Measuring Progress in Transition and Towards EU Accession: A Comparison of Manufacturing Firms in Poland, Romania and Spain

Abstract

This article provides new evidence on progress in transition and the 'readiness' for accession of enterprises in two EU applicant countries. A major innovation is to benchmark them against Spain. Approximately 200 manufacturing firms were surveyed in each of Poland, Romania and Spain. Newly-established private firms in both Poland and Romania are found to be growing the fastest, but on measures of integration and investment, it is new and privatized Polish firms that most resemble Spanish ones. Polish stateowned firms, and most Romanian enterprises, typically are less integrated. Polish firms tend to lag behind Spanish ones in complying with EU directives, but are ahead of Romanian ones, although awareness of and compliance with directives does not vary with ownership type. Progress in transition at the country level seems to be consistent with improvements in compliance with much of the acquis communautaire.

Perceived ethical values and small business problems in Poland

“…This is especially important given the recently adopted EU standards that require countries to consider various social concerns associated with the operation of businesses (e.g. Kucia 1999, Carlin et al 2000. Despite the possible costs in the present, a focus on business ethics in this new institutional environment likely enhances the reputation of the company and facilitates interaction with important stakeholders whose support is needed for continued success (see Waddock & Graves 1997).…”

“…In particular, Poland's association with the EU requires that companies pay close attention to several requirements that have ethical components, which include 'working time, equal pay, safety and health at work, emissions monitoring and product certification' (Carlin et al 2000: 701). These requirements essentially advance institutionalized practices in the business community that require organizations to satisfy the needs of stakeholders by acknowledging individual rights and responsibilities (Carlin et al 2000, Ferry 2003). In one recent study, it was indeed acknowledged that EU regulations would likely encourage business professionals to act more ethically (Kucia 1999).…”

“…Enhanced compliance therefore suggests that companies might be viewed as more ethical and should have more positive experiences. More specifically, the ethical/social practices of Polish companies, some of which are peripherally specified in the acquis communautaire agreement of the EU (Carlin et al 2000), could minimize the severity of operational-level business problems, because ethics is being emphasized in Poland.…”

Privatization Methods and Productivity Effects in Romanian Industrial Enterprises

“…The usefulness of the Romanian results in this study is constrained by the data, however: the time series ends in 1995, by which time very little privatization had taken place, and the only available ownership measure is a dummy variable for privatization, with no information on different methods of privatization or on types of private owners and their shareholdings. Other firm-level studies of Romania include Konings (1997) on the impact of competition, Konings and Repkin (1998) on the relationship of technical efficiency and profitability, Carlin, Estrin, and Schaffer (2000) on European Union accession, and Djankov (1999a) on the isolation program for loss-making firms. employee buyout and mass privatization methods resulted in dispersed inside and outside ownership, respectively, while sales nearly always involved large blocks of shares.…”

Privatization Methods and Productivity Effects in Romanian Industrial Enterprises

“…The usefulness of the Romanian results in this study is constrained by the data, however: the time series ends in 1995, by which time very little privatization had taken place, and the only available ownership measure is a dummy variable for privatization, with no information on different methods of privatization or on types of private owners and their shareholdings. Other firm-level studies of Romania include Konings (1997) on the impact of competition, Konings and Repkin (1998) on the relationship of technical efficiency and profitability, Carlin, Estrin, and Schaffer (2000) on European Union accession, and Djankov (1999a) on the isolation program for loss-making firms.…”