||The thesis includes four papers which analyze the role of foreign investors and the local management on the performance of privatized firms in the glass sector in the Czech Republic. By using different methodologies, namely panel data analysis and case study, I have shown that foreign investors had contributed to the long-term performance and restructuring of Czech glassworks but they have also chosen the largest and more profitable companies. The selection of the largest and most profitable firms from foreign investors during the privatization process has negatively affected the performance of the neighbouring domestic firms. This thesis is focused on one industrial sector, therefore, the results cannot be generalized to other industrial sectors. However, this thesis highlights interesting theoretical issues that need to be further analyzed from researchers for other industrial sectors.