Relationships and Networks in the Processes of Establishment of Firms in Transition Economies: Scandinavian Firms in Central and Eastern Europe

Relationships and Networks in the Processes of Establishment of Firms in Transition Economies : Scandinavian Firms in Central and Eastern Europe

Awuah, Gabriel Baffour (author): Högskolan i Halmstad,Centre for Technology, Innovation and Marketing Management (CTIM2),Halmstad University, Halmstad, Sweden

Abraha, Desalegn Gebrekidan (author): University of Skövde, P.O. Box 408, SE-541 28, Skövde, Sweden

Osarenkhoe, Aihie (author): Högskolan i Gävle,Ämnesavdelningen för företagsekonomi

(creator_code:org_t)

Turlock, CA : International Academy of Business and Economics (IABE), 2008
2008
English.
In: International Journal of Strategic Management. - Turlock, CA : International Academy of Business and Economics (IABE). - 1555-2411 .- 2378-8615. ; 8:1, s. 25-44

Related links:: http://www.iabe.org/...; show more...; https://urn.kb.se/re...; https://urn.kb.se/re...; show less...

Abstract Subject headings

A focus on the particular entry mode a firm uses to enter a new market, rather than on the process of establishment, dominates in extant literature. To fill this void, we apply an establishment process model developed from the network approach to illuminate the web of relationship forms embedded in the establishment process of two Scandinavian firms as they attempt to establish themselves in transition economies. In one case, the results show that Statoil's process of establishment in Estonia was both less time-consuming and less resource-consuming because the firm drew support from significant actors in their network of exchange relationships. In the second case, a lack of home and host country support for Scania in Croatia resulted in an arduous and costly process and less stable position in the market, with the firm's position changing several times as different problems cropped up. In light of the findings from the two cases, theoretical and practical implications for managing the establishment process are discussed.

By the author/editor: Awuah, Gabriel B ...; Abraha, Desalegn ...; Osarenkhoe, Aihi ...

About the subject

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