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East-west corporate networking: A theoretical approach

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  • Gerling, Katja

Abstract

In recent years after the beginning of the transition process, firms in Central and Eastern European countries have been trying hard to find access to international markets and production chains. Rapidly changing institutional, technological and demand conditions together with decades of isolation from world markets do not let ,,stand-alone strategies appear very successful in this context. The paper presents networking activities as a promising alternative for Central and Eastern European firms (CEEF) to organize international transactions. As several theories show, network forms of organization can - by establishing an atmosphere of trust and stability and by pooling resources and information - make it possible for network members to realize an economic advantage over external competitors that is higher than in markets or hierarchies. Among various types of networking activities, it is especially long-term-orientated relations that offer the possibility for CEEF to participate in an international exchange of crucial technologies and to upgrade their position in global production chains in the long run.

Suggested Citation

  • Gerling, Katja, 1997. "East-west corporate networking: A theoretical approach," Kiel Working Papers 805, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:805
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    References listed on IDEAS

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    1. J.H. Dunning, 1995. "The role of foreign direct investment in a globalising economy," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 48(193), pages 125-144.
    2. J. Carlos Jarillo, 1988. "On strategic networks," Strategic Management Journal, Wiley Blackwell, vol. 9(1), pages 31-41, January.
    3. J.H. Dunning, 1995. "The role of foreign direct investment in a globalising economy," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 48(193), pages 125-144.
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    Cited by:

    1. Schmidt, Klaus-Dieter, 1998. "Emerging East-West collaborative networks: An appraisal," Kiel Working Papers 882, Kiel Institute for the World Economy (IfW Kiel).
    2. Brenke, Karl & Eickelpasch, Alexander & Sander, Birgit & Postlep, Rolf-Dieter & Schmidt, Klaus-Dieter & Beer, Siegfried & Ragnitz, Joachim, 1996. "Gesamtwirtschaftliche und unternehmerische Anpassungsfortschritte in Ostdeutschland: Vierzehnter Bericht," Kiel Discussion Papers 277/278, Kiel Institute for the World Economy (IfW Kiel).
    3. Sander, Birgit, 1997. "Do border economies generate comparative advantages for small- and medium-sized enterprises? Evidence from the Maquiladora industry," Kiel Working Papers 806, Kiel Institute for the World Economy (IfW Kiel).
    4. Sander, Birgit & Schmidt, Klaus-Dieter, 1998. "Wirtschaftliche Perspektiven von Grenzregionen: ein internationaler Vergleich," Open Access Publications from Kiel Institute for the World Economy 1785, Kiel Institute for the World Economy (IfW Kiel).
    5. Gerling, Katja & Schmidt, Klaus-Dieter, 1998. "Emerging East-West corporate networks in Central European border regions: Some theoretical arguments and stylized facts," Kiel Working Papers 852, Kiel Institute for the World Economy (IfW Kiel).

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    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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