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Coping with the market: Are there cohort effects for organisations in transition?

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  • Jürgen Muehlbacher
  • Michaela Nettekoven
  • Jure Kovac

Abstract

This paper investigates the employment growth of small and medium-sized firms that survived the transformation process of the German Democratic Republic (GDR). We find that firms founded in the later period of the GDR’s existence have especially low growth prospects, even 10 years after German reunification. The later phase of the GDR was marked by tightening measures intended to enhance political influence on the planned economy, accompanied by a sharp economic decline. Thus, organizations were more deeply embedded in planning structures that were more rigorous than those present in the first years of the GDR’s existence. We argue that these organizations therefore developed less appropriate practices for coping with a market economy than organizations founded in other periods.

Suggested Citation

  • Jürgen Muehlbacher & Michaela Nettekoven & Jure Kovac, 2011. "Coping with the market: Are there cohort effects for organisations in transition?," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 16(1), pages 75-90.
  • Handle: RePEc:rai:joeems:doi_10.1688/1862-0019_jeems_2011_01_muehlbacher
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    Keywords

    competency management; human resources; transition economies; Slovenia;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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