Reasons for Investing in CEE, Technology and Strategic Evolution of Subsidiaries

This chapter analyses the replies of HQ executives to a question which asked them to evaluate the relative importance of seven reasons for investing in CEE transition economies. These reasons delineate factors that determine the initiation of operations in CEE economies; either in terms of demand-side influences (strategic needs of MNE-group current competitiveness or developmental aims) or supply-side characteristics of host-countries (capacity to support an element of a MNE strategy). Thus it is acknowledged that alongside those dominant motivations that define the initial strategic drivers of entry, other secondary strategic interests may very quickly emerge within the new subsidiaries.