Determinants of subsidiary performance in Central and Eastern Europe
by Roxana Wright
International Journal of Business and Emerging Markets (IJBEM), Vol. 1, No. 1, 2008

Abstract: The paper investigates whether a local orientation improves multinational companies' subsidiary performance in Central and Eastern Europe (CEE). It is found that the extent to which subsidiaries match local deficiencies is significantly and negatively related to performance and that the choice of industry is a determinant of success. The results suggest that a broader set of strategic themes and building strategy 'at location' do not reflect positively on performance. Successful subsidiaries in CEE operate most efficiently not as environmental forces allow them, but through their own products and ideas.

Online publication date: Thu, 03-Jul-2008

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