Productivity growth and functional upgrading in foreign subsidiaries in the Slovenian manufacturing sector (original) (raw)

Nature and determinants of productivity growth of foreign subsidiaries in Central and East European countries

Economic Systems, 2009

The paper examines the determinants of productivity growth in foreign manufacturing subsidiaries in five Central and East European (CEE) countries by analysing patterns of control, nature of firms' capabilities and firms' market orientation. Building on the so called 'developmental subsidiaries' perspective we show that productivity growth is determined jointly by corporate governance, production capability and market orientation variables. CEE subsidiaries have relatively strong autonomy over control of their business functions, but within a dominantly production oriented mandate. Majority foreign equity share has a significant and positive impact on subsidiaries' productivity growth. These results present very strong regional characteristic.

Foreign Acquisition and Firm Productivity: Evidence from Slovenia

World Economy, 2008

This paper investigates the impact of foreign acquisition on the productivity of Slovenian manufacturing firms subject to takeover in 1997. It finds evidence that foreign investors acquire those enterprises with higher productivity, that are more inclined to export and that ...

The development of foreign‐owned manufacturing subsidiaries: some empirical evidence

European Business Review, 1998

The development of multinational subsidiaries is of interest to academics, policy‐makers and the business community. Although there is a considerable literature on subsidiary typologies, there is a dearth of empirical investigation to accompany this. This article reports on a field‐work survey which was undertaken to analyse the nature of subsidiary development in the UK economy. A large sample of companies were asked to provide details of their value‐added activities and degree of strategic autonomy granted by their parent organisations. These data were collected in respect of their entry to the UK and at the time of the survey so that a comparison would yield conclusions about subsidiary development. The analysis of the data reveals that subsidiary development is associated with the ownership (i.e. geographical location) of the parent company, as well as the entry mode which the parent company chooses to enter the host economy. The precise nature of these relationships is complex ...

Administration COUNTRY , INDUSTRY AND FIRM SIZE EFFECTS ON FOREIGN SUBSIDIARY STRATEGY . AN EXAMPLE OF FIVE CEE COUNTRIES

2004

The aim of the paper is to analyse the contribution of FDI to knowledge and technology transfer into five CEE economies (Estonia, Hungary, Poland, Slovakia, Slovenia) by examining the influences of country, industry, firm-size and foreign ownership on the choice of the subsidiaries’ strategies. Only the autonomy of subsidiaries across business functions is focused in the current analysis. Proceeding from the results of the analysis one can see many differences in the autonomy of subsidiary. Subsidiaries from the more developed CEE countries Slovenia and Hungary had the highest scores for the autonomy, especially in terms of management and financial autonomy. 1 PhD student, Faculty of Economics and Business Administration, University of Tartu; Science & Technology Policy Research (SPRU), University of Sussex; Mail address: 4-A213 Narva Rd., 51009 Tartu, Estonia; Tel: (+372) 7 37 6361, Fax: (+372 7 37 6312); Email: k.mannik@sussex.ac.uk 2 PhD student, Faculty of Economics and Business...

Assets growth, foreign ownership and type of industry in multinational companies

International Business Research, 2010

This empirical study explores first the relationship between type of industry and subsidiary age, export ratio and MNCs' firm factors. Second, we examined the impact of country of origin, foreign ownership and parent's specific factors on asset growth ratio (AGR). Based on data derived from 2500 foreign companies in Japan, the findings show that the factors of foreign ownership, experience in host market, country of origin, export and parents company's sales and the number of employees as a proxy of firm size have significantly effect on AGR. Also our finding shows that foreign companies in manufacturing industries are more likely to be as an international joint venture with a foreign manager and higher ratio of import and greater number of foreign employees. Finally, contrary to our expectations, we found that the total asset of parent company has negatively associated with type of industry. In the other word, firms in service industries are more likely to have greater total asset than those in manufacturing sectors.

Evaluating the Causal Effect of Foreign Acquisition on Domestic Performances: The Case of Slovenian Manufacturing Firms

SSRN Electronic Journal, 2000

Foreign direct investment is claimed to positively a¤ect …rms in the host country through a number of growth-enhancing e¤ects, generally termed "productivity spillovers." However, the empirical evidence for developing economies is quite controversial. This paper investigates the impact of foreign acquisition on the performances of a sample of Slovenian manufacturing …rms subject to takeover in 1997. The "propensity scorematching" estimation technique, also combined with the "di¤erence-in-di¤erences" approach, is used with the purpose of controlling for the potential bias arising from the nonrandom selection of acquired …rms. Our analysis con…rms that foreign investors acquire only the most productive …rms, while …nds no convincing evidence that the performances of such …rms improve in the post-acquisition period as a result of foreign acquisition.

EUROPEAN ECONOMY Productivity of Slovenian Firms

2018

We analyse productivity differences across non-financial Slovenian firms over the period 1994-2015. In particular, we investigate the impact of different factors (including size, ownership, investment activity and industry characteristics) on firms' total factor productivity (TFP), competitiveness and internationalisation. Large corporates appear to have the highest level of TFP, more than 50% above the average, and show stronger TFP growth. Exporting firms also show higher TFP growth than other firms, particularly after the recent crisis. Using a complete database of R&D subsidies over 1998-2015, the paper identifies R&Dintensive firms and investigates the impact of R&D investment on productivity and profitability. It is found that subsidies did not significantly increase firm-level productivity, once size, industry and year effects are taken into account. This could be because, during the recession (2009-2015), subsidies were granted to firms in difficulties. JEL Classificatio...

Foreign subsidiaries performance and dynamics: a comparative analysis with domestic firms

2009

In this study we conduct a dynamic and comparative analysis showing evolutional differences between foreign and domestic firms, a topic particularly important when foreign direct investment has become more important to economic growth. In this study, we discuss the Portuguese experience and the comparative evolution of foreign subsidiaries and domestic firms during the period 1985-2005. We look in particular at issues of performance, human capital and dynamics. The research is based on a large scale panel data at firm level from the database 'Quadros de Pessoal' for the period 1985-2005. Our study expands over previous analyses conducted about Portugal with qualitative empirical data at firm level. From our knowledge, this is the first study with such a long time pan dimension. More than allowing for a comparative and static analysis, with this time horizon it is possible to investigate how the differences evolved over time. We found dissimilar progress trends in performance, human capital and dynamics. We discuss the implications of the findings and open prospects for future research. To study the quality of the foreign investments and its potential impact on the competitiveness of the host economy is clearly an important issue, especially in an economy with strong a challenge for convergence, and about which we still know very little on these issues. These analyses and empirical evidences are important to evaluate the efforts put in action in the last decades to attract FDI, and to open new lines of discussion and new policy measures.