Management Dilemmas in Former Eastern Bloc Countries

Abstract

This bachelor thesis examines how Swedish companies handle the problematics that can arise when acting on markets in former Eastern Bloc States, with Hungary as its central foci. The main dilemma that is focused on throughout the study is corruption and bribery. It is an explorative research based on interviews in Hungary that have been analyzed through Institutional and Transaction Cost Theory. There is an evident lack of qualitative research within the discourse regarding corruption related dilemmas that this thesis aims to decrease. Our work results in a model which describes the relation between public and private sectors and short vs. long term perspectives correlated to transparency. Furthermore, the thesis also unveils four strategies that companies use in order to increase their transparency and remain as successful business actors on an international market.