Transformations  in
Business & Economics

Sourcing Strategies of Multinational Enterprises in Central and Eastern Europe: Implications for the Formation of Local Linkages and Economic Development in the Region
Julia Manea, Pervez Ghauri, Robert Pearce

ABSTRACT. This paper assesses the contribution of foreign multinational enterprises (MNEs) to Central and Eastern European (CEE) economies via the formation of local linkages and spillover effects by investigating their sourcing strategies in eight CEECs. In the current situation in which the former socialist economies of Eastern Europe have put high hopes in attracting and using FDI as a means of transforming and modernising their economies, this paper provides an well-rounded and objective account of the key issues in the debate on FDI, local linkages and economic development and applies this to the context of transition economies. The results are discussed in terms of the implications for industrial competitiveness and economic development in the CEE region and some policy recommendations are suggested.

KEYWORDS: multinationals’ strategies & suppliers, Central and Eastern Europe, technology, transition, regional development.