Grading Up or Fading Out?

The Elusive Destiny of Psychic Market Proximity-Seeking Subsidiaries in Central and Eastern Europe
  • Stefan Eckert
  • Frank Rossmeissl


Foreign subsidiaries play an important role in the restructuring and transformation of former centrally planned economies. As these foreign entities are embedded in international networks, their existence may lead to cross-border transfer of knowledge, managerial and marketing skills (Manea and Pearce, 2001b) that “promote the diffusion of new technologies through direct linkages or spillovers to domestic firms” (Altomonte and Guagliano, 2001: 4). Such effects should be appreciated as they tend to strengthen the international competitiveness of transition economies. However, the beneficial effects that foreign subsidiaries exert on the competitiveness of the host country depend, among other things, on the role that these subsidiaries have been assigned to perform in the international and sometimes global corporate network.


European Union Foreign Direct Investment Foreign Market Parent Company Foreign Subsidiary 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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© Stefan Eckert and Frank Rossmeissl 2011

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  • Stefan Eckert
  • Frank Rossmeissl

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