21 June 2011
Finnish companies' advantages in Russian trade include strategic supply chain management and cultural knowledge.
Following the collapse of the Soviet Union, Finland has slowly grown into a gateway to the Russian market. This trend has been supported by Finland's location next to Russia and its experience of doing business with the Russian people.
Finland's position as a stepping stone into the Russian market has been researched by Eemil Kukkola. He believes strategic logistical know-how is a major business advantage in trade between the two countries. In addition to logistical competences, Finland benefits notably from marketing skills in the services sector.
Another advantage lies in Finland's long history as a trading partner of Russia.
- Finns understand the Russian mentality and characteristics. Russians value a businesslike approach, trustworthiness and a healthy level of humility, Kukkola summarises.
Be present
Finnish companies excel in strategic issues, such as thoroughgoing supply chain management and the leveraging of various networks. According to Kukkola, a company conducting business in Russia would benefit from an agile, differentiation-oriented strategy.
- A local presence is also important. Having a subisidiary or some other outlet in Russia is advisable, he affirms.
However, willingness among Finnish companies is the key to maintaining Finland's gateway position.
- One of my interviewees summed this up by declaring that competitive advantage must be re-won every day.
Eemil Kukkola defended his licentiate thesis Suomi gatewayna Venäjälle – kilpailuetua osaamisella ("Finland as a gateway to Russia – competitive advantage through know-how") on Monday 20 June 2011, in the field of International Business.
Eemil Kukkola