The Global Strategies of Food Companies and their Impact on the CEE Region

Abstract

Truly global companies are characterized by strong centralized management: hence, there is less decision-making authority at the local level; a strong global distribution network and global supply chain; applied R&D; and an absence of innovation from local firms and weak/missing backward linkages with local suppliers. All these features imply weak embeddedness of global MNEs in the host economies. However, there are forces that influence MNEs’ strategies; such as government regulations and protectionist measures, the socio-economic and political development of the country, the size of the market, national innovation systems, specificities of the sector where the companies operate, competitors, and so on. Therefore, the question is:

Do the food MNEs implement their global strategies in the CEE region or there are factors that shape their policies and level of embeddedness?