The evolution of multinational participation in Eastern Europe

Eastern Europe needs investment, access to world-wide distribution networks, and managerial/marketing/technical expertise. To fulfill these needs, it offers firms major incentives to establish presence in the region. Interviews with the senior representatives of six multinational firms in Hungary, the leading country in the transition to a market economy, revealed an evolutionary pattern of the firms' involvement and investment in the Hungarian economy. This article describes the evolutionary pattern, provides firms with strategic insight, and makes recommendations to accelerate the entrance of global firms into the region. © 1993 John Wiley & Sons, Inc.