• Summary
  • Contents
  • Subject index

This book probes into the workings of business strategies in former socialist countries in East Asia, Central and Eastern Europe and the newly independent states of the former Soviet Union, which are collectively called `transition economies'. It provides a rich and in-depth understanding of fundamental, strategic issues confronted by domestic and foreign firms competing in these newly developed markets.

Strategies of State-Owned Enterprises
Strategies of state-owned enterprises

The economic problem of society is mainly one of rapid adaptation in the particular circumstances of time and place.

Friedrich Hayek (1945, p. 524)

State-owned enterprises (SOEs) used to dominate the economic landscape of every socialist country. During the transition, despite the wishful thinking of some policymakers, advisors, and scholars, SOEs have not been totally dumped into “the dustbin of history” For better and worse, many of them have continued to play an important—albeit somewhat reduced and different—role in transition economies. In light of Hayek's (1945) teaching quoted above, SOEs' fundamental challenge lies in whether they can rapidly adapt to a changing environment. In this chapter, I focus on their strategies during the transition. A stylized SOE probably represents “the ...

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