Survival through globalisation: Innovation, internationalisation, and the endurance of big business in Central Europe

Abstract

We present a comparative case study of two richly documented manufacturing firms in Central Europe to examine how economic nationalism and rising trade barriers shaped their global business strategies in the interwar period and how they managed to re-establish their global presence after 1945. From a provincial shoemaker in Moravia, Bata grew into the world’s largest footwear exporter by the 1930s with a global production and sales network that continued to grow until the 1980s. Tungsram was the seminal producer of lightbulbs and radio valves in Hungary and founding member of international cartels. It remained a prominent exporter to both socialist and market economies during the Cold War. Both cases highlight technological and organisational innovation and strategic-capabilities accumulation as key determinants of successful internationalisation.