International marketing responsiveness :|an exploratory study on the involvement of Turkish firms in the former USSR market

Abstract

This thesis is a pioneer study in exploring the issue of former USSR trade and business relations with a developing country (Turkey), so it can be classified under the area-oriented studies of international marketing. The purpose of the study was to explore the factors inherent in the Turkish business people,s' involvement with the USSR. The research for the study was carried at a unique time for the USSR which was (and still is) in transition from a centralized economy to a market oriented economy with significant changes at the state and administrative levels. The study includes background information on USSR market, Turkish foreign trade system, Turkish-USSR economic and trade relations, as well as a survey of international business literature on area-studies (USSR and the East) concerned with the "firms behaviour towards USSR". The findings of the study are based on a field survey carried out with 63 Turkish firms that were already involved with the USSR as of December 1991. Different aspects of the strategic involvement of these firms with the USSR are studied, which are USSR market involvement decisions, involvement types, countertrade, joint ventures, negotiation, and marketing strategies. The results of the exploratory research showed that entering into a new market such as the former USSR requires the consideration of a multitude of factors ranging from government support systems to various risks involved. The dissertation identified specific characteristics explaining the effectiveness of business relations. It is concluded that there are unique external and internal factors that speed up the Turkish companies' entry and lead to success in the former USSR market. Turkish firms enjoy various types of government support, have found different ways of coping with the risks involved, have learned to capitalize on some elements of comparative advantage (such as physical and cultural proximity to the new market), are making good use of specific country related characteristics (such as uncertainty handling, negotiation style, using formal risk assessment techniques), and are experienced in dealing with bureaucratic structures. Although the internationalization experience of Turkish firms is a recent phenomenon, they already have accumulated significant experience with respect to various forms of entry and involvement. New forms of trade, namely countertrade and joint ventures are found as attractive ways of tapping USSR market opportunities. The research indicates that joint venture type is the most satisfying form of involvement. It is hoped that this dissertation will provide a take off point for further studies and serve as a guide to firms contemplating entry into or growth in the former USSR market.