Premium Essay

European Cluster

In: Business and Management

Submitted By Ofca
Words 8788
Pages 36
Journal of World Business 37 (2002) 69±80

Eastern European cluster: tradition and transition
    Gyula Bakacsi, Takacs Sandor, Karacsonyi Andras, Imrek Viktor1
Budapest University of Economic Sciences and Public Administration, 1093 Budapest, Hungary

Abstract The eastern European cluster consists of Albania, Georgia, Greece, Hungary, Kazakhstan, Poland, Russia, and Slovenia. It has a population of 232 million and a gross domestic product (GDP) of U.S.$772 billion. The cluster's distinctive cultural practices are high power distance and high family and group collectivism. The region is facing signi®cant challenges during its period of transition from communist philosophy to market-based economies. The participating managers value a much greater degree of future and performance orientation, but are strongly attached to their cultural heritage of deep family and group cohesion. They are also highly value charismatic and team-oriented leadership. The challenges and complexities facing the region are explored in the paper. # 2002 Published by Elsevier Science Inc.

1. Introduction This article provides an in-depth look at the eastern European culture. This region is understudied due to its socialist past and was not (with the exception of Greece and Yugoslavia), included in Hofstede's seminal work (1980) or basic reviewing and synthesizing study of Ronen & Shenkar, 1985 comparative study of 25 countries. Over the past few years, a few writers have examined cultural and managerial issues in this region. Kiezun (1991) showed that leadership styles in Hungary and Poland were the least rigid and autocratic2 and management decision-making
1 The lead author prepared the manuscript, while the other three authors (long-time contributors to Hungaro-GLOBE) helped to develop ideas in a series of discussions, provided generous reviews and feedbacks that helped to...

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