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Barriers for wood processing companies to enter foreign markets: a case study in Slovakia

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Abstract

In this study, barriers to internationalization for wood processing and wood trading firms in Slovakia are identified. Specifically, the perceptions of 62 Slovak firms were examined regarding entry into European Union markets. In addition to competitive issues, the influence of previous experience with international business and firm size on perceptions of barriers to enter foreign markets was examined. Results suggest that foreign competition is considered to be the most significant barrier due to a low level of innovation from domestic companies. In addition, the need to invest in promotional activities and limited access to capital are also significant barriers to entry into EU markets. Firm size was not found to be correlated with market barriers and no significant differences in perception of barriers was found between firm owners and managers.

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Acknowledgments

The authors would like to thank the Scientific Grant Agency of the Ministry of Education, Science, Research and Sport of the Slovak Republic and the Slovak Academy of Sciences. This paper was developed within the framework of Grant Project 1/0385/13- Modelling substitution changes in timber markets under the increasing demand for renewable energy sources.

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Authors and Affiliations

  1. Faculty of Wood Sciences and Technology, Technical University in Zvolen, T. G. Masaryka 24, 960 53, Zvolen, Slovakia

    Vladislav Kaputa & Hubert Paluš

  2. Louisiana Forest Products Development Center, Louisiana State University, Baton Rouge, LA, 70803, USA

    Richard Vlosky

Authors
  1. Vladislav Kaputa
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  2. Hubert Paluš
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  3. Richard Vlosky
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Correspondence to Hubert Paluš.

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Kaputa, V., Paluš, H. & Vlosky, R. Barriers for wood processing companies to enter foreign markets: a case study in Slovakia. Eur. J. Wood Prod. 74, 109–122 (2016). https://doi.org/10.1007/s00107-015-0954-5

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