Entrepreneurship and Privatization in Central Europe: The Tenuous Balance between Destruction and Creation

Andrew Spicer, Gerald A. McDermott, Bruce Kogut
2000 Academy of Management Review  
What is the best set of privatization policies to release entrepreneurial endeavors in transition economies? Policies of mass privatization in Central Europe were predicated on the belief that private ownership through securitization of property rights would provide powerful incentives for efficient restructuring. In retrospect, the more radical privatization programs not only failed to achieve the expected restructuring, but also have hindered the development of entrepreneurial activities.
more » ... article argues that, in fact, entrepreneurship is better fostered in a gradualist environment permitting negotiated solutions to restructuring as opposed to market-driven reforms.
doi:10.2307/259315 fatcat:33k52c24j5bifglauh65b63eq4