Financial Performance of Groups of Companies in Poland against the background of historical determinants and knowledge management procedures applied

Polish businesses are passing the fifteen year mark of the free market experience. The important processes that could be observed during that time include the formation of the groups of companies. What were the establishment paths of these multiple organisations and what was the impact of historical determinants on their operation and financial performance? What is the extent on contribution of subsidiaries to the financial performance of the groups? And finally what are the main drivers of their effectiveness in the context of group management system applied and knowledge management procedures? This paper attempts to provide answers to these questions. It presents insights, observations and selected findings of research conducted over the period of the last five years. Its is shown that the operation of these organisations is on the one hand strongly determined by historical factors, and on the other the strength of this impact diminishes with time. Groups of companies see positive operational changes, reflected mainly in improved financial performance, growing significance of subsidiaries and the enhanced effectiveness of the management systems applied which are broadly based on knowledge management procedures.