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By Tine Schrammel

Transition economies, reminiscent of the international locations in Southeast Europe, face an expeditious institutional transition from a centrally deliberate to a marketplace financial system. The nation withdraws from its tracking functionality, which leads to institutional voids that have an effect on the financial system regularly and small and medium sized agencies (SMEs) in particular. With a qualitative case examine procedure Tine Schrammel develops a scheme to become aware of institutional voids as one resource of aggressive hazards of SMEs in transition economies. In a moment step she demonstrates that express cluster providers bridge institutional voids and enhance the aggressive place of SMEs in environments of institutional voids. The findings upload to the certainty of institutional voids and to the function of clusters in transition economies.

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Additional resources for Clusters as an instrument to bridge institutional voids in transition economies: Lessons learned from Southeast Europe

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As the Indian government, on the contrary, did not facilitate the market entry of MNEs that strongly, the Indian economy is much more dependent on domestic enterprises. 81 Contract enforcement Information provision Institutional voids Missing specialized Intermediaries Partner search Talent search Source: own illustration based on Ricart, Enright, Ghemawat, et al. (2004) and Khanna and Palepu (2003). 2 Discussions on the concept of institutional voids Khanna made the term ‘institutional void’ known to a wider audience through numerous well-published articles.

1137 for a more detailed explanation of the property-rights-theory that analyzes these issues. 134 See North (1990), pp. 65, 67. 135 See North (1990), pp. 54; also Davis/Hopkins (2011) could demonstrate that. 136 See Gow/Swinnen (2001); Ma/Yao/Xi (2007) for a demonstration on how voids in business ownership in the transition period fasten the development of business groups. 137 See Granville/Leonard (2010) for further discussion. 138 Similar examples can be found in Entov/Radygin (2003) and Polishchuk/Savvateev (2004).

58. 160 This subchapter has been discussed in this or a similar way in Schrammel (2013a), pp. 126-127. 161 See Powell/Koput/Bowie et al. (2002) for an example. 162 See Bartlett/Bukvic (2006) for Slovenia; Krasniqi (2007) for Kosovo; and Hashi (2001) for Albania. 163 Furthermore, this market is closely linked to the enforcement mechanisms in the institutional environment. In many emerging and transition economies, creditor’s protection is poor due to poor contract enforcement. 164 Bartlett and Bukvic (2006) showed that the lack of finance is the biggest barrier to innovation among Slovenian companies.

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