Organizational Innovation & Knowledge Use Practice: Cross-Country Comparison (Hungarian versus Slovak Business Service Sector)
Report of the Hungary-Japan Joint Research Project “Multinationals and Local Resources” available
April 8, 2013

Ottawa, April 8, 2013… Since the last decades of the 20th Century, we have witnessed the specific growth of the service sector at the expense of manufacturing. In a rather simplistic way, the wealth of nations can be attributed to agriculture two centuries ago, to manufacturing a century ago, and to the service sector now, producing 70-80 % of GDP in developed economies. Are you prepared to respond?

The newly published Report of the Hungary-Japan Joint Research Project on the Hungarian versus Sovak Business Service Sector will assist you in understanding the potential and dynamics of this marketplace. The 214 page Report is a cross-country comparison of the Hungarian and Slovak knowledge-intensive business, a net importer, driven by the strength of the domestic sector

There is a noticeable variety in the share of the service sectors of the GDP within the OECD countries. For example, in the USA, the share represents 80 %, while, in South-Korea, it represents 60 %, and, in Hungary, similarly to Finland, it takes almost two thirds of the GDP. The share of the Hungarian service sector in the GDP is higher than that in both Slovakia and the Czech Republic; however, it lags behind that in the Nordic countries, the Benelux states, and some Mediterranean countries, in which tourism is a key sector in the economy.

The Report is provided through the office of CATA’s Executive in Residence, Professor Csaba MAKÓ at the Institute of Sociology, Hungarian Academy of Sciences, Budapest, Hungary

If your organization plans to market to, or needs information on cross-country comparison of the Hungarian and Slovak knowledge-intensive business, the Report could be your "success map".

The Report is divided into multiple Chapters with supporting Annexes:

Executive Summary ..................................................... ix

Foreword: Historical shift in economic structure and growing importance

of the services ................................................................ 1

i. Great challenges in services .......................................... 1

ii. Heterogeneous character of services and innovation ........ 5

Traditional services .......................................................... 6

System firms ................................................................... 8

iii. A brief overview on the distribution of learning/innovative

organization in Europe ..................................................... 11

iv. Share and Changes in the KIBS Sector Employment in Europe:

Special Focus on Hungary and Slovakia .............................. 15

1. Research design, sampling, and research method ............. 25

1.1. Need to better understand innovation in the KIBS sector ... 25

1.2. Sample of the company survey and sampling method ..... 27

1.3. Structure of the questionnaire and characteristics of the data

Collection ........................................................................ 30

2. Organizational architecture, management, and business practice

transfer .......................................................................... 34

2.1. Ownership, size, market structure, and source of the firm’s

competitiveness .............................................................. 34

2.1.1. Incorporation and ownership structure of surveyed firms. 34

2.1.2. Size and Organizational Architecture of Firms: Dominance of

Small and Flat Organizations .............................................. 37

2.1.3. Market structure: The Slovak KIBS firms are more involved in

the Global Value Chain (GVC) ............................................. 39

2.1.4. Source of the firms’ competitiveness: reliability, quality, and

flexibility with slight country variation .................................. 40

iv

2.2. Composition of company management and transferring business

practices .......................................................................... 41

2.2.1. Dominance of local managers with visible country differences.

Expatriates in high value-added business functions ............. 41

2.2.2. Hybridization as a common pattern in transferring business

practices ....................................................................... 42

3. Diffusion and drivers of organizational innovation and the ICT use ... 47

3.1. Developing typology of organizational innovation: A brief

theoretical overview ......................................................... 47

3.2. Diffusion and drivers of organizational innovation ............ 51

4. Skill requirements and knowledge development practice in the firm... 63

4.1. Differences in skill development and the key role of experience based

learning ................................................................................... 63

4.2. Company training practice: more training and stronger reliance

on the external knowledge sources in Slovakia than Hungary ......... 66               

References & Appendix...................................................... 73 - 214

Get the Study on Organizational Innovation and Knowledge Use Practice: Cross-Country Comparison (Hungarian versus Slovak Business Service Sector) - a comprehensive 214 page document, provided to CATA members to support their marketing and business development activities.


Action Item:
To obtain the Study on Organizational Innovation and Knowledge Use Practice: Cross-Country Comparison (Hungarian versus Slovak Business Service Sector) please send an email request to CATA CEO John Reid at jreid@cata.ca 

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