Purpose: Despite the importance of innovation, the full innovation potential of companies operating in the industrial sector of Central and Eastern Europe (CEE) seems not to have been unlocked yet. Thus, the primary purpose of the study was to explore the key elements of company innovation policies applied on the way to successful innovation.

Methodology: The article presents results of an empirical quantitative analysis. The data has been collected through an anonymous online and postal survey. The analysis focuses on 345 companies active on foreign markets and involves a Mann-Whitney U test and a regression analysis.

Findings: The conducted analysis points to the importance of the degree of interorganizational network embeddedness for the performance of companies active on foreign markets. It shows that the higher the degree of the overall network embeddedness (measured with adaptations, trust and mutuality), the higher the company’s perceived performance relative to its competitors.

Research limitations: The research was burdened with such limitations as respondents experiencing time pressure and the use of only one source of information (the interviewees).

Originality: Despite much general evidence, the study attempts to complement the rare qualitative studies on innovation in CEE. It was carried out as a response to the lack of an in-depth study covering such recurrent challenges in the feld of company innovation policies as disruption, portfolio balancing, integration, intangibilities’ management, and play.

Purpose: Despite the importance of innovation, the full innovation potential of companies operating in the industrial sector of Central and Eastern Europe (CEE) seems not to have been unlocked yet. Thus, the primary purpose of the study was to explore the key elements of company innovation policies applied on the way to successful innovation.

Methodology: The study is based on qualitative methods. The aim of the study has been achieved through 24 semi-structured interviews conducted with senior management, project leaders, and R&D specialists employed at companies operating in the industrial sector in CEE. The time frame covers the period of the fourth quarter of 2016 and the frst quarter of 2017.

Findings: Managing disruption consists of focusing on innovation development stage and following market imperatives by making the innovation try to address the market needs. Balancing portfolio requires considering product and process innovation jointly. Furthermore, 62% of the interviewees say that breakthrough innovation results ultimately from numerous incremental advancements. As far as policy integration is concerned, achieving competitive advantage through internal research is common amongst technological leaders, while market contenders turn to external cooperation. Moreover, incorporating CSV principles into the concept of innovation policy appears to be a necessity. Managing intangibilities comes down to patents.

Research limitations: The research was burdened with such limitations as respondents experiencing time pressure and the use of only one source of information (the interviewees).

Originality: Despite much general evidence, the study attempts to complement the rare qualitative studies on innovation in CEE. It was carried out as a response to the lack of an in-depth study covering such recurrent challenges in the feld of company innovation policies as disruption, portfolio balancing, integration, intangibilities’ management, and play.

Purpose: The increasing pace of technological progress, hyper-competitiveness, volatility of markets, dominant in the contemporary society all cause signifcant changes in the approach to innovation and lead to the emergence of a new generation of models of innovation processes. An open innovation model is based on a systematic search for as well as research and use of various sources of opportunities for innovations that offer commercial potential. The main objective of this article is to analyse the possibilities of application of models of open innovation in management of micro, small, and medium enterprises (SMEs) in Poland. This article intends to explore the essence of open innovation by values, its inception, and conditions for its implementation in the management process specifc to the SME sector.

Methodology: The study has been based on in-depth semi-structured interviews conducted among business managers/owners responsible for innovation development of SMEs in Poland (16 interviews in total).

Findings: SMEs usually do not have their own research and development (R&D) departments, but need external support and R&D solutions tailored to their needs. SMEs need innovations and skills, which requires close cooperation with different partners. In order for SMEs to beneft from innovation processes, a structured cooperation not only with scientists and researchers, but also with other market partners needs to be established and intensifed. It changes both the creation of intellectual capital and the ways to manage it.

Originality: The new approach in the context of management of innovation is now one of the key challenges faced by smaller businesses. It is necessary to make changes in the approach to integration of external sources of innovation with the potential and resources at the disposal of a given company.

Objective: The aim of the present study is to examine whether the European Union budget comprises significant resources for financing measures relating to social cohesion. The analysis is based on the contents of the Europe 2020 Strategy.
Given the constraints of space and for the sake of clarity of the argument, the author focuses on the role of the EU budget rather than all measures aimed at social cohesion undertaken by EU institutions or targeted by policies of individual Member States.

Methodology: Documents, studies and reports published by the European Commission constitute the main source of information. In addition, the author has taken into account macroeconomic data demonstrating the deterioration of the social situation since 2009, as well as the instruments that the European Commission has deployed since 2013 in order to respond to post-crisis challenges.

Conclusions: It can be roughly estimated that more than 40 percent of total resources within the Multiannual Financial Framework 2014-2020 shall be allocated to the social cohesion policy. Opportunities afforded by the implementation of the Europe 2020 Strategy include primarily the definition of objectives whose priority is indisputable and the introduction of the hitherto neglected analysis of certain socio-economic indicators, classified by country or region and, in certain cases, examined in more detail than required by the European Commission. The monitoring of objectives is conducive to the introduction of new solutions and implementation tools, as exemplified by the new instruments within the Multiannual Financial Framework 2014-2020, as well as the adjustment of available funds in light of the most pressing challenges. The European Semester has facilitated the task of comparing progress in strategy implementation by individual Member States, as well as the provision of recommendations for each of them and an individualized approach.

Research implications: This article contributes to the discussion on further integration of the European Union's social dimension, with particular emphasis on the need to work out a common approach to immigration policy.

Originality: The author presents her own opinions regarding current events in terms of the post-crisis social cohesion policies of the European Union, taking into account the European Commission’s financial instruments.

Purpose: The purpose of this paper is to present a theory that defi nes the creation of an area that includes many countries, in which there is one, single currency and the countries are characterized by a diversifi ed productivity. That is why the paper shows the importance of labor productivity parity for the creation of an integrating and non-discriminatory currency area and indicates the role of this value in the theory of the exchange rate.
Additionally, the paper analyzes the risks arising from joining the eurozone.

Methodology: The basic methodology is defi ned by a fundamental analysis of the exchange rate and its relation to labor productivity parity. The author formulates a theory of a currency area that integrates economies with different levels of labor productivity. The methodology is supplemented by calculations and a ranking of countries according to the Q-index.

Findings: Listing the member countries and candidate countries of the eurozone according to the labor productivity index has demonstrated that the founding member states are characterized by a Q-index close to 3.30. The countries that are already in the eurozone with an index of less than 2.5 belong to the group where problems are accumulating. Countries that are candidates for the eurozone with an index below 2.0, such as Poland, cannot become member of the eurozone. The principles of creating a currency area can however be modified in such a way that countries with various levels of Q can become members, by developing cooperation that is beneficial to the socio-economic development.

Originality: The labor productivity index Q is a result of elaborating an original concept of the production function that is suitable for the purposes of economic analysis. According to this function the Q-index is equivalent to the category labor share and the variable F corresponds to TFP. The function overcomes the disadvantageous features of econometric models of production identifi ed by Joan Robinson and the obtained results modify the
theory of the exchange rate, creating good prospects for general monetary integration.

Purpose: The aim of this paper is to show the conditions of the EU against the realities of the global economy in the post-crisis era, an indication of which are the determinants of the development of the competitive advantage of the Community.

Methodology: An analysis of the determinants of growth at different stages of the process of EU integration with particular emphasis on optimum currency area criteria for the euro zone crisis, under asymmetric demand shock.

Findings: The last global crisis has highlighted the structural weaknesses of the EU, which in times of economic prosperity can be compensated by a system of transfers and the mechanism of credibility borrowing. With such a strong crisis Europe needs more growth.

Research limitations: The costs of this crisis affect the Community, significant for both public finances and the standard of life, but are also visible on a global scale, which is difficult to estimate.

Originality: An ex ante perspective on the determinants that will not only restore EU’s position in the world, but also did not miss an opportunity to play a significant role in the rapidly changing global economy, the twenty first century.

Purpose: The purpose of the article is to find an answer to the question whether the European Union, and especially the countries that are full members of the Economic and Monetary Union, are able to reach a common solution in fiscal policy, which may result in a further deepening of integration processes.

Methodology: The article is based on literature, legislation and documents, reports and accounts of the institutions and bodies of the EU. The paper presents an analysis of the current situation within the European Union on fiscal consolidation, the theoretical format of the fiscal union and the range of possible functions of common bonds and consequences of the issue (in the context of sharing risk between the issuers, and thus – the impact on
fiscal discipline), and finally, the role of the disintegrative processes in the context of public finance.

Findings: So far, the common legislation to restore budgetary balance was broadly implemented, however, it is too early to say whether specific rules will translate into action of public authorities. When it comes to issues indicating the deepening of integration, it is difficult to note the political consensus in this regard. The proposal for creating a new budget only for the eurozone countries seems to be far-reaching.

Research implications: This paper may be a contribution to the further discussion on the future of the European Union, especially in the context of fiscal policy.

Originality: The author presents her findings and thoughts on current events in the financial integration within the European Union on the basis of documents of the European Commission, the Council of the European Union, the President of the European Council and the European Economic and Social Committee.

Purpose: The main objective of the article is to assess the impact of new regulations introduced in the EU and the euro area in the face of the economic and financial crisis.

Methodology: Literature review related to the functioning of the euro area, roots of the global crisis and financial market integration. The critical literature review was focused on two issues: identification of the causes of fiscal and macroeconomic imbalances in the euro area and assessment of the implemented instruments designed to prevent them.

Findings: The basic feature of the six-pack measures and the European Semester, which complements them, is deeper coordination of macroeconomic, structural and competitiveness policies among Member States. Adopted measures are a big step towards strengthening the economic pillar of the monetary union. However, the progress and quality of their implementation will be critical in improving economic governance in the EU.

Research implications: identification of strengths and weaknesses of the adopted reforms allows for using these results in the assessment of the balance of costs and benefits of the future functioning of the euro area as well as the implications for macroeconomic policies in the countries intending to join the euro area.

Originality: The author tries to provide an overview of the roots of the crisis in the euro area with the assessment of the reforms aiming to prevent similar crises in the future. The arguments presented in the article are against the view that the main reason for the crisis was a weak fiscal policy of the euro area countries.

Purpose: The purpose of the article is to discuss the multidimensionality of the
distance construct and to provide a critical overview of the existing research on
distance and its significance for the internationalization process.

Methodology: The review of relevant literature, based on databases such as EBSCO,
Elsevier, JSTOR and ProQuest, covered empirical papers (keyword: “distance”
included in the title or abstract) investigating the relationship between the distance
and key issues in the companies’ internationalization. The presentation of results
was structured along five key dimensions of distance: geographic, economic, institutional,
cultural and psychic. The first four dimensions are antecedents to psychic
distance, which itself relates to the managerial perception of differences between the
countries.

Findings: The development of new forms of transportation and communication technologies, together with the increasing economic integration, have made many authors
and managers believe that distance is no longer relevant to the companies’
internationalization process. However, the empirical studies do not confirm this claim.

Research implications: The multidimensionality of distance and inconsistencies
in the body of research concerning the cultural dimension of distance create new
research challenges. The present article provides recommendations for the scholars
interested in the role of distance in international business.

Originality: The article presents an extensive literature review, explicitly indicating
the role of different dimensions of distance in key internationalization issues,
i.e. motives, market selection, mode of entry, level of local responsiveness and global
integration. It makes a clear distinction between psychic distance and country-level
distance.