search query: @indexterm Foreign investment / total: 1949
reference: 176 / 1949
| Author: | Fahy, J. (et al.) |
| Title: | Privatisation and sustainable competitive advantage in the emerging economies of Central Europe |
| Journal: | Management International Review
2003 : VOL. 43:4, p. 407-428 |
| Index terms: | Competitive advantage Emerging markets Foreign investment Privatization Europe |
| Freeterms: | FDI |
| Language: | eng |
| Abstract: | Extant research on the impact of privatization in the Central Europe (CE) region has focused on improvements in efficiency and the nature of cost-based advantages. This study argues that the development of a vibrant privatized sector requires attention to the broader resource configurations of domestic enterprises. Based on an empirical research on a large sample of firms in Poland, Hungary and Slovenia, foreign investment was found to significantly impact on resource accumulation with implications for the development of strategic capabilities and competitive advantage (hereafter as: CA). Foreign direct investment (FDI) is an effective vehicle for the transfer of financial resources, reputation and new brands but not organizational capabilities. This study demonstrates the important role of outside investment in the development of a firm's resource base (Frydman et al, 1999). Companies can gain a CA in their domestic markets through gaining access to the resources of foreign investors. |
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