Enterprise ownership patterns in the least developed districts of Slovakia

Authors

DOI:

https://doi.org/10.24136/eq.2021.030

Keywords:

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

Abstract

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.

Downloads

Download data is not yet available.

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.

DOI: https://doi.org/10.1177/0309132516660656
View in Google Scholar

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.

DOI: https://doi.org/10.1080/00130095.2016.1179570
View in Google Scholar

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.

DOI: https://doi.org/10.1108/CR-09-2017-0063
View in Google Scholar

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.
View in Google Scholar

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.
View in Google Scholar

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.

DOI: https://doi.org/10.1109/FUZZY.2004.1375706
View in Google Scholar

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.

DOI: https://doi.org/10.1080/13571516.2017.1343542
View in Google Scholar

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.

DOI: https://doi.org/10.21003/ea.V167-05
View in Google Scholar

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.
View in Google Scholar

Brzica, D. (2005). Analysis of corporate governance and ownership change process in Slovak Republic. Ekonomický časopis / Journal of Economics, 53(1), 63?79.
View in Google Scholar

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.

DOI: https://doi.org/10.5817/CZ.MUNI.P210-8273-2016-21
View in Google Scholar

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.

DOI: https://doi.org/10.1093/jeg/lbn006
View in Google Scholar

Coe, N., & Yeung, H. (2015). Global production networks: theorizing economic development in an interconnected world. Oxford: Oxford University Press.

DOI: https://doi.org/10.1093/acprof:oso/9780198703907.001.0001
View in Google Scholar

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.

DOI: https://doi.org/10.1093/jeg/lbz018
View in Google Scholar

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.
View in Google Scholar

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.

DOI: https://doi.org/10.1080/00343404.2019.1596254
View in Google Scholar

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.
View in Google Scholar

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).

DOI: https://doi.org/10.9770/jesi.2018.6.2(1)
View in Google Scholar

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

DOI: https://doi.org/10.1007/s10490-005-3569-2
View in Google Scholar

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.
View in Google Scholar

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.

DOI: https://doi.org/10.1162/003355399556241
View in Google Scholar

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.

DOI: https://doi.org/10.1093/jeg/lby033
View in Google Scholar

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.
View in Google Scholar

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.
View in Google Scholar

Gelfand, A. E., Diggle, P., Guttorp, P., & Fuentes, M. (Eds.) (2010). Handbook of spatial statistics. CRC Press of Taylor and Francis.

DOI: https://doi.org/10.1201/9781420072884
View in Google Scholar

Greenacre, M. (2018). Compositional data analysis in practice. CRC Press of Taylor and Francis.

DOI: https://doi.org/10.1201/9780429455537
View in Google Scholar

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.

DOI: https://doi.org/10.1145/601858.601862
View in Google Scholar

Hansmann, H. (2000). The ownership of enterprise. Cambridge: The Belknap Press of the Harvard University Press.
View in Google Scholar

Hecht, V. (2017). Location choice of German multinationals in the Czech Republic. Economics of Transition, 25(4), 593?623. doi: 10.1111/ecot.12131.

DOI: https://doi.org/10.1111/ecot.12131
View in Google Scholar

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.
View in Google Scholar

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.

DOI: https://doi.org/10.1007/s13132-017-0480-2
View in Google Scholar

Jaura, Z. (1996). On municipal ownership in the Slovak economy. Ekonomický časopis / Journal of Economics, 44(9), 677?695.
View in Google Scholar

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.
View in Google Scholar

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.

DOI: https://doi.org/10.1080/09654313.2019.1606897
View in Google Scholar

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.

DOI: https://doi.org/10.1057/s41267-020-00304-2
View in Google Scholar

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.

DOI: https://doi.org/10.5817/CZ.MUNI.P210-8273-2016-9
View in Google Scholar

Korec, P., Ondoš, S., & Rusnák, J. (2016): Regionálne disparity na Slovensku; niekoľko poznámok k ich bádaniu. Acta Geographica Universitatis Comenianae, 60(2), 257?293.
View in Google Scholar

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.

DOI: https://doi.org/10.15240/tul/001/2019-4-002
View in Google Scholar

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.
View in Google Scholar

Landesmann, M., & Stöllinger, R. (2018). Structural change, trade and global production networks. Policy notes and reports No. 21. Vienna: WIIW.
View in Google Scholar

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.

DOI: https://doi.org/10.3390/ijerph14090985
View in Google Scholar

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.

DOI: https://doi.org/10.1007/978-3-642-72253-0_7
View in Google Scholar

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.

DOI: https://doi.org/10.12700/APH.18.2.2021.2.12
View in Google Scholar

Ministry of Economy of the Slovak Republic (2019). Správa o stave podnikateľského prostredia. Bratislava: Ministerstvo hospodárstva SR 2019.
View in Google Scholar

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.

DOI: https://doi.org/10.7163/GPol.0128
View in Google Scholar

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.

DOI: https://doi.org/10.1007/s00168-019-00947-6
View in Google Scholar

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.

DOI: https://doi.org/10.1080/0376835X.2019.1667751
View in Google Scholar

OECD (2015). State-owned enterprise governance: a stocktaking of government rationales for enterprise ownership. Paris: OECD.

DOI: https://doi.org/10.1787/9789264239944-en
View in Google Scholar

Palatková, M. (2013): Mezinárodní turismus. Praha: Grada.
View in Google Scholar

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.
View in Google Scholar

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.

DOI: https://doi.org/10.1023/A:1022480016567
View in Google Scholar

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.

DOI: https://doi.org/10.1108/IJSE-01-2016-0023
View in Google Scholar

Porter, M. E. (1990). The competitive advantage of nations. Houndmills: Palgrave Macmillan.

DOI: https://doi.org/10.1007/978-1-349-11336-1
View in Google Scholar

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/.
View in Google Scholar

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.

DOI: https://doi.org/10.1080/00343404.2015.1119264
View in Google Scholar

SBA (2019a). Malé a stredné podnikanie v číslach v roku 2018. Bratislava: Slovak Business Agency.
View in Google Scholar

SBA (2019b). Správa o stave malého a stredného podnikania v Slovenskej republike v roku 2018. Bratislava: Slovak Business Agency.
View in Google Scholar

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.
View in Google Scholar

Sun, L. (2003). Ownership and governance of enterprises. Recent innovative developments. Gordonsville: Palgrave Macmillan. doi: 10.1057/9781403943903.

DOI: https://doi.org/10.1057/9781403943903
View in Google Scholar

Szent-Iványi, B. (Ed.). (2017). Foreign direct investment in Central and Eastern Europe. Cham: Springer.

DOI: https://doi.org/10.1007/978-3-319-40496-7
View in Google Scholar

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.
View in Google Scholar

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.

DOI: https://doi.org/10.1016/j.ibusrev.2019.101596
View in Google Scholar

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.

DOI: https://doi.org/10.1108/JSBED-10-2015-0138
View in Google Scholar

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.

DOI: https://doi.org/10.1177/0269094218756817
View in Google Scholar

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.

DOI: https://doi.org/10.1016/j.technovation.2017.04.002
View in Google Scholar

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.
View in Google Scholar

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.
View in Google Scholar

Downloads

Published

2021-12-10

How to Cite

Csabay, M., Vincúrová, Z., Stoch, M., & Stehlíková, B. (2021). Enterprise ownership patterns in the least developed districts of Slovakia. Equilibrium. Quarterly Journal of Economics and Economic Policy, 16(4), 807–838. https://doi.org/10.24136/eq.2021.030

Issue

Section

Articles

Most read articles by the same author(s)

Similar Articles

1 2 3 4 5 6 7 8 9 10 > >> 

You may also start an advanced similarity search for this article.