International business and institutional development in Central and Eastern Europe

Abstract

Abstract.Since the early 1990s, Central and Eastern Europe has attracted international business research into the interaction between radical societal change and business development in these emerging market economies. This research has effectively utilized institutional theories, and thus revealed limitations of similar applications in other contexts, while setting the stage for more refined argumentations, especially with respect to rapidly changing contexts. This introductory paper outlines both economic and the sociological perspectives on the influence of institutions on business, and thus sets the stage for this Special Issue. On this basis, we introduce the five papers in this special issue, and outline an agenda for future research.

The Effects of Internationalization on Innovation: Firm-Level Evidence for Transition Economies

“…Following the wave of privatization efforts and institutional transformations there is still a legacy in terms of administrative heritage form the former Soviet period which affects organizational routines and the management of the firm (Gelbuda et al, 2008;Estrin et al, 2009). Signs of inertia and slow adaptation to organizational excellence are evident in Bloom and Van Reenen (2010).…”

“…However, firms have reacted differently to the opening-up of the economy. After major reform and economic development, some firms have been unable to take advantage of the transition to a market-oriented economy due to the planned economy legacy that still affects organizational norms and practices (Gelbuda et al, 2008;Estrin et al, 2009). We use the variation in response to institutional change in order to isolate the causal effects of internationalization on firm productivity and innovation.…”

Managerial ties, strategic initiatives, and firm performance in Central Asia and the Caucasus

“…Most research on Central and Eastern Europe and the former Soviet Union has focused on the European parts (Gelbuda, Meyer, & Delios, 2008;Meyer & Peng, 2005), and most research on Asia deals with East, Southeast, and South Asia (Bruton & Lau, 2008). There is very little published research on Central Asia and the Caucasus-or Central Eurasia as the region is often referred to (see Ardichvili & Gasparishvili, 2003;Ford & Ismail, 2006;Ismail & Ford, 2010 for exceptions).…”

Theoretical Foundations

“…Table 3, the institution-based view draws upon at least three distinct intellectual roots: (1) institutional economics, (2) institutional theory in sociology and organizational theory, and (3) bargaining theory applied to MNEs and governments. 2 These lines of theorizing often lead to similar predictions ), but their underlying logic and their assumptions about human behavior are quite different (Gelbuda, Meyer, & Delios, 2008;Hotho & Pedersen, 2012;Kostova, Roth, & Dacin, 2008). Table 3 here *** Institutions as incentive structures.…”