Multinationals and transition : business strategies, technology, and transformation in Central and Eastern Europe

This book refocuses thinking on how multinational enterprises (MNEs) can achieve a sustained contribution to European transition economies as these countries move from the processes of transformation into pursuit of more sustained development. The authors apply key aspects of recent work on the strategic aims and nature of the contemporary MNE to the transition economy context, and find that the generation and application of technology has particular relevance to the success of MNEs in Central and Eastern Europe. The book is based on the results of two new wide-ranging surveys and includes a thorough review of current literature. Cover......Page 1 Contents......Page 6 List of Tables......Page 8 List of Abbreviations......Page 10 From foreign direct investment to multinational strategy......Page 12 Strategic motivations of MNEs......Page 14 Industrial transition: from restructuring to sustained development......Page 16 Needs of industrial transition......Page 19 Creative transition......Page 22 MNE strategies and the phases of transition......Page 24 The surveys......Page 29 Aims and structure......Page 34 Introduction......Page 39 MNEs' motivations for CEE investments......Page 40 Sources of technology applied in MNEs' CEE operations......Page 47 Results......Page 54 Conclusions......Page 59 Introduction......Page 63 Reasons for investing......Page 64 Reasons for investing and sources of technology......Page 70 Results......Page 76 Conclusions......Page 82 Introduction......Page 86 Markets supplied......Page 88 Conclusions......Page 93 Introduction......Page 96 Classification of subsidiaries......Page 97 Reasons for investing in Romania......Page 98 Strategic roles of subsidiaries in Romania......Page 101 Markets supplied by subsidiaries......Page 104 Types of products produced......Page 106 Sources of technology used by subsidiaries......Page 110 Conclusions......Page 113 Appendix: process of classification of subsidiaries......Page 115 Introduction......Page 119 Knowledge capabilities in transition economies: a resource and a constraint......Page 120 Incomplete and distorted national innovation systems in transition economies......Page 122 A brief assessment of the NSIs of CEE......Page 125 MNE as a technology catalyst in transition economies......Page 129 R&D strategy of MNEs and NSIs of transition economies......Page 131 MNEs' R&D in CEE......Page 134 MNEs' R&D in Romania......Page 149 Conclusions......Page 157 Introduction......Page 162 Foreign-owned firms, local input linkages and economic development: the debate......Page 163 Sources of inputs used by MNE subsidiaries in CEE......Page 172 Subsidiary-level influences on MNEs' purchasing patterns in CEE......Page 176 Sources of inputs used by MNE subsidiaries in Romania......Page 183 Conclusions......Page 187 8 Conclusions......Page 191 Bibliography......Page 198 E......Page 205 L......Page 206 R......Page 207 T......Page 208 Z......Page 209 The book argues that the role of multinational enterprises (MNEs) in economic transition should involve participation in initial industrial restructuring and then in the subsequent, more orderly, advance of sustainable development. It emphasizes that MNEs can remain participants in such processes of change because of the diversity of their strategic aims and their willingness to adapt their operations in a particular host country. Thus, beyond targeting local markets and/or developing new supply bases in transition economies, MNEs can also move towards locating dynamic creative operations there. This can reflect strong, commercially underrealized technological and research heritages and capacities in European transition economies. MNEs, it is argued, can help these economies to enter international markets as much on the basis of product and technological originality as on the basis of low input costs. The book carefully conceptualizes these themes and investigates them through two new survey-based data sets on MNEs' strategic and technological activity in Central and Eastern Europe