Internationalization of new companies from Baltic countries

Abstract

The paper distinguishes between entrepreneurial knowledge and expert knowledge. The entrepreneur form transition economies (and Baltic countries in particular) might not have deep specific knowledge about the local markets, but it is him who recognises the value of opportunity. In other words, the entrepreneur creates the knowledge as beiief about the future, which is uncertain. Entrepreneur's function relies more on the ability to organise market knowledge according to his subjective future scenario interpretation. The new international companies from Baltic counties lack specific market knowledge. However, the knowledge could be acquired in different ways: by imitative learning, by acquiring other organisations or hiring people, and by conducting a focused research. While the internationah'sation process of Baltic companies is concerned with high degree of uncertainty, in terms of processed information uncertainty about the future causes the risk, however in terms of knowledge it causes ignorance. The decision to enter the foreign market is based on the incomplete information, and it is related with risk.