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A Classification of International Business Strategies in the Czech Republic: A Longitudinal Analysis of Selected Firms

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  • James D. Goodnow
  • Pavel Vopařil

Abstract

This study is focused on relationship between external and internal impact on decisionmaking influencing international business strategies in transitional economy. Drawing from secondary and primary interview data on international business activities of 18 startups and 20 enterprises operating in the Czech Republic (including firms controlled by both domestic and foreign investors), respectively, the authors propose five strategies. In general, the findings suggest that strategies developed by domestically owned niche-focused or recent startups and those carefully guided by inbound foreign direct investors are more successful. Moreover, the more successful ( i.e., those experiencing significant domestic and international sales growth) are those who develop unique marketing strategies. Uncontrollable externalities do not appear to have an impact on firms' success or failure. The regionally oriented exporting tends to be the dominant strategy. Globally oriented export activities are relatively modest whereas outbound direct investment strategies are very minor compared with inbound foreign direct investment activities.

Suggested Citation

  • James D. Goodnow & Pavel Vopařil, 2005. "A Classification of International Business Strategies in the Czech Republic: A Longitudinal Analysis of Selected Firms," Prague Economic Papers, Prague University of Economics and Business, vol. 2005(4), pages 331-349.
    • Handle: RePEc:prg:jnlpep:v:2005:y:2005:i:4:id:269:p:331-349
    DOI: 10.18267/j.pep.269
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    References listed on IDEAS

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    1. Claessens, Stijn & Djankov, Simeon, 1999. "Ownership Concentration and Corporate Performance in the Czech Republic," Journal of Comparative Economics, Elsevier, vol. 27(3), pages 498-513, September.
    2. Joel T. Harper, 2001. "Short‐Term Effects Of Privatization On Operating Performance In The Czech Republic," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 24(1), pages 119-131, March.
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    4. Nandini Gupta & John Ham & Jan Svejnar, 2000. "Priorities and Sequencing in Privatization: Theory and Evidence from the Czech Republic," Econometric Society World Congress 2000 Contributed Papers 1580, Econometric Society.
    5. Djankov, Simeon & Hoekman, Bernard M, 2000. "Foreign Investment and Productivity Growth in Czech Enterprises," The World Bank Economic Review, World Bank, vol. 14(1), pages 49-64, January.
    6. Estrin, Saul & Bevan, Alan, 2000. "The Determinants of Foreign Direct Investment in Transition Economies," CEPR Discussion Papers 2638, C.E.P.R. Discussion Papers.
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    More about this item

    Keywords

    international bussiness strategies; transitional economy; foreign direct investors;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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