Journal of Business & Economic Policy

Internationalization Behavior of Cluster Embedded Smes from Two Transition Economies
Arnim Decker, Ewa Rollnik-Sadowska

Abstract
The purpose of this study is to analyze the factors having an impact on the development of industrial clusters in regional economies. Based on the qualitative research method, we interviewed respectively six firms from two industrial clusters in central European transition economies. By drawing on institutional analysis as well as on the eclectic paradigm of international production, we found that firms are conditioned by a variety of institutionally determined influences. The studies indicate that there are significant differences in the international market development of firms within the respective two clusters. Despite the fact that unemployment is an issue in transition economies, one of the mayor future barriers to further development in both clusters is a scarcity of adequately qualified human capital. This paper contributes to a better understanding of the conditions of cluster- embedded firms in transition economies. We find that different firm specific factors have an impact on the internationalization of SMEs.

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