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

• 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.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

Nyckelord

relationships

networks

establishment processes

actors

resource exchanges

adaptations

transition economies

Business and economics

Ekonomi

Publikations- och innehållstyp

ref (ämneskategori)

art (ämneskategori)