East European Business Networks: A Review of Dependencies and Strategies and their Influence on Company Success

This paper discusses the enterprise behaviour that was observed in the economies in Central and Eastern Europe during the transition period. It analyses the factors that determine the company performance particularly relating to government policies, industrial structures and managerial strategies for survival. As a result of our comparative analysis of published cases, a classification of the firms responces is proposed. It includes three main groups: a) 'transformed business networks,' b) 'newly established business networks,' and c) 'firms unable to transform their business networks.' In addition, the companies' linkages are grouped into national and international networks following Stephen Young's classification of international modes of market entry