Seminar - Formal and Informal ''Region Effects'' on International Sourcing by SMEs in Transition Countries

You are cordially invited to attend a research seminar by Maria Jesus Nieto Sanchez, University Carlos III of Madrid (Rugman Fellow 19-20) . Follow the link in your calendar email invitations(Join Microsoft Teams Meeting) to join the seminar on Wednesday, 10th March at 13.00.

Abstract:

The contextual richness of transition countries, characterized by profound institutional change and different transition processes, make the study of the internationalization strategies of their firms highly relevant. In this paper we examine how small and medium-sized firms in transition countries can boost productivity by sourcing inputs from regions with which they share formal institutional links (such as EU countries) or informal links (such as other former communist-bloc countries). Additionally, we analyze how the length of the communist footprint may modify these productivity gains—weakening them in the case of inputs from regions with formal links and strengthening them in the case of regions with informal links. Based on a sample of 3,003 SMEs located in Eastern Europe, we find a positive relation between firm productivity and inputs from countries in regions with formal and informal institutional links. We also find that this positive relation is weaker for firms with longer communist footprints that source inputs from EU countries.