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

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.