Nature and determinants of productivity growth of foreign subsidiaries in Central and East European countries
AbstractThe paper examines the determinants of productivity growth in foreign manufacturing subsidiaries in five Central and East European (CEE) countries by analysing patterns of control, nature of firms' capabilities and firms' market orientations. Building on the so-called 'subsidiary development' perspective, we show that productivity growth is determined jointly by corporate governance, production capability and market orientation variables. Within a dominantly production-oriented mandate, CEE subsidiaries have a relatively high level of autonomy in the control of their business functions. Majority foreign equity shareholding has a significant and positive impact on subsidiaries' productivity growth. Our results show strong regional characteristics.
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Bibliographic InfoArticle provided by Elsevier in its journal Economic Systems.
Volume (Year): 33 (2009)
Issue (Month): 2 (June)
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Foreign subsidiaries Productivity Central and Eastern Europe;
Other versions of this item:
- Slavo Radosevic & Boris Majcen & Matija Rojec, 2006. "Nature And Determinants Of Productivity Growth Of Foreign Subsidiaries In Central And East European Countries," Working Papers 68, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL).
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