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Grading Up or Fading Out?

In: The Changing Nature of Doing Business in Transition Economies

Author

Listed:
  • Stefan Eckert
  • Frank Rossmeissl

Abstract

Foreign subsidiaries play an important role in the restructuring and transformation of former centrally planned economies. As these foreign entities are embedded in international networks, their existence may lead to cross-border transfer of knowledge, managerial and marketing skills (Manea and Pearce, 2001b) that “promote the diffusion of new technologies through direct linkages or spillovers to domestic firms” (Altomonte and Guagliano, 2001: 4). Such effects should be appreciated as they tend to strengthen the international competitiveness of transition economies. However, the beneficial effects that foreign subsidiaries exert on the competitiveness of the host country depend, among other things, on the role that these subsidiaries have been assigned to perform in the international and sometimes global corporate network.

Suggested Citation

  • Stefan Eckert & Frank Rossmeissl, 2011. "Grading Up or Fading Out?," Palgrave Macmillan Books, in: Marin Marinov & Svetla Marinova (ed.), The Changing Nature of Doing Business in Transition Economies, chapter 2, pages 9-29, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-33701-5_2
    DOI: 10.1057/9780230337015_2
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    Cited by:

    1. Tokunaga, Masahiro & Suganuma, Keiko & Odagiri, Nami, 2018. "From Russia to Eurasia : Specific Features of the “Russosphere” from the Perspective of Business Activities of Japanese Firms," RRC Working Paper Series 77, Russian Research Center, Institute of Economic Research, Hitotsubashi University.

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