This research work examines the interrelation between quality (strength) of social networks that companies from the European Union (EU) develop in Azerbaijan and the choice of market entry mode that they make as well as the rate of success in entering the market.
Essentially, the study aims to answer the question: How do social networks of EU companies in Azerbaijan affect their choice of entry mode and success rate of entry into this transitional economy?

The objectives of this study are to 1) provide understanding of the role of social networks in foreign market entry and 2) provide empirical evidence for the effect of social networking on the performance of EU companies in Azerbaijan.

Data for this research project come from a web-survey, implemented among 102 randomly selected EU companies in Azerbaijan, as well as in-depth interviews with some of their CEOs. Some secondary data in the form of published reports and observations during the business forums was also utilised. The study adds to existing literature on market entry modes and social networks as well as broadening our understanding of doing business in transition economies from the perspective of Resource-Based View (RBV) theory, an understudied area in the literature. Using both quantitative and qualitative data collection tools, this study is of an explorative nature and helps to instigate new questions for further research and development of new constructs.