Abstract
Changes in regulation are affecting the international business environment. In this study the impact of regulation changes and ways to benefit from those in Finland and Russia are examined. Logistics and manufacturing companies are studied using the case study approach including ten semi-structured interviews (Finland and Russia) and a survey (Southeast Finland), further supported by an additional survey for logistics sector companies (Southeast Finland). The changes in the business environment have created a fragmented market with a growing number of actors. Three business models (blockchain-based, platform-based and innovative subcontracting-based), capitalizing on the growing number of actors, were incepted in the interview phase and evaluated in the survey phase with companies. These models are integrable with the circular economy, a relevant practice according to the studied companies. Blockchain was perceived as a still immature technology. Further study revealed that the companies are not well prepared for environmental demands in logistics, and the overall volumes and business climate between the analyzed countries have not improved. Additionally, those companies do not actively pursue the possibilities of new technologies. The impact of regulatory changes in this region has not been examined closely with a case study approach. This study helps to explain the current trends in an established market.
Highlights
The international railway connection between Finland and Russia ( Union of Soviet Socialist Republics) was formalized in 1948 when these countries signed a contract on interconnection via railways [1]
As this research focuses on the Finnish–Russian international business environment, the Eurasian Land Bridge, and the railway connection from China through Kazakhstan and Russia to Finland, plays an important role
Finnish logistics operators have experienced a decrease in their internal operations on the Russian side, but they remained optimistic regarding future investments toward operations in Commonwealth of Independent States (CIS) member countries
Summary
The international railway connection between Finland and Russia ( Union of Soviet Socialist Republics) was formalized in 1948 when these countries signed a contract on interconnection via railways [1]. Since policymaking between these countries has progressively been facilitating international trade, and connecting eastern and western markets. More recent changes in legislation and regulation have been gone along the lines of European Union’s (EU) railway legislation renewal. These so-called railway packages seek to open railway transports for competition and to enable fluent international operations [2]. Some restrictive legislative changes have emerged between Finland and Russia, driving the affected industries to adapt to the risen challenges. Thereupon, the changing business environment requires involved companies to revise their respective business models
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