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The diversity of European manufacturing plant roles in international manufacturing networks

Author

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  • Demeter, Krisztina
  • Szász, Levente
Abstract
It is generally assumed that Western European (WE) plants belonging to multinational companies are more developed and have higher competence levels than their Central and Eastern European (CEE) counterparts. Nevertheless, empirical evidence on the plant level is very scarce. Thus, a sample of 291 manufacturing subsidiaries from 14 European countries is used to test this general statement. We argue that the clear distinction between the two regions is gradually changing with diverse plant roles coexisting in both European regions that reflect different development paths or strategies. Our results show that while less competent plants based on low cost factors are still more prevalent in CEE, a considerable group of highly competent plants is also emerging in the region that use their access to local skills and knowledge to become knowledge hubs within their networks. Nevertheless, highly competent WE plants still preserve a unique position within the multinational’s network.

Suggested Citation

  • Demeter, Krisztina & Szász, Levente, 2016. "The diversity of European manufacturing plant roles in international manufacturing networks," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 21(2), pages 184-208.
    • Handle: RePEc:rai:joeems:jeems-2016-demeter
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    Cited by:

    1. Ivana Blažková & Ondřej Dvouletý, 2022. "Zombies: Who are they and how do firms become zombies?," Journal of Small Business Management, Taylor & Francis Journals, vol. 60(1), pages 119-145, January.
    2. Lucie Kanovska & Eva Tomaskova, 2018. "The Impact of Service Offering on Business Performance in Electrical Engineering Companies," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 92-108.
    3. Gábor Márk Pellényi, 2020. "The Role of Central and Eastern Europe in Global Value Chains: Evidence from Occupation-Level Employment Data," European Economy - Economic Briefs 062, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    4. Levente Szász & Béla Gergely Rácz & Anca Borza & Botond Benedek, 2019. "A Comparative Study of Multinational Subsidiaries and Local Companies in Emerging Economies: A Manufacturing Practice Approach," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(supplemen), pages 107-129, December.
    5. Hamann-Lohmer, Jacob & Bendig, Miriam & Lasch, Rainer, 2023. "Investigating the impact of digital transformation on relationship and collaboration dynamics in supply chains and manufacturing networks – A multi-case study," International Journal of Production Economics, Elsevier, vol. 262(C).
    6. Bela-Gergely RACZ & Anca BORZA, 2016. "Increasing Absorptive Capacity to Improve Internal and External Knowledge Transfer in Multinational Companies: A Multiple Case Study Approach," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 1(2), pages 120-135, December.
    7. Ottó Csíki & Réka Horváth & Levente Szász, 2019. "A Study of Regional-Level Location Factors of Car Manufacturing Companies in the EU," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(supplemen), pages 13-39, December.

    More about this item

    Keywords

    multinational company; manufacturing plant; plant role; competence; location advantage;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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