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Emerging Paradigms in International Entrepreneurship

Edited by Marian V. Jones and Pavlos Dimitratos

Emerging Paradigms in International Entrepreneurship identifies key themes that collectively demonstrate the convergence of thinking at the interface between the disciplines of international business and entrepreneurship. These are: development of the field and the effects of international entrepreneurship on a new economy; conceptual and paradigmatic developments; international entrepreneurship and the internet as a developing research agenda; contacts links and networks as process driven internationalisation; cross-sectoral, cross-national and cross-cultural comparisons of entrepreneurship; and the experiential emphasis in entrepreneurial internationalisation.
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Chapter 12: The Role of Inward FDI in Internationalization of Six Affiliates in Estonia: A Network Perspective

Tiia Vissak


12. The role of inward FDI in internationalization of six affiliates in Estonia: a network perspective Tiia Vissak INTRODUCTION In Estonia, export competitiveness is still at a low level. After the dissolution of the Soviet Union, many trading arrangements broke down and most firms were forced to find new foreign buyers and suppliers. The size of the country, with a population of approximately 1.4 million, can mean that even very young companies have to internationalize quickly. This is not easy especially for smaller local enterprises due to a lack of resources, capabilities and contacts. Consequently, these firms often require external assistance to become internationally competitive. The aim of this chapter is to analyse the impact of foreign direct investment (FDI) inflows on the internationalization of six Estonian affiliates and to demonstrate the importance of networks in this process. First, an overview of five different research themes will be given. Based on the discussion, two propositions will be drawn and examined, using the data from six foreign affiliates in Estonia. The firms’ internationalization patterns and benefits from obtaining access to their foreign parent companies’ networks will be demonstrated. Finally, further research directions will be recommended. There is still much to be learned from examining the network approach in the context of an entrepreneurial firm (Coviello and Munro, 1995). There is no common body of knowledge concerning the interaction between trade, FDI and international production networks (Ernst and Guerrieri, 1998). The internationalization models, the network perspective or...

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