Common legacies: divergent contractual relations: inter-firm co-operation in transition in Ukraine and Estonia

Common legacies: divergent contractual relations: inter-firm co-operation in transition in Ukraine and Estonia
Document type
Working Paper
Author(s)
Czaban, Laszlo
Publisher
Manchester Business School
Date of publication
1 June 2003
Series
University of Manchester Business School Working Papers. No. 448
Subject(s)
Management & leadership: including strategy, public sector management, operations and production, Trends: economic, social and technology trends affecting business
Collection
Business and management
Material type
Reports

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The economic success of Japan in the post-war period and various new forms of market co-ordination in European regions, and specificities of inter-firm relationships in high technology industries have increased academic and business interest in the ways that firms manage relationships between themselves. Ukraine and Estonia are useful examples to analyse these issues in the former Soviet Union, because of their near identical state socialist legacies, the huge differences in the outcomes of the transitional process in spite of the similarities in the paths these countries followed. Today, Estonia is one of the countries to become a member of the European Union in the next enlargement phase, while Ukraine is a 'problem' country for many international financial organisations. The first section of the paper summarises the major characteristics of the dominant types of enterprise in the late state socialist period in these two republics and demonstrates how these led to an 'institutionalised' kind of inter-firms connections. It then summarises the main features of the transformation process since 1990 in the two countries and assesses the likely impacts of these processes on firm behaviour. The rest of the paper reports the results of interviews with top managers of major enterprises in the two countries dealing with supplier and customer relationships, and consider their implications in the light of the considerable variations in dominant institutions, enterprise type and changing contexts.

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