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Subsidiary autonomy in transition economies: Italian SMEs in Central and Eastern European countries

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  • Pisoni, Alessia
  • Fratocchi, Luciano
  • Onetti, Alberto

Abstract

This paper aims at shedding new light on the variables that indicate the level of autonomy of subsidiaries of internationalizing companies. Specifically, we examine subsidiaries located in the transition economies of Central and Eastern European Countries (CEECs). We identified a sample of 72 subsidiaries of micro, small and medium-sized Italian companies, and we assessed the impact of three variables on the subsidiary’s autonomy: the size; the strategic aim in the local market (market seeking or cost reduction); and the degree of economic development of the local country. Our results suggest that subsidiary's autonomy reflects local country characteristics, but not the economic development. Our findings also show that subsidiaries looking for penetrating the local market are generally more autonomous than the ones pursuing cost-cutting strategies.

Suggested Citation

  • Pisoni, Alessia & Fratocchi, Luciano & Onetti, Alberto, 2013. "Subsidiary autonomy in transition economies: Italian SMEs in Central and Eastern European countries," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 18(3), pages 336-370.
  • Handle: RePEc:rai:joeems:doi_10.1688/1862-0019_jeems_2013_03_pisoni
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    Cited by:

    1. Igor Gurkov, 2015. "Russian Manufacturing Subsidiaries of Western Multinational Corporations: Support from Parents and Cooperation with Sister-Subsidiaries," HSE Working papers WP BRP 37/MAN/2015, National Research University Higher School of Economics.
    2. repec:krk:eberjl:v:5:y:2017:i:3:p:95-117 is not listed on IDEAS

    More about this item

    Keywords

    internationalization; subsidiary autonomy;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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