Typology of Business Networks in Eastern Europe: Comparative Case Studies

Abstract:     
The debates on privatisation and company restructuring in Central and Eastern Europe (CEE) have been almost entirely dominated by the argument that privatisation is the only means for enterprise restructuring. Our secondary analysis of a number of published case studies aims to highlight a new dimension of the transition process, and to introduce the argument for the structural dependencies and barriers for change, usually underestimated in the academic literature. We analyse the factors reported in the cases that determine the company performance, and particularly those related to government policies, industrial linkages, and managerial strategies for survival in a turbulent environment. The concept of ‘business network’ is used in this paper to describe the regular and repetitive transactions that an enterprise maintains with its suppliers and buyers within the value chain (see also Porter, 1991). The term ‘network’ includes the complexity of relations between companies, based on past contractual arrangements and present business links. The information on these linkages is rarely reported in the published cases. However, through a secondary analysis of the available information we highlight some of the main enterprise linkages with buyers, suppliers, and government agencies, and their transformation under the new market conditions.

Number of Pages in PDF File: 15

Keywords: busines networks, transition economies, comparative case studies

JEL Classification: P13, P2

Accepted Paper Series