Enterprise ownership patterns in the least developed districts of Slovakia

• Authors: Marek Csabay , Zuzana Vincúrová , Milan Stoch , Beáta Stehlíková

Abstracts

EN

Research background: The literature overview shows a blank space regarding the effects of ownership on the determination of enterprises' spatial distribution. Various papers identify differences between determinants of the spatial distribution of foreign direct investments, exporters in foreign ownership, and domestically owned exporters; however, they mostly agree on the role of big cities, economic centres, and state of infrastructure as well as historical patterns. Purpose of the article: The article focuses on the spatial distribution analysis of enterprise units from their owner's perspective on the empirical evidence from all 79 districts of the Slovak Republic. Special attention is given to the category of the least developed districts. Methods: Within the presented article, the authors investigate the characteristics of the regional spatial distribution of business entities concerning standard ownership categories using the cluster analysis. The presented approach is twofold: firstly, the authors investigate the share of individual ownership types on the district level, and secondly, the number of enterprises by ownership categories is adjusted to 100,000 inhabitants. Cluster analysis and methods of spatial statistics are applied in both approaches. Findings & value added: The main results show a relation between the district's inclusion into the group of the least developed districts and enterprise ownership characteristics in these districts mainly through the relative underrepresentation of the secluded inland, foreign and international types of ownership, as well as their geographical clustering. The results of the presented research can be used in policy-making targeting business activity in underdeveloped districts. At the same time, the results provide basis for limited theoretical generalisations based on a single-country case study with regard to principles of business ownership structures development.

Keywords

EN

regional business structure; cluster analysis; spatial autocorrelation; ownership types; least developed districts

• Publisher: Instytut Badań Gospodarczych
• Journal: Equilibrium. Quarterly Journal of Economics and Economic Policy
• Year: 2021
• Volume: 16
• Issue: 4
• Pages: 807-838

Dates

published

2021

Contributors

author

Marek Csabay

• Pan-European University in Bratislava

• https://orcid.org/0000000166937750

author

Zuzana Vincúrová

• Pan-European University in Bratislava

• https://orcid.org/0000000264902367

author

Milan Stoch

• University of Entrepreneurship and Law in Ostrava

• https://orcid.org/0000000252907136

author

Beáta Stehlíková

• Pan-European University in Bratislava

• https://orcid.org/0000000310646254

References

• Argent, N. (2017). Rural geography I: resource peripheries and the creation of new global commodity chains. Progress in Human Geography, 41(6), 803?812. doi: 10.1177/0309132516660656.
• Ascani, A., Crescenzi, R., & Iammarino, S. (2016). Economic institutions and the location strategies of European multinationals in their geographic neighborhood. Economic Geography, 92(4), 401?429. doi: 10.1080/00130095.2016.117 9570.
• Asmussen, Ch. G., Nielsen, B. B., Goerzen, A., & Tegtmeier, S. (2018). Global cities, ownership structures, and location choice foreign subsidiaries as bridgeheads. Competitiveness Review, 28(3), 252?276. doi: 10.1108/CR-09-2017-0063.
• Baculáková, K. (2018). Cluster analysis of creative industries in the regions and districts of Slovakia. Theoretical and Empirical Researches in Urban Management, 13(3), 74?89. doi: 10.207/26472537.
• Baláž, V. (2004). Trends in the regional development of the Slovak Republic: economic theory and practice. Ekonomický časopis /Journal of Economics, 52(7), 783?800.
• Banerjee, A., & Davé, R. N. (2004). Validating clusters using the Hopkins statistic. In 2004 IEEE international conference on fuzzy systems ? proceedings, Budapest, Hungary. IEEE. 149?153. doi: 10.1109/FUZZY.2004.1375706.
• Bentivogli, Ch., & Mirenda, L. (2017). Foreign ownership and performance: evidence from Italian firms. International Journal of the Economics and Business, 24(3), 251?273. doi: 10.1080/13571516.2017.1343542.
• Betáková, J., Havierniková, K., & Jašková, D. (2018). Potential for clustering in the agricultural sector assessment: the case of Slovakia. Economic Annals-XXI, 167(9-10), 23?27. doi: 10.21003/ea.V167-05.
• Blaszczyk, B., Hoshi, I., & Woodward, R. (Eds.) (2004). Secondary privatization in transition economies: the evolution of enterprise ownership in the Czech Republic, Poland and Slovenia. Gordonsville: Palgrave Macmillan.
• Brzica, D. (2005). Analysis of corporate governance and ownership change process in Slovak Republic. Ekonomický časopis / Journal of Economics, 53(1), 63?79.
• Chomjaková, M., Suchý, M., Kožiak, R., & Daxnerová, M. (2016). Region clustering in the Slovak Republic from the sustainable development point of view. In V. Klímová & V. Žítek (Eds.). 19th international colloquium on regional sciences: conference proceedings, Čejkovice, Czech Republic. Brno: Masarykova univerzita, 42?49. doi: 10.5817/CZ.MUNI.P210-8273-2016-21.
• Coe, N. M., Dicken, P., & Hess, M. (2008). Introduction: global production networks ? debates and challenges. Journal of Economic Geography, 8(3), 267?269. doi: 10.1093/jeg/lbn006.
• Coe, N., & Yeung, H. (2015). Global production networks: theorizing economic development in an interconnected world. Oxford: Oxford University Press.
• Coe, N. M., & Yeung, H. W. C. (2019). Global production networks: mapping recent conceptual developments. Journal of Economic Geography, 19(4), 775?801. doi: 10.1093/jeg/lbz018.
• Dudáš, T., & Grančay, M. (2019). Regional structure of foreign direct investment in Slovakia - a district-level gravity-type model. Ekonomický časopis / Journal of Economics, 67(8), 811?836.
• Elekes, Z., Boschma, R, & Lengyel, B. (2019). Foreign-owned firms as agents of structural change in regions. Regional Studies, 53(11), 1603?1613. doi: 10.108 0/00343404.2019.1596254.
• Fabuš, M. (2015). Impact of foreign direct investment on unemployment development in selected regions of Slovak Republic. Economic Annals-XXI, 155(11?12), 63?66.
• Fabuš, M., & Csabay, M. (2018). State aid and investment: case of Slovakia. Entrepreneurship and Sustainability Issues, 6(2), 480?488. doi: 10.9770/jesi.2018 .6.2(1).
• Filatotchev, I., Lien, Y. C., & Piesse, J. (2005). Corporate governance and performance in publicly listed, family-controlled firms: evidence from Taiwan. Asia Pacific Journal of Management, 22, 257?283. doi: 10.1007/S10490-005-3569-2
• Frigant, V., & Zumpe, M. (2014). Are automotive global production networks becoming more global? Comparison of regional and global integration processes based on auto parts trade data. In Cahiers du GREThA, n°2014-09. Bordeaux: Université de Bordeaux.
• Frydman, R., Gray, Ch., Hessel, M., & Rapaczynski, A. (1999). When does privatization Work? The impact of private ownership on corporate performance in the transition economies. Quarterly Journal of Economics, 114(4), 1153?1191.
• Gagliardi, L., & Iammarino, S. (2018). Innovation in risky markets: ownership and location advantages in the UK regions. Journal of Economic Geography, 18(5), 1177?1201. doi: 10.1093/jeg/lby033.
• Gamba, V., & Montanaro, L. (2009). Does internationalisation emerge from accounting documents? A survey among piedmont firms. In D. Vrontis, Y. Weber, R. Kaufman & S. Tarba (Eds.). Managerial and entrepreneurial developments in the Mediterranean area. 2nd annual EuroMed conference of the EuroMed Academy of Business. Salerno: University of Salerno, 665?684.
• Gavurová, B., Soltés, M., & Kováč, V. (2017). Application of cluster analysis in process of competitiveness modelling of Slovak Republic regions. Transformations in Business and Economics, 16(3), 129?147.
• Gelfand, A. E., Diggle, P., Guttorp, P., & Fuentes, M. (Eds.) (2010). Handbook of spatial statistics. CRC Press of Taylor and Francis.
• Greenacre, M. (2018). Compositional data analysis in practice. CRC Press of Taylor and Francis.
• Halkidi, M., Batistakis, Y., & Vazirgiannis, M. (2002). Clustering validity checking methods: part II. ACM SIGMOD Record, 31(3), 19?27. doi: 10.1145/60185 8.601862.
• Hansmann, H. (2000). The ownership of enterprise. Cambridge: The Belknap Press of the Harvard University Press.
• Hecht, V. (2017). Location choice of German multinationals in the Czech Republic. Economics of Transition, 25(4), 593?623. doi: 10.1111/ecot.12131.
• Horobet, A. (2018). Foreign versus locally-owned companies: an analysis of post-crisis performance in Eastern Europe. In M. B. Beros, N. Recker & M. Kozina (Eds.). Book of proceedings: 27th international scientific conference on economic and social development, Rome, Italy. Varazdin: Varazdin Development and Entrepreneurship Agency. 486?496.
• Ivanova, I., Strand, O., & Leydesdorff, L. (2019). What is the effect of synergy provided by international collaborations on regional economies? Journal of the Knowledge Economy, 10(1), 18?34. doi: 10.1007/s13132-017-0480-2.
• Jaura, Z. (1996). On municipal ownership in the Slovak economy. Ekonomický časopis / Journal of Economics, 44(9), 677?695.
• Jungbluth, C., Rytter Sunesen, E., May, M. M., & Brown, J. (2020). Economic impact of foreign-owned firms in the EU and Germany. Policy brief No. 2020/02. Gütersloh: Bertelsmann Stiftung.
• Kanó, I. S., Lengyel, B., Elekes, Z., & Lengyel, I. (2019). Agglomeration, foreign firms and firm exit in regions under transition: the increasing importance of related variety in Hungary. European Planning Studies, 27(22), 2099?2122. doi: 10.1080/09654313.2019.1606897.
• Kano, L., Tsang, E. W. K., & Yeung H. W. (2020). Global value chains: a review of the multi-disciplinary literature. Journal of International Business Studies, 51(4), 577?622. doi: 10.1057/s41267-020-00304-2.
• Kološta, S. (2016). Investigation of regional disparities in Slovakia in pre-crisis and crisi period. In V. Klímová & V. Žítek (Eds.) 19th international colloquium on regional sciences: conference proceedings, Čejkovice, Czech Republic. Brno: Masarykova univerzita. 82?89. doi: 10.5817/CZ.MUNI.P210-8273-201 6-9.
• Korec, P., Ondoš, S., & Rusnák, J. (2016): Regionálne disparity na Slovensku; niekoľko poznámok k ich bádaniu. Acta Geographica Universitatis Comenianae, 60(2), 257?293.
• Kotíková, S. (2019). Potential of the Czech business environment assumes the effect of foreign direct investment. E & M Economics and Management, 22(4), 18?35. doi: 10.15240/tul/001/2019-4-002.
• Kuzmišinová, V., & Kuzmišin, P. (2015). Cluster potential in Slovak regions in the context of business environment's quality. Theoretical and Empirical Researches in Urban Management, 10(2), 52?65.
• Landesmann, M., & Stöllinger, R. (2018). Structural change, trade and global production networks. Policy notes and reports No. 21. Vienna: WIIW.
• Li, S., Angelino, A., Yin, H., & Spigarelli, F. (2017). Determinants of FDI localization in China: a county-level analysis for the pharmaceutical industry. International Journal of Environmental Research and Public Health, 14(9), 985. doi: 10.3390/ijerph14090985.
• Martín-Fernández, J. A., Barceló-Vidal, C., & Pawlowsky-Glahn, V. (1998). A critical approach to non-parametric classification of compositional data. In A. Rizzi, M. Vichi & H. H. Bock (Eds.). Advances in data science and classification. Studies in classification, data analysis, and knowledge organization. Berlin: Springer. 49?56. doi: 10.1007/978-3-642-72253-0_7.
• Meluzi?n, T., Zinecker, M., Balcerzak, A. P., Pietrzak, M. B., & Doubravsky?, K. (2021). Institutional settings and their impact on the IPO activity: an exploratory study based on qualitative modelling. Acta Polytechnica Hungarica, 18(2), 215?235. doi: 10.12700/APH.18.2.2021.2.12.
• Ministry of Economy of the Slovak Republic (2019). Správa o stave podnikateľského prostredia. Bratislava: Ministerstvo hospodárstva SR 2019.
• Nazarczuk, J. M., & Krajewska, A. (2018). Spatial concentration of foreign owned entities in Poland. Geographia Polonica, 91(4), 413?426. doi: 10.7163/GPol.0 128.
• Nazarczuk, J. M., Uminski, S., & Brodzicki, T. (2020). Determinants of the spatial distribution of exporters in regions: the role of ownership. Annals of Regional Science, 64, 547?574. doi: 10.1007/s00168-019-00947-6.
• Nxazonke, B., & van Wyk, R. B. (2020). The role of foreign direct investment (FDI) on domestic entrepreneurship in South Africa. Development Southern Africa, 37(4), 587?600. doi: 10.1080/0376835X.2019.1667751.
• OECD (2015). State-owned enterprise governance: a stocktaking of government rationales for enterprise ownership. Paris: OECD.
• Palatková, M. (2013): Mezinárodní turismus. Praha: Grada.
• Pauhofová, I., & Stehlíková, B. (2018). Identifying the relationship between unemployment and wage development in the Slovak Republic. Ekonomický časopis / Journal of Economics, 66(5), 503?521.
• Pedersen, T., & Thomsen, S. (2003). Ownership structure and value of the largest European firms: the importance of owner identity. Journal of Management and Governance, 7, 27?55. doi: 10.1023/A:1022480016567.
• Plešivčák, M., & Buček, J. (2017). In the centre, but still on the periphery. Is there any room for development of socio-economically deprived region in Slovakia? International Journal of Social Economics, 44(11), 1539?1558. doi: 10.1108/I JSE-01-2016-0023.
• Porter, M. E. (1990). The competitive advantage of nations. Houndmills: Palgrave Macmillan.
• R Core Team (2019). R: a language and environment for statistical computing. Vienna: R Foundation for Statistical Computing. Retrieved from https://www.R-project.org/.
• Rupasingha, A. (2017). Local business ownership and local economic performance: evidence from US counties. Regional Studies, 51(5), 659?673. doi: 10.1080/00343404.2015.1119264.
• SBA (2019a). Malé a stredné podnikanie v číslach v roku 2018. Bratislava: Slovak Business Agency.
• SBA (2019b). Správa o stave malého a stredného podnikania v Slovenskej republike v roku 2018. Bratislava: Slovak Business Agency.
• Seňová, A., & Antošová, M. (2014). Classification of sources of companies financing in Slovakia through cluster analysis using. International Journal of Interdisciplinarity in Theory and Practice, 5, 81?85.
• Sun, L. (2003). Ownership and governance of enterprises. Recent innovative developments. Gordonsville: Palgrave Macmillan. doi: 10.1057/9781403943903.
• Szent-Iványi, B. (Ed.). (2017). Foreign direct investment in Central and Eastern Europe. Cham: Springer.
• Tang, D. (2017). The determinants of European Union (EU) foreign direct investments in the EU countries from Central and Eastern Europe during 1994?2012. Comparative Economic Research, 20(1), 75?99. doi: 10.1515/cer-2017-0005.
• Tang, R. W. (2019). FDI expansion speed of state-owned enterprises and the moderating role of market capitalism: evidence from China. International Business Review, 28(6), 101596. doi: 10.1016/j.ibusrev.2019.101596.
• Thompson, P., & Zang, W. Y. (2016). Foreign business ownership and domestic entrepreneurial exports. Journal of Small Business and Enterprise Development, 23(3), 873?895. doi: 10.1108/JSBED-10-2015-0138.
• Thompson, P., & Zang, W. Y. (2018). The foreign business and domestic enterprise relationship: its implications for local entrepreneurial resilience. Local Economy, 33(1), 10?39. doi: 10.1177/0269094218756817.
• Yi, J., Hong, J., Hsu, W., Ch., & Wang, Ch. (2017). The role of state ownership and institutions in the innovation performance of emerging market enterprises: Evidence from China. Technovation, 62?63, 4?13. doi: 10.1016/j.technovation. 2017.04.002.
• Zinecker, M., Skalická, M., Balcerzak, A. P., & Pietrzak, M. B. (2021a). Business angels in the Czech Republic: characteristics and a classification with policy implications. Economic Research-Ekonomska Istraživanja. Advance online publication. doi: 10.1080/1331 677X.2021.1890179.
• Zinecker, M., Skalicka?, M., Balcerzak, A. P., & Pietrzak, M. B. (2021b). Identifying the impact of external environment on business angel activity. Economic Research-Ekonomska Istraz?ivanja. Advance online publication. doi: 10.1080/ 1331677X.2021.1888140.

Identifiers

DOI

10.24136/eq.2021.030

Biblioteka Nauki

22444305