Processes of localization and institutionalization of local managers in economic functions in Danish owned subsidiaries in Estonia, Latvia and Lithuania around the 21st century

Abstract

This study identifies interplay between the localization processes and formal as well as informal institutions in a specific context. Particularly the changes over time in institutions and localization processes are in focus. A longitudinal study of institutional changes in local management has been conducted from 1997 to 2002 among local CEOs, chief accountants and production managers in a Danish SME, using mainly qualitative methods. Data have been compared to primary data from similar companies in Estonia, Latvia and Lithuania. The study has resulted in establishing a model for comparing interplay between localization processes in SMEs and the formal and informal institutions in different transition and post-transition economies.