of a foreign expert increases the export
activities of organizations and has a deep impact on the productivity and profitability of the firm.
This might explain why some countries even subsidies immigrants with high qualifications as is the
case of Denmark, Italy, Spain, Sweden and The Netherlands (Mller et al, 2011).
For this reason, it is beneficial for companies to become aware of their global market potential
through the hiring of foreign workers. Despite the importance of determining the benefits of hiring
foreign workers there is the question of understanding how to fully maximize their skills for the
companys benefit.
In addition, no previous study has been made to determine the motives and benefits of hiring
foreign employees and what are the benefits and challenges for doing so.

Aims of the research

The purpose of this research is to examine a number of Finnish companies that have hired foreign
employees (self-initiated expatriates) for either to open new markets abroad or to improve their
communication with established international customers or partners. Analysis will be made on the
perspective of Finnish managers and foreign employees on the benefits and challenges of their
relationship. Focus will be given to the cross-cultural barriers present on their daily activities. This
study also presents characteristics of the Finnish culture through the professional perspective.

The main research question of this study is:

What are the benefits and challenges of hiring a foreign employee?

The sub research questions are the following:

How to improve the communication between Finnish managers and foreign employees?
What managers can do to maximize the performance of their foreign employees?

Approach and limitations of the research

The research will be performed utilizing data from interviews of Finnish managers and foreign
employees. Only foreign employees that are characterized as highly skilled self-initiated expatriates
are going to take part in this study. The data was collected utilizing qualitative methods in the cities
of Joensuu and Helsinki.

Limitation: Permanent foreign employees/working with international sales/self-initiated

expatriates/Highly skilled (University degree or extensive experience in a given field)

Possible key words:

Self-initiated expatriate/ Cross-cultural relationships/ Supervisor and subordinate/ Culture/
International mobility/ skilled migration /International careers/ Communication practices/ Business
relationship/ multicultural organization.

Possible title for the thesis:

Managing foreign employees in Finland: benefits and challenges
Barriers of cross-cultural communication in Finnish firms: self-initiated expatriates and local
managers
Adaptation of Finnish companies to the international market: hiring and managing foreign
employees
Globalization of Finnish organizations: perspectives of managers and foreign employees

Possible questions:
Why Finnish companies hire foreign employees for international sales? Why not a Finnish
employee with language skills?
What are the benefits/advantages of hiring a foreign employee? What are the challenges?
What are the cross-cultural barriers faced by Finnish managers? (With foreign employees and with
foreign partners)
How to improve the relationship between Finnish managers and foreign employees?
How foreign employees can be seen as added value to Finnish products?
How a foreign employee can adapt/adjust a Finnish product to foreign customers?
What are the innovations and adaptations provided by foreign employees?

Personal views for the idea paper

The topic is important to explore for the following reasons:
1. Globalization: Nowadays there is a huge amount of people moving to other countries
thanks to the easiness of transport (it became cheaper to travel), which has brought us the
perception that the world has become smaller. Politico-economic unions such as the
European Union or the Mercosur have promoted the free movement of people across
different states and the establishment of a common market which has promoted the free
movement of goods. Thus, Finland needs to be aware of its potential to be amongst the
global players.
2. BRICS: The economic stagnation of the first world countries has shifted the global
economic power away from the developed G7 economies towards the developing world,
mainly the BRICS.
3. Intercultural skills: According to some studies, it is very difficult for companies to find
employees well skilled in intercultural communication, cross-cultural competence and
cultural intelligence. I would dare to say that in case of Finland it would be even harder due
to its geographical location (not easy to interact with Central and Southern Europe) and its
late opening to the hiring of foreign workers. Besides, Finnish people are not well known for
being the best communicators of the world (http://finland.fi/life-society/a-guide-to-finnishcustoms-and-manners/).
4. Finnish potential: I believe that Finland has a huge potential to be explored in the context
of international business. The Finnish brand is seen as reliable, high quality and efficient by
other nations. With such potential, companies need to invest more in the hiring of highly
skilled foreign workers capable of opening new markets and give an extra advantage to
Finnish products over the competition.
5. Foreign people: Currently Finland has a considerable number of residents of foreign origin
(migrants). These migrants could turn out to be potential candidates for the
internationalization process of local companies, including SMEs. Apart from them,
international universities have large numbers of foreign skilled students equipped with
business/language skills eager to start their professional life in the field of international
business.

6. Cross-cultural management: From my personal experience I could experience the

challenges to effectively communicate with foreign managers. It is extremely important for
organizations to realize the potential of their foreign employees. It is necessary that both
managers and employees establish an effective communication channel where they can
bring together their expertise and maximize their skills.

Possible information to be added:

I will probably have to add Hofstede

What about Finland?

If we explore the Finnish culture through the lens of the 6-D Model, we can get a good overview of the
deep drivers of Finnish culture relative to other world cultures.
Power Distance

This dimension deals with the fact that all individuals in societies are not equal it expresses the
attitude of the culture towards these inequalities amongst us. Power Distance is defined as the extent
to which the less powerful members of institutions and organizations within a country expect
and accept that power is distributed unequally.
Finland scores low on this dimension (score of 33) which means that the following characterizes the
Finnish style: Being independent, hierarchy for convenience only, equal rights, superiors accessible,
coaching leader, management facilitates and empowers. Power is decentralized and managers count
on the experience of their team members. Employees expect to be consulted. Control is disliked and
attitude towards managers are informal and on first name basis. Communication is direct and
participative.
Individualism

The fundamental issue addressed by this dimension is the degree of interdependence a society
maintains among its members. It has to do with whether peoples self-image is defined in terms of I
or We. In Individualist societies people are supposed to look after themselves and their direct family
only. In Collectivist societys people belong to in groups that take care of them in exchange for loyalty.
Finland, with a score of 63 is an Individualist society. This means there is a high preference for a
loosely-knit social framework in which individuals are expected to take care of themselves and their
immediate families only. In Individualist societies offence causes guilt and a loss of self-esteem, the
employer/employee relationship is a contract based on mutual advantage, hiring and promotion
decisions are supposed to be based on merit only, management is the management of individuals.
Masculinity

A high score (Masculine) on this dimension indicates that the society will be driven by competition,
achievement and success, with success being defined by the winner/best in field a value system that
starts in school and continues throughout organizational life.
A low score (Feminine) on the dimension means that the dominant values in society are caring for
others and quality of life. A Feminine society is one where quality of life is the sign of success and
standing out from the crowd is not admirable. The fundamental issue here is what motivates people,
wanting to be the best (Masculine) or liking what you do (Feminine).
Finland scores 26 on this dimension and is thus considered a Feminine society. In Feminine countries
the focus is on working in order to live, managers strive for consensus, people value equality, solidarity
and quality in their working lives. Conflicts are resolved by compromise and negotiation. Incentives such
as free time and flexibility are favored. Focus is on well-being, status is not shown. An effective manager
is a supportive one, and decision making is achieved through involvement.

Uncertainty Avoidance

The dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the
future can never be known: should we try to control the future or just let it happen? This ambiguity
brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways. The
extent to which the members of a culture feel threatened by ambiguous or unknown situations
and have created beliefs and institutions that try to avoid these is reflected in the score on
Uncertainty Avoidance.

Finland scores 59 on this dimension and thus has a high preference for avoiding uncertainty. Countries
exhibiting high Uncertainty Avoidance maintain rigid codes of belief and behavior and are intolerant of
unorthodox behavior and ideas. In these cultures there is an emotional need for rules (even if the rules
never seem to work), time is money, people have an inner urge to be busy and work hard, precision and
punctuality are the norm, innovation may be resisted and security is an important element in individual
motivation.
Long Term Orientation

This dimension describes how every society has to maintain some links with its own past while
dealing with the challenges of the present and future, and societies prioritize these two existential
goals differently. Normative societies. Which score low on this dimension, for example, prefer to
maintain time-honored traditions and norms while viewing societal change with suspicion. Those with a
culture which scores high, on the other hand, take a more pragmatic approach: they encourage thrift
and efforts in modern education as a way to prepare for the future.
With a low score of 38, Finnish culture can be classified as normative. People in such societies have a
strong concern with establishing the absolute Truth; they are normative in their thinking. They exhibit
great respect for traditions, a relatively small propensity to save for the future, and a focus on achieving
quick results.
Indulgence

One challenge that confronts humanity, now and in the past, is the degree to which small children are
socialized. Without socialization we do not become human. This dimension is defined as the extent
to which people try to control their desires and impulses, based on the way they were raised.
Relatively weak control is called Indulgence and relatively strong control is called Restraint. Cultures
can, therefore, be described as Indulgent or Restrained.
The relatively high score of 57 indicates that Finland is an Indulgent country. People in societies
classified by a high score in Indulgence generally exhibit a willingness to realize their impulses and
desires with regard to enjoying life and having fun. They possess a positive attitude and have a
tendency towards optimism. In addition, they place a higher degree of importance on leisure time, act
as they please and spend money as they wish.