Networking and internationalization ; How do networks trigger and facilitate Norwegian firms’ entry into Vietnam?

Abstract

The usefulness of network in the internationalization process has been proven in numerous literatures, mainly as a supporting mechanism, compensating for the lack of experiential knowledge in the foreign market. This paper examines special roles of network in the Vietnamese market entry of Norwegian firms – as a trigger and facilitator. Using a multiple case study approach, findings of this qualitative paper illustrate the dynamics of how firms expose themselves to market potential, sustain in foreign market and benefit from pooled resources through interaction with their network partners, from individuals to firms and governmental actors. Case firms were active in building network as a supplement for market uncertainty and the lack of market knowledge. The theoretical contribution is that the paper shows how the case companies responded by actively drawing on their networks in order to overcome the liabilities of foreignness within a transforming economy. The study is based on a model where a comprehensive set of involving network actors are carefully examined, drawn from business, personal and governmental actors. The study also shows how networks can be expanded either through trade fairs or through recruitment of well-connected personnel. The paper concludes with managerial implications and suggestions for further research.