Motives for and barriers against entering the Russian seafood market. Case study of four Norwegian companies.

Abstract

The paper is devoted to consideration of main aspects of internationalization process of the firm. The international marketing literature and findings of previous studies in the area construct theoretical framework for the conceptual model, worked out for the purposes of current research. Empirical study investigates motives for entering the Russian seafood market, perceived barriers and choice of entry mode by Norwegian exporters. It consists of study of four cases from Norwegian seafood industry and interviews with key informants. Results illustrated that perceived barriers against entering the Russian seafood market are outweighed by the main overall stimuli for entering it – growing potential of the market, based on rapid development of retailing sector in Russia and stable demand for seafood among consumers. Such motivation has proactive nature. In the other words, entry is driven by perceived attractiveness of the Russian seafood market.

On the modern stage of internationalization of Norwegian seafood companies to Russia the main perceived problem is weak and unstable legal environment in Russia. It’s pointed out as the most important factor, which stipulates preference of exporting as organizational mode for work in Russia over other more risky modes. Further, it was found out that firms use direct exporting. It means that seafood trade with Russia occurs via the Russian importers.

On the basis of obtained findings there were worked out implications for Norwegian seafood industry as well as for the Russian authorities.