CLUSTERS AND BUSINESS ALLIANCES- new forms of organizations in the economies of countries in transition Example: Hungary

Abstract

The process of globalization has led to the relocation of production and an increasing orientation of multinational corporations towards developing countries, particularly countries in transition. Companies establish their factories outside home countries, primarily due to global presentation and positioning, cost reduction, using cheap and highly qualified labour force, other cheap resources and favourable geostrategic location that developing and countries in transition have. Innovative activities, especially expansion of modern technology and orientation towards adequate development policies, are basic conditions for faster development in certain regions. The strategy of capital attraction is a process that requires time, and a realistic consideration of the positions of each of the local firms, in order to prepare in time and react swiftly to any change and opportunity in business environment. Thus, it is possible to get involved in new forms of business organization much faster. For the purpose of an increase in competitiveness on the market and expansion of business activities, as well as connecting with all the participants in the production process, the cluster has been accepted as one of the successful forms of organization in economy in the majority of world countries. This form of connection enables a faster and easier functioning of the whole chain in the system of values and facilitates the process of attracting direct foreign investments, as well as development of innovative activities, which 291 is particularly significant in the countries in transition. In this way, the reduction of production costs, increase in productivity, attraction of potential investors, as well as the possibility of export of certain products is achieved. In the scope of a cluster there is a high concentration of firms which leads to specialization and particular connection, which in one part encourages foundation of business alliances. There are many examples in practice where this type of alliance contributed to the achievement of business success. The role of a state in encouraging firms to join or to form clusters is very important and is, directly or indirectly related to providing adequate economic environment (especially infrastructure), which is one of the basic priorities in economic regional development and industrial policy in the majority of countries. One of the successful examples of establishing and developing clusters is Hungary which has achieved in the past decade dynamic development and has become one of the established successful models in the countries in transition.