Videoton:The Growth of Enterprise ThroughEntrepreneurship and Network Alignment

Videoton is the main contracting manufacturing company in the electronics industry in central Europe. The business model that has been developed through Videoton has greater relevance for understanding the growth of enterprises and the modes of integration of the Central and Eastern Europe into the global economy. It shows that the restructuring and subsequent growth of Videoton cannot be explained merely as a case of individual entrepreneurship without taking into account that its success is also based on the alignment of several networks.The presence of foreign demand through MNCs that came to Hungary supported by a stimulative government policy also played an essential role. Local initiatives to attract foreign companies and facilitate their establishment through industrial parks further enhanced the actions of other actors. Prospects of EU entry and proximity to EU markets have further stimulated the entry of foreign companies. The simultaneous presence of these factors is essential to understanding why Videoton has succeeded. Its success is not only the result of developing individual networks, in particular of Videoton Holding as a restructuring agent, but also of integrating Videoton and local networks with the networks of global companies....