Innovative Issues and Approaches in Social Sciences (Sep 2014)

THE IMPORTANCE OF LEGAL ORGANISATION OF RAPIDLY GROWING COMPANIES FOR INTERNATIONAL BUSINESS COMPETITIVENESS

  • Riko Novak,
  • Viljem Pšeničny

DOI
https://doi.org/10.12959/issn.1855-0541.IIASS-2014-no3-art03
Journal volume & issue
Vol. 7, no. 3
pp. 44 – 57

Abstract

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This article discusses the importance of a company’s legal form for the process of internationalisation using a sample of 1577 Slovenian companies. We refer to previous studies and on the basis of additional statistical data evaluate whether the choice of corporate legal structure influences a company’s ability to compete internationally. In the domestic market, most companies operate as limited liability companies; this is also the most frequent legal form in which companies enter foreign markets. We conclude that the form by itself does not influence the decision to go international.

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