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Projects / Programmes source: ARIS

New entry and economic performance of Slovenian' firms on SouthEast markets (markets of former Yugoslavia)

Research activity

Code Science Field Subfield
5.02.00  Social sciences  Economics   

Code Science Field
S180  Social sciences  Economics, econometrics, economic theory, economic systems, economic policy 
S183  Social sciences  Cyclical economics 
S185  Social sciences  Commercial and industrial economics 
S186  Social sciences  International commerce 
S191  Social sciences  Market study 
Keywords
economic growth, foreign trade, border effects analysis, entry into the emerging markets, business strategies, costumer behavior in emerging markets, business-to-business relations in emerging markets, industrial policies to support entry into the emerging markets.
Evaluation (rules)
source: COBISS
Researchers (26)
no. Code Name and surname Research area Role Period No. of publicationsNo. of publications
1.  18305  PhD Andreja Cirman  Economics  Researcher  2002 - 2004  545 
2.  19760  PhD Simon Čadež  Economics  Researcher  2002 - 2004  449 
3.  19761  PhD Tomaž Čater  Economics  Researcher  2002 - 2004  423 
4.  15238  PhD Silva Deželan  Economics  Researcher  2002 - 2004  92 
5.  11975  PhD Tanja Dmitrović  Economics  Researcher  2002 - 2004  358 
6.  18940  PhD Polona Domadenik Muren  Economics  Researcher  2002 - 2004  445 
7.  18307  PhD Aljoša Feldin  Economics  Researcher  2002 - 2004  83 
8.  20064  PhD Aleksandra Gregorič  Economics  Researcher  2002 - 2004  188 
9.  18939  PhD Boštjan Jazbec  Economics  Researcher  2002 - 2004  246 
10.  18441  PhD Matjaž Koman  Economics  Researcher  2002 - 2004  221 
11.  14742  PhD Marko Košak  Economics  Researcher  2002 - 2004  524 
12.  18935  PhD Matej Lahovnik  Economics  Researcher  2002 - 2004  649 
13.  16157  PhD Irena Ograjenšek  Economics  Researcher  2002 - 2004  661 
14.  19248  PhD Marko Pahor  Economics  Researcher  2002 - 2004  536 
15.  19765  PhD Darja Peljhan  Economics  Researcher  2002 - 2004  360 
16.  18938  Darja Podobnik  Economics  Researcher  2002 - 2004  19 
17.  02413  PhD Janez Prašnikar  Economics  Researcher  2002 - 2004  766 
18.  18980  PhD Adriana Rejc Buhovac  Economics  Researcher  2002 - 2004  501 
19.  03667  PhD Iča Rojšek  Economics  Researcher  2002 - 2004  470 
20.  08613  PhD Metka Tekavčič  Economics  Researcher  2002 - 2004  1,017 
21.  18932  PhD Aljoša Valentinčič  Economics  Researcher  2002 - 2004  495 
22.  11462  PhD Irena Vida  Economics  Head  2002 - 2004  633 
23.  15496  PhD Maja Zalaznik  Economics  Researcher  2002 - 2004  1,118 
24.  17001  PhD Maja Zaman Groff  Economics  Researcher  2002 - 2004  274 
25.  13681  PhD Nada Zupan  Economics  Researcher  2002 - 2004  1,110 
26.  15495  PhD Vesna Žabkar  Economics  Researcher  2002 - 2004  898 
Organisations (1)
no. Code Research organisation City Registration number No. of publicationsNo. of publications
1.  0584  University of Ljubljana, School of Economics and Business (SEB)  Ljubljana  1626922  41,695 
Abstract
Export demand represent the fundamental force of economic growth for small yet open economies such as Slovenia. However, research shows that Slovenian companies do not consider marketing expenses on foreign markets as an investment (Domadenik, Prašnikar, Svejnar, 2001). Considering the level of competition and the high entry costs in western markets, Slovenian companies have typically competed based on their cost efficiency, using price adjustments as the primary strategic approach. Dynamic changes in the emerging Southeastern European markets (former Yugoslavia) are opening up unique opportunities for Slovenian companies to gain "the first mover advantage" in the region, particularly due to Slovenian historical ties with these markets as well as its geographic proximity. However, the existing business conditions in Southeastern European countries make the expansion into this region a relatively risky venture (uncertainties such as the political risk, risk of sustainable government policies, balance of payments risk, risk of doing business with oparticular enterprise). The purpose of this study is to explore the advantages and disadvantage of the various alternative entry modes and business strategies Slovenian companies may choose to utilize in their potential expansion into the markets of Southeastern Europe (former Yugoslavia). The study consists of two distinct parts. The first part involves a thoughtful analysis of the external business environment in the countries of the former Yugoslavia, including the macro-economic analysis, analysis of financial and legal systems and analysis of barriers for trade among different countries in the region which lead to market fragmentation. Market fragmentation and its sources will be explored using the so called "border effect analysis" (Head, Mayer, 2000). Considering that the characteristics and behavioral patterns of the markets in Southeastern Europe have remained unexplored in previous research, the second part of this study entails an investigation of the characteristics of the business as well as final consumer behavior. The planning of a successful entry strategy into the these emerging markets requires an understanding of the behavioral aspects of the companies with a potential to become either suppliers for or buyers of Slovenian business, their products and services. As indicated in existing research in countries in transition (and regions having been recently exposed to serious national and ethnic conflicts), the impact of national identity in consumer purchasing process should not be underestimated when making decisions with respect the effective marketing positioning (Vida, Fairhurst, 1999: Herche, 1992). The analysis of consumer behavior in the region will focus on the buying processes and consumer attitudes towards the products of Slovenian origin. The findings of both parts of this research will facilitate the decisions making relative to specific entry strategies into individual countries under investigation. Various alternatives will be proposed and evaluated using a cost-benefit analysis approach. This analysis will focus on the pluses and minuses of various entry modes (trade approach by the individual firm, trade approach by clusters of firms; investment approach) and the effectiveness of alternative financial arrangements (standard approaches: paying by cash, open account, acreditives; counter trade; barter trade; financing and insuring business by the Slovenian export financing company, SID) The results should have important implications with respect to the activities of Slovenian companies and their market entry and positioning strategies in the countries of Southeastern Europe. Furthermore, the findings of this study should prove useful to the Slovenian government agencies in when planning economic policy for the countries of the former Yugoslavia.
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