Firm Characteristics and Country Institutional Development: Business Relationships with Foreign Firms in Transition Economies
The composition of firms' foreign business networks has been attended to in recent research but has seldom been subjected to empirical study in transition economies. In this study, we test hypotheses related to the composition of firms' foreign business relationships. First, we suggest that firms' characteristics matter for building a network of ties the foreign agents. Then, we consider the moderating effect of the degree of institutional development of the home country to assess to extent to which firms' foreign business relationships in transition economies are affected by the institutional development. We conduct a set of logistic regressions and one OLS regression to investigate the composition of firms' business relationships using firm-level data from 24 transition economies. The results indicate that firm size and membership in trade associations are good predictors of foreign business relationships ? specifically, relationships with foreign investors, customers, and suppliers - and also of the diversity of foreign relationships. The country's institutional development radically changes which firms' characteristics matter in forming business relationships.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lipparini, Andrea & Sobrero, Maurizio, 1994. "The glue and the pieces: Entrepreneurship and innovation in small-firm networks," Journal of Business Venturing, Elsevier, vol. 9(2), pages 125-140, March.
- Birley, Sue, 1985. "The role of networks in the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 1(1), pages 107-117.
- Aggarwal, Reena & Rivoli, Pietra, 1991. "Evaluating the costs of raising capital through an initial public offering," Journal of Business Venturing, Elsevier, vol. 6(5), pages 351-361, September.
- Larson, Andrea, 1991. "Partner networks: Leveraging external ties to improve entrepreneurial performance," Journal of Business Venturing, Elsevier, vol. 6(3), pages 173-188, May.
- Roth, Kendall & Kostova, Tatiana, 2003. "Organizational coping with institutional upheaval in transition economies," Journal of World Business, Elsevier, vol. 38(4), pages 314-330, November.
- 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.
- Ostgaard, Tone A. & Birley, Sue, 1994. "Personal networks and firm competitive strategy--A strategic or coincidental match?," Journal of Business Venturing, Elsevier, vol. 9(4), pages 281-305, July.
- Jack, Sarah L. & Anderson, Alistair R., 2002. "The effects of embeddedness on the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 17(5), pages 467-487, September.
- Georgine Fogel & Alina Zapalska, 2001. "A Comparison of Small and Medium-Size Enterprise Development in Central and Eastern Europe," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 43(3), pages 35-68, September.
- Dan Li & Manuel Portugal Ferreira, 2006. "The Evolutionary Model of Entrepreneurial Firms' Dependence on Networks: Going beyond the start-up stage," Notas Económicas, Faculdade de Economia, Universidade de Coimbra, issue 24, pages 48-63, December.
- Lucian Cernat & Radu Vranceanu, 2002. "Globalisation and Development: New Evidence from Central and Eastern Europe," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 44(4), pages 119-136, December.
When requesting a correction, please mention this item's handle: RePEc:pil:wpaper:20. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nuno Reis)
If references are entirely missing, you can add them using this form.