Interaction of Trade Activities Between Selected Southeast European Countries

Abstract

Purpose

This chapter explains the interrelationships between trade markets of Croatia, Bosnia and Herzegovina, and Serbia, which have experienced the same political, economical, and social changes due to their postwar market orientation. Particularly, the research is focused on the relationships between retailers and their suppliers, the effects of 2008 financial crisis, and changes in customer behavior on those markets.

Design/methodology/approach

The chapter builds upon the investigation of the existing literature on trade in selected Southeast European (SEE) countries targeting three time-periods: planned economy era; period after the launch of the economic transition; and the European Union (EU) accession preparation era. The supporting fieldwork is based on qualitative interviews with senior managers in trade companies operating on all investigated markets. Results are compared with other secondary data sources.

Findings

The research has contributed to the understanding of similarities and differences on three markets of former Yugoslavia: Croatia, Bosnia and Herzegovina, and Serbia. Four areas are used as a framework for explaining the level of cooperation and interdependence between trade companies on investigated markets: changes in retail forms, growth in retail operations, increasing importance of the relationships with suppliers, and penetration of private labels.

Practical implications

Results of the study provides some directions for suppliers on the selected markets and for retailers as well. As retailers rely on their key suppliers, local suppliers should offer them elements of differentiation. On the other hand, results give an insight into actual situation on the markets of Bosnia and Herzegovina, Croatia, and Serbia regarding retail structure, number of retail forms, private labels, etc.

Originality/value

Considering an extensive literature review, the analysis of data given in official statistical databases, as well as qualitative study among trade managers, these findings have important managerial implications for retailers and suppliers.

Citation

Renko, S. (2013), "Interaction of Trade Activities Between Selected Southeast European Countries", Challenges for the Trade of Central and Southeast Europe (International Business and Management, Vol. 29), Emerald Group Publishing Limited, Leeds, pp. 19-35. https://doi.org/10.1108/S1876-066X(2013)0000029006