Foreign market-entry into central and eastern Europe: Australian firms in Poland and the Czech Republic

Abstract

This study examines key elements associated with Western firms entering Central and Eastern Europe (CEE): a region classified as transitional. We highlight the role of networking in the foreign market-entry (FME) process in terms of entry strategies. Following a qualitative analysis of six Western (Australian) firms entering two main (Poland and Czech Republic) transitional markets, three key themes were identified: networking strongly underpins initial market-entry; is fundamental in refining target-market decisions; and is integral to strategy-building for market participation in the post-entry phase. Based on our findings we describe a distinct market-situation for emerging markets. We then propose a typology, identifying a fifth “type” of market-situation in emerging markets, the “Transitional International,” an extension of Johnson and Mattsson's (1988) typology. Our ‘Transitional International’ firm is characterised by significant pre-entry and development of post-entry business networks within a transitional market environment.