| Strategies | Learning in the Incentive Sense (How well can I [the manager] perform a task? Should I start doing it?) |
Learning by Doing |
| Export orientation |
Growing awareness of sunken costs related to entry into the export market. More pessimistic attitude toward export promotion. |
Accumulation of expertise in preparing export contracts, making an enterprise more transparent for foreign partners. Foreign consultant firms are used extensively. |
| Diversification to meet internal demand |
Growing attention to "mundane" output, including services and diversification into agriculture. |
Ability to carve up viable parts of the enterprise and create wage differentials to induce the separation of unwanted labor. |
| Downsizing with the preservation of major production lines |
Awareness that without an outside investor, such a strategy is often doomed. Readiness to step down from the top management position to clear the way for outside investors. |
Marginal learning related to cooperation with banks and searching for inputs from new suppliers. |
| Downsizing on the way to closure; managing enterprise as a social protection unit (the most widespread strategy) |
Result of repeated failures in the past. No matter what I do, I am going to fail because of the unfavorable economic environment. |
Marginal learning related to private rent seeking (asset stripping) and traditional rent seeking (lobbying the government). |
| Splitting of the enterprise into different parts |
More permissive attitude toward the spin-off because of the presumed ability to retain some control over the spin-offs. | Learning to create new organizational forms, such as business groups and other networks of firms. |