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Niraj Dawar is Associate Professor of Marketing and Walter A. Thompson Faculty Fellow at the Richard Ivey
School of Business, University of Western Ontario, Canada. Amitava Chattopadhyay is the LOreal Chaired
Professor of Marketing-Innovation and Creativity, INSEAD, France. Niraj Dawar gratefully acknowledges the
support of a research grant from the Richard Ivey School of Business and a visiting professorship at William
Davidson Institute at the University of Michigan Business School. Amitava Chattopadhyay gratefully
acknowledges the financial support from the R&D Department at INSEAD, during the writing of this paper.
William Davidson Institute Working Paper Number 320
Abstract
1.0 Introduction
Lured by the prospect of one billion breakfast eaters, Kellogg, the U.S. cereals giant,
ventured into India in the mid-1990s. Three years after entering the market, sales stood at an
unimpressive $10 million. Indian consumers were not sold on breakfast cereals. Most consumers
either prepared breakfast from scratch every morning, or grabbed some biscuits with tea at a roadside
tea stall. Advertising positions common in the west, such as the convenience of breakfast cereal, did
not resonate with the mass market. Segments of the market that did find the convenience positioning
appealing were unable to afford the international prices of Kelloggs brands. Disappointing results
led the company to re-examine its approach. Last year Kellogg finally realigned its marketing to suit
local market conditions: they introduced a range of breakfast biscuits under the Chocos brand name.
Priced at Rs. 5 (10 U.S. cents) for a 50-gram pack, and with extensive distribution coverage that
includes roadside tea stalls, they are targeted at the mass market and expected to generate large sales
volumes.
Like Kellogg, many multinationals rushed in to emerging markets over the past decade, agog
at the potential of billions of new consumers who had been liberated from planned economies and
protectionist barriers. But as the initial euphoria wanes, there is a growing realization that the
billions of consumers have not reciprocated the multinationals embrace; that local competitors are
stronger than expected; and competition for the top tier of the market is fierce, as major players from
around the world compete for the same limited pie. Multinationals stance is rapidly evolving from
one of exploration, investment, and establishing a beachhead, to more prosaic reasons such as
generating a return, growing long term sales volume, and building a dominant position. Local
subsidiaries are being called to account, and losses that may earlier have been viewed as investments
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in market building, are no longer tolerated. Local operations now realize that the three to five
percent of consumers in emerging markets who have global preferences and purchasing power no
longer suffice as the only target market. Instead, they must delve deeper into the local consumer base
in order to deliver on the promise of tapping into billion-consumer markets.1 This calls for a shift in
emphasis from the global to the local consumer, and from globally standardized to locally
Most multinationals have long resisted targeting the local consumer, preferring instead to
transplant offerings that were developed for their traditional developed markets.2 Three reasons are
often cited for the reticance to localize. First, it is argued that the mass market any single emerging
economy is not large enough to justify the effort and cost of localization. Second, multinational
managers rationalize, emerging market consumers are growing more affluent by the day and are
becoming more like their affluent-market counterparts in terms of preferences and purchasing power.
As a result, they argue, they are better off offering globally standardized products and waiting for the
consumers to evolve towards these. Finally, it is argued that to adapt to local market conditions in
every emerging economy will undermine core assumptions about standardization that are
fundamental to the success of multinationals. These are powerful arguments, but they do not stand up
to scrutiny.
That emerging markets are considered small is a self-fulfilling prophecy. Products and
programs transplanted from affluent markets only appeal to the affluent elite: no more than five per
cent of the population. Delving deeper into the consumer base to establish mass-market positions
would create the economies of scale necessary to justify localization. And localization along
characteristics that are common across emerging markets, allows the costs to be spread over much
larger volumes. Emerging market veterans such as Unilever, Colgate Palmolive, and South African
Breweries have amply demonstrated the viability of mass markets in emerging economies, as well as
the benefits of rapidly transferring knowledge gained in one emerging market to others.
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The second argument, that emerging market consumers are rapidly becoming more like their
affluent market counterparts, is true. But the rate of change is not as rapid as contended. In most
emerging markets, the mass market will remain poor well beyond the current planning horizons of
most multinationals. And even as they grow more affluent, it is far from certain that Chinese and
Indian consumers preferences will converge with those of Europeans or Americans. It is as likely
that they may retain idiosyncratic local consumption patterns, driven by cultural norms. A better
strategy for any serious emerging market player is to understand and cater to local consumers
current needs, and evolve with them, as they grow more affluent.
The final reason offered is that localization is counter to core assumptions about global
standardization. For example, at the marketing level, conventional wisdom for developed markets
has it that successful firms fragment the market into ever finer segments, rapidly develop and deploy
innovative new products, cajole and co-opt powerful distributors to gain access to consumers, and
position their brands to exact premium prices for their offerings. These practices are so central to the
strategy of many developed market companies, that they are embedded in the culture of these
multinationals success. Yet, conditions in emerging markets challenge these assumptions and call
for very different marketing programs.3 Can multinationals take advantage of the opportunities
afforded by the mass markets of emerging economies without forsaking the presumed bases of their
success in developed markets? We suggest that the initial difficulties faced by many multinationals
as they have entered emerging markets can be ascribed to attempts to transfer, without translation,
their conventional marketing practices.4 Multinationals can choose to maintain their standardized
Our objective in this article is to demonstrate how the emerging market environment calls
into question received marketing wisdom, and to draw lessons from companies that have designed
marketing programs from the ground up. Specifically, we look at three fundamental characteristics
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of emerging market environments: (1) low per capita income and its impact on consumer behavior,
(2) immense variability in consumers and infrastructure, and (3) relative cheapness of labor, which is
often substituted for capital by both companies and consumers. These characteristics have profound
implications for the conceptualization and implementation of marketing programs. We organize our
discussion of the effects of each of these fundamental differences around the central pillars of
marketing: segmentation and the key program ingredients of product, price, distribution, and
Multinationals bring to emerging markets not just their products, technology, and skills, but
Assumptions about the similarity of consumer preferences and buyer behavior, segments, and
arguments about scale economies justify thewholesale import of marketing programs from developed
markets. But these marketing programs are not matched to the needs of the market.
At the root of the mismatch are fundamental assumptions about market segmentation. The
fine-grained segmentation of developed markets is predicated on the low costs of and high returns on
segmentation. Take the example of soap brands. In developed markets the hundreds of brands on the
shelf offer a vast choice of finely differentiated benefits on dimensions such as fragrance, freshness,
skin type, naturalness, softness, gentleness, lather, anti-aging, and many others. Segmentation at such
fine levels is expensive in terms of product development, branding, and distribution costs. These
costs are justified if consumers are both able and willing to pay for specialized products, which they
perceive to better meet their needs. But the mass market in emerging economies is unable to afford
this level of segmentation. Segments there are far coarser than those to which multinationals are
accustomed. In Indonesia, 88% of the soap market is classified as regular soap, with another 11%
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accounted for by deodorant soap, and the remaining 1% is moisturizing soap. The average price of
soap sold in Indonesia is less than one third of that in the United States.
The fine level of segmentation also assumes that market segments can be easily reached
through differentiated communications, targeted at different audiences. Targeted media that allow
fine segmentation are simply unavailable in many emerging markets. Consider the example of
magazines: there exist about 18,000 magazine titles in the United States for a population of 250
million. In contrast, in Brazil, a country of 150 million, there are fewer than one thousand magazines
and, in India, a country of one billion people, there exist just over 300 magazine titles. The lack of
narrowly focused media limit the ability of marketers to segment their markets, and increase the
effective cost per hit of advertisements. A smaller proportion of readers of any given title is likely to
Some local and international firms have amply demonstrated that through well targeted,
indigenously developed, and locally produced products, mass markets can yield serious profits. One
lesson from these companies is that rapid new product development and deployment, continuous
product innovation, and accelerated obsolescence that are part of the competitive apparatus in
developed markets, are unsuited to emerging markets. Here, consumers dislike products that evolve
too rapidly, making their recent purchases obsolete. Instead, the need is for basic, functional, long
lasting products. The Volkswagen Beetle remained the largest selling car in Brazil long after it had
been phased out of the affluent markets, and despite competitive assaults by other manufacturers with
newer models. The largest selling car in China is still the Volkswagen Santana, a model that was
phased out of developed markets 15 years ago. These cars are known to be dependable workhorses
that can be easily repaired when they break down, with readily available and inexpensive spare parts.
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Prices need to be established in the context of local consumers purchasing power, rather than
in relation to international standards. Purchasing Power Parity (PPP) exchange rates estimate the
value of a currency in terms of the basket of goods that it buys (compared with the cost of a similar
basket in a reference country and currency) rather than in terms of the existing market exchange
rates. By this measure, most emerging market currencies are severely undervalued relative to hard
currencies, meaning that they actually buy more than one would expect, given the market exchange
rate. International firms are attracted to many emerging markets precisely because of the size of the
market in PPP terms. One firm found, for example, that in China the number of consumers in the
$10,000 to $40,000 income range is less than 3 million at market exchange rates, but over 80 million
at PPP rates. But firms often fail to recognize that this large potential market is only accessible if
product prices are established relative to local purchasing power rather than by converting
international prices at market exchange rates. In other words, international firms need to work
backwards from the PPP numbers to price their products. The practice of using market exchange
rates translates into overpriced products, making them accessible to only the wealthiest. For
example, the PPP of the RMB in China is estimated at close to 4 to the US dollar, while the market
exchange rate is over RMB 8 to the US dollar. A product that sells in the United States for $10 will
be priced using the market exchange rate at RMB 80. In reverse PPP terms, this is the equivalent of
pricing the product at $20. Firms cannot have it both ways: expectations of large PPP-based markets,
South African Breweries (SAB) is one of the rare foreign breweries that is profitable in
China. SABs approach to the China market has been markedly different from that of the fifty other
international brewers operating there. SAB brews and sells local brands of beer, has consciously
targeted the mass market, and has avoided the crowded premium urban segments. The price of its
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brands is up to 70% lower than that of international brands such as Budweiser or Carlsberg. But
SABs long term strategy of building market share is paying off. Despite its limited reach, which
currently covers less than five per cent of the market, it is the third largest brewer in China. It has a
High savings rates, too, confound multinationals expectations of market size. A common
assumption is that high savings rates in emerging markets stem from the lack of purchase options, but
that once firms introduce consumption choices, savings will give way to consumption. While this is
true to some extent, the rate of conversion from savings to consumption has been slow. High savings
rates are due to the lack of an institutionalized social net (unemployment insurance, retirement and
disability benefits, etc.). This encourages what in the west is called a depression era mentality, that
discourages profligacy. People save for a "rainy day" when they may be laid off, for retirement, for
medical expenses, and for family obligations. Often, these social and family obligations for savings
are driven by strong cultural norms. Consumption options do not easily compete with these reasons
for saving.
Strategies that favor thin margins and rely on large volumes tend to succeed. Pricing logic
needs to dominate marketing programs and drive product, packaging, distribution, and
communication decisions. Unilevers Lifebuoy brand of soap, popular in Africa, India, and Indonesia
is priced low and made using inexpensive local ingredients and packaging material. By volume,
Large volumes can make even trivially priced products profitable. Cadburys knows that
Indian consumers are willing to pay about one cent for an impulse purchase candy. The company
delivers packs of these candies to retailers who then break the bulk and sell the candy by the unit.
Cadburys international managers question why their company should spend time, effort, and money
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selling products that retail at one cent. But in this market, it is the enormous volumes, not the margins
that drive profitability. If 10% of the population were to buy just one candy a week, annual sales
would exceed $60 million. An added advantage is that the inexpensive candy maintains a shelf
presence for the brand and provides an entry-level item that converts some consumers on to higher
In contrast to the highly concentrated retail and distribution industry in developed markets,
the retail trade in emerging markets is extremely fragmented. While major international retail chains
such as Ahold, Carrefour, Nanz, Metro, and Walmart operate in many emerging markets, they have
yet to develop a retail format that has mass. Overall, chain stores account for less then 3% by value
Multinationals sometimes rely on these chains as their primary channel. But, it is unlikely,
that chains will provide access to mass markets. High population density, small homes with little
space for storage, lack of refrigeration, and low automobile ownership means that consumers buy
daily and locally. As a result, retail outlet density has to be very high. Retail formats from
developed countries cannot deliver economically, under these conditions. Therefore, foreign
At the same time, using the small independently owned stores poses a serious challenge to
many international firms, as they lack the expertise to deal with a fragmented trade. It is estimated
that there are 9 million small independently owned grocery shops in China that have limited working
capital and, typically, occupy fewer than 300 square feet. To access even the first tier of these outlets,
and to establish a brand presence on the shelf, large, dedicated sales forces, and large amounts of
working capital are required. Beyond the first tier of retail outlets, many companies use multiple
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levels of wholesalers and distributors to capture shelf space one store at a time. The multilayered
distribution channel of course puts a large distance between mass markets (especially rural markets)
and manufacturers, impeding learning and marketing adaptation. Notwithstanding the challenges,
some international firms, that have had a long presence in emerging markets, have successfully
developed effective distribution systems. Unilevers distribution network in India, which provides it
with a formidable barrier to entry, serves over 800,000 retail outlets directly, and relies on
Despite being fragmented, however, the trade has considerable power. Store formats do not
allow consumers to browse. Typically, the consumer interacts directly with the retail salesperson
(often the owner), whose recommendations carry weight. The owners relationship with consumers
is based on an understanding of their needs and buying habits, and cemented by the retailer extending
credit. These relationships give the trade tremendous clout in brand recommendations, making trade
push inventory on them, given their tight working capital positions. Rather, successful manufacturers
creatively develop new revenue activities for the retailer. United Phosphorous Limited (UPL), an
Indian crop protection company, realized that in its rural markets small farmers were not applying
pesticide at all, or applying it inappropriately due to the lack of application equipment. The capital
cost of the equipment (mounted pumps and dispensers that cost up to $3000) placed it out of reach of
small farmers and most rural retailers. UPL designed a program in which it arranged for bank loans
for its rural retailers to purchase application equipment, and demonstrated to these retailers the
additional revenue possibilities from renting this equipment to small farmers. The result was an
added revenue stream for rural retailers and additional sales of pesticides for UPL.
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Lack of focused media creates coarse segments comprised of diverse consumers. In this
environment, broad-based brand positions that are likely to appeal to a variety of people are more
cost-effective than finely differentiated ones. Broad-based positions often need to be targeted to
consumers who have not previously consumed the product or who are unfamiliar with the benefits of
relevance where consumers have never used conditioner, or for that matter, shampoo. The task of
communication is to position these products on the basis of broad-based consumer needs. Kellogg,
for example, has developed a nutritious breakfast positioning in India, based on research on school
children that shows they are not getting their recommended daily doses of some ingredients.
Once the brand positioning is established, the communication focus shifts to increasing the
low rates of product use in emerging markets. A key communication decision, therefore, is whether
to target existing consumers to consume more, or to draw non-consumers into the market. Typically,
multinationals choose to target existing consumers. International brewers in China, for example,
have chosen to focus on the Shanghai and other urban markets where per capita consumption is
already high. The reasoning is that it is easier to convince an existing beer drinker to have another
beer, than to convert someone who has never drunk beer to try one. The existing product portfolios
of multinationals, however, often drive this reasoning. It is easier to sell more of an existing product
to current consumers than to develop new products and brands to appeal to non-consumers. But
some multinationals are not averse to seizing local opportunities. Just as Kellogg realized that
biscuits were the way into the Indian consumers breakfast diet, Coca-Cola has found that to gain
share of throat in China and Russia, products that fit with local consumption habits were required.
The company has introduced fruit-flavored tea in China and low priced carbonated fruit flavored
drinks in Russia.
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3.0 Variability
Challenges due to low incomes are compounded by variability among consumers and in the
infrastructure. Consumers in Indonesia, China, and India are diverse along cultural, religious, and
linguistic dimensions, but in this respect, these continent sized countries are no different than, say,
Europe. More specific to emerging markets is variability of income and, super-imposed on it,
variability in income flow, which arises from the different pay schedules: from hourly or daily
wages, to monthly paychecks. The sharp urban-rural divide is correlated with income differences,
with urban areas containing islands of prosperity. The second source of variability is the variability
A delivery by road may take anywhere between one day to three days, over a distance of 200 miles.
A rainfall can throw the telephone infrastructure into chaos. Manufacturers often generate electricity
in-house because the grid is subject to frequent power outages. A bank check may clear in three
Large disparities in consumers incomes imply the existence of multiple segments with very
different levels of purchasing power. Segments that vary in income allow some savvy firms to create
innovative opportunities. The local distributor for Akai in India, Baron International, realized that
the market for new television sets was primarily urban. However, there was considerable inertia
when it came to replacing a working television set of a previous generation. But Baron also knew
that there existed a market, primarily rural, for used television sets. The company instituted a trade-
in scheme that linked urban retailers with those in rural areas. Rural retailers purchased traded-in
sets from urban dealers. Urban consumers got something for their old TV sets, urban retailers made
their margins from selling the traded-in sets, rural retailers made a profit on used TVs, and rural
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consumers were offered television sets they could afford. Barons sales increased 1500% over three
significant proportion of the working population in emerging markets is paid daily wages, a practice
practically non-existent in developed markets. Daily wage earners tend to have little stock of money,
only a flow. Consequently, they tend to make purchases only to meet their daily needs, and have
little capacity to build inventory. The marketing implications are far-reaching. Not only are pack
sizes, and price points affected, but it turns out that consumers trade-off purchases across a much
wider array of product categories. As a result, the nature of competition for any given product is
much broader. A manufacturer of soft drinks competes not just with other soft drink manufacturers,
but with a broad set of purchases that the consumer considers treats.
Variability of the infrastructure is tangibly manifest in the quality of products that arrive on
the market. They have been through a sourcing, production, and delivery system that at every stage
was subject to non standardized treatment. Delivering on the central promise of branding, consistent
quality over time, is a difficult task in such an environment. But it is precisely this variability in the
environment that puts a premium on brands that are able to deliver consistency. Marico, an Indian
edible oil company, has found that rural consumers in the interior of India willingly pay a reasonable
price premium for branded cooking oil, over commodity oil, because they are certain of its consistent
In order to deliver consistent quality, products need to be designed to cope with variability.
Typically, products from developed markets are designed for fairly standardized usage and handling
conditions, and do not tolerate wide environmental variance. For example, washing machines in
emerging markets need to be designed for power and water outages. Whirlpool found that, in India,
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its machines needed to be designed to restart from the point in the washing cycle where they had left
off when the power and/or water was interrupted, rather than return to the start as they are designed
to do in developed markets where uninterrupted power and water supply are taken for granted.
Variability in consumer incomes and income flow requires a product portfolio that addresses
the needs of different segments without adding to costs. Offering a variety of pack sizes at different
price points is one solution. Cooking oil, for example, is sold in single use sachets of five ml for the
daily purchaser, as well as in large 10-liter containers. But a variety of pack sizes can also have
unforeseen consequences. For example, if the family-pack size is priced at a sufficient quantity
discount over smaller packs, enterprising street traders will purchase the large pack and retail it in
loose form. Though, this form of informal retailing allows greater market penetration, it also means
that the company can loose control over the quality of the product, brand presentation, and pricing.
One solution is to price the different pack sizes to discourage unintended arbitrage, i.e.; quantity
In an occasional effort to capture volume sales, multinational brands use price promotions.
Often, such price promotions yield dramatic, if temporary, sales increases. These large volume
increases reveal a potentially large market that remains untapped, just below the actual price points.
To penetrate this market and generate sustainable volume sales, a permanent product entry at the
lower price point is required. Failure to recognize the potentially huge market that lies below the
surface of international price points can even place the premium, branded business at risk. By the
mid-1990s Sony and Matsushita had captured 75% of the top end of the Chinese market for
televisions with sales of 1.5 million units. But this left the door open to local manufacturers
Changhong, Konka, and Panda who achieved significant economies of scale by catering to the mass
market. Together these manufacturers sold over 5 million units. 5 They then used their strong
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Despite similar outward appearances (small owner-run shops, with limited working capital
whose primary selling point is the convenience of their location) there is considerable variability in
the trade. In particular, urban and rural retailers tend to be run on different principles. In urban areas,
these small retailers generally carry a surprisingly wide selection of brands in each product category.
They are able to achieve this despite limited shelf space and inventory by rapidly turning over their
stocks. Manufacturers and wholesalers make several deliveries every day to these small stores to
maintain inventory levels. In this environment, remaining on the shelf, developing a differentiated
In contrast, rural retailers are also less specialized and carry a wider range of products. Since
frequent deliveries are not possible, they tend to carry only a single brand in each product category.
In this environment, being first on the shelf, and developing a privileged relationship with the retailer
is a competitive advantage. Many brands that are first on the shelf become synonymous with the
product category, and are difficult to dislodge.6 Maggi noodles, the brand that created the category
Consumers in emerging markets shop daily and have 365 opportunities a year to switch
brands, while the weekly purchasers in developed markets have 52. Attempts to reach emerging
market consumers even once during the short purchase cycle, to ensure repeat purchase, make point
of purchase advertising and trade push indispensable. This requires a significant reorientation in the
allocation of funds across media. For example, outdoor advertising accounts for over 7% of all
media expenditures in India, while it only accounts for 0.8% in the United States.
Mass media, the mainstay of communication efforts in developed markets, are also less
effective in emerging markets. Large proportions of the population live in rural areas, distributed
across vast distances in small isolated groups, with limited access to broadcast media. The existence
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of a multiplicity of languages (several hundred in large countries), and varying levels of illiteracy
complicates the task of communication further. To overcome some of these challenges, Unilever
pioneered the concept of the video van. Unilevers video vans travel from village to village
screening films in the local language, interspersed with advertisements for Unilever products. The
company also provides product usage demonstrations to the captive audience because written
instructions on the pack may not be read by consumers who are either illiterate or do not understand
the dialect.
Where mass media are used, variability can throw a spanner in the works. On reentering
India in the 1990s, Coca Cola decided to invest massively on a Television advertising campaign. It
invested in slick commercials, rich in color, with high production values, but the effect was
somewhat lost on a market where 60% of all TVs are still black and white.
developed markets. Dishwashing detergents, prepared foods, and household appliances, all promise
the consumer less time and effort expenditures. But labor is cheap in emerging markets, and this
While the opportunity cost of time is low for the vast majority of consumers, for a small but
significant segment, the opportunity cost of time is high. For this small segment, products that save
labor might be thought to be attractive. But, segmenting the market on opportunity cost of time is
not useful because, in most instances, time can be bought. Richer consumers substitute others time
for theirs, and the market for time-savings is served through inexpensive services rather than
products. Premium-priced, non-stick cookware from Dupont have little appeal if consumers who can
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afford them generally rely on hired help for cooking and cleaning. In China, Dupont has struggled to
This does not mean that the products themselves are not viable in emerging markets, just that
they need to be positioned differently. For example, fast food is popular not because it is fast, but
because it is trendy. Similarly, washing machines may not have much appeal as labor savers when
consumers who can afford household appliances are accustomed to hiring people to do their laundry
by hand. But the machines can be positioned as reliable (hired help is often not), or on the basis of
performance (machines do a better job). These benefits complement rather than compete with
inexpensive labor. Sometimes consumers will both buy a washing machine and hire someone to
operate it.
Careful consideration of the value of the various elements of the augmented product
marketed by international firms often reveals that the firm's cost of creating some of the benefits
offered is higher than its value to the emerging market consumer. Engaging the consumers time and
energy as a substitute can allow the firm to market the product at an affordable price to the mass
market. For example, dairies in several Indian cities have opted to eliminate individual level
packaging for milk. Instead, milk is distributed through vending machines where consumers bring
their own containers to carry the milk home. Similarly, Whirlpool discovered that it was unable to
sell its high priced, fully automatic machines in the emerging markets. It was only after it introduced
twin-tub machines that were cheaper and utilized the consumers labor rather than electronics to
complete the entire washing cycle that sales took off. Interestingly, due to the fact that these
machines had long disappeared in the developed markets, Whirlpool had to acquire the obsolete
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Buying decisions depend on consumers assessments of the value of buying a product versus
making it themselves. For example, consumers in developed countries are increasingly buying rather
than making what they consume. Buy versus make trends are due to the high opportunity cost of
consumers own time, the economies of mass manufacture, and low transportation costs. With the
low cost of time, and the relatively high cost of manufacture and transportation (capital intensive
activities) in emerging markets, many products and services can be produced less expensively at
home than manufactured goods. Less than 1% of the food consumed in India is pre-processed
compared to over 95% in a developed country such as Japan. To motivate consumers in emerging
markets, to buy rather than make products, the product or service must be priced competitively with
homemade products, or must offer a benefit not easily incorporated in to homemade products.
Developed markets have clearly moved towards heavily capital-intensive distribution with
the introduction of electronic data interchanges, mechanized movement and monitoring of goods, and
economical in emerging markets. For example, in emerging markets, Coca-Cola has not invested in
vending machines. These are too expensive relative to salespeople. In China, instead of vending
machines, the company has experimented with a pushcart program in which salespeople dispense the
companys drinks by the single-serve bottle. Sales of two cases (48 bottles) every day at US$ 0.25
per bottle are sufficient to justify the costs of a salesperson. Similarly, in India, almost 10% of Coca-
Cola sales take place through fountains, where a salesperson dispenses drinks by the paper cup.
Daily sales of as little as 100 cups justify the cost of the fountain and the person employed to
Modern retail formats such as supermarkets (e.g., Nanz), hypermarkets (e.g., Carrefour), and
discount stores (e.g., Walmart), that substitute capital for labor, have experienced slow growth in
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emerging markets. The scale economies of these operations are offset by the high capital costs, and
often lead to higher prices relative to small owner-operated stores. The typical 25% to 40% margins
taken by international retailers reflect their higher operating costs relative to low-overhead local
retailers, whose margins rarely exceed 15% with operating costs below five per cent of retail price.
The heavy reliance on mass communication in developed markets is based on the premise
that delivering a message through a medium such as television or magazines is less expensive than
delivering it through face to face contact. But in emerging markets, the face-to-face method has
always been more economical. When Citibank launched its credit card in Asia, it found that in many
markets the cost per customer of door-to-door sales was lower than a range of mass media, including
magazine inserts, direct-mail, and take-one application forms placed on sales counters.8 Personal
selling also allows for more customized and interactive messages to be delivered to the customer. A
characteristic important at an early stage in a products life-cycle, such as credit cards in Asia at the
5.0 Conclusions
The billions of consumers that multinationals seek in emerging economies will remain an
elusive target unless these firms are able to develop value propositions that appeal to the mass
market. For these firms, it should be abundantly clear that mass markets in emerging countries are
unlike any markets they have traditionally served. The emerging market consumers behavior is
molded by low incomes, infrastructural variability, and the unique trade-offs created by the
substitution of labor for capital. These consumers are unlikely to respond to marketing programs
transplanted from developed markets. Instead, marketing programs need to be built from the ground
up. But building marketing programs from the ground up questions fundamental marketing practices
that are presumed to lie at the core of the success in traditional markets. The organizational tensions
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that arise as firms grapple with this dilemma can be wrenching. Firms will choose to live with the
tension if they believe the opportunity presented by emerging markets to be worth the pain. One
means of justifying the pain is to abandon the traditional practice of having country-focused
strategies, such as a China strategy and an India strategy, and to begin to consider the firms
emerging market strategy. Framing the issue in this way places the focus on the commonalities
across emerging markets and their real potential size. It, thus, enables an accurate assessment of the
The framework we have presented yields insights into the nature of the localization effort
required. First, we show that the segments and segmentation schemes on which multinationals
develop their brands for the affluent markets do not fit the realities of emerging markets. We also
show that emerging markets, despite their diversity, are less segmentable due to the costs of
segmentation, and consumers unwillingness and inability to pay for the added costs of customized
products. Consumers income variability compounded by infrastructural variability calls for radical
adaptation of marketing programs developed for the advanced economies. The substitution of labor
for capital creates trade-offs that are unusual in developed markets. These inherent differences are
sufficient to justify developing an alternative business model for emerging markets. Traditional
business models that rely on innovation, fine segmentation, high margins, and finely tuned branding
The pursuit of billion consumer markets requires that multinationals identify common factors
that impact consumer behavior across emerging markets and design strategies for emerging markets
as a group. For such a strategy to succeed, firms need to rapidly transfer learning across these
markets. This requires a fundamental mindshift, from viewing emerging market subsidiaries as mere
delivery mechanisms for programs developed elsewhere, to learning centers. Viewed in this light,
the emerging market debate is naturally a debate about locally adaptive versus globally standardized
19
William Davidson Institute Working Paper Number 320
strategies. However, the localization-globalization debate is much more pronounced in the context of
emerging markets, where consumer behavior is so different, and the future stakes so high.
20
William Davidson Institute Working Paper Number 320
Cheap Labor Despite huge Products can Consumers People rather Mass media
differences in be re- make versus than machines dont always
consumers engineered to buy decisions provide a cost- have a cost
cost of time, replace some drive value effective advantage over
the market elements with perceptions. means of face-to-face
cannot be consumers Competition delivering customer
segmented on labor. Makes also comes in products to interaction.
this dimension the product shape of consumers. Sales forces can
because time is more home-made be used to
bought and affordable to products. communicate
sold. the mass product benefits
market. and usage more
effectively.
21
William Davidson Institute Working Paper Number 320
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Business School Publishing: Cambridge MA.
22
William Davidson Institute Working Paper Number 320
CURRENT AS OF 4/27/00
Publication Authors Date of Paper
No. 320 Rethinking Marketing Programs for Niraj Dawar and Amitava Chattopadhyay June 2000
Emerging Markets
No. 319 Public Finance and Low Equilibria in Daniel Daianu and Radu Vranceanu June 2000
Transition Economies; the Role of Institutions
No. 318 Some Econometric Evidence on the Martin Eichler and Michael Lechner June 2000
Effectiveness of Active Labour Market
Programmes in East Germany
No. 317 A Model of Russias Virtual R.E Ericson and B.W Ickes May 2000
Economy
No. 316 Financial Institutions, Financial Haizhou Huang and Chenggang Xu March 2000
Contagion, and Financial Crises
No. 315 Privatization versus Regulation in Jean Paul Azam, Bruno Biais, and February 2000
Developing Economies: The Case of West Magueye Dia
African Banks
No. 314 Is Life More Risky in the Open? John Giles April 2000
Household Risk-Coping and the Opening of
Chinas Labor Markets
No. 313 Networks, Migration and Investment: Abhijit Banerjee and Kaivan Munshi March 2000
Insiders and Outsiders in Tirupurs
Production Cluster
No. 312 Computational Analysis of the Impact Rajesh Chadha, Drusilla K. Brown, Alan March 2000
on India of the Uruguay Round and the V. Deardorff and Robert M. Stern
Forthcoming WTO Trade Negotiations
No. 311 Subsidized Jobs for Unemployed Jan. C. van Ours May 2000
Workers in Slovakia
No. 310 Determinants of Managerial Pay in Tor Eriksson, Jaromir Gottvald and Pavel May 2000
the Czech Republic Mrazek
No. 309 The Great Human Capital Klara Z. Sabirianova May 2000
Reallocation: An Empirical Analysis of
Occupational Mobility in Transitional Russia
No. 308 Economic Development, Legality, and Daniel Berkowitz, Katharina Pistor, and February 2000
the Transplant Effect Jean-Francois Richard
No. 307 Community Participation, Teacher Yasuyuki Sawada November 1999
Effort, and Educational Outcome: The Case of
El Salvadors EDUCO Program
No. 306 Gender Wage Gap and Segregation in Stepan Jurajda May 2000
Late Transition
No. 305 The Gender Pay Gap in the Andrew Newell and Barry Reilly May 2000
Transition from Communism: Some Empirical
Evidence
No. 304 Post-Unification Wage Growth in Jennifer Hunt November 1998
East Germany
No. 303 How Does Privatization Affect Elizabeth Brainerd May 2000
Workers? The Case of the Russian Mass
Privatization Program
23
William Davidson Institute Working Paper Number 320
No. 302 Liability for Past Environmental Dietrich Earnhart March 2000
Contamination and Privatization
No. 301 Varieties, Jobs and EU Enlargement Tito Boeri and Joaquim Oliveira Martins May 2000
No. 300 Employer Size Effects in Russia Todd Idson April 2000
No. 299 Information Complements, Geoffrey G. Parker and Marshall W. Van March 2000
Substitutes, and Strategic Product Design Alstyne
No. 298 Markets, Human Capital, and Dwayne Benjamin, Loren Brandt, Paul May 2000
Inequality: Evidence from Rural China Glewwe, Li Guo,
No. 297 Corporate Governance in the Asian Simon Johnson, Peter Boone, Alasdair November 1999
Financial Crisis Breach, and Eric Friedman
No. 296 Competition and Firm Performance: J. David Brown and John S. Earle March 2000
Lessons from Russia
No. 295 Wage Determination in Russia: An Peter J. Luke and Mark E. Schaffer March 2000
Econometric Investigation
No. 294: Can Banks Promote Enterprise John P. Bonin and Bozena Leven March 2000
Restructuring?: Evidence From a Polish
Banks Experience
No. 293: Why do Governments Sell Privatised Bernardo Bortolotti, Marcella Fantini and March 2000
Companies Abroad? Carlo Scarpa
No. 292: Going Public in Poland: Case-by- Wolfgang Aussenegg December 1999
Case Privatizations, Mass Privatization and
Private Sector Initial Public Offerings
No. 291: Institutional Technology and the Bruce Kogut and Andrew Spicer March 1999
Chains of Trust: Capital Markets and
Privatization in Russia and the Czech
Republic
No. 290: Banking Crises and Bank Rescues: Jenny Corbett and Janet Mitchell January 2000
The Effect of Reputation
No. 289: Do Active Labor Market Policies Jan C. van Ours February 2000
Help Unemployed Workers to Find and Keep
Regular Jobs?
No. 288: Consumption Patterns of the New Russell Belk February 2000
Elite in Zimbabwe
No. 287: Barter in Transition Economies: Dalia Marin, Daniel Kaufmann and January 2000
Competing Explanations Confront Ukranian Bogdan Gorochowskij
Data
No. 286: The Quest for Pension Reform: Marek Gra and Michael Rutkowski January 2000
Polands Security through Diversity
No. 285: Disorganization and Financial Dalia Marin and Monika Schnitzer October 1999
Collapse
No. 284: Coordinating Changes in M-form Yingyi Qian, Grard Roland and May 1999
and U-form Organizations Chenggang Xu
No. 283: Why Russian Workers Do Not Move: Guido Friebel and Sergei Guriev October 1999
Attachment of Workers Through In-Kind
Payments
No. 282: Lessons From Fiascos in Russian Merritt B. Fox and Michael A. Heller October 1999
Corporate Governance
No. 281: Income Distribution and Price Michael Alexeev and James Leitzel March 1999
Controls: Targeting a Social Safety Net
During Economic Transition
No. 280: Starting Positions, Reform Speed, William Hallagan and Zhang Jun January 2000
and Economic Outcomes in Transitioning
Economies
24
William Davidson Institute Working Paper Number 320
No. 279 : The Value of Prominent Directors Yoshiro Miwa & J. Mark Ramseyer October 1999
No. 278: The System Paradigm Jnos Kornai April 1998
No. 277: The Developmental Consequences of Lawrence Peter King September 1999
Foreign Direct Investment in the Transition
from Socialism to Capitalism: The
Performance of Foreign Owned Firms in
Hungary
No. 276: Stability and Disorder: An Clifford Gaddy and Barry W. Ickes November 1999
Evolutionary Analysis of Russias Virtual
Economy
No. 275: Limiting Government Predation Chong-En Bai, David D. Li, Yingyi Qian July 1999
Through Anonymous Banking: A Theory with and Yijiang Wang
Evidence from China.
*No. 274: Transition with Labour Supply Tito Boeri December 1999
No. 273: Sectoral Restructuring and Labor Vit Sorm and Katherine Terrell November 1999
Mobility: A Comparative Look at the Czech
Republic
*No. 272: Published in: Journal of Daniel Munich, Jan Svejnar and Katherine October 1999
Comparative Economics Returns to Human Terrell
Capital Under the Communist Wage Grid and
During the Transition to a Market Economy
Vol. 27, pp. 33-60 1999.
No. 271: Barter in Russia: Liquidity Shortage Sophie Brana and Mathilde Maurel June 1999
Versus Lack of Restructuring
No. 270: Tests for Efficient Financial Albert Park and Kaja Sehrt March 1999
Intermediation with Application to China
No. 269a: Russian Privatization and Bernard Black, Reinier Kraakman and May 2000
Corporate Governance: What Went Wrong? Anna Tarassova
No. 269: Russian Privatization and Corporate Bernard Black, Reinier Kraakman and September 1999
Governance: What Went Wrong? Anna Tarassova
No. 268: Are Russians Really Ready for Susan Linz September 1999
Capitalism?
No. 267: Do Stock Markets Promote Randall K. Filer, Jan Hanousek and Nauro September 1999
Economic Growth? Campos
No. 266: Objectivity, Proximity and Arnoud W.A Boot and Jonathan R. Macey September 1999
Adaptability in Corporate Governance
No. 265: When the Future is not What it Used Nauro F. Campos, Gerard Hughes, Stepan September 1999
to Be: Lessons from the Western European Jurajda, and Daniel Munich
Experience to Forecasting Education and
Training in Transitional Economies
No. 264: The Institutional Foundation of Yasheng Huang September 1999
Foreign-Invested Enterprises (FIEs) in China
No. 263: The Changing Corporate Erik Berglof and Ernst-Ludwig von June 1999
Governance Paradigm: Implications for Thadden
Transition and Developing Countries
No. 262: Law Enforcement and Transition Gerard Roland and Thierry Verdier May 1999
No. 261: Soft Budget Constraints, Pecuniary Jiahua Che June 2000
Externality, and the Dual Track System
No. 260: Missing Market in Labor Quality: Gary H. Jefferson July 1999
The Role of Quality Markets in Transiton
25
William Davidson Institute Working Paper Number 320
No. 259: Do Corporate Global Environmental Glen Dowell, Stuart Hart and Bernard June 1999
Standards in Emerging Markets Create or Yeung
Destroy Market Value
No. 258: Public Training and Outflows from Patrick A. Puhani June 1999
Unemployment
No. 257: Ownership Versus Environment: Ann P. Bartel and Ann E. Harrison June 1999
Why are Public Sector Firms Ineffecient?
No. 256: Taxation and Evasion in the Michael Alexeev, Eckhard Janeba and November 1999
Presence of Exortion by Organized Crime Stefan Osborne
No. 255: Revisiting Hungarys Bankruptcy John P. Bonin and Mark E. Schaffer September 1999
Episode
No. 254: FDI in Emerging Markets: A Home- Marina v.N Whitman June 1999
Country View
No. 253: The Asian Financial Crisis: What Jeffrey D. Sachs and Wing Thye Woo January 1999
Happened, and What is to be Done
No. 252: Organizational Law as Asset Henry Hansmann and Reinier Kraakman September 1999
Partitioning
No. 251: Consumer Behavior Research in Jan-Benedict E. M. Steenkamp and Steven September 1999
Emerging Consumer Markets: the Case of the M. Burgess
Optimum Stimulation Level in South Africa
No. 250: Property Rights Formation and the Matthew A. Turner, Loren Brandt, and July 1998
Organization of Exchange and Production in Scott Rozelle
Rural China
No. 249: Impacts of the Indonesian Economic James Levinsohn, Steven Berry, and Jed June 1999
Crisis: Price Changes and the Poor Friedman
No. 248: Internal Barriers in the Transition of Charalambos Vlachoutsicos July 1999
Enterprises from Central Plan to Market
No. 247: Spillovers from Multinationals in Richard E. Caves June 1999
Developing Countries: the Mechanisms at
Work
No. 246: Dynamism and Inertia on the Irena Grosfeld, Claudia Senik-Leygonie, May 1999
Russian Labour Market: A Model of Thierry Verdier, Stanislav Kolenikov and
Segmentation Elena Paltseva
No. 245: Lessons from Bank Privatization in John Bonin and Paul Wachtel May 1999
Central Europe
No. 244: Nominal-Real Tradeoffs and the Christian Popa December 1998
Effects of Monetary Policy: the Romanian
Experience
No. 243: Privatization, Political Risk and Enrico C. Perotti and Pieter van Oijen March 1999
Stock Market Development in Emerging
Economies
No. 242: Investment Financing in Russian Enrico C. Perotti and Stanislav Gelfer October 1998
Financial-Industrial Groups
No. 241: Can governments maintain hard Octavian Carare, Constantijn Claessens, January 1999
budget constraints? Bank lending and Enrico C. Perotti
financial isolation in Romania
No. 240: Democratic Institutions and John E. Jackson, Jacek Klich, and April 1998
Economic Reform: the Polish Case Krystyna Poznanska
No. 239: A Longitudinal Study of IJV Keith D. Brouthers and Gary Bamossy June 1999
Performance in Eastern Europe
26
William Davidson Institute Working Paper Number 320
No. 238: Published in: Journal of Business John E. Jackson, Jacek Klich, Krystyna July 1998
Venturing, Firm Creation and Economic Poznanska
Transitions Vol. 14, Iss. 5,6 Sep/Nov 1999,
pp. 427-450.
No. 237: Analysis of Entrepreneurial Attitudes John E. Jackson and Aleksander S. March 1997
in Poland Marcinkowski
No. 236: Investment and Finance in De Novo Andrzej Bratkowski, Irena Grosfeld, Jacek April 1999
Private Firms: Empirical Results from the Rostowski
Czech Republic, Hungary, and Poland
No. 235: Does a Soft Macroeconomic Lubomr Lzal June 1999
Environment Induce Restructuring on the
Microeconomic Level during the Transition
Period? Evidence from Investment Behavior
of Czech Enterprises
No. 234: Banking Reform in China: Gradually John Bonin June 1999
Strengthening Pillar or Fragile Reed?
No. 233: Theories of Soft Budget Constraints Janet Mitchell March 1999
and the Analysis of Banking Crises
No. 232: Unemployment Risk, Precautionary Alessandra Guariglia and Byung-Yeon June 1999
Savings, and Moonlighting in Russia Kim
No. 231: Investing in Turbulent Times: The Josef C. Brada, Arthur E. King, and Chia- April 1999
Investment Behavior of Polish Firms in the Ying Ma
Transition
No. 230: The End of Moderate Inflation in Josef C. Brada and Ali M. Kutan April 1999
Three Transition Economies?
No. 229: Back to the Future: The Growth Nauro F. Campos April 1999
Prospects of Transition Economies
Reconsidered
No. 228: The Enterprise Isolation Program in Simeon Djankov April 1999
Russia
No. 227: Published in: Journal of Stijn Claessens and Simeon Djankov April 1999
Comparative Economics, Ownership
Concentration and Corporate Performance in
the Czech Republic 27(3), September 1999,
pp. 498-513.
No. 226: Unemployment Benefit Entitlement Patrick A. Puhani March 1999
and Training Effects in Poland during
Transition
No. 225: Transition at Whirlpool-Tatramat: Hans Brechbuhl and Sonia Ferencikova March 1999
Case Studies
No. 224: Measuring Progress in Transition Wendy Carlin, Saul Estrin, and Mark March 1999
and Towards EU Accession: A Comparison of Schaffer
Manufacturing Firms in Poland, Romania,
and Spain
No. 223: Product Market Competition in Mitsutoshi M. Adachi March 1999
Transition Economies: Increasing Varieties
and Consumer Loyalty
No. 222: Opaque Markets and Rapid Growth: Rodney Wallace July 1999
the Superiority of Bank-Centered Financial
Systems for Developing Nations
No. 221: Technology Spillovers through Yuko Kinoshita January 1999
Foreign Direct Investment
27
William Davidson Institute Working Paper Number 320
No. 220: Managerial, Expertise and Team Leslie Perlow January 1999
Centered Forms of Organizing: A Cross-
Cultural Exploration of Independence in
Engineering Work
No. 219: Household Structure and Labor Audra J. Bowlus and Terry Sicular January 1999
Demand in Agriculture: Testing for
Separability in Rural China
No. 218: Competing Strategies of FDI and W. Mark Fruin and Penelope Prime January 1999
Technology Transfer to China: American and
Japanese Firms
No. 217 Published in: Journal of Tito Boeri and Christopher J. Flinn January 1999
Comparative Economics, Returns to
Mobility in the Transition to a Market
Economy Vol. 27, No. 1, March 1999, pp. 4-
No. 216 Published in: Journal of Katherine Terrell and Vit Sorm November 1998
Comparative Economics, Labor Market
Policies and Unemployment in the Czech
Republic. Vol. 27, No. 1, March 1999, pp.
33-60.
No. 215 Published in: Journal of Jochen Kluve, Hartmut Lehmann, and December 1998
Comparative Economics, Active Labor Christoph M. Schmidt
Market Policies in Poland: Human Capital
Enhancement, Stigmatization or Benefit
Churning? Vol. 27, No. 1, March 1999, pp.
61-
No. 214 Published in: Journal of Milan Vodopivec December 1998
Comparative Economics, Does the Slovenian
Public Work Program Increase Participants'
Chances to Find a Job? Vol. 27, No.1,
March 1999, pp. 113-
No. 213 Published in: Journal of Martina Lubyova and Jan C. van Ours December 1998
Comparative Economics, Effects of Active
Labor Market Programs on the Transition
Rate from Unemployment into Regular Jobs in
the Slovak Republic. Vol. 27, No. 1, March
1999, pp. 90-
No. 212: The Marketing System in Bulgarian Yordan Staykov, Team Leader October 1998
Livestock Production The Present State and
Evolutionary Processes During the Period of
Economic Transition
No. 211: Bankruptcy Experience in Hungary Janet Mitchell October 1998
and the Czech Republic
No 210: Values, Optimum Stimulation Levels Steven M. Burgess and Mari Harris September 1998
and Brand Loyalty: New Scales in New
Populations
No. 209: Inherited Wealth, Corporate Control Randall K. Morck, David A. Stangeland, September 1998
and Economic Growth and Bernard Yeung
No. 208: A Cultural Analysis of Homosocial Michael D. Kennedy July 1998
Reproduction and Contesting Claims to
Competence in Transitional Firms
28
William Davidson Institute Working Paper Number 320
No. 207: From Survival to Success: The Arthur Yeung and Kenneth DeWoskin July 1998
Journey of Corporate Transformation at
Haier. Forthcoming in Teaching the
Dinosaurs to Dance: Organizational Change
in Transition Economies ed. Daniel Denison.
No. 206: Why Do People Work If They Are Irina L. Zinovieva May 1998
Not Paid? An Example from Eastern Europe.
Forthcoming in Teaching the Dinosaurs to
Dance: Organizational Change in Transition
Economies ed. Daniel Denison.
No. 205: Firm Ownership and Work Robert A. Roe, Irina L. Zinovieva, May 1998
Motivation in Bulgaria and Hungary: An Elizabeth Dienes, and Laurens A. ten Horn
Empirical Study of the Transition in the Mid-
1990s. Forthcoming in Teaching the
Dinosaurs to Dance: Organizational Change
in Transition Economies ed. Daniel Denison.
No. 204: Human Resource Management in the Nandani Lynton April 1998
Restructuring of Chinese Joint Ventures.
Forthcoming in Teaching the Dinosaurs to
Dance: Organizational Change in Transition
Economies ed. Daniel Denison.
No. 203: Emergent Compensation Strategies Marc Weinstein March 1998
in Post-Socialist Poland: Understanding the
Cognitive Underpinnings of Management
Practices in a Transition Economy.
Forthcoming in Teaching the Dinosaurs to
Dance: Organizational Change in Transition
Economies ed. Daniel Denison.
No. 202: Corporate Transformation and Meinolf Dierkes and Zhang Xinhua March 1998
Organizational Learning: The Peoples
Republic of China. Forthcoming in Teaching
the Dinosaurs to Dance: Organizational
Change in Transition Economies ed. Daniel
Denison.
No. 201: Foreign Direct Investment as a Sonia Ferencikova February 1998
Factor of Change: The Case of Slovakia.
Forthcoming in Teaching the Dinosaurs to
Dance: Organizational Change in Transition
Economies ed. Daniel Denison.
No. 200: Radical versus Incremental Change: Karen L. Newman February 1998
The Role of Capabilities, Competition, and
Leaders. Forthcoming in Teaching the
Dinosaurs to Dance: Organizational Change
in Transition Economies ed. Daniel Denison.
No. 199: The Emergence of Market Practices Douglas Guthrie February 1998
in Chinas Economic Transition: Price Setting
Practices in Shanghais Industrial Firms.
Forthcoming in Teaching the Dinosaurs to
Dance: Organizational Change in Transition
Economies ed. Daniel Denison.
29
William Davidson Institute Working Paper Number 320
No. 198: The Application of Change Dr. Jnos Fehr January 1998
Management Methods at Business
Organizations Operating in Hungary:
Challenges in the Business and Cultural
Environment and First Practical Experiences.
Forthcoming in Teaching the Dinosaurs to
Dance: Organizational Change in Transition
Economies ed. Daniel Denison.
No. 197: Organizational Changes in Russian Igor B. Gurkov January 1998
Industrial Enterprises: Mutation of Decision-
Making Structures and Transformations of
Ownership. Forthcoming in Teaching the
Dinosaurs to Dance: Organizational Change
in Transition Economies ed. Daniel Denison.
No. 196: Understanding and Managing Dan Candea and Rodica M. Candea January 1998
Challenges to the Romanian Companies
during Transition. Forthcoming in Teaching
the Dinosaurs to Dance: Organizational
Change in Transition Economies ed. Daniel
Denison.
No. 195: Insider Lending and Economic Lisa A. Keister December 1997
Transition: The Structure, Function, and
Performance Impact of Finance Companies in
Chinese Business Groups. Forthcoming in
Teaching the Dinosaurs to Dance:
Organizational Change in Transition
Economies ed. Daniel Denison.
No. 194: Japanese Investment in Transitional Paul W. Beamish and Andrew Delios November 1997
Economies: Characteristics and Performance.
Forthcoming in Teaching the Dinosaurs to
Dance: Organizational Change in Transition
Economies ed. Daniel Denison.
No. 193: Building Successful Companies in Dr. Ivan Perlaki January 1998
Transition Economies. Forthcoming in
Teaching the Dinosaurs to Dance:
Organizational Change in Transition
Economies ed. Daniel Denison.
No. 192: Russian Communitariansim: An Charalambos Vlachoutsicos July 1998
Invisible Fist in the Transformation Process of
Russia. Forthcoming in Teaching the
Dinosaurs to Dance: Organizational Change
in Transition Economies ed. Daniel Denison.
No. 191: Teaching the Dinosaurs to Dance Michal Cakrt September 1997
No. 190: Strategic Restructuring: Making Lawrence P. King September 1997
Capitalism in Post-Communist Eastern
Europe. Forthcoming in Teaching the
Dinosaurs to Dance: Organizational Change
in Transition Economies ed. Daniel Denison.
No. 189: Published in: Regional Science and Daniel Berkowitz and David N. DeJong July 1998
Urban Economics, Russias Internal
Border, 29 (5), September 1999.
No. 187: Corporate Structure and Lszl Halpern and Gbor Krsi July 1998
Performance in Hungary
30
William Davidson Institute Working Paper Number 320
No. 186: Performance of Czech Companies by Andrew Weiss and Georgiy Nikitin June 1998
Ownership Structure
No. 185: Firm Performance in Bulgaria and Jozef Konings July 1998
Estonia: The effects of competitive pressure,
financial pressure and disorganisation
No. 184: Investment and Wages during the Janez Prasnikar and Jan Svejnar July 1998
Transition: Evidence from Slovene Firms
No. 183: Investment Portfolio under Soft Chongen Bai and Yijiang Wang
Budget: Implications for Growth, Volatility
and Savings
No. 181: Delegation and Delay in Bank Lornd Ambrus-Lakatos and Ulrich Hege July 1998
Privatization
No. 180: Financing Mechanisms and R&D Haizhou Huang and Chenggang Xu July 1998
Investment
No. 179: Organizational Culture and Carl F. Fey and Daniel R. Denison January 1999
Effectiveness: The Case of Foreign Firms in
Russia
No. 178: Output and Unemployment Vivek H. Dehejia and Douglas W. Dwyer January 1998
Dynamics in Transition
No. 177: Published in: Economics of Guido Friebel June 1998
Transition,, Bureaucracies in the Russian
Voucher Privatization Vol. 8, No. 1, 2000,
pp. 37-57.
No. 176: Chronic Moderate Inflation in Jnos Vincze June 1998
Transition: The Tale of Hungary
No. 175: Privatisation and Market Structure John Bennett and James Maw June 1998
in a Transition Economy
No. 174: Ownership and Managerial Patrick Bolton and Chenggang Xu June 1998
Competition: Employee, Customer, or Outside
Ownership
No. 173: Intragovernment Procurement of Chong-en Bai, Yu Pan and Yijiang Wang June 1998
Local Public Good: A Theory of
Decentralization in Nondemocratic
Government
No. 172: Political Instability and Growth in Jody Overland and Michael Spagat August 1998
Proprietary Economies
No. 171: Published in Post-Communist Morris Bornstein June 1998
Economies, Framework Issues in the
Privatization Strategies of the Czech Republic,
Hungary, and Poland Vol. 11, no. 1 March
1999.
No. 170: Published in: European Journal of Frantisek Turnovec May 1998
Political Economy Privatization, Ownership
Structure and Transparency: How to Measure
a Real Involvement of the State 15(4),
November 1999, pp. 605-18.
No. 169 Published in: American Economic John C. Ham, Jan Svejnar, and Katherine December 1998
Review, Unemployment and the Social Safety Terrell
Net during Transitions to a Market Economy:
Evidence from Czech and Slovak Men. Vol.
88, No. 5, Dec. 1998, pp. 1117-1142.
No. 167: Voucher Privatization with David Ellerman March 1998
Investment Funds: An Institutional Analysis
31
William Davidson Institute Working Paper Number 320
No. 166: Published in: Marketing Issues in Steven M. Burgess and Jan-Benedict E.M. August 1998
Transitional Economies, Value Priorities Steenkamp
and Consumer Behavior in a Transitional
Economy: The Case of South Africa ed.
Rajeev Batra.
No. 164: Finance and Investment in Ronald Anderson and Chantal Kegels September 1997
Transition: Czech Enterprises, 1993-1994
No. 163: European Union Trade and Alexander Repkine and Patrick P. Walsh April 1998
Investment Flows U-Shaping Industrial
Output in Central and Eastern Europe:
Theory and Evidence
No. 162: Skill Acquisition and Private Firm Zuzana Brixiova and Wenli Li October 1999
Creation in Transition Economies
No. 161: Corruption in Transition Susanto Basu and David D. Li May 1998
No. 160a: Tenures that Shook the World: Hartmut Lehmann and Jonathan November 1999
Worker Turnover in Russia, Poland and Wadsworth
Britain
No. 160: Tenures that Shook the World: Hartmut Lehmann and Jonathan June 1998
Worker Turnover in the Russian Federation Wadsworth
and Poland
No. 159: Does Market Structure Matter? New Annette N. Brown and J. David Brown June 1998
Evidence from Russia
No. 158: Structural Adjustment and Regional Hartmut Lehmann and Patrick P. Walsh June 1997
Long Term Unemployment in Poland
No. 157: Baby Boom or Bust? Changing Robert S. Chase April 1998
Fertility in Post-Communist Czech Republic
and Slovakia
No. 156 Published in: Leadership and Karen L. Newman June 1998
Organization Development Journal,
Leading Radical Change in Transition
Economies. Vol. 19, No. 6, 1998, pp. 309-
324.
No. 155 Published in: Oxford Review of Wendy Carlin and Michael Landesmann June 1997
Economic Policy, From Theory into
Practice? Restructuring and Dynamism in
Transition Economies. Vol. 13, No. 2,
Summer 1997, pp. 77-105.
No. 154: The Model and the Reality: Edmund Malesky, Vu Thanh Hung, Vu Thi July 1998
Assessment of Vietnamese SOE Reform Dieu Anh, and Nancy K. Napier
Implementation at the Firm Level
No. 153 Published in: Journal of David D. Li and Minsong Liang March 1998
Comparative Economics, Causes of the Soft
Budget Constraint: Evidence on Three
Explanations. Vol. 26, No. 1, March 1998,
pp. 104-116.
No. 152 Published in: Comparative Economic Susan J. Linz and Gary Krueger April 1998
Studies, Enterprise Restructuring in Russias
Transition Economy: Formal and Informal
Mechanisms. Vol. 40, No. 2, Summer 1998,
pp. 5-52.
No. 151: Labor Productivity in Transition: A Susan J. Linz May 1998
Regional Analysis of Russian Industry
32
William Davidson Institute Working Paper Number 320
No. 150: Tax Avoidance and the Allocation of Anna Meyendorff June 1998
Credit. Forthcoming in Financial Systems in
Transition: The Design of Financial Systems
in Central Europe eds. Anna Meyendorff and
Anjan Thakor.
No. 149: Commitment, Versatility and Leslie Perlow and Ron Fortgang April 1998
Balance: Determinants of Work Time
Standards and Norms in a Multi-Country
Study of Software Engineers
No. 148: Changes in Polands Transfer Bozena Leven June 1998
Payments in the 1990s: the Fate of
Pensioners
No. 147: Environmental Protection and Robert Letovsky, Reze Ramazani, and June 1998
Economic Development: The Case of the Debra Murphy
Huaihe River Basin Cleanup Plan
No. 146: Chief Executive Compensation Derek C. Jones, Takao Kato, and Jeffrey June 1998
During Early Transition: Further Evidence Miller
from Bulgaria
No. 145 Published in: Economics of John Ham, Jan Svejnar, and Katherine May 1998
Transition, Womens Unemployment During Terrell
the Transition: Evidence from Czech and
Slovak Micro Data, Vol. 7, No. 1, May 1999,
pp. 47-78.
No. 144: Investment and Wages in Slovenia Janez Prasnikar May 1998
No. 143 Published in: Review of Financial Elazar Berkovitch and Ronen Israel March 1998
Studies, Optimal Bankruptcy Laws Across
Different Economic Systems, 12(2), Summer
1999, pgs. 347-77.
No. 142: Industrial Policy and Poverty in Susan J. Linz March 1998
Transition Economies: Two Steps Forward or
One Step Back?
No. 141: Collective Ownership and Suwen Pan and Albert Park April 1998
Privatization of Chinas Village Enterprises
No. 140: A Comparative Look at Labor Vit Sorm and Katherine Terrell April 1999
Mobility in the Czech Republic: Where have
all the Workers Gone?
No. 139: The Failure of the Government-Led Simeon Djankov and Kosali Ilayperuma September 1997
Program of Corporate Reorganization in
Romania
No. 138: Ownership and Employment in Susan J. Linz March 1998
Russian Industry: 1992-1995
No. 137 Published in: Journal of Political Lawrence J. Lau, Yingyi Qian, and Gerard November 1997
Economy, Reform Without Losers: An Roland
Interpretation of Chinas Dual-Track
Approach to Transition, Feb. 2000; Vol. 108,
Iss.1; pg. 120
No. 136 Published in: European Economic Klaus M. Schmidt March 1998
Review, The Political Economy of Mass
Privatization and the Risk of Expropriation,
44(2), February 2000, pgs. 393-421
No. 135: Radical Organizational Change: The Karen L. Newman January 1998
Role of Starting Conditions, Competition, and
Leaders
33
William Davidson Institute Working Paper Number 320
No. 134: To Restructure or Not to Clifford Gaddy and Barry W. Ickes May 1998
Restructure: Informal Activities and
Enterprise Behavior in Transition
No. 133: Management 101: Behavior of Firms Josef C. Brada March 1998
in Transition Economies
No. 132 Published in: Quarterly Journal of John McMillan and Christopher Woodruff February 1998
Economics, Interfirm Relationships and
Informal Credit in Vietnam, 114(4), Nov.
1999, pgs. 1285-1320
No. 131 Published in: Comparative Economic John B. Bonin and Istvan Abel March 1998
Studies, Will Restructuring Hungarian
Companies Innovate? An Investigation Based
on Joseph Berliners Analysis of Innovation in
Soviet Industry. Vol. 40, No. 2, Summer
1998, pp. 53-74.
No. 130: Published in The American David D. Li January 1998
Economic Review, Changing Incentives of
the Chinese Bureaucracy. May, 1998.
No. 129: Restructuring Investment in Richard E. Ericson January 1998
Transition: A Model of the Enterprise
Decision
No. 128 Published in: Comparative Economic Susan J. Linz January 1998
Studies, Job Rights in Russian Firms:
Endangered or Extinct Institutions? Vol. 40,
No. 4, Winter 1998, pp. 1-32.
No. 127: Accounting for Growth in Post- Daniel Berkowitz and David N. DeJong January 1998
Soviet Russia
No. 126 Published in: Economics of Yuanzheng Cao, Yingyi Qian, and Barry R. December 1997
Transition, From Federalism, Chinese Style, Weingast
to Privatization Chinese Style, 7(1), 1999,
pgs. 103-31
No. 125: Market Discipline in Conglomerate Arnoud W. A. Boot and Anjolein Schmeits November 1997
Banks: Is an Internal Allocation of Cost of
Capital Necessary as Incentive Device?
Forthcoming in Financial Systems in
Transition: The Design of Financial Systems
in Central Europe eds. Anna Meyendorff and
Anjan Thakor.
No. 124: Financial Discipline in the Shumei Gao and Mark E. Schaffer February 1998
Enterprise Sector in Transition Countries:
How Does China Compare?
No. 123: Considerations of an Emerging Brent Chrite and David Hudson February 1998
Marketplace: Managers Perceptions in the
Southern African Economic Community
No. 122: A Model of the Informal Economy in Simon Commander and Andrei November 1997
Transition Economies Tolstopiatenko
No. 121: Local Labour Market Dynamics in Peter Huber and Andreas Worgotter November 1997
the Czech and Slovak Republics
No. 121: Local Labour Market Dynamics in Peter Huber and Andreas Worgotter November 1997
the Czech and Slovak Republics
No. 119: Institutional Upheaval and Company Karen L. Newman March 1998
Transformation in Emerging Market
Economies
34
William Davidson Institute Working Paper Number 320
No. 118: Industrial Decline and Labor John S. Earle October 1997
Reallocation in Romania
No. 117: Notes for an Essay on the Soft Lorand Ambrus-Lakatos January 1997
Budget Constraint
No. 116: Labor Demand During Transition in Gabor Korosi October 1997
Hungary
No. 115: Enterprise Performance and Simeon Djankov and Stijn Claessens December 1997
Managers Profiles
No. 114b Employment and Wages in Swati Basu, Saul Estrin, and Jan Svejnar April 2000
Enterprises under Communism and in
Transition: Evidence From Central Europe
and Russia
No. 114: Employment and Wage Behavior of Swati Basu, Saul Estrin, and Jan Svejnar October 1997
Enterprises in Transitional Economies
No. 113: Preliminary Evidence on Active Christopher J. OLeary October 1997
Labor Programs Impact in Hungary and
Poland
No. 111: Unemployment Benefits and Joachim Wolff October 1997
Incentives in Hungary: New Evidence
No. 110: Published in: Empirical Economics, Marek Gora and Christoph M. Schmidt April 1997
Long-Term Unemployment, Unemployment
Benefits and Social Assistance: The Polish
Experience Empirical-Economics; 23(1-2),
1998, pages 55-85.
No. 109 Published in: Industrial and Labor Robert S. Chase October 1997
Relations Review, Markets for Communist
Human Capital: Returns to Education and
Experience in Post-Communist Czech
Republic and Slovakia. Vol. 51, No. 3, April
1998, pp. 401-423.
No. 107: The Worker-Firm Matching in the Daniel Mnich, Jan Svejnar, and October 1997
Transition: (Why) Are the Czechs More Katherine Terrell
Successful Than Others?
No. 106 Published in: Journal of Valentijn Bilsen and Jozef Konings September 1998
Comparative Economics, Job Creation, Job
Destruction and Growth of Newly Established,
Privatized and State-Owned Enterprises in
Transition Economies: Survey Evidence from
Bulgaria, Hungary, and Romania, Vol. 26,
No.3, September 1998, pp. 429-445.
No. 105: Getting Behind the East-West Michael Burda and Christoph Schmidt May 1997
[German] Wage Differential: Theory and
Evidence
No. 104: The Birth of the Wage Curve in Gabor Kertesi and Janos Kollo October 1997
Hungary, 1989-95
No. 103: Published in: Journal of Hartmut Lehmann, Jonathan Wadsworth, October 1997
Comparative Economics, Grime and and Alessandro Acquisti
Punishment: Job Insecurity and Wage Arrears
in the Russian Federation 27, 595-617
(1999).
No. 102: Social Networks in Transition Lorena Barberia, Simon Johnson, and October 1997
Daniel Kaufmann
35
William Davidson Institute Working Paper Number 320
No. 101: Depreciation and Russian Corporate Susan J. Linz November 1997
Finance: A Pragmatic Approach to Surviving
the Transition
No. 100: Romanian Financial System Reform Anna Meyendorff and Anjan V. Thakor November 1997
No. 99: Proceedings of the Conference on Edited by Cynthia Koch May 1997
Strategic Alliances in Transitional Economies,
held May 20, 1997 at the Davidson Institute
No. 98: Institutions, Strain and the Daniel Daianu and Lucian Albu November 1997
Underground Economy
No. 97: Structure and Strain in Explaining Daniel Daianu November 1997
Inter-Enterprise Arrears
No. 96: Resource Misallocation and Strain: Daniel Daianu November 1997
Explaining Shocks in Post-Command
Economies
No. 95: Published in: Finance-a-Uver, Jan Hanousek and Evzen Kocenda November 1997
Czech Money Market: Emerging Links
Among Interest Rates. 48(2) 1998 pp. 99-
109.
No. 94: Pre-Reform Industry and the Xiao-Yuan Dong and Louis Putterman October 1997
State Monopsony in China
No. 93: Chinas State-Owned Enterprises Xiao-Yuan Dong and Louis Putterman October 1997
In the First Reform Decade:
An Analysis of a Declining Monopsony
No. 92: Expatriate Management in the Czech Richard B. Peterson September 1997
Republic
No. 91: China and the Idea of Economic Thomas G. Rawski April 1997
Reform
No. 90 Published in: China Economic Thomas G. Rawski July 1997
Review, Chinas State Enterprise Reform: An
Overseas Perspective. Vol. 8, Spring 1997,
pp. 89-98.
No. 89: The Economic Determinants of Annette N. Brown July 1997
Internal Migration Flows in Russia During
Transition
No. 88: Gender Wage Gaps in Chinas Labor Margaret Maurer-Fazio, Thomas G. July 1997
Market: Size, Structure, Trends Rawski, and Wei Zhang
No. 87: Privatisation in Central and Eastern Saul Estrin June 1997
Europe
No. 86: Published in : Economics of Michael Alexeev February 1998
Transition, The Effect of Privatization on
Wealth Distribution in Russia. v. 7, no. 2,
1999, pp. 449-65
No. 85: Was Privatization in Eastern Germany Uwe Siegmund September 1997
a Special Case? Some Lessons from the
Treuhand
No. 84: Start-ups and Transition Daniel M. Berkowitz and David J. Cooper September 1997
No. 83: Which Enterprises (Believe They) James Anderson, Georges Korsun, and October 1997
Have Soft Budgets after Mass Privatization? Peter Murrell
Evidence from Mongolia
No. 82: Published in: European Economic Martina Lubyova and Jan C. van Ours June 1997
Review, Unemployment Dynamics and the
Restructuring of the Slovak Unemployment
Benefit System. April, 1997.
36
William Davidson Institute Working Paper Number 320
37
William Davidson Institute Working Paper Number 320
No. 64: Published in: Journal of Law and Pradeep K. Chhibber and Sumit K. April 1997
Economics, Foreign Ownership and Majumdar
Profitability: Property Rights, Control and the
Performance of Firms in Indian Industry
42(1), April 1999, pp. 209-38.
No. 63: How Taxing Is Corruption on Shang-Jin Wei February 1997
International Investors?
No. 62: What Can We Learn from the Tito Boeri 1997
Experience of Transitional Economies with
Labour Market Policies?
No. 61: Published in: Accounting Shannon W. Anderson and William N. April 1997
Organizations and Society, Economic Lanen
Transition, Strategy and the Evolution of
Management Accounting Practices: The Case
of India 24(5,6), Jul/Aug 1999, pp. 379-412.
No. 60a: Enterprise Investment During the Lubomr Lizal and Jan Svejnar December 1997
Transition: Evidence from Czech Panel Data
No. 59: Published in: Journal of Law, Jiahua Che and Yingyi Qian April 1997
Economics, and Organization, Institutional
Environment, Community Government, and
Corporate Governance: Understanding
Chinas Township-Village Enterprises.
14(1), April 1998, pages 1-23
No. 58: From the Grabbing Hand to the Jiahua Che June 2000
Helping Hand
No. 57: Published in: Brookings Papers on Simon Johnson, Daniel Kaufmann, and June 1997
Economic Activity, The Unofficial Economy Andrei Schleifer
in Transition. 1: 1998.
No. 56: Taxes and Government Incentives: Roger H. Gordon and David D. Li April 1997
Eastern Europe vs. China
No. 55: Corruption and Reform Susanto Basu and David Li June 1996
No. 54: Decentralization and the Loren Brandt and Xiaodong Zhu June 1997
Macroeconomic Consequences of
Commitment to State-Owned Firms
No. 53: Published in: The International Pankaj Ghemawat and Robert E. Kennedy May 1997
Journal of Industrial Organization,
Competitive Shocks and Industrial Structure:
The Case of Polish Manufacturing. August,
1999. .
No. 52: Published in: The Quarterly Journal Jiahua Che and Yingyi Qian May 1997
of Economics, Insecure Property Rights and
Government Ownership of Firms. May,
1998.
No. 51: Incentives, Scale Economies, and Eric Maskin, Yingyi Qian, and Chenggang May 1997
Organizational Form Xu
No. 50: Published in: Post-Soviet-Affairs, Barry W. Ickes, Peter Murrell, and Randi March 1997
End of the Tunnel? The Effects of Financial Ryterman
Stabilization in Russia April-June 1997,
pages 105-33
No. 49: The Evolution of Bank Credit Quality Enrico C. Perotti and Octavian Carare October 1996
in Transition: Theory and Evidence from
Romania
38
William Davidson Institute Working Paper Number 320
No. 48: Where Do the Leaders Trade? Jan Hanousek and Libor Nemecek May 1997
Information Revelation and Interactions
Between the Segments of Czech Capital
Markets
No. 47: Firms Heterogeneity in Transition: Irena Grosfeld and Jean-Franois Nivet May 1997
Evidence from a Polish Panel Data Set
No. 46: Strategic Creditor Passivity, Janet Mitchell May 1997
Regulation, and Bank Bailouts
No. 45a: Decentralization in Transition Daniel M. Berkowitz and Wei Li September 1997
Economies: A Tragedy of the Commons?
No. 44a: The Information Content of Stock Randall Morck, Bernard Yeung, and February 1999
Markets: Why do Emerging Markets have Wayne Yu
Synchronous Stock Price Movements?
(forthcoming in the Journal of Financial
Economics).
No. 43: Agency in Project Screening and Chong-en Bai and Yijiang Wang May 1997
Termination Decisions: Why Is Good Money
Thrown After Bad?
No. 42: Published in: Economics of Simon Commander, Andrei Tolstopiatenko, May 1997
Transition, Channels of Redistribution: and Ruslan Yemtsov
Inequality and Poverty in the Russian
Transition. Vol. 7 (2) 1999.
No. 41: Published in: Economics of Lszl Halpern and Gabor Korosi May 1997
Transition, Labour Market Characteristics
and Profitability: Econometric Analysis of
Hungarian Exporting Firms, 1986-1995
6(1), May 1998, pages 145-62
No. 40: Published in: the Harvard Law Michael Heller February 1997
Review, The Tragedy of the Anticommons:
Property in the Transition from Marx to
Markets. January 1998.
No. 39: Privatization and Managerial Olivier Debande and Guido Friebel May 1997
Efficiency
No. 38 Published in: The Quarterly Journal Olivier Blanchard and Michael Kremer January 1997
of Economics, Disorganization. Vol. 112,
No. 4, November 1997, pp. 1091-1126.
No. 37: Published in: Economics of Grard Roland and Thierry Verdier March 1997
Transition, Transition and the Output Fall.
7(1), 1999, pages 1-28.
No. 36: Restructuring an Industry During Richard Ericson September 1996
Transition: A Two-Period Model
No. 34: The East-West Joint Venture: BC Sonia Ferencikova and Vern Terpstra December 1998
Torsion Case Study
No. 33 Published in: Journal of Comparative Daniel Berkowitz, David DeJong, and December 1998
Economics, Quantifying Price Liberalization Steven Husted
in Russia. Vol. 26, No. 4, December 1998,
pp. 735-737.
No. 32: What Can North Korea Learn from John McMillan September 1996
Chinas Market Reforms?
No. 31: Published in : China-Economic- Yijiang Wang and Chun Chang March 1997
Review, Towards a Model of China as a
Partially Reformed Developing Economy
Under a Semifederalist Government. , 9(1),
Spring 1998, pages 1-23.
39
William Davidson Institute Working Paper Number 320
No. 30: Convergence in Output in Transition Saul Estrin and Giovanni Urga February 1997
Economies: Central and Eastern Europe,
1970-1995
No. 29: Published in: Economics of Evzen Kocenda March 1997
Transition, Altered Band and Exchange
Volatility. Volume 6, no. 1, 1998, 173-181.
No. 28: Published in: Quarterly Journal of Hehui Jin and Yingyi Qian January 1997
Economics, Public Versus Private
Ownership of Firms: Evidence from Rural
China. Volume 113, no. 3, August 1998, 773-
808.
No. 27: East-West Joint Ventures in a Sonia Ferencikova March 1997
Transitional Economy: The Case of Slovakia
No. 26: Published in Economic Analysis Janez Prasnikar February 1997
Behavior of a Slovenian Firm in Transition
Vol. 1, no. 1, 1998, 57-73.
No. 25: Cultural Encounters and Claims to Michael D. Kennedy February 1997
Expertise in Postcommunist Capitalism
No. 24: ZVU a.s.: Investment Funds on the Tory Wolff August 1995
Board of Directors of an Engineering Giant
No. 23: The Role of Investment Funds in the Dusan Triska June 1996
Czech Republic (joint publication with Czech
Management Center)
No. 22: Czech Investment Fund Industry: Richard Podpiera May 1996
Development and Behaviour (joint publication
with Czech Management Center)
No. 21: Restructuring of Czech Firms: An Antonin Bulin June 1996
Example of Gama, a.s. (joint publication with
Czech Management Center)
No. 20: YSE Funds: A Story of Czech Michal Otradovec November 1995
Investment Funds (joint publication with
Czech Management Center)
No. 19: Prvn Investicni a.s., The First Jaroslav Jirasek August 1995
Investment Corporation (joint publication
with Czech Management Center)
No. 18: PPF a.s., The First Private Investment Michal Otradovec November 1995
Fund (joint publication with Czech
Management Center)
No. 17 Published in: Post-Soviet Geography Susan J. Linz and Gary Krueger November 1996
and Economics, Russias Managers in
Transition: Pilferers or Paladins? Vol. 37,
o.7 (September 1996), pp. 397-426.
No. 16: Banks in TransitionInvestment With commentary and edited by Anna January 1997
Opportunities in Central Europe and Russia Meyendorff
Edited Transcript from 31 May 1996
Conference in New York City
No. 15: Marketing in Transitional Economies: Compiled by The Davidson Institute December 1996
Edited Transcript & Papers from 1 April 1996
Conference in Ann Arbor, Michigan
No. 14: Pensions in the Former Soviet Bloc: Jan Svejnar November 1996
Problems and Solutions. Published by
Council on Foreign Relations. The Coming
Global Pension Crisis New York, 1997
40
William Davidson Institute Working Paper Number 320
No. 13: Enterprise Restructuring and Lubomir Lizal, Miroslav Singer, and Jan December 1996
Performance in the Transition. Forthcoming Svejnar
in Financial Systems in Transition: The
Design of Financial Systems in Central
Europe eds. Anna Meyendorff and Anjan
Thakor.
No. 12 Published in: Journal of International Rajeev Batra April 1997
Marketing, Executive Insights: Marketing
Issues and Challenges in Transitional
Economies. Vol. 5, No. 4, 1997, pp. 95-114.
Also published in: Marketing Issues in
Transitional Economies ed. Rajeev Batra.
No. 11: Worker Trust and System Andrew Schotter August 1996
Vulnerability in the Transition from Socialism
to Capitalism
No. 10 Published in: Comparative Economic Susan J. Linz July 1996
Studies, Russian Firms in Transition:
Champions, Challengers, and Chaff. Vol.
39, No.2, Summer 1997, pp. 1-36.
No. 9: Corporate Debt Crisis and Bankruptcy David D. Li and Shan Li December 1995
Law During the Transition: The Case of China
No. 8 Published in: Journal of Comparative David D. Li June 1996
Economics, A Theory of Ambiguous
Property Rights in Transition Economies: The
Case of the Chinese Non-State Sector. Vol.
23, No. 1, August 1996, pp. 1-19.
No. 7: The Foreign Economic Contract Law of Dong-lai Li June 1993
China: Cases and Analysis
No. 3: Bank Privatization in Hungary and the Roger Kormendi and Karen Schnatterly May 1996
Magyar Kulkereskedelmi Bank Transaction
Replacing Nos. 1-2 & 4-6: Journal of No. 1 Bank Privatization in Transitional August 1997
Comparative Economics Symposium on Economies by Roger Kormendi and
Bank Privatization in Central Europe and Edward Snyder. No. 2 Transactional
Russia. Vol. 25, No. 1, August 1997. Structures of Bank Privatizations in
Central Europe and Russia by Anna
Meyendorff and Edward A. Snyder. No. 4
Bank Privatization in Poland: The Case
of Bank Slaski by Jeffery Abarbaness and
John Bonin. No. 5 Bank Privatization in
Post-Communist Russia: The Case of
Zhilsotsbank by Jeffery Abarbanell and
Anna Meyendorff and No. 6 The Czech
Republics Commercial Bank: Komercni
Banka by Edward A. Snyder and Roger
C. Kormendi.
41