Beruflich Dokumente
Kultur Dokumente
analytical framework
Context
Industrial revolution impacted different countries at
different times and in different ways Welfare states and trade unions developed along patterns determined in nationally specific contexts US developed a highly market driven system Post WW1 saw the emergence of communist economies, particularly in Central and Eastern Europe West European economies developed capitalist economies with more social protection and workers right- role of social-democratic governments
Complementarity
In economics, a complementary good is one which enhances another good. In institutional theory, complementarity refers to a situation where different institutions enhance the effects of each other Complementarity infers that in order to perform at their optimal levels, institutions need to occur in bundles If firms value a particular institution they should be willing to invest in complementary institutions
Path Dependency
Actors and institutions invest resources into certain
ways of doing things To break with the past means there are sunk costs Where possible, choices will be made to minimise these costs Thus, the actions of both actors and institutions are shaped by past experience
certain institutions provide an advantage to economies in global competition to carry out specific tasks Different institutions give different economies CIA in different ways Thus various economies should excel at different activities, in concert with their CIA
Coordinated market economies Germany, Japan, Sweden, Austria Hybrid Mediterranean ring
Corporate governance
Returns on investment
Inter-firm relations
Competitive or collaborative
contribution to political economy since the 1970s. Argued that a clear distinction could be drawn between 3 types of economic system
Liberal Market Economies (LMEs) Coordinated Market Economies (CMEs) Hybrid Mediterranean Economies
Key differences
Common theme in both Soskice (1990) and Aoki
Core Differences
CMEs National/Sector based wage settling Sector-level training in specific skills Venture Capital: Long term return on investment Firms linked through mutual finance links Co-operative firm level industrial relations LMEs
Firm/individual pay setting Highly general skills Short term return on
investment Finance based on equitiesshareholder model Firms act autonomously Adversarial or HRM approach to firm level relations
Criticisms of VoC
Static Institutional equilibrium
Overly generalises a) between countries b) between sectors Growing convergence on the Anglo-American model Effect of financial crisis? Overly focussed on manufacturing Neglects role of state
VoC summary
VoC approach essentially grew out of comparing the
US and the UK, on the one hand, with (West) Germany and Japan, on the other. Relational approach Firm Centred Focused on social systems of production Strategic interactions
Conclusion
VoC has been a highly influential theory to explain
differences and similarity of work organisation It is far from being a complete explanation It does provide key points of reference for analysing differences Important for companies operating across boundaries to be aware of differences