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International Production Networks and Enterprise Transformation in Central Europe


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  • Klaus E Meyer

    (Center for East European Studies, Copenhagen Business School)

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    Foreign investors influence the transition in Central and Eastern Europe in particular through their impact on the enterprise restructuring in the region. In addition to corporate governance and financial and managerial resources, they bring Central European firms into the networks of international business. This article focuses on the evolution of the supplier network of VW-Skoda and the worldwide trends in the car industry. Relationships within the networks, like that led by VW, are growing increasingly complex, and thus create mutual dependencies. This creates difficult challenges for firms aiming at supplying major multinational manufacturers.The paper concludes that networks are an essential mechanism in business-to-business markets and, therefore, enterprise transformation in transition economies cannot be explained satisfactorily without considering the evolution of business networks. Comparative Economic Studies (2000) 42, 135–150; doi:10.1057/ces.2000.4

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    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal Comparative Economic Studies.

    Volume (Year): 42 (2000)
    Issue (Month): 1 (April)
    Pages: 135-150

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    Handle: RePEc:pal:compes:v:42:y:2000:i:1:p:135-150

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    Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK

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    Cited by:
    1. Morris Bornstein, 2000. "Post-Privatization Enterprise Restructuring," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan 327, William Davidson Institute at the University of Michigan.
    2. Morris Bornstein, 2001. "Post-privatisation Enterprise Restructuring," Post-Communist Economies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 13(2), pages 189-203.
    3. Manuel Portugal Ferreira & Dan Li & Fernando A. Ribeiro Serra, 2008. "Firm Characteristics and Country Institutional Development: Business Relationships with Foreign Firms in Transition Economies," Working Papers, globADVANTAGE, Polytechnic Institute of Leiria 20, globADVANTAGE, Polytechnic Institute of Leiria.
    4. Meyer, Klaus E., 2002. "Management challenges in privatization acquisitions in transition economies," Journal of World Business, Elsevier, Elsevier, vol. 37(4), pages 266-276, January.
    5. Kaminski, Bartlomiej & Ng, Francis, 2001. "Trade and production fragmentation : Central European economies in European Union networks of production and marketing," Policy Research Working Paper Series, The World Bank 2611, The World Bank.
    6. Petr Pavlinek, 2002. "The Role of Foreign Direct Investment in the Privatisation and Restructuring of the Czech Motor Industry," Post-Communist Economies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 14(3), pages 359-379.
    7. Kaminski, Bartlomiej, 2001. "How accession to the European Union has affected external trade and foreign direct investment in Central European economies," Policy Research Working Paper Series, The World Bank 2578, The World Bank.


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