Hungarian-Western Partnerships: A Grounded Theoretical Model of Integration Processes and Outcomes

Abstract

International cooperative ventures (ICVs) are known to be strongly influenced by the parent firms' values, practices, and systems (VPSs). However, less clear is whether and why VPSs actually adopted by an ICV are those of either parent singly, both parents jointly, or neither parent. This question is especially timely in the transition economies of Central and Eastern Europe, where cooperative activity with Western multinationals is growing rapidly, and where decades-old legacies of communism abound. In this exploratory study, we used a multiple case study methodology to examine 17 Hungarian-Western ICVs. Results show that a majority of the ICVs adopted the VPSs of the Western partner. We develop a theoretical model of integration process and outcomes, and suggest future research directions.