Projects / Programmes
BEHAVIOUR OF SLOVENIAN COMPANIES IN THE GLOBAL COMPETITION
January 1, 2004
- December 31, 2008
| Code |
Science |
Field |
Subfield |
| 5.02.00 |
Social sciences |
Economics |
|
| Code |
Science |
Field |
| S180 |
Social sciences |
Economics, econometrics, economic theory, economic systems, economic policy |
Microeconomics; economic policy; large; medium and small enterprises; investments; defensive and strategic restructuring; corporate governance; corporate networks; clusters; export presence of Slovenian companies; investments in knowledge; enterprise in crisis; technology based companies.
Researchers (16)
Organisations (1)
Abstract
Slovenia is among few transitional countries where privatised constitute the core of its economy. In Hungary, for example, the companies have been sold to the foreigners, while in Czech Republic the key role is played by newly established companies and companies owned by foreigners (Svejnar, 2003).
Typical characteristic for the majority of Slovenian firms is the orientation to the global markets, especially to the markets of the European Union (Prašnikar, Koman, Ahčan, 2002). According to size and development of business functions they can be mainly classified as medium sized companies (Debeljak et al., 2002; Snaith, Walker, 2002). Basic theoretical question is whether medium sized enterprise represents a transitional form in development that will either grow into "large" enterprises, joint-stock companies (Ricketts, 2002) or seek their advantages in their smallness (Storey, 1994), or is this a long standing form of enterprises with certain characteristics in their business conduct. Similar entrepreneurial form can be found also in other Central European countries (for example "Mittelstand" in Germany) or elsewhere in the world (for example in Scandinavia).
Stated characteristics of Slovenian companies demand thorough analysis of their behaviour and investigation of their responses. It is necessary to consider that the decisions by the companies result from past experiences and future expectations and they change on the basis of newly acquired information. Therefore firms' responses are not established once for good. This is actually the key problem in conducting efficient economic policy. If the policy is in search of a widely acceptable set of measures, it must have proper information on enterprise behaviour at its disposal.
Research group is composed of researchers with different standpoints of the analysis. In the first place it is the question of firms' efficiency and factors that influence it. We are interested in dynamical efficiency of enterprises and their investment behaviour regarding fixed capital and "soft" factors of business. We investigate investment into companies' ownership shares and the formation of networks among enterprises. Special attention is given to the formation of clusters and other strategic alliances. We follow activities of the companies in the field of foreign trade and their sensitivity to the external shocks and the influence of market structure on their business operations. In restructuring we distinguish between strategic and defensive restructuring. Within this framework we deal with position the firms take toward the management of knowledge and human resources. Our research deals with a compete set of companies, ranging from dynamic, technologically most developed companies to those being in the critical conditions. This is necessary to acquire quality information to trace current measures of economic policy and be able to propose new ones. Last, but not least, researchers share common question on how corporate governance influences certain parts of business operation within companies and their economic efficiency.
Significance for science
The research group is basing its research on the bargaining model and Nash equilibrium. This affects as much the macroeconomic (sectoral) analysis of the economy which is approaching the Galbraith "countervailing power" view of the society, as it does microeconomic analysis that stresses the stakeholder approach in the analysis of the organization. In this approach the managers are the coordinators of different stakeholders' interests (stockholders, state, employees). For students of neoclassical economy, which builds on self-interest of economic subjects and free market mechanism as an invisible hand, this approach was subordinated in the past years. But the economic and ecological crises have shown the disadvantages (faults) of this concept. The economic modeling which puts at the hart of the debate various groups of decision makers and their bargaining power has already been used in the article Prašnikar et. al. (1994) which investigated the Yugoslav firm behavior. Prašnikar and Svejnar (2007) in the similar framework portray the investment behavior and wage behavior of Slovenian firms from 1991 to 1995. Domadenik, Prašnikar and Svejnar (2008a) are studying the defensive and strategic restructuring of Slovenian firms from 1996 to 2001. This article has been published in a top-quality journal with a high impact factor (highest so far in the field of economics in Slovenia) which shows that this approach is at the present time gaining in popularity on a global scale. It also represents a foundation for other articles published by the research group, such as Domadenik, Prašnikar, Svejnar (2008b) that is studying investments into R&D capital of the firms and its evaluation, Prašnikar, Lisjak, Rejc, Štembergar (2008) that gives a new methodology for finding technological, marketing and complementary capabilities of the firm, Prašnikar, Škerl (2006) that studies innovation activity and time-to-market new products in the pharmaceutical industry, and in the article Zupan, Kaše (2005) that studies the strategic function of human resource management in transition countries. Let us also stress that in the article Domadenik, Prašnikar, Svejnar (2008a, 2008b) a new way of »soft« capital modeling was used which also presents an innovation in the present literature.
Significance for the country
The work of this research group is important for the development of Slovenia for various reason, such as: 1) the research group is involved in a global knowledge market and from that aspect greatly contributes to Slovenia's recognition; 2) the results of the research effort are through professional practice of group members present in the fundamental decisions for Slovenian development and development of Slovenian firms; 3) they are spreading into the Slovenian area through mass media and scientific articles; 4) Portorož Business Conference, where each year the researchers present the results of their research, is the most established business conference in the Central and Southeast Europe; 5) members of the research group are implementing their findings into study programs at undergraduate, masters, and doctoral level studies as well as in the education of businessmen and experts.
Most important scientific results
Final report,
complete report on dLib.si
Most important socioeconomically and culturally relevant results
Final report,
complete report on dLib.si
