Transformations  in
Business & Economics

Internationalisation Aspects of Estonian Firms
Tiiu Värbu

ABSTRACT. The aim of this paper is to look at the market commitment, market knowledge and commitment decision aspects of internationalisation of Estonian firms and to compare the results with the statements of Uppsala internationalisation model. The research is based on data of 49 manufacturing industry, trade and financial enterprises. The data of the firms was gathered by a researcher group of The Chair of International Business, the University of Tartu (Estonia) between June and September 2001.

According to the internationalisation model the increase of market knowledge should increase the commitment of a firm in foreign markets. Following research of Estonian firms did not support that statement. Another aspect of internationalisation process - the analysed relation between present market commitment and future commitment decisions of Estonian firms - followed the theory. The larger is the present market commitment the more extended is the future commitment decisions.

KEYWORDS: Internationalisation, Uppsala model, market commitment, commitment decisions, stage theory.