How foreign influence and local managers affect the successful transition of the firm: the case of AGC Flat Glass Czech

Elisa Galeotti () and Stanley Nollen

Post-Communist Economies, 2008, vol. 20, issue 1, 77-95

Abstract: This article investigates the mechanisms by which a foreign owner influenced the transition of its subsidiary from central planning to market economy, and explores the role of local managers of the privatised company. The subject is AGC Flat Glass Czech (renamed from Glaverbel Czech in September 2007 and formerly Glavunion), a glassmaker that was acquired early in the privatisation process by the Belgian Glaverbel Group (now AGC Group). The article documents the way in which the foreign owner transferred its tacit knowledge to local managers and workers immediately to restructure human capital, and illustrates the collaborative approach between foreign and local managers that was enabled by the favourable objective and psychological traits of the incumbent local managers.

Date: 2008
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DOI: 10.1080/14631370701865748

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