Researching Organisations in Hungary: Practical Experience and Methodological Reflections

Abstract

The radical political, social and economic changes in Hungary, as in the other post-socialist countries of Central and Eastern Europe (CEE), have created a new arena for business organisations. The macro-level changes have had direct consequences for firms. Formerly high levels of state ownership have been dramatically reduced by the privatisation of formerly state-owned firms and the emergence of new private companies. Foreign investors have entered the country and bought up existing firms or set up green-field plants. Within two years of the end of CEE communism, the Soviet trading system (the Council for Mutual Economic Assistance, or COMECON), which had been a major source of sales opportunities, started to fail and collapsed. Companies formerly exporting to the COMECON market had to look for new customers and markets. As the domestic market offered few relevant sales options, due to severe economic recession in the country, companies had to search for new international markets. They soon recognised that their existing products and services were not meeting the requirements of these markets, and many went bankrupt or were forced to downsize radically.