TY - JOUR
T1 - Regulatory evolution, multinational firms, and neo-transition economies
AU - Akbar, Yusaf H.
N1 - Publisher Copyright:
© 2015 by Emerald Group Publishing Limited.
PY - 2015
Y1 - 2015
N2 - While the liberalization of economies within the transition paradigm is viewed to take place primarily on a macroeconomic (primary) level, this paper switches emphasis to the secondary and tertiary level of posttransition. While macroeconomic reforms may provide the playing field, secondary reforms level the playing field and tertiary reforms develop the capabilities necessary for firms and individuals within firms to compete in the landscape of liberalized economies. It is necessary to examine the transformations on three levels. First, the development of public policy and institutions aimed at regulating certain industries or firms. Second, the explicit market strategies of firms operating in the industries that shape market structure and inform public policy. Third, the nonmarket strategies of firms aimed at influencing the form and substance of public policy. Drawing on research in three related areas: institutional voids (IVs), the role of market and nonmarket strategies of firms, respectively, this paper examines the current state of transition in CEE/FSU countries. The main conclusions of the paper are first, transition and post-transition has been and continues to be profoundly impacted by the liberalizing influences of multinational firms. Second, this causation from the strategies and tactics of multinational firms to the extent of transition also helps to explain the degree of modernization of economies in a given transition economy. Third, it is important to distinguish between local and foreign firms on the transition process. Foreign firms are more likely to pursue liberalization agendas when it strengthens their competitive advantage over local firms. Conversely, local firms - especially those who rely on the capacity to navigate institutional voids - may be opposed to liberalization, as liberalization would threaten their sources of competitive advantage.
AB - While the liberalization of economies within the transition paradigm is viewed to take place primarily on a macroeconomic (primary) level, this paper switches emphasis to the secondary and tertiary level of posttransition. While macroeconomic reforms may provide the playing field, secondary reforms level the playing field and tertiary reforms develop the capabilities necessary for firms and individuals within firms to compete in the landscape of liberalized economies. It is necessary to examine the transformations on three levels. First, the development of public policy and institutions aimed at regulating certain industries or firms. Second, the explicit market strategies of firms operating in the industries that shape market structure and inform public policy. Third, the nonmarket strategies of firms aimed at influencing the form and substance of public policy. Drawing on research in three related areas: institutional voids (IVs), the role of market and nonmarket strategies of firms, respectively, this paper examines the current state of transition in CEE/FSU countries. The main conclusions of the paper are first, transition and post-transition has been and continues to be profoundly impacted by the liberalizing influences of multinational firms. Second, this causation from the strategies and tactics of multinational firms to the extent of transition also helps to explain the degree of modernization of economies in a given transition economy. Third, it is important to distinguish between local and foreign firms on the transition process. Foreign firms are more likely to pursue liberalization agendas when it strengthens their competitive advantage over local firms. Conversely, local firms - especially those who rely on the capacity to navigate institutional voids - may be opposed to liberalization, as liberalization would threaten their sources of competitive advantage.
KW - Liberalization
KW - competitive advantage
KW - multinational firms
KW - nonmarket strategy
UR - http://www.scopus.com/inward/record.url?scp=84924352108&partnerID=8YFLogxK
U2 - 10.1108/S1569-376720150000016005
DO - 10.1108/S1569-376720150000016005
M3 - Article
AN - SCOPUS:84924352108
SN - 1569-3767
VL - 16
SP - 99
EP - 119
JO - International Finance Review
JF - International Finance Review
ER -