The Socialist Legacy and Worker Perceptions of Transformation

ABSTRACT

This paper presents a study of worker attitudes from four post-socialist Polish enterprises towards aspects of enterprise transformation, namely organisational processes, working relationships and styles of management. We employ the concept of path dependence to identify structural, relational and attitudinal features of the socialist legacy at enterprise level. We argue that such an approach is valuable in identifying conceptual and practical problems of enterprise transformation in contrast to the determinism of neo-classical economic orthodoxy.     

Internationalisation of Hypermarket Retailing in Poland

ABSTRACT

Retailing in Poland after 1989 was privatised rapidly. There was an explosion in the number of small shops and kiosks. By 1996 rationalisation had begun in the store network. By the mid-1990s foreign retailers were perceiving the Polish market as a potentially lucrative one. Several store formats were introduced. Hypermarket operators from Western Europe have moved into the market strongly since the mid-1990s. French and German retailers are making substantial investments in this format. There are notable implications for the supply chain, logistics and the behaviour of manufacturers of fast-moving consumer goods, particularly food. There are implications also for the training and development of a cadre of managers in operational and strategic functions. The development of hypermarkets represents a significant transfer of managerial know-how from Western to Central Europe. There are also implications for the small shopkeeper sector which has already been affected but is likely to be more heavily affected as hypermarket numbers increase. In the process of the modernisation of retailing in Poland foreign hypermarket operators are playing an important role.     

On Determinants of Japan's Foreign Direct Investment in Eastern Europe

Summary

The paper takes issue with some untested but often repeated assertions that Japanese FDI positions in Eastern Europe are weak. Japan's economic relations with Eastern Europe, including FDI, should be understood in the context of Japan's global economic relations. Therefore, it might not be appropriate to approach the question armed with absolute FDI numbers only. So, the author proceeds to empirically test some of these assertions by calculating directional trade ratios and directional FDI ratios! As a result of his approach, he claims that Japan's FDI position in Poland is not significantly weaker compared to its trade position or to other advanced countries' positions. The paper also suggests that, although Japan's FDI in Poland has been undoubtedly stagnant, the larger problem is that the Polish FDI environment is still problematic due mainly to repayment risks and rather low levels of real per capita income.     

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.     

Examining Polish Market Mavens and Their Attitudes Toward Advertising

Abstract

In this paper, we offer some insights about Polish consumers with varying levels of general marketplace expertise, their role in diffusing product information, and their views of advertising. Market mavens are consumers who exhibit heightened interestin and knowledge about the marketplace. Because of their interest in communicating with others about the many aspects of the marketplace, these consumers can play an integral role for companies interested in diffusing marketing information. Our study results indicate that market mavens do indeed exist in Poland and they exhibit similar characteristics to market mavens identified in the U.S. They have more favorable attitudes toward advertising than other consumers. Additionally, they consider advertising as an important source of product and social image information. Although Polish mavens are less critical of advertising being misleading and confusing, they are concerned about advertising promoting materialistic values. Our findings imply that firms doing business in Poland would be well advised to target market mavens because they pay attention to advertising, have favorable attitudes toward advertising, and like to talk about marketplace phenomena with others.     

Crisis of Governance

Abstract

This paper looks at links between firms' behavior and the institutional environment in Russia. It seeks to show that the intentional weakening of the economic and administrative role of the state in the early stages of reforms has increased the economic and social cost of transition. This happens as the majority of firms in Russia still prefer short-term solutions and partial adjustment to full-scale restructuring as they often fail to show anticipated responses following privatization and price liberalization. The shortage of market-type response can be attributed to the fragility of market-based incentives. The new institutional economics maintains that the cradle for these incentives is the system of institutions, which are the rules of the game in the society or, more formally, the humanly-devised constraints that shape human interactions. Accordingly, this paper argues that for the post-communist reforms to achieve their objectives, it is essential for the state to provide a framework, institutionalizing economic conflict and thus contributing to sustainable development. However, the analysis suggests that the evolvement of a modern institutional rëgime in the country is likely to be delayed as a consequence of vested interest of a number of powerful economic groups.     

Eastern and Central Europe

ABSTRACT

The aim of this research is to help explain the impact of cultural variables on privatization and market entry strategies in several of the transition economies of Central Europe. The geographic area focus is on the former East Germany, Hungary, Poland, and the Czech Republic. The cultural legacy of communism involves the need to fundamentally change core values. Democratic capitalism requires a cultural re-orientation. The authors seek to examine the implications of cultural impediments and opportunities and to show how successful strategic management seeks to function in a dramatic value transition. Finally, the analysis underlines how each country as well as individual management teams have made progress under the new circumstances.     

Russian Direct Investments in Poland

SUMMARY

The article describes the expansion of the Russian direct investments in Poland, especially in the oil sector, illustrated with an example of Lukoil. Apart from the capital transfer, the company contributed to long-term sustainable economic development by implementing environmentally friendly production technologies. However, corruption and political involvement related to the expansion of the Russian investments in the strategic assets had negative impact on the perception of Russian investments in Poland.     

Contractual Satisfaction: The Polish and Tanzanian Perspectives

Purpose: Interfirm satisfaction has been studied at the aggregate level, which has limited use in terms of understanding specific dimensions. Contractual satisfaction relates to the specific level of analyzing interfirm satisfaction. This study contributes towards understanding contractual satisfaction and the contextual nature of the concept. To achieve the latter, two heterogeneous emerging markets were used (Poland and Tanzania).

Methodology: The study was conducted in Poland and Tanzania, focusing on manufacturing firms. The sample included 201 Polish firms and 240 Tanzanian firms.

Findings: The major findings suggest that ex ante costs and ex post specifications have a significant positive effect on contractual satisfaction, with a stronger effect in Poland. Behavioral uncertainty has a significant moderating effect on these two constructs in Tanzania but not in Poland, whereas the moderating effect of trust is found to be significantly positive in Poland but negative in Tanzania.

Research Implications: The nature of markets and institutions has an influence on business to business relations.

Practical Implications: Contractual satisfaction is not homogeneous across markets; managers should pay attention to specific contextual factors such as institutions and the stage they are at in their transformation.

Originality: The study looks specifically at contractual satisfaction and extends the contractual governance literature by considering heterogeneous emerging markets.     

Intra-Industry Affiliate Trade of Foreign-Owned Companies in Transition Economies: The Importance of Organization of Production

Using a database containing trade and industry variables of foreign-owned companies in the Polish manufacturing industry for the years 1993–2002, we investigate the relationship between the organizational structure of multinational enterprises (MNE) in Poland and the intra-industry trade of their affiliates (IIAT). We find labour intensity; scale economies and absorptive capacity of affiliates are the main explanatory variables for IIAT. Given the overall rise in export and import intensities of foreign affiliates over the period of investigation, our findings suggest that export-platform FDI has become a more important mode of organization for multinational enterprises as Poland has evolved into a relatively stable economic environment where MNEs feel comfortable basing their regional operations.     

Opening Markets and Industrial Restructuring

Abstract

Industries are responding to the challenge of increasing globalization of production by restructuring into leaner and more flexible production processes in order to cut costs and gain global competitiveness. The auto industry, which is one of the most globally oriented industries has been especially involved in this movement. Since 1990 the market environment of the Argentine auto industry has changed rapidly from that of a closed, highly protected environment to an open one that includes economic integration with the world’s 9th largest auto producer, Brazil. The need to be globally competitive has forced firms to adopt Just-in-Time/Total-Quality-Control (JIT/TQC) systems of production. This paper presents micro, plant level research on the response of Argentine autopart manufacturers to this radical change in its market environment. The analysis is based on a case study of 10 well-established autopart firms which were interviewed in depth to get some idea of the measures being taken by them to survive in this new global climate. The extent to which the “world class manufacturing techniques” of JIT/TQC are being adopted in these firms is examined. The survey finds a wide variety of adaptations of these techniques.     

Economic Transition

Abstract

Poland has become one of Eastern Europe's biggest success stories as an important emerging market and rapidly growing economy. However, transition from a centrally planned economy to a market economy has proven to be an enormous challenge in regard to the development and growth of small entrepreneurial ventures within the tourism and hospitality industry. The objective of this study is to examine the environment for growth and development of these enterprises after more than a decade of transition. The 2002 survey was conducted to examine various factors, such as: entrepreneurial disposition, entrepreneurial orientation, strategies, organizational factors, and environmental factors. A model of the entrepreneurial environment was used to analyze policy implications that can be used to assist in the growth and development of the tourism and hospitality industry in Poland and in the other countries in the region.     

The Role of Economics in the Management Curriculum

Abstract

The economic transition in the Central and Eastern European Countries provides a unique opportunity to observe the evolution of economies from planned systems to more market-oriented and decentralized systems. Aside from the bounty of economic policy issues raised by such a transition, a more fundamental adjustment involves the design of education for the future managers in these economies and, in particular, the role of economics-a subject at the core of the transition-in the management curriculum. Using the MBA curriculum as its focus, this paper discusses both the rationale for including economics in the program for various curric-ular models and the particular relevance of the subject to management students in the transition environment.     

New Cultures,New Strategies,New Formats and New Relationships in European Retailing

Abstract

During the last fifteen years there has been a substantial restructuring of retailing in Europe. The implications of this reach beyond Europe. The restructuring involves not only competitive relationships amongst retailers but also involves new forms of relationships with suppliers. A new perspective of the role of retailing is emerging that places retailing in a global framework of international store operations, international sourcing of products, international flows of management and managerial know-how, and international awareness by consumers of the retailers who are becoming international brands. The aim of this paper is to place the restructuring in context, to consider the nature of it and to explore how the new global framework will begin to have effects for distribution industries in Asia.     

The Enlarged EU and Russia-What Do Visegrad-Countries Contribute to EU-Russian Economic Relationship?

Abstract

The European Union's economic strategy on Russia had not been clearly and consistently worked out by the time of the 2004 May enlargement; major questions still needed to be answered. Since new member-states had not been really involved into the process of shaping EU policy toward its ‘strategic partner’, their approaches should be also included into the EU Russia-policy in the future. Though enlargement certainly brings about growing importance and new perspectives into the EU-Russia dialog, it will create new problems or deepen some old ones as well.

Beside Baltic-states, that have their special interests and attitudes-Visegrad-countries (Poland, Hungary, Slovakia and to a less degree the Czech Republic) are the most interested new-members in this dialog. They may turn to be either the most active ones in taking part of shaping EU-Russian economic and political dialog from among the 10 newcomers or the most influential ones in doing so. The role of Poland in this process is undoubtedly unique.

Notwithstanding the fact that characteristics of bilateral economic relations (Polish-Russian, Hungarian-Russian, etc.) are common to a great extent, it seems to be unlikely that these countries will intend or will be able to cooperate on this issue. The reasons for potential and already sensible divergence in their attitudes toward Russiacontrary to their more or less similar approaches regarding Ukraineare rooted more in politics then in different economic interests. Analysing figures concerning bilateral trade and investment flows indicates these common features. Energy is in the focus of Russian-Visegrad4 economic relations.     

Distance Education

ABSTRACT

This article examines management of accountancy education in Zambia and Zimbabwe, two countries in Sub-Saharan Africa. Both programs are collaborative efforts to manage the link between the accounting profession, governments of emerging economies and in-country postgraduate training facilities. Both programs are designed to promote the study of accounting at a level recognized by the international accountancy profession.

The programs are being developed in the context of World Bank research, which confirms linkage between economic growth and an appropriately trained accounting profession, and recognizes the need for economic growth in Sub-Saharan Africa.

Six principal program characteristics are examined: the challenge facing the accountancy profession in Sub-Saharan Africa; funding sources; details of the programs; delivery of the programs; program costs, and graduation outcomes. This article reports on the struggle faced by the accounting profession in emerging economies to make the managers of the global accountancy profession, donor agencies, and multinational commercial enterprises aware of this aspect of the developing SSA market.     

Strategy constraints of Polish foreign-trade organizations

This paper presents reflections on the survey of the general managers of Polish foreign-trade organizations (FTOs). The study focuses on business deals with Western partners and the associated problems. The relative inefficiency of Polish FTOs is due to:

• 1.1. Poor working relations between the FTOs and the Polish manufacturing sector;
• 2.2. Inadequate knowledge of modern marketing techniques;
• 3.3. The lack of clear-cut strategies regarding how to develop foreign markets; and
• 4.4. Rigidity of national planning and management systems in Poland.

As far as organizational solutions to correct the deficiencies are concerned, the experience of foreign branches of FTOs and the modifications of their cooperative links with the Polish manufacturing sector appear to be the most promising.     

国有企业退出的障碍及对策分析

国有企业的战略性退出已成为当前我国国有经济布局调整中的关键环节。然而,国有经济的退出并不是一帆风顺的。国有经济的退出障碍包括体制内和体制外两方面的因素。为加快我国国有经济的战略性调整,政府要采取适当的政策以弱化国有企业的退出障碍,努力化解国有企业在退出过程中遇到的各种问题和矛盾。     

Marketing in Russia

ABSTRACT

This paper offers a study of the development of the commercial banking system in two East European countries. Based on surveys conducted in Hungary and Poland, the authors discuss elements of the competitive market structure in the banking sector. Findings indicate that the commercial banks in Hungary and Poland have become more competitive, but there are differences between the two countries, especially in the way that the banks use sources of foreign funds.     

Bouncing back from a sudden-onset extreme event: exploring retail enterprises’ resilience capacity

ABSTRACT

A feature of recent decades has been the sudden and unexpected occurrence of catastrophic events seriously affecting people and territories. From an economic viewpoint, this has led scholars to pay increasing attention to factors and determinants taking enterprises face-to-face with extreme and catastrophic events, through the resilience lens. In this context, this study aims to contribute to the literature on resilience to natural disasters which is currently still limited in the business and management fields, both theoretically and empirically. This is particularly true as regards retailing, despite the key role played by retail in the aftermath and recovery periods following on from sudden-onset extreme events such as earthquakes.

The 2012 Emilia earthquake is a case in point with which to explore small retail enterprises’ resilience to sudden-onset disasters. Specifically, our empirical research consisted of administering a structured questionnaire to a sample of small retail enterprises which experienced an earthquake. The unit of analysis adopted was the retail enterprise. Data was processed applying Covariance-Based Structural Equation Modeling (CB-SEM). The structural model aims to verify the impact of sales capabilities, market orientation and networking capabilities on the resilience capacity of retail enterprises affected by an extreme event, controlling for certain financial indicators such as suppliers’ payment timeframes and the use of debt capital, as well as respondent age and gender. The findings show that all the antecedents analysed exert a significant and positive effect on small retail enterprises’ resilience capacity and ability to bounce back from natural disasters. Moreover, suppliers’ payment timeframes showed a direct relationship with retail enterprises’ resilience capacity, with lower use of debt capital equalling higher retail business resilience. Age and gender do not exert any significant effect. Scientific, managerial and public policy implications are derived.

Abbreviation: SEM