Management challenges in the New Europe

In this introductory article to the special issue on Management Challenges in the New Europe, we begin by discussing what is new about the New Europe. We focus on the changing European Union (EU), emphasizing the escalating diversity of that body. The pivotal point is seen as 2004, when 10 new nations were admitted, including 8 from Central and Eastern Europe and the former Soviet Union. The challenges arising from this increasing complexity are viewed as the other side of the abundant opportunities available to firms that can succeed in this huge market of around 450 million people. The article notes the different positions afforded companies from the 25 EU insider nations in comparison to firms from nonmember nations. We conclude by referring to all the articles in the special issue, including three that present perspectives from nonEU countries. We explain how each article provides insights or techniques that might help managers overcome challenges in this increasingly diverse and complex arena.