How to transcend from a local subsidiary into the global leadership position of your industry: the case of Whirlpool Slovakia

Abstract

The fall of the Berlin Wall, the Velvet Revolution, and other similar events ultimately led to the breakup of the Soviet Union and the opening of Central and Eastern Europe (CEE) from a planned economy to a free market economy. These events provided investment opportunities for MNCs around the world. Around this same time, Whirlpool Corporation, one of the world’s leading manufacturers and marketers of home appliances, made a strategic decision to globalise its production and market. In pursuit of this decision, Whirlpool entered Slovakia (part of Czechoslovakia) in the new CEE market. This paper describes the transition of Whirlpool Slovakia from a sub-standard producer of washing machines in Czechoslovakia and Poland to a position where Whirlpool Slovakia is not only one of the leading producers of white appliances in the Whirlpool global value chain, but one of the models of efficiency in the production of top loader washing machines.

Keywords:

• CEE
• emerging nations
• MNEs
• quality transformation
• case report
• Slovakia

Additional information

Notes on contributors

Arthur Rubens

Dr. Arthur Rubens is professor emeritus of management at Florida Gulf Coast University, Lutgert College of Business, and former Fulbright Scholar in Slovakia (2017–2018). He has over 25 years of experience as an educator, administrator, and consultant, and has taught classes in multiple countries. His research interests are in leadership, ethics, economic development and sustainability.

Sona Ferencikova

Dr. Sona Ferencikova is currently Professor and Vice Rector of Sponsored Research at City University, School of Management in Bratislava, Slovak Republic. Dr. Ferenčková is a former Fulbright Scholar at University of Michigan (1997) and has conducted extensive research on FDI and East West Relations.

Roland Bardy

Dr. Roland Bardy is an Executive Professor at Florida Gulf Coast University's Lutgert College of Business, a retired executive from BASF, and Principal with Bardy Consultant. He has over 30 years' experience working with multinationals, and since his retirement in 1999 has lectured and consulted worldwide. His research interests are in leadership, ethics, and sustainability.