Ownership structure, strategic controls and export intensity of foreign-invested firms in transition economies
This paper examines the relationships between foreign ownership, managers' independence in decision-making and exporting of foreign-invested firms in five European Union accession countries. Using a unique, hand-collected data set of 434 foreign-invested firms in Poland, Hungary, Slovenia, Slovakia and Estonia, we show that foreign investors' ownership and control over strategic decisions are positively associated with export intensity, measured as the proportion of exports to total sales. The study also analyzes specific governance and control configurations in foreign-invested firms, showing that foreign equity and foreign control over business functions are complementary in terms of their effects on export intensity. Journal of International Business Studies (2008) 39, 1133–1148. doi:10.1057/palgrave.jibs.8400404
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Volume (Year): 39 (2008)
Issue (Month): 7 (October)
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