dr Piotr Zawada
Zaklad Doswiadczalny Organika
Globalization and its impact on the prospects of enterprise development
in Central and Eastern Europe as exemplified by Poland.
Influence
evaluation of omnipresent process of globalization and competiveness increase
on business entities may lead to broad generalizations due to the present application of
non-uniform criteria as we do not know to what extent the above changes will
influence economic, political and social situation of our country[1].
Undoubtedly, as widely confirmed by experts on the subject of globalization,
this process started for good [2].
What
accompanies globalization processes among enterprises is the increase of
competiveness level significance which conditions their standing and
development in the market [3].
Generally speaking, balance measured in macroeconomic scale in the modern
globalized world is dependent on the effectiveness of some companies in taking
advantage of their chance to struggle against hazards in the market. Enterprise
competitiveness with the access to information in the market may even lead to
the ruthless use of competitiveness incapacity of other business entities [4].
One may feel inclined to state that from the economic point of view
globalization stands for change of performance strategy in the market and this
phenomenon may be perceived as a crucial step towards production factors
mobility at the planetary scale [5].
Therefore the phenomenon of globalization can be comprehended as the process of
opening to outer competition activity. It is necessary to focus on economic and social aspects in the above
process which are responsible for globalization. When applying another scale
one could conclude that “microeconomic character of globalization process
originates from international relations liberalization and opening to outer
competition. Everything more and more extensively depends on competitiveness.
Competition is becoming a general indicator of global order which is a direct
effect of releasing market from cross-border limitations and complying with
microeconomic logic”[6].
Globalization understood as above may increase microeconomic foundations of
macroeconomic balance of a country which in consequence is likely to lead to
opening new possibilities for enterprises.
Economic
retardations caused by long years of
centrally controlled economy being in operation and privatization
process retardations resulted in Polish companies having no time and
opportunity to join globalization which brought about major and calculable
losses as result of opening of Polish customs territory to outer competition [7].
The admittance for free competition as given by “Coordinating Office Abroad Of
NSZZ Solidarnosc, (1989), there was unjustifiably rejected self-government
option and revolutionary formula of economy reformation previously negotiated
at the Round Table, which at the same time meant approving of great shock
conception. This led up to immediate crash and ruining state enterprises, fast
privatization, approval of unemployment and advancing foreign capital to
leading position in Polish economy”[8].
Main
reasons for Polish companies’ failure in the global race were the following:
1. Unattendance of Polish business entities in the group of transnational
corporations.
2. Foreign capital entering Poland, is mainly interested in taking over
local market and it is characterized by the lack of activity in Polish export
development.
3. In global race Poland is able to offer only routine and unavoidable
factors and resources (seemingly cheap workforce, low social standards, low
ecological requirements, low expenditure on education and technological
progress).
4. Common economic inefficiency of Polish companies when compared to their
western competitors.
5. Inactivity of Polish companies in winning intellectual capital which may
lead up to degradation of Polish subsuppliers and using out-of-date
technologies [9].
The
above-described situation may result in Polish companies’ irresistance to
competition, low level of innovation and high trade deficit[10].
It is this unbalanced payment that makes the economy of our country mainly
focused on local market operation. In such a way in order to achieve balance of
payments in our country we observe immediate sale of national companies’
property, which instead of introducing pro-export policy and being supported by
the country, are becoming easily accessible and desirable object for foreign
companies willing only to buy out a big enough part of inner market.
The
above grave problem seems to be have been neglected in realized economic
programs in the last 17 years [11].
Polish accession to the group of European Union Member States brought about the
opening of Polish economy to outer competition. Rising to standards imposed by
that kind of competition in the era of common globalization, creating
supranational concerns and strict mutual relations among companies will become
a common criterion of accessing a particular enterprise’s value in the
market. The awareness of outer competiveness existence is common but the adjustment
to new conditions obligatory in the modern world of qualitatively new features
of entities is often forgotten. Total opening of borders in the last years
caused that not only Polish export production must come up to the expectations
of competitiveness, but the whole present production will undergo evaluation on
the basis of brand new criteria. So far the trump card of Polish economic
reality, widely advertised among buyers of Polish enterprises – low production
costs appear not to stand the test of time. Described in the literature actual
levels of working time, achieved efficiency per one employee and the level of
sick absence of Polish workers make our economy lose competitiveness in
comparison to the other countries of Central and Eastern Europe. Furthermore,
the level of technological innovation contained in Polish products is not high
(we mainly export low processed products) which additionally intensifies the
decrease of Polish products. Only a small percent of the investments made
in Poland by western investors constitutes modern scientific and technological
idea. Others are just Polish enterprises that have been bought out and whose
sale is treated by authorities as a supply for state budget deficit. Success
and well-being of fluent transition to competitiveness challenges will be coped
with at the level of enterprises whose financial status, the level of readiness
for changes and innovations will be strictly evaluated by the market [12].
More and more often Polish business entities including Chemical Plant “Organika
Sarzyna” S.A., will have to face the challenges of competitiveness represented by foreign corporations
interested in coming into possession of local markets as well. Big Polish
enterprises, when compared to their western counterparts, respond to the level
of small and medium enterprises, both in the capital involved into operation
activity as well as expansion capabilities. While globalization and
competitiveness make western enterprises intensify integration processes in
order to increase profitability and include deferred costs into their strategic
plans, in Poland such an approach appears uncommon [13].
Lack of vision and courage to undertake determined actions among Polish
entrepreneurs may result in wasting their chance of rapid development and
rising to the competitiveness represented by others. Company integration
phenomenon is nowadays approached as the most effective way to adjust to the
requirements of fierce, global competition. Also economic indicators published
by Gus (Statistics Information Centre) present highly distorted picture of
Polish companies, public sector in particular. If the level of enterprise
profitability is lower than investment interest, then an enterprise might be
said to be loss-making and unprepared for efficient performance in the
competitive market. Polish companies’ weakness boils down to the lack of
potentials comparable to their western counterparts. A Polish company’s size
cannot be a measure of its actual value. In the nearest future due to
civilization factors it will be easier for Polish companies to be a match for
their western counterparts in effectiveness but not in potential. To quote
prof. Adam Noga: “ it is not property, competition character in the market, a
phase of product life, regional setting that are responsible for enterprises’
current and strategic successes but management quality and managerial teams”[14].
All this together in connection with unavoidable changes of the state
functioning in the future will bring
about evolutionary changes of Polish economic system [15].
Research
workers of Warsaw School of Economics (SGH) also presented their own recipe for
enterprise success in the collective paper edited by Wladyslaw Szymanski:” On
enterprise management there will depend the degree of incorporation of
managements rules operated in global companies in transnational corporation by
Polish enterprises. As the consequence of globalization and integration opening
our economy to outer competition there should be the requirement of Polish
enterprises internationalization, and then active influence of Polish citizens
on creating transnational companies, at least as those in Central and Eastern
Europe. Enterprises internationalization and globalization condition the
compatibility of Polish enterprises with globalization process”[16].
As Polish managers and entire managing teams open to rules applied in the
management of global and supranational companies, their enterprises’
competitiveness will increase. Consequently it may lead to the compatibility of
Polish Companies with modern standards applied all over the world.
Unfortunately the majority of Polish enterprises is not ready for uneven
competition with the companies willing to come into being in the Polish market.
Low level of competitiveness makes our companies lose control over domestic and
local markets in favour of entities not always production ones but ordinary
trade companies or western companies representatives which take advantage of
their predominance and generate Polish trade gap[17].
Capital supply due to the sale of the Treasure property causes that “ not only
GNP increase produces citizens’ incomes but because of profit transfer it
multiplies national debts[18].
The foundations of Polish economic policy built in such a way will sooner or
later bring Polish economic increase to stop or will result in a serious
economic crisis.
Maintaining
the above mentioned policy causes “ drifting on collision course” with economic
crises which can be avoided only by removing simple political mistakes. There
are necessary and unpopular decisions which may have the effect of our economy
being perceived as competitive and innovative. The year 2006 exemplifies the
best how highly Polish economy is dependent on foreign capital yearly supplied
a national budget with great amounts from sold, Polish enterprises [19].
On the above grounds The Treasury in the year 2006 was to gain 4 billion PLN
while after two quarters of the current year these incomes reached the level of
500 ml.
Lack
of privatization incomes stands for the increase of trade deficit at the end of
the year and it may lead to difficulties with balancing incomes and expenses of
the country. Furthermore it has been noticed in the analysis of economic
behavior carried out in the recent years that increasing demand does not
necessarily mean increasing demand for domestic goods which conditions the
demand for domestic workforce. Poland until 2010 is to absorb the additional
group of 1,6 ml new workers (so called children of martial law) which may occur
a difficult task due to the uncompetitiveness of Polish economy so slowly
modernized. Recently registered drop in unemployment does result from Polish
enterprises’ activity and successes of particular governments[20]. After Polish accession to the EU more than
two million of people left our country in the last year, especially young ones,
higher and secondary education graduates which even more impoverished domestic
labour market by highly-qualified workers’ disappearance. These workers could
have responded to informatization challenges and strengthened economic
innovation creating its competitiveness at the same time. GNP increase at the
level of 5% is not capable of
generating new work places. Crossing that level for about 2% and maintaining
such a level for a longer time enables the increase of demand for domestic
workforce and remarkable drop of unemployment [21].
Not such a long time ago average customs rate for goods imported to Polish
customs territory was 11%, today it is just 2%. It means that Poland might be
considered to be a country with open market capable of functioning in
conditions of competitiveness.
Present
condition of Polish enterprises unprepared for new tasks causes the loss of so
far dominated markets and force to conscious export with the loss enabling
production covering up. Such a situation for numerous companies may occur very
dangerous with the increase of risk
level and uncertainty of functioning with Polish companies’ lack of
flexibility.
[1] By E.
Okoń – Horodyńska, in
Państwo narodowe w procesie globalizacji, Katowice 2000, page 199 „The Globalization is the present process not only in economy level, but and in
different fields of social life”.
[2] W. Malendowski
Wpływ globalizacji na procesy rozwojowe współczesnego
państwa, Poznań 2004, page 7.
[3] W. Kazek
Społeczne organizacje biznesu
w Polsce a stosunek do pracy, Warszawa 1999, page 169.
[4] K. Krzysztofek
M. Szczepański w Zrozumieć rozwój. Od
społeczeństw tradycyjnych do informacyjnych, Katowice 2002, page 190
[5] K. Kozik P.
Tobera, Szkice z socjologii
zarządzania, Łódź 2002, page15
[6] W.
Szymański, Przedsiębiorstwo wobec globalizacji i integracji,
Warszawa2002, page 19
[7]L. Kolarska –
Bobińska Pracownicy
przedsiębiorstw państwowych, sprywatyzowanych i prywatnych.
CBOS, Warszawa 1994, page 5.
[8] .J.
Szczakowski, Transformacja rynkowa w warunkach globalizacji,
Łódź 2005, page 58.
[9] W.
Szymański, Przedsiębiorstwo wobec globalizacji i integracji,
Warszawa2002, page 33.
[10] J. Klicha, Nadzieja rynku pracy, Warszawa 2000,
page 134.
[12] J. Leoński B.Woźniak w Współczesne
społeczeństwo polskie a wyzwania integracji europejskiej, Szczecin
2005, page 291.
[13] W. Malendowski, Wpływ globalizacji na
procesy rozwojowe współczesnego państwa, Poznań 2004,
page 11.
[14]W.
Szymański, Przedsiębiorstwo wobec globalizacji i integracji,
Warszawa2002, page 79.
[15] B. Liberska,
Globalizacja mechanizmy i wyzwania. Polskie, Warszawa 2002, page 273.
[16] W.
Szymański, Przedsiębiorstwo wobec globalizacji i integracji, Warszawa
2002, page 79.
[17] Sytuacja
społeczno-gospodarcza w I półroczu 2000 GUS,
Rzeczpospolita 22.08.2000.
[18] W.
Szymański, Przedsiębiorstwo wobec globalizacji i integracji,
Warszawa2002, page 81.
[19] B. Liberska,
Globalizacja mechanizmy i wyzwania, Warszawa 2002, page 41.
[20] J.
Kulpińska w Społeczeństwo polskie wobec wyzwań
transformacji systemowej, Warszawa 1998, page 61
[21]
D. Kotlarz, Polityka społeczna i gospodarcza, Katowice 1998, page
151.