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Journal of International Business Studies

, Volume 39, Issue 7, pp 1133–1148 | Cite as

Ownership structure, strategic controls and export intensity of foreign-invested firms in transition economies

  • Igor Filatotchev
  • Johannes Stephan
  • Björn Jindra
Article

Abstract

This paper examines the relationships between foreign ownership, managers' independence in decision-making and exporting of foreign-invested firms in five European Union accession countries. Using a unique, hand-collected data set of 434 foreign-invested firms in Poland, Hungary, Slovenia, Slovakia and Estonia, we show that foreign investors' ownership and control over strategic decisions are positively associated with export intensity, measured as the proportion of exports to total sales. The study also analyzes specific governance and control configurations in foreign-invested firms, showing that foreign equity and foreign control over business functions are complementary in terms of their effects on export intensity.

Keywords

FDI subsidiaries ownership structure strategy export intensity 

Notes

Acknowledgements

This research was supported by an EU research grant ‘EU Integration and the Prospects for Catch-Up Development in CEECs – The Determinants of the Productivity Gap’ (contract no. HPSE-CT-2001-00065). We thank Keith Brouthers, Saul Estrin, Klaus Meyer, Mike Wright, the participants of the 2006 Academy of Management Annual Meeting (Atlanta, USA), David K. Tse (the Departmental Editor) and two anonymous reviewers for their helpful comments.

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Copyright information

© Academy of International Business 2008

Authors and Affiliations

  • Igor Filatotchev
    • 1
  • Johannes Stephan
    • 2
  • Björn Jindra
    • 2
  1. 1.Sir John Cass Business School, City UniversityLondonUK
  2. 2.Halle Institute for Economic ResearchHalle (Saale)Germany

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