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Grading Up or Fading Out?

The Elusive Destiny of Psychic Market Proximity-Seeking Subsidiaries in Central and Eastern Europe

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The Changing Nature of Doing Business in Transition Economies

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Abstract

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.

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Authors
  1. Stefan Eckert
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  2. Frank Rossmeissl
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Editor information

Editors and Affiliations

  1. Business School, University of Gloucestershire, UK

    Marin Marinov (Professor of International Business and Management) (Professor of International Business and Management)

  2. Copenhagen Business School, Denmark

    Svetla Marinova PhD

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© 2011 Stefan Eckert and Frank Rossmeissl

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Eckert, S., Rossmeissl, F. (2011). Grading Up or Fading Out?. In: Marinov, M., Marinova, S. (eds) The Changing Nature of Doing Business in Transition Economies. Palgrave Macmillan, London. https://doi.org/10.1057/9780230337015_2

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