THE ROLE OF BUSINESS NETWORKS IN THE INTERNATIONALIZATION OF ESTONIAN CHEMICAL INDUSTRY ENTERPRISES

Marge Seppo

No 50, University of Tartu - Faculty of Economics and Business Administration Working Paper Series from Faculty of Economics and Business Administration, University of Tartu (Estonia)

Abstract: The awareness of business networks and skilled use of resources available through them make it possible to accelerate the process of internationalization and also increase the success from movement into a foreign market. The role of business networks in the internationalization of the firms is analyzed in this working paper on the example of Estonian small and medium-sized chemical industry enterprises. For studying the role of business networks in the internationalization of Estonian chemical industry enterprises seven Estonian chemical firms will be monitored using case study method. Research shows that business networks have an important role in the internationalization of Estonian small and medium-sized chemical firms. The main positive impact from a business network to a firm entering a foreign market is the provision of support and information about the target market. The negative impact comes from firms on a dominating position in a business network (mainly competitors and holding companies), who constrain firm’s internationalization.

Pages: 46 pages
Date: 2007
New Economics Papers: this item is included in nep-cse and nep-net
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