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- W219655817 abstract "Dr. Emanuela Todeva INTRODUCTION 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. BUSINESS NETWORK STUDIES IN TRANSITION ECONOMIES The literature on business networks suggests that firms establish long-term contractual relationships in order to reduce transaction risk (Meyer, 1998), to increase resource commitments in profitable assets, to establish positions in new business networks (Johanson and Mattson 1988), and to increase its control within the value chain (Todeva, 2000). Meyer (1998) argues that the assumptions of the neoclassical market model only hold for some markets, such as those of raw materials, natural resources, and agricultural goods. In industries, where industrial marketing, customised supplies and sales, and business-to-business relations predominate, market transactions are not a viable option for businesses, due to high search costs, information costs (Casson and Cox, 1997), contract monitoring costs (Jarillo, 1988) and potential costs of contract enforcement in cases of unreliable partners. Businesses attempt to reduce these costs and to enhance their uncertainty management competencies through establishing relationships with governments, through influence on law and regulation, and through the use of allies and co-operative relations (Clarke and Varma, 1999). The establishment of interdependent network relations by firms is explained by the resource dependence theory (Van de Ven, 1976, Pfeffer, 1987), and more recently, by the information cost theory (Casson and Cox, 1997). According to Davis, Patterson, and Grazin, the enabling conditions for establishment of business networks include trust relationships, domain consensus, information sharing, and sharing of the gains from the exchange (Davis, et.al., 1996). The authors argue, that without these conditions, even well developed business networks would collapse from the attempts for opportunistic behaviour. In their framework," @default.
- W219655817 created "2016-06-24" @default.
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- W219655817 date "2001-08-21" @default.
- W219655817 modified "2023-09-25" @default.
- W219655817 title "TYPOLOGY OF BUSINESS NETWORKS IN EASTERN EUROPE: COMPARATIVE CASE STUDIES 1" @default.
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