Networked establishment processes in transition economies. (6th February 2020)

• Record Type: Journal Article
• Authors: Osarenkhoe, Aihie; Fjellström, Daniella; Abraha, Desalegn; Awuah, Gabriel Baffour
• Is Part Of: Global business & economics review. Volume 22:Number 1/2(2020)
• Page Start: 161
• Page End: 177
• Publication Date: 2020-02-06
• Subjects: networks -- establishment processes -- actors -- resource exchanges -- activities -- transition economies -- network approach -- relationships; Economics -- Periodicals; International economic relations -- Periodicals; 330.5
• Languages: English
• ISSNs: 1097-4954

Abstract

The purpose of this article is to examine the establishment processes of Scania in Croatia and Statoil in Estonia applying a model developed from the network approach. The findings show that Statoil's ability to leverage significant actors in its network to support its establishment made the process less cumbersome and less resource-consuming. Scania's lack of home- and host country support, on the other hand, resulted in an arduous and costly process, with its market position changing several times as different problems cropped up. We also found that relationship orientation requires adaptation by the firm and, more critically, by its managers. A lack of cross-cultural competence is also observed to be an impeding factor in the process.