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Competence-building in foreign subsidiaries: The case of new EU member states


  • Sergey Filippov
  • Geert Duysters


This article examines patterns of competence-building in foreign subsidiaries located in new member states of the European Union. Among the theoretical foundations of this paper are the concepts of dynamic capabilities and subsidiary-specific advantages. We consider subsidiary competences as a combination of distinctive competences built into particular business functions. Furthermore, we examine sources of competences, and complementarities between these sources. We use a proprietary database to examine the research topic and find distinctive uneven growth of functional competences over time, distinctive patterns of complementarities between different functional competences and specific patterns of access to sources of competence. Finally, we discuss managerial and policy implications.

Suggested Citation

  • Sergey Filippov & Geert Duysters, 2011. "Competence-building in foreign subsidiaries: The case of new EU member states," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 16(4), pages 286-314.
  • Handle: RePEc:rai:joeems:doi_10.1688/1862-0019_jeems_2011_04_filippov

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    Cited by:

    1. Panibratov, A. & Latukha, M., 2014. "The vector of the home government influence upon Russian MNEs: Balancing the control against the interest," Working Papers 6385, Graduate School of Management, St. Petersburg State University.
    2. David J. Dingli, 2012. "The Manufacturing Industry – Coping with Challenges," Working Papers 2012/05, Maastricht School of Management.
    3. Stor Marzena & Kupczyk Teresa, 2015. "Differences in Competency Management – Comparative Analysis between Polish, Spanish, and Austrian Business Practices," Journal of Intercultural Management, De Gruyter Open, vol. 7(2), pages 49-74, June.
    4. Gauselmann, Andrea, 2013. "R&D Co-operation in European Post-transition Economies," IWH Discussion Papers 4/2013, Halle Institute for Economic Research (IWH).

    More about this item


    strategy; dynamic capabilities; the Russian Federation; steel industry;

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions


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