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The Role of Small Firms in the Industrial Development and Transformation of Czechoslovakia

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  • McDermott, Gerald A
  • Mejstrik, Michal

Abstract

This article presents an analysis of the role of small firms in the formation and reform of the Czechoslovak manufacturing sector. It attempts to give an understanding of the industrial structure formed under the past regime within the framework of the mass production paradigm. As manufacturing productivity gradually declined over the past 25 years and small firms have been virtually eliminated, systemic preference has been given to the development of large monopolies. Consequently, a monolithic coalition structure of enterprise managers, state bureaucrats, and political nomenklature has arisen and continues to present itself as a serious hindrance to economic transformation. While small firms have the potential to play a critical role in the democratic marketization of Czechoslovakia, current government preoccupation with the rapid privatization of the state sector risks damaging the development of a balanced distribution of firm size and, in turn, the revitalization of the society. Copyright 1992 by Kluwer Academic Publishers

Suggested Citation

  • McDermott, Gerald A & Mejstrik, Michal, 1992. "The Role of Small Firms in the Industrial Development and Transformation of Czechoslovakia," Small Business Economics, Springer, vol. 4(3), pages 179-200, September.
    • Handle: RePEc:kap:sbusec:v:4:y:1992:i:3:p:179-200
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    Cited by:

    1. Joseph LiPuma & Scott Newbert & Jonathan Doh, 2013. "The effect of institutional quality on firm export performance in emerging economies: a contingency model of firm age and size," Small Business Economics, Springer, vol. 40(4), pages 817-841, May.
    2. Seidenglanz, Daniel & Kvizda, Martin & Nigrin, Tomáš & Tomeš, Zdeněk & Dujka, Jiří, 2016. "Czechoslovak light rail — Legacy of socialist urbanism or opportunity for the future?," Journal of Transport Geography, Elsevier, vol. 54(C), pages 414-429.
    3. Gerald A. McDermott, 2000. "Network Restructuring and Firm Creation in East-Central Europe: A Public-Private Venture," William Davidson Institute Working Papers Series 361, William Davidson Institute at the University of Michigan.
    4. Gerald A. McDermott, 2003. "Institutional Change and Firm Creation in East-Central Europe: An Embedded Politics Approach," William Davidson Institute Working Papers Series 2003-590, William Davidson Institute at the University of Michigan.
    5. Raiser, Martin, 1994. "Ein tschechisches Wunder? Zur Rolle politikinduzierter Anreizstrukturen im Transformationsprozeß," Kiel Discussion Papers 233, Kiel Institute for the World Economy (IfW Kiel).
    6. Peter Adamovský & Vladimír Gonda, 2019. "Rozdiely v efektívnosti inovačných systémov Slovenska a vybraných krajín Európskej únie [Differences in Efficiency of National Innovation Systems of Slovakia and Selected EU Countries]," Politická ekonomie, Prague University of Economics and Business, vol. 2019(2), pages 181-197.
    7. David B. Audretsch & Petra Moog, 2022. "Democracy and Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 46(2), pages 368-392, March.
    8. Martin Raiser, 1995. "“Transition is a bridge, therefore do not dwell upon it”1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 3(2), pages 215-246, June.
    9. Simon Johnson, 1994. "Private Business in Eastern Europe," NBER Chapters, in: The Transition in Eastern Europe, Volume 2, Restructuring, pages 245-292, National Bureau of Economic Research, Inc.
    10. Raiser, Martin, 1993. "Governing the transition to a market economy," Kiel Working Papers 592, Kiel Institute for the World Economy (IfW Kiel).

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