The role of matching in the foreign market entry process in the Baltic States

Abstract

Identifies how western companies make successful entries in East European transition economies by studying the establishment process of Nordic companies in the Baltic States. Applies a model based on the network approach and the concept of matching and analyses the entry process of three Norwegian case companies. At global and macro levels the entry was facilitated by assistance for economic restructuring from international institutions and the Nordic governments, and by building up good relationships with central and local authorities. In the final establishment phase difficulties occurred in establishing trust and relationships with actors at the micro level and in matching company functions. Finds that market entry in transition economies differs from entry into traditional developing countries, where more problems are faced at the beginning of the establishment process, whereas, appropriate matching activities undertaken at different levels can facilitate the entry into transition economies.