EU vs Local Market Orientation: Western Balkan Entrepreneur's Challenge

Abstract

Objective: The main objective of the article is to analyse the relationship between entrepreneurs’ profiles and their market orientation, i.e. to compare two groups of entrepreneurs – opportunity entrepreneurs and necessity entrepreneurs – to identify which group is international-export oriented.

Research Design & Methods: Supported by questionnaires, the probit model is the method used to analyse 200 enterprises that operate in Kosovo as both export and non-export firms.

Findings: The main findings confirm that there is a relationship between the type
of entrepreneur and market orientation; necessity entrepreneurs are less oriented towards international markets, while opportunity entrepreneurs are more focused on international markets.

Implications & Recommendations: Among the main implications is one that shows entrepreneur type matters for market orientation. Therefore, the condition of trade liberalisation only is insufficient for the EU and international market orientation of entrepreneurs. In consideration of this fact, the main recommendation is to internally improve entrepreneurs’ capability to exploit the EU and international markets in the future.

Contribution & Value Added: The main contribution of this study is the demonstration of a link between the characteristics of entrepreneurs with entrepreneurs’ market orientation; especially in the Western Balkans, a region characterised by long transitions, political tensions along with economic and institutional challenges. The added value of this research is the comparison of entrepreneurs on local markets with entrepreneurs on international markets based on their characteristics.

Keywords

entreprenurs, local market, necessity, opportunity, EU integration