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European Integration and Complementarities Driven Network Alignment: The Case of ABB in Central and Eastern Europe

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  • Slavo Radosevic

    (UCL School of Slavonic and East European Studies)

Abstract

The depth of industry integration between European ‘West’ and ‘East’ depends on the simultaneous existence of several factors, which, through mutual complementarities, align global and local networks. This paper takes the case of Asea Brown Bowery (ABB), one of the first large investors in central and eastern Europe (CEE), to show that the successful penetration of this company into CEE was the result of the simultaneous occurrence of several factors, which had mutually reinforcing complementarities. Changes in the strategy of ABB towards knowledge-based services may be weakening these complementarities and dis-aligning local and global networks in CEE. By integrating the insights of Milgrom and Roberts (1995) on complementarities the paper further develops the ‘network alignment’ perspective (Kim and von Tunzelmann, 1998) on growth.

Suggested Citation

  • Slavo Radosevic, 2002. "European Integration and Complementarities Driven Network Alignment: The Case of ABB in Central and Eastern Europe," UCL SSEES Economics and Business working paper series 12, UCL School of Slavonic and East European Studies (SSEES).
    • Handle: RePEc:see:wpaper:12
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    1. Slavo Radosevic, 2003. "The emerging industrial architecture of the wider Europe: The co-evolution of industrial and political structures," UCL SSEES Economics and Business working paper series 29, UCL School of Slavonic and East European Studies (SSEES).

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