Academic journal article American Journal of Business Research

Investing in Telecoms in Transition Economies: A Conceptual Framework for Cross-Country Collaboration and an Illustrative Example

Academic journal article American Journal of Business Research

Investing in Telecoms in Transition Economies: A Conceptual Framework for Cross-Country Collaboration and an Illustrative Example

Article excerpt


Current economic situation makes a cross-country collaboration a viable opportunity for economies of the world to pursue new sources of revenue and economic growth. Such collaborative opportunities are especially attractive for Transition Economies (TE), representing a set of countries transitioning from a centrally planned to a market-driven economy (Ollman, 1997; Myers, 2004), for these countries have lower level of available economic resources than their developed counterparts. It is not clear, however, what kind of guidelines TEs should follow in order to enter into a beneficial collaborative venture. We suggest, that two questions play important role in the decision making process regarding the cross-country collaboration. First, a decision maker must identify a potential pool of the viable collaborators. Second, a decision maker must identify, based on the choice of the potential collaborator, appropriate types of collaborative efforts. The context of TEs differs from a relatively homogenous environment of developed economies (Arcelus & Arocena, 2000; Barro & Sala-i-Martin, 1995; Sala-i-Martin, 1996), and depending on the level of industrialization (World Bank, 2004), some TEs are close to the developed, and some TEs are closer to the developing, or even least developed, countries. This heterogeneity of the context of TEs makes it difficult to intuitively suggest a potential group of peers that present a good fit in terms of the area of possible collaboration, as well as to suggest what such possible collaborative effort might be. Hoskisson et al. (2000) warn that even within the same geographical region economies of the same type could significantly differ in terms of their regime, starting points of and paths to transition, and the degree of the achieved progress. The purpose of the current investigation is to develop a conceptual framework of the cross country collaboration, and to demonstrate the developed framework in the context of the illustrative example.

The focus of this investigation is on the subset of investments in Information and Communication Technologies (ICT), namely, investments in Telecoms, and the context of the illustrative example is a set of Transition Economies of Central Europe and Former Soviet Union. The broad research problem of this study can be formulated as follows:

What is a structure of a decision making process and what is a set of decisive factors associated with the entry of TEs into a cross country collaborative venture associated with investments in Telecoms?

For the purposes of this inquiry we assume that the purpose of the collaboration is economic growth, including improvement in production of revenue. Consequently, our research problem can be restated in the form of the following three questions:

1. How to assess a state of TE for the purposes of cross country collaboration associated with investments in Telecoms?

2. What are some of the types of the collaborative efforts associated with investments in Telecoms?

3. How to map a state of collaborating parties to an appropriate type of the collaborative effort?

Before we proceed with presenting the answers to the stated above questions in the form of the cross country collaborative framework, we would like to provide a justification of the research problem of this study. Because we are interested in the case of cross country collaboration with the purpose of economic growth, this problem, essentially, represents a capacity relief project aiming to provide a target relief period in the form of a number of years of a resulting economic growth. The subsequent issues associated with the undertaking of such effort, such as how to optimally size the projects in terms of the capital investments given the budgetary constraints (Lorie & Savage, 1955; Weingarten, 1963; Weingartner, 1966a,b; Kaplan, 1966), what discount rate to apply (Baumol & Quandt, 1965; Elton, 1970), and what is the appropriate form of the models to use (Bernhard, 1969; Carleton, 1969; Meyers, 1972; Tobin, 1999) have been discussed. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed


An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.