Transition economies, such as the countries in Southeast Europe,
face an expeditious institutional transition from a centrally
planned to a market economy. The state withdraws from its
monitoring function, which results in institutional voids that
affect the economy in general and small and medium sized
enterprises (SMEs) in specific. With a qualitative case study
approach Tine Schrammel develops a scheme to detect institutional
voids as one source of competitive disadvantages of SMEs in
transition economies. In a second step she demonstrates that
specific cluster services bridge institutional voids and improve
the competitive position of SMEs in environments of institutional
voids. The findings add to the understanding of institutional voids
and to the role of clusters in transition economies.
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