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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)

Abstract

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

Suggested Citation

  • Klaus E Meyer, 2000. "International Production Networks and Enterprise Transformation in Central Europe," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 42(1), pages 135-150, April.
    • Handle: RePEc:pal:compes:v:42:y:2000:i:1:p:135-150
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    Cited by:

    1. 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 20, globADVANTAGE, Polytechnic Institute of Leiria.
    2. Maksimov, Vladislav & Wang, Stephanie Lu & Luo, Yadong, 2017. "Institutional imprinting, entrepreneurial agency, and private firm innovation in transition economies," Journal of World Business, Elsevier, vol. 52(6), pages 854-865.
    3. Morris Bornstein, 2000. "Post-Privatization Enterprise Restructuring," William Davidson Institute Working Papers Series 327, William Davidson Institute at the University of Michigan.
    4. 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, vol. 14(3), pages 359-379.
    5. Petr Pavlínek, 2002. "Transformation of the Central and East European Passenger Car Industry: Selective Peripheral Integration through Foreign Direct Investment," Environment and Planning A, , vol. 34(9), pages 1685-1709, September.
    6. Meyer, Klaus E., 2002. "Management challenges in privatization acquisitions in transition economies," Journal of World Business, Elsevier, vol. 37(4), pages 266-276, January.
    7. Morris Bornstein, 2001. "Post-privatisation Enterprise Restructuring," Post-Communist Economies, Taylor & Francis Journals, vol. 13(2), pages 189-203.
    8. Paul Frijters & Dirk Bezemer & Uwe Dulleck, 2003. "Socialism, Capitalism, and Transition - Coordination of Economic Relations and Output Performance," Paul Frijters Discussion Papers 2003, School of Economics and Finance, Queensland University of Technology.
    9. 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 2578, The World Bank.
    10. 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 2611, The World Bank.
    11. Klaus Uhlenbruck & Klaus E. Meyer & Michael A. Hitt, 2003. "Organizational Transformation in Transition Economies: Resource‐based and Organizational Learning Perspectives," Journal of Management Studies, Wiley Blackwell, vol. 40(2), pages 257-282, March.

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