Corporate Strategies In The Post-Transition Economy: The Case Of Slovenian Companies

Abstract

<p class="MsoBodyTextIndent" style="margin: 0in 0.5in 0pt; mso-pagination: none; tab-stops: .5in 58.5pt;"><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-ansi-language: EN-GB;" lang="EN-GB"><span style="font-family: Times New Roman;">This paper argues that unrelated diversification strategies outperform related diversification strategies. <span style="mso-spacerun: yes;"> </span>The author identifies three phases of the internationalisation process. <span style="mso-spacerun: yes;"> </span>More detailed analyses of the internationalisation process shows that companies are trying to develop more complex forms of international business activities. <span style="mso-spacerun: yes;"> </span>The author also identifies four groups of competencies that are the cornerstones of corporate strategies. <span style="mso-spacerun: yes;"> </span>This study reveals that 40.6% of companies diversified through external means, 36.2% diversified through internal means, while 23.2% diversified through both internal and external methods. <span style="mso-spacerun: yes;"> </span>There appears to be no statistically significant performance differences among companies regarding external and internal growth strategies. <span style="mso-spacerun: yes;"> </span>Internal growth and joint ventures are the most important forms of diversification. <span style="mso-spacerun: yes;"> </span>These companies also tend to develop various forms of long-term strategic co-operation. <span style="mso-spacerun: yes;"> </span>This process can be crucial for developing competitive advantages. <span style="mso-spacerun: yes;"> </span>By comparing the performance of companies regarding ownership structure, the author found that companies with international ownership structure performed better.<span style="mso-spacerun: yes;">  </span>In other words, foreign ownership had a positive influence on company performance.</span></span></p>