Title: Service entry strategies into a transition economy: an Estonian case study

Authors: Brent McKenzie, Bill Merrilees

Addresses: Department of Marketing and Consumer Studies, College of Management and Economics, University of Guelph, Guelph, ON N1G 2W1, Canada. ' Department of Marketing, Griffith Business School, Griffith University, Gold Coast Campus, PMB 50 Gold Coast Mail Centre, Queensland 9726, Australia

Abstract: As service-based enterprises expand beyond their domestic markets to countries in transition, additional challenges are presented in terms of internationalising existing practices. This study, based on both qualitative and quantitative research, examines how a foreign and domestic retailer, operating in Estonia compare in terms of drivers of retail success. The research findings indicate four major lessons that can benefit future multinational entries to these markets – two major challenges, country of origin effect, and cultural idiosyncrasies in transition economies, and two major facilitators, multinational service industry knowledge and the understanding of local culture and adaptation of drivers of service quality.

Keywords: success factors; retail; shopping behaviour; service entry strategies; transition economies; Estonia; consumer behaviour; multinational corporations; MNCs; service industry knowledge; local culture; service quality; country of origin; emerging markets.

DOI: 10.1504/IJBEM.2008.020865

International Journal of Business and Emerging Markets, 2008 Vol.1 No.2, pp.124 - 140

Available online: 19 Oct 2008 *

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