Relationships and Networks in the Processes of Establishment of Firms in Transitional Economies: The case of Scandinavian firms in Eastern and Central Europe

Abraha, DesalegnHögskolan i Skövde,Institutionen för teknik och samhälle,Högskolan i Skövde, Skövde (author)

Relationships and Networks in the Processes of Establishment of Firms in Transitional Economies : The case of Scandinavian firms in Eastern and Central Europe

Focus on the particular entry mode a firm uses to enter a new market, rather than 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 less time- and 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.

Osarenkhoe, AihieHögskolan i Skövde,Högskolan i Gävle,Ämnesavdelningen för företagsekonomi,Gruppen för Interaktiva Affärer (GIA),Institutionen för teknik och samhälle(Swepub:his)osaa (author)
Awuah, GabrielHögskolan i Skövde,Institutionen för teknik och samhälle,Högskolan i Halmstad, Halmstad(Swepub:his)awug (author)
Högskolan i SkövdeInstitutionen för teknik och samhälle (creator_code:org_t)

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

About the subject

SOCIAL SCIENCES: SOCIAL SCIENCES; and Economics and Bu ...; and Business Adminis ...

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