IDEAS home Printed from https://ideas.repec.org/p/see/wpaper/12.html
   My bibliography  Save this paper

European Integration and Complementarities Driven Network Alignment: The Case of ABB in Central and Eastern Europe

Author

Listed:
  • Slavo Radosevic

    (UCL School of Slavonic and East European Studies)

Abstract

The depth of industry integration between European ‘West’ and ‘East’ depends on the simultaneous existence of several factors, which, through mutual complementarities, align global and local networks. This paper takes the case of Asea Brown Bowery (ABB), one of the first large investors in central and eastern Europe (CEE), to show that the successful penetration of this company into CEE was the result of the simultaneous occurrence of several factors, which had mutually reinforcing complementarities. Changes in the strategy of ABB towards knowledge-based services may be weakening these complementarities and dis-aligning local and global networks in CEE. By integrating the insights of Milgrom and Roberts (1995) on complementarities the paper further develops the ‘network alignment’ perspective (Kim and von Tunzelmann, 1998) on growth.

Suggested Citation

  • Slavo Radosevic, 2002. "European Integration and Complementarities Driven Network Alignment: The Case of ABB in Central and Eastern Europe," UCL SSEES Economics and Business working paper series 12, UCL School of Slavonic and East European Studies (SSEES).
    • Handle: RePEc:see:wpaper:12
    as

    Download full text from publisher

    File URL: http://discovery.ucl.ac.uk/17567/1/17567.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paul Brenton & Francesca Di Mauro & Matthias Lücke, 2014. "Economic Integration and FDI: An Empirical Analysis off Foreign Investment in the EU and in Central and Eastern Europe," World Scientific Book Chapters, in: INTERNATIONAL TRADE, DISTRIBUTION AND DEVELOPMENT Empirical Studies of Trade Policies, chapter 7, pages 125-151, World Scientific Publishing Co. Pte. Ltd..
    2. R. Kaplinsky, 2000. "Globalisation and Unequalisation: What Can Be Learned from Value Chain Analysis?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 117-146.
    3. Damijan, Joze P. & Knell, Mark & Majcen, Boris & Rojec, Matija, 2003. "The role of FDI, R&D accumulation and trade in transferring technology to transition countries: evidence from firm panel data for eight transition countries," Economic Systems, Elsevier, vol. 27(2), pages 189-204, June.
    4. Obloj, Krzysztof & Thomas, Howard, 1998. "Transforming former state-owned companies into market competitors in Poland:: The ABB experience," European Management Journal, Elsevier, vol. 16(4), pages 390-399, August.
    5. Simon Johnson & David Kotchen & Gary W. Loveman, 1996. "Complementarities and the managerial challenges of state enterprise restructuring: evidence from two shipyards," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 31-42, May.
    6. van Tulder, Rob & Ruigrok, Winifred, 1998. "European Cross-National Production Networks in the Auto Industry: Eastern Europe as the Low End of European Car Complex," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series qt35n5n451, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley.
    7. Laura Resmini, 2000. "The Determinants of Foreign Direct Investment in the CEECs: New evidence from sectoral patterns," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(3), pages 665-689, November.
    8. Hans‐Peter Lankes & A. J. Venables, 1996. "Foreign direct investment in economic transition: the changing pattern of investments," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(2), pages 331-347, October.
    9. Dieter Ernst, 1998. "Catching-Up, Crisis and Industrial Upgrading. Evolutionary Aspects of Technological Learning in Korea's Electronics Industry," DRUID Working Papers 98-16, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    10. Slavo Radosevic, 1999. "International Technology Transfer and Catch-Up in Economic Development," Books, Edward Elgar Publishing, number 1386.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Slavo Radosevic, 2003. "The emerging industrial architecture of the wider Europe: The co-evolution of industrial and political structures," UCL SSEES Economics and Business working paper series 29, UCL School of Slavonic and East European Studies (SSEES).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Slavo Radosevic, 2003. "The emerging industrial architecture of the wider Europe: The co-evolution of industrial and political structures," UCL SSEES Economics and Business working paper series 29, UCL School of Slavonic and East European Studies (SSEES).
    2. Sabina Silajdzic & Eldin Mehic, 2022. "How Effective Is Tax Policy in Attracting Foreign Direct Investments in Transition Countries?," Central European Business Review, Prague University of Economics and Business, vol. 2022(1), pages 19-39.
    3. J. Caetano & A. Galego & E. Vaz & C. Vieira & I. Vieira, 2002. "The Eastward Enlargement of the Eurozone: Trade and FDI," Eastward Enlargement of the Euro-zone Working Papers wp07, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Aug 2002.
    4. Elvira Sapienza, 2009. "FDI and Growth in Central and Southern Eastern Europe," Quaderni DSEMS 12-2009, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
    5. Azam, Muhammad & Khan, Hashim & Hunjra, Ahmed Imran & Ahmad, H. Mushtaq & Chani, Muhammad Irfan, 2011. "Institutions, macroeconomic policy and foreign direct investment: South Asian countries case," MPRA Paper 32480, University Library of Munich, Germany.
    6. Pisoni, Alessia & Fratocchi, Luciano & Onetti, Alberto, 2013. "Subsidiary autonomy in transition economies: Italian SMEs in Central and Eastern European countries," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(3), pages 336-370.
    7. Hanhee Lee, 2015. "Foreign Direct Investment In North Korea And The Effect Of Special Economic Zones: Learning From Transition Economies," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(2), pages 35-56, June.
    8. Sapienza, Elvira, 2010. "FDI and Growth in Eastern Europe: A Sectoral Analysis - Investimenti diretti e crescita in est-Europa: un’analisi settoriale," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 63(4), pages 451-475.
    9. Bevan, Alan & Estrin, Saul & Meyer, Klaus, 2004. "Foreign investment location and institutional development in transition economies," International Business Review, Elsevier, vol. 13(1), pages 43-64, February.
    10. Jun, Jong-Kun & Hyun, Jae Hoon, 2014. "Anticipation or risk aversion? The effects of the EU enlargement on Korean trade and FDI activities in Central and Eastern Europe," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 19(4), pages 486-503.
    11. Aurora Galego & Isabel Vieira & Carlos Vieira, 2003. "The CEECs as FDI attractors: are they a menace to the EU periphery?," Economics Working Papers 4_2003, University of Évora, Department of Economics (Portugal).
    12. Bellak, Christian & Leibrecht, Markus & Riedl, Aleksandra, 2008. "Labour costs and FDI flows into Central and Eastern European Countries: A survey of the literature and empirical evidence," Structural Change and Economic Dynamics, Elsevier, vol. 19(1), pages 17-37, March.
    13. Majcen, Boris & Radosevic, Slavo & Rojec, Matija, 2009. "Nature and determinants of productivity growth of foreign subsidiaries in Central and East European countries," Economic Systems, Elsevier, vol. 33(2), pages 168-184, June.
    14. Piazolo, Daniel & Kokta, Robert M. & Buch, Claudia M., 2001. "Does the East Get What Would Otherwise Flow to the South? FDI Diversion in Europe," Kiel Working Papers 1061, Kiel Institute for the World Economy (IfW Kiel).
    15. Andrzej Cieślik, 2020. "What attracts multinational enterprises from the new EU member states to Poland?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 253-269, June.
    16. Andrzej CieŚlik, 2013. "Determinants of the Location of Foreign Firms in P olish Regions: Does Firm Size Matter?," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 104(2), pages 175-193, April.
    17. Popovici Oana Cristina, 2015. "Assessing Fdi Determinants In Cee Countries During And After Transition," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 113-122, July.
    18. Katona, Klára, 2006. "A magyarországi tőkeimportot befolyásoló tényezők újraértelmezése [Reinterpretation of the factors influencing capital imports into Hungary]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 986-1001.
    19. Bacchetta, Marc & Drabek, Zdenek, 2002. "Effects of WTO accession on policy-making in sovereign states: Preliminary lessons from the recent experience of transition countries," WTO Staff Working Papers DERD-2002-02, World Trade Organization (WTO), Economic Research and Statistics Division.
    20. Aikaterini Kokkinou & Yannis Psycharis, 2005. "Foreign Direct Investment and Regional Attractiveness in Southeastern European countries," ERSA conference papers ersa05p382, European Regional Science Association.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:see:wpaper:12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/csescuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.