The Transformation of the Romanian Economy Through Privatization and Internationalization
Department
Michael A. Leven School of Management, Entrepreneurship and Hospitality
Document Type
Article
Publication Date
1-1-2023
Abstract
In the late 1980s, Central and Eastern European nations (CEE) rejected communism and embarked on a journey towards free-market democracy. As part of this transformation, the Romanian economy transitioned from communism to capitalism. The purpose for our paper is to suggest insight from the Romanian experience that may be useful for nations in Asia, Africa, Middle East or South America that maybe be undergoing a similar transition. The main results of our paper is to substantiate the precepts of institutional theory, that a system is best transformed through external, international pressures. Our contribution illustrates this transformation through the case studies of Romtelecom, Dacia, and Petrom, Romanian state-owned enterprises (SOE) privatized by foreign multinational corporation (MNC). We distinguish between formal and informal institutions with the latter tending to be overlooked by traditional researchers. Through these longitudinal surveys we argue that multinational corporations are possibly the best generators of informal institutions.
Journal Title
Journal of East European Management Studies
Journal ISSN
09496181
Volume
28
Issue
2
First Page
265
Last Page
292
Digital Object Identifier (DOI)
10.5771/0949-6181-2023-2-265