TITLE

Governance, organizational capabilities, and restructuring in transition economies

AUTHOR(S)
Filatotchev, Igor; Wright, Mike; Uhlenbruck, Klaus; Tihanyi, Laszlo; Hoskisson, Robert E.
PUB. DATE
November 2003
SOURCE
Journal of World Business;Nov2003, Vol. 38 Issue 4, p331
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This paper focuses on the links between governance, firm capabilities and restructuring following the large-scale privatization process in Central and Eastern European transition economies using an integrative approach. Restructuring in these countries has been motivated by political and institutional changes and less so by market forces. Accordingly, political processes have produced political solutions such as �give-away� privatizations to insiders. These privatizations, in contrast to divestitures to outside owners, have realized less substantive restructuring because non-market incentives, such as too much managerial equity ownership, have created managerial entrenchment. In addition, we propose a connection between governance and organizational learning suggesting that learning is inhibited by excessive managerial ownership and lack of board knowledge regarding its oversight function. Furthermore, this entrenchment and poor board functioning may be perpetuated in financial-industrial groups, which have emerged as substitutes for market intermediaries in emerging economies. Thus, we propose that outside ownership involvement and the development of organizational capabilities may facilitate restructuring in the Central and Eastern European context. Our theoretical arguments are supported by case study evidence from transition economies.
ACCESSION #
11253488

 

Related Articles

  • CORPORATE GOVERNANCE IN TRANSITIONAL ECONOMIES: THE CASE OF SLOVENIA. Gregoric, Aleksandra; Prasnikar, Janez; Ribnikar, Ivan // Enterprise in Transition: International Conference Proceedings: ;2001, p181 

    The article cites the problem of corporate governance into the discussion on the transition and restructuring of Slovenian companies. It presents the main questions arising out of the corporate governance literature. It analyzes the distribution of the major shareholders' voting rights in...

  • Institutional Logics or Agency Costs: The Influence of Corporate Governance Models on Business Group Restructuring in Emerging Economies. Chi-Nien Chung; Xiaowei Luo // Organization Science;Sep/Oct2008, Vol. 19 Issue 5, p766 

    Business groups, the leading economic players in emerging economies, have responded to the market-oriented transition primarily through corporate restructuring. Agency theory predicts that acquisition and divestiture would serve the interests of dominant families and foreign investors in...

  • Organizational coping with institutional upheaval in transition economies. Roth, Kendall; Kostova, Tatiana // Journal of World Business;Nov2003, Vol. 38 Issue 4, p314 

    The radical change in corporate governance systems is fundamental to the period of institutional upheaval characterizing transition economies. Using an institutional theory framework, this paper develops a model of responses to this change. The model is tested with data from 1,723 firms in 22...

  • Corporate governance in Russia: a framework for analysis. McCarthy, Daniel J.; Puffer, Sheila M. // Journal of World Business;Nov2003, Vol. 38 Issue 4, p397 

    In the past several years, the Putin government�s goal of joining the World Trade Organization, as well as the critical shortage of investment funds in the country, have been prime levers in raising the importance of corporate governance in Russia. While most research has addressed...

  • Justice in the Economics of Market Transition. Qin Hui // Chinese Economy;Sep/Oct2005, Vol. 38 Issue 5, p70 

    The article defines the economics of market transition. It claims that the economics of transition does not mean research on economic policies in the transition period. It also contrasts the economics of transition from pure economics and compares market economics and the economics of...

  • Institutional background as a determinant of boards of directors� internal and external roles: The case of Russia. Melkumov, Dmitri // Journal of World Business;Jan2009, Vol. 44 Issue 1, p94 

    Abstract: This conceptual paper analyses why some companies in Russia give strong weight to the external roles and some to the internal roles of the boards of directors. The institutional background of Russian corporate governance is reviewed, concentrating on the contextual variables of time of...

  • ORGANIZATIONAL TRANSFORMATION DURING INSTITUTIONAL UPHEAVAL. Newman, Karen L. // Academy of Management Review;Jul2000, Vol. 25 Issue 3, p602 

    Organizational transformation in the transition economies of Central and Eastern Europe is qualitatively different from that observed in the West because of concomitant upheaval in the institutional context. Drawing on organizational change theory, organizational learning theory, and...

  • Restructuring, productivity and technical efficiency in China�s iron and steel industry, 1988�2000. Movshuk, Oleksandr // Journal of Asian Economics;Feb2004, Vol. 15 Issue 1, p135 

    Using a stochastic frontier model with panel data, this paper evaluates the impact of major reform initiatives on enterprise performance in China�s iron and steel industry. While the production possibility frontier of examined enterprises was shifting upward, their technical efficiency did...

  • International Industrial Development Strategies. Flynn, Simone I. // International Industrial Development Strategies -- Research Star;3/1/2016, p1 

    This article will focus on international industrial development strategies. Industrial development strategies, the foundation of national policies and economic policies world wide, help strengthen the economies of developing countries and economies in transition. This article will provide an...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics