Global Consistency Versus Local Responsiveness: Deutsche Telekom's Human Resource Management Strategies in Central and Eastern Europe

This article analyses the competing demands faced by Deutsche Telekom for global consistency and local responsiveness as it attempted to coordinate its human resource management strategies across its Eastern European subsidiaries. It considers the degree to which the former economic and political histories of Eastern Europe continue to influence and/or constrain multinational corporation strategies and practices in the post-2000 era. Institutional path dependency, strategic international human resource management, and international industrial relations theories are used to assist in analyzing the data. The study concludes that managerial constraints associated with the historical and economic legacies of these former socialist countries are rapidly declining, thereby allowing multinational firms to implement “Western-style” human resource management strategies. It further suggests that industrial relations institutions at the European Union level, rather than individual country level, have the greatest potential to impact on international human resource management strategies in the region. Multinational corporations should therefore engage in more-integrated strategic international human resource management and international industrial relations approaches.     

German Investment in Ireland and in the Central and East European Countries

The accession of Central and Eastern European countries (CEECs) to the EU is expected by many to lead to the diversion of foreign direct investment towards the CEECs and away from other EU countries. The following paper focuses on the investigation of the internationalisation strategies and location choices of German multinational corporations (MNCs) in manufacturing against the background of growing regional economic integration, and particularly the fifth EU enlargement. It draws on the findings of a case study and interview results covering three German MNCs and their location choices for investment in both Ireland and the new EU member countries from Eastern Europe. This research project has been co-funded by the RIA in Dublin and DAAD. A first version of this work was presented at the September 2005 Irish Academy of Management Annual Conference in Galway.     

Swedish Multinationals in Central and Eastern Europe-Entry and Subsequent Development

This paper reports on the findings from the first phase of a larger longitudinal project that focuses on the establishment process of Swedish multinational corporations in Eastern Europe. The first step of identifying and explaining the establishment mode, type of activities intensity and type of control applied in the local operations of five of the firms is reported and commented on here. The tentative key conclusions at this stage indicate that (1) entry into the region has been sequential and gradual, (2) old relationships are extremely important, (3) early entries are looked upon as "learning devices" in several case firms, (4) the attitude to risk varies with size and ownership, (5) there is a difference in how risk is perceived between local managers and the head office, (6) the head office generally closely monitors the operations, and (7) several case firms see the potential for using Eastern and Central Europe as a production base.     

No Risk,No Fun? Foreign Direct Investment in Central and Eastern Europe

In the course of transition from planned economies to market economies, foreign direct investment played an important role and contributed to international economic integration in Central and Eastern Europe. This paper investigates the determinants of FDI in Central and Eastern Europe, a region which in large part still lacks strong institutions. The empirical analysis presented in this article fi nds evidence that country default risk is not necessarily a hindrance to FDI. In contrast, factors like market size, labour cost and trade liberalisation do matter for FDI engagement in the region.     

Multinational corporations in Eastern Europe: Welcome trade partners or unwelcome change agents?

In the last two decades, trade between Eastern Europe and the West has grown remarkably. The multinational corporations (MNCs) have played a prominent role by offering the welcome trade benefits of technology transfer, financial and credit resources, and marketing expertise. The MNCs, however, also represent a threat as unwelcome change agents in numerous areas of trade, management, cultural change, and economic functions. Evidence is presented supporting the proposition that the traditional hostility and attitudes of restraint among Eastern bloc countries toward MNCs will have to be tempered. If not, these countries may find themselves squeezed out of the new types of trade and competition emerging in the 1980s between the developed world and nontraditional markets.     

Environmental Dimensions of Emerging Markets:

This paper offers an alternative classification/clustering of the countries in Central and Eastern Europe on the dimensions of marketization and Westernization. It argues that these dimensions are more useful to marketing analysts anrother marketing practitioners in their attempt to understand the complex markets of Central and Eastern Europe, since they are more focused and directly relevant to the practice of marketing, compared to the broader dimensions most often used to define marketing developments in the region: economic development and culture.     

Internationalization of Japanese Multinational Corporations in Central and Eastern Europe

Abstract

The paper focuses on the internationalization activities of Japanese MNCs in Central and Eastern Europe (CEE) analyzing data on national level considering Japan's modes of market entry in the CEE region and some of the countries in it. Major trends and the development of Japanese internationalization in CEE are presented. Individual mini case studies contribute to the analysis using the experience of several major Japanese MNCs that have invested in the region. The goal of the paper is to uncover the specifics of the internationalization process of Japanese corporations in the CEE region. Main characteristics of the penetration of Japanese MNCs in CEE are unveiled and discussed in the concluding part of the paper. The management implications and conclusions from the study are discussed further in the final part of the paper.     

Foreign Direct Investment in Hungary

Abstract

When in 1989 the markets in Central and Eastern Europe opened, western firms were quick to move in. Hungary treated foreign firms equal to domestic ones in the privatization process. It attracted most foreign direct investment in the region. Now, other countries are likely to follow the Hungarian path and allow foreign firms to take over domestic firms. This contribution discusses the experience of six Dutch multinational firms in Hungary and discusses whether these can be useful for expansion into other countries in the region. The results indicate that firms easily underestimate the cost of reconstructing acquired enterprises and that building a market position is more expensive than anticipated.     

A perspective of marketing in central and Eastern Europe

The transition of Central and Eastern Europe toward a market economy affords new opportunities but also new risks to international marketers. Based on the work of the authors in the region, this article presents a perspective of the economic shifts which have taken place in these countries. A review of the available international marketing options is offered and a framework for the evaluation of market entry and marketing mix strategies which accommodate these shifts is developed. Emphasis is placed on the need for marketers to go beyond purely commercial criteria in their decision making, by considering the long-term social and economic repercussions of their actions. 1997 John Wiley & Sons, Inc.     

Technology transfer and institutional development in Central and Eastern Europe

The transfer of technology from developed countries to emerging markets has been of central interest to MNCs. This paper examines the problems associated with technology transfer in the context of Central and Eastern European countries. Contrary to a common perception of the region, we argue that different country institutional characteristics are determinants of technology transfer. By outlining the recent socioeconomic changes in the region, we consider the adoption of essential market institutions and the specific norms of regional integration with the European Union as these most important determinants. The paper concludes with the overview of potentially successful technology transfer strategies for MNCs interested in investing in the countries of Central and Eastern Europe.     

Cross‐sector alliances in the global refugee crisis: An institutional theory approach

The global refugee crisis has posed severe challenges to social stability and sustainable development around the world. While the business sector is expected to shoulder social responsibility in crisis relief efforts, our initial assessment shows that refugee‐related corporate social responsibility (CSR) significantly diverged across the Global Fortune 500 corporations. To advance scholars and managers' understanding of this complex CSR issue, this study draws upon National Business System Theory to explore how country‐level factors influence the multinational corporations' CSR communication about the refugee issue. Specifically, the study focuses on the strategic cross‐sector alliances between corporations, NGOs, and IGOs. The analysis shows that in this controversial global crisis, the following factors of corporations' countries‐of‐origin can significantly affect the level of cross‐sector CSR alliances: democracy levels, economic inequality levels, and unemployment rates. Findings of this study provide practical guidelines that can help managers to anticipate societal expectations when dealing with controversial social issues in an international setting. Our findings could also assist policymakers, NGOs, and IGOs to better design strategies to mobilize the corporate resources.     

跨国公司人才全球化战略浅析

在当今时代经营本土化已成为跨国公司全球化经营的前提,其中人力资源的本土化战略又被列为首要战略。人才全球化又是实现公司经营全球化的基础。跨国公司在实现人才全球化过程中缺少共同的价值观,母公司以及海外法人的经营管理体制不够明确。推行人才全球化除了要有中长期的战略之外,必须建立一套完善的执行体制。     

Special economic zones: Shortcut or roundabout way towards capitalism?

The experiences of developing countries suggest that special economic zones (SEZs) might be appropriate instruments for accelerating the economic restructuring of Central and Eastern Europe. What functions could SEZs fulfil in the transformation process? What conditions must be met if they are to be successful?     

Factors Influencing Human Resource Management Solutions at Subsidiaries of Multinational Companies in Central and Eastern Europe

There is a shortage of empirical human resource management (HRM) literature in respect to identifying new patterns of multinational company (MNC) involvement in the Central and Eastern Europe region and the impact of ongoing MNC operations on the patterns of the HRM behavior of these companies. To counter this lack of understanding within the field, our broadly based, international survey asked 279 subsidiaries located in Croatia, Estonia, Hungary, Poland, Romania, Serbia, and Slovakia and was conducted in 2010. It aimed to describe the relationships within the companies involved—between the influencing factors and the HR solutions applied—in a statistically valid way.     

Regional development of German foreign trade in the 1990s

With a double-digit growth rate, Germany's export sector was again very successful last year. While the industrialised countries continue to be Germany's main trading partners, growth in the past few years has been stimulated by trade with the booming regions of Southeast Asia and Central and Eastern Europe as well as with Central and South America. The current crisis in Southeast Asia has led to an abrupt slowdown in the region's economic development. What will be the consequences for global trade in general and for German foreign trade in particular?     

制度分割、产业集群与跨国公司区位

当前,产业集群快速发展,并已成为跨国公司的新区位,对文献的回顾也证明集聚经济已成为跨国公司新的优势来源。本文从经济组织角度研究了产业集群对于跨国公司区位的意义,特别注重制度分割对于产业集群的组织属性、效率边界及演进动力的作用,以及这种作用对于跨国公司区位的影响。最后提出发展中国家应以制度分割推进产业集群建设来制定引资战略的政策建议。     

Opportunities and tripwires for foreign investors in Eastern Europe

This article discusses how the local environment influences the strategic decisions of foreign investors entering Central and Eastern Europe. The current economic transition of the region offers unique opportunities arising from virgin markets and low labor costs. Foreign businesses have been eager to exploit the former, often pursuing first-mover advantages. However, the underlying structural problems of the economies in transition inhibit the development of business: in adapting to the new market environment, firms are in a process of fundamental restructuring. Moreover, the privatization process in the region creates both opportunities and obstacles for entry by acquisition. While the institutional framework is developing toward Western models, it remains incomplete. © 1998 John Wiley & Sons, Inc.     

Environment and Performance of Family Businesses in the Reforming Polish Economy

Abstract

In the former planned economies, a major result of the economic reform programs has been the resurgence of private sector. As recent research has been unable to explain what leads to substantive growth performance in family businesses in Central and Eastern Europe, this study seeks to increase our understanding of the growth process in small businesses in the region. The paper attempts to identify the types of problems and impediments Polish small family businesses confront. The paper investigates the association of various problems with a firm's stage of growth and development using a sample of one hundred family businesses that operate in the southern region of Poland.     

Trade and Market Liberalisation in Eastern Europe

SUMMARY

The question of why multinational companies (MNCs) choose to locate in one region rather than another has been an important topic in IB research for many years, but has recently received even more attention. This paper presents the results of an econometric investigation of the locational determinants of Italian firms in Central and Eastern Europe. Italian firms have been very active investors in the CEE countries. Our results broadly confirm the findings of previous studies, but we also find that both trade liberalisation and market liberalisation are important influences upon the location decision. If the CEE governments wish to attract further (Italian) foreign investment, then further liberalisation of their domestic economies should be a policy priority.     

Cohesive Growth in Europe: A Tale of Two Peripheries

Intereconomics - Over the last two decades, income disparities between EU member states tended to decline, particularly before the financial crisis. While Central and Eastern Europe caught up with...