This book opens a fresh chapter in the debate on local enterprise clusters and their strategies for upgrading in the global economy. The authors employ a novel conceptual framework in their research on industrial clusters in Europe, Latin America and Asia and provide new perspectives and insights for researchers and policymakers alike.

Governance in global value chains

What makes organizations so similar? We contend that the engine of rationalization and bureaucratization has moved from the competitive marketplace to the state and the professions. Once a set of organizations emerges as a field, a paradox arises: rational actors make their organizations increasingly similar as they try to change them. We describe three isomorphic processes-coercive, mimetic, and normative—leading to this outcome. We then specify hypotheses about the impact of resource centralization and dependency, goal ambiguity and technical uncertainty, and professionalization and structuration on isomorphic change. Finally, we suggest implications for theories of organizations and social change.

The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields (Chinese Translation)

Multinational enterprises and the global economy

Proximity and Innovation: A Critical Assessment

In “Probing Theoretically into Central and Eastern Europe: Transactions, Resources, and Institutions,” we outlined the contributions of research in Central and Eastern Europe (CEE) to theoretical debates in business research. In this retrospective, we reflect upon the evolution of the field over the past decade. With the fading impact of CEE’s distinct shared history, we suggest that CEE best be analyzed as emerging economies, rather than as a distinct geographic entity. Emerging economy business research is converging on common themes and shared theoretical ideas, while identifying critical variations that constrain generalizations among and beyond emerging economies. This research thus highlights the need to develop a better understanding of the boundary conditions of scholarly theories of business knowledge. Over the past decade, the institution-based view has emerged from distinct intellectual traditions in institutional economics, organizational theory, and the analysis of business–government bargaining. Research in these converging lines of theorizing places contextual variations at the center of explanations of business phenomena around the world. We suggest that the institution-based view is evolving toward a paradigm, and offer suggestions on how to advance this research agenda further, in particular by exploring how firms engage with different sets of potentially conflicting institutions at multiple levels and locations.

/pdf/theoretical-foundations-of-emerging-economy-business-3r48fi98t8.pdf

Theoretical foundations of emerging economy business research

This article focuses on the impact of agglomeration and labour market factors on the location choice of MNEs in post-transition economies. We compare data from 33 regions in East Germany, the Czech Republic and Poland using a mixed logit model on a sample of 4,343 subsidiaries for the time period between 2000 and 2010. The results show that agglomeration advantages, such as sectoral specialization as well as a region’s economic and technological performance prove to be some of the most important pull factors for FDI in post-transition regions. With respect to access to labour, the results suggest that FDI in post-transition regions is (no longer) only dominated by efficiency seeking behaviour, but also by access to well-qualified labour.

https://www.econstor.eu/bitstream/10419/128963/1/wp_412.pdf

Regional determinants of MNE’s location choice in post-transition economies

1. Motivation and Research Questions With the integration of post-communist countries into the European and global economy after 1990, there was strong research interest into the role of multinational enterprises (MNEs) for economic restructuring and technological catching-up. Most of the existing empirical studies on locational determinants of FDI and host country effects did not take account of East Germany. This might be for different reasons: Firstly, theoretical and empirical difficulties derive from the fact that East Germany followed a distinct transition pattern as it became a region subsumed in a larger and more mature economy. Secondly, East Germany received private investment from foreign as well as West German firms. Only the first can be considered as a foreign direct investment (FDI). Finally, there had long been a lack of micro data to adequately analyse the activities of corresponding firms from a production as well as technological

/pdf/an-introduction-to-the-iwh-fdi-micro-database-rp4ym8in6d.pdf

An introduction to the IWH FDI Micro Database

The focus of this article is the empirical identification of factors influencing Foreign Direct Investment (FDI) in the knowledge-intensive business service (KIBS) sector on the regional level of «Raumordnungsregionen» in East Germany. The analysis focuses on the impact of regional agglomeration and technological capability on the location decision of foreign investors and West German MNEs. It shows that localisation, patent activity and the share of employees with an R&D occupation affect significantly the location decision of FDI. This result provides an explanation for the strong concentration of KIBS in urban areas in a post-transition economy.

Agglomeration and FDI in East German Knowledge-Intensive Business Services

Globalisering en de liberalisering van handel en kapitaalstromen hebben grote economische gevolgen in Centraal en Oost Europa, waar het economisch systeem na de val van de Muur opnieuw ingericht diende te worden. Het process van institutionele verandering, structurele economische transformatie en privatisering heeft zich in de verschillende landen van Centraal en Oosteuropa op verschillende wijzen ontwikkeld. De voormalige satellietstaten hebben een relatief snelle economische transformatie doorlopen en zijn lid geworden van de Europese Unie. De landen die lid waren van de ‘Commonwealth of Independent States’ (CIS) hadden daarentegen grote problemen met de transformatie naar een moderne markteconomie. Vanwege het gebrek aan kapitaal en relevante kennis hebben buitenlandse investeringen een cruciale role gespeeld bij het tranformatie proces in Centraal en OostEuropa. Deze dissertatie concentreert zich op de rol van multinationals bij het genoemde transitieproces. De dissertatie bestaat uit twee gedeelten. Allereerst wordt het locatie keuze gedrag van multinationals in Centraal en Oost Europa nader bestudeerd. Rekening houdend met de verschillende transitie paden die deze landen hebben doorlopen, suggereren mijn bevindingen dat buitenlandse investeringsbeslissingen deels padafhankelijk zijn, gedreven door agglomeratie voordelen en toegang tot inputs die slechts lokaal aanwezig zijn. Buitenlandse ondernemingen versterken daarmee de bestaande concentratie van economische activiteit. In het tweede gedeelte van de dissertatie analyseer ik de invloed van buitenlandse investeringen op de economie van het land waarin geinvesteerd wordt. Buitenlandse investeringen versterken de concurrentiepositie van locale bedrijven. Deze zogenaamde spillover effecten hangen af van de mate waarin de buitenlandse onderneming in de locale economie is ingebed en de mate waarin locale bedrijven. Tenslotte is het belangrijk op te merken dat de mate van kennis transfer van buitenlandse bedrijven naar lokale ondernemingen samenhangt met de mate waarin de buitenlandse onderneming is geintegreerd in wereldwijde productie netwerken, en veel minder met de mate waarin buitenlandse ondernemingen lokaal producten of diensten afnemen.

/pdf/the-role-of-multinational-enterprises-in-the-transition-158sny5vhb.pdf

The Role of Multinational Enterprises in the Transition Process of Central and Eastern European Economies

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Papers

Regional determinants of MNE’s location choice in post-transition economies

An introduction to the IWH FDI Micro Database

An introduction to the IWH FDI Micro Database

Agglomeration and FDI in East German Knowledge-Intensive Business Services

The Role of Multinational Enterprises in the Transition Process of Central and Eastern European Economies