Production Paradigms in

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9 Νοε 2013 (πριν από 3 χρόνια και 9 μήνες)

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FDI (ownership), Innovations and
Production Paradigms in
Comparative Perspective


Some preliminary remarks

Csaba Makó

Insitute of Sociology

Hungarian Academy of Sciences

www.sow.hu

Contents

1.
The importance of FDI in the
modernisation of Central European
Economies


2.
Impact of FDI (ownership) on the diffusion
of (product and process) innovations


3.
Organisational innovation in comparison:
Hungarian firms vs. MNCs


4.
Production paradigms in an international
perspective: EU
-
15 vs. NMS+2

Some indicators of economic development
in Central Europe
(Fink, 2004,p.2)

Country

GDP
growth
(2001)

1990=1
00

Productiv
ity
growth

(1989
-

2001
)

Growth
in
manufac
turing

(1989
-
2001)

Un
-
employm
ent rate

(2002)

Share
in
export
(%)

(2002)

Czech
Republic

102

2.15

3.09

7.3

65

Poland

145

3.09

6.65

19.9

30

Slovakia

108

2.39

2.05

18.6

73

Slovenia

124

3.07

3.17

6.0

58

Hungary

113

4.05

7.68

5.9

64

EU
-
15

125

1.54

-

7.6

34

FDI inflows to Central and Eastern European
Countries (CEEC)

(Fink, 2004, p.4)

Country

Share of CEEC
FDI Inflow

1989
-
1998

Share of CEEC FDI
Inflow

(1999
-
2002)

FD
I per
capita

(2004)

M.


Czech
Republic

17.5

24.9

4,120

Poland

2.7

25.1

1,230

Slov
a
kia

2.2

7.5

1,950

S
lovenia

2.0

2.4

No dat
a

Hungary

29.4

6.5

4,800

CEEC

100.0

100.0

No data

Selected Sectors

Employment
(%)

Wage
differences per
capita
*

Manufacturing
(Export
-
driven)

46,5

130,2

Electricity, gas, steam
and water supply

34,6

112,1

Construction

9,8

196,8

Trade and repair

22,6

189,6

Hotels and
restaurants

19,4

n. d.

Dominant role of MNCs in Hungary (1999)

*

Average wages in Hungarian
-
owned firms = 100 %

Ownership and Innovation 1999


2001

(Iwasaki 2004, p. 111)

Ownership

Share of innovative enterprises

Product
innovation

(1)

Process
innovation

(2)

1+2

Total

100 %
Hungarian
ownership

5,4

2,9

5,1

13,4

Mixed
ownership

13,4

5,9

12,3

31,5

100 % foreign
ownership

7,7

2,5

7,4

17,6

Total

6,2

3,1

5,8

15,1

Share of foreign
-
owned companies in
manufacturing sector by technological level, 2001
(Iwasaki 2004, p. 113)

Share of
enterprises

Share in
exports

Share of
employees

High
-
tech
industries

10.4
%

97.5
%

66.5
%

Upper medium
-

tech industries

11.7
%

93.9
%

58.4
%

Lower medium
-
tech industries

10.7
%

73.7
%

42.5
%

Low
-
tech
industries

8.2
%

71.8
%

36.3
%

Total

9.5
%

89.2
%

46.1
%

Rate of Organizational Innovations in Comparison

(%)


Selected Organisational
Innovations

Dunaújváros

Region

(2003)

(dominance of
domestic firms)


Székesfehérvár

Region

(2001)

(dominance of MNCs)

Information Technology

47,7

72.0

Team
-
work

37,0

53,3

ISO 9000

36,7

66,7

System suppliers

20,7

12,0

TQM

20,5

17,3

Networking

17,5

26,7

Outsourcing

11,6

21,3

Interdisciplinary design team

10,6

29,3

Flat hierarchies

7,1

40,4

Benchmarking

5,6

21,3

Production paradigms in a comparative
perspective: EU
-
15 vs. NMS+2

Methodology

Primary source of data:

Third
(EU
-
15, 2000) and Fourth
(NMS+2, 2001)
European Working Conditions Survey

(EWCS) by
European Foundation for the Improvement of
Living and Working Conditions

(Dublin)


Sources of theoretical and methodological foundation:

Lorenz, E.


Valeyre, A. (2004)
Organisational
Change in Europe:

National Models or the Diffusion
of a New ‘One Best Way’?

Makó, Cs. (2005)
’Neo
-

instead of post
-
Fordism:
the Transformation of Labour Processes in
Hungary’,
International Journal of Human Resource
Management,
16:2, February, 227
-
288.o.

Distribution of organisational models by
group
of countries

Models of work
organisation
*

NMS+2

EU
-
15

Learning

34,4

39,1

Lean
organisation

22,6

28,2

Taylorist

11,4

13,6

Traditional

31,5

19,1

Total

100

100

*
Terms used by Lorenz 2004.

Characteristics of organisation models

Learning organisation

Majority of organisational characteristics
(autonomy in deciding work methods, work pace,
learning possibilities, complexity of tasks, etc) is
similar between EU
-
15 and NMS+2


However, characteristics of learning
organisational model is more coherent in the EU
-
15 countries compared to the NMS+2

Characteristics of organisation models

Lean organisation

Strong similarity in characteristics of this type
of work organisation in both of the country
groups


In lean organisations in the NMS+2 such
variables are more important than in the EU
-
15: learning opportunities, complexity of tasks
and the quality
-
related variables

Characteristics of organisation models

Taylorism

EU
-
15 countries: monotony in work has a higher
share than in NMS+2


In NMS+2 hierarchical, norm
-
based and
automatic constraints on work rate are stronger in
comparison to EU
-
15 countries

Characteristics of organisation models

Traditional organisation

There were no significant differences between NMS+2
and EU
-
15 country groups


However, in the NMS+2 countries traditional
organisations are less sensitive to the quality
-
related
aspects of work


Remark:

due to the significantly high share of trad. W.
O. in NMS+2 (31.5%) in comparison with EU
-
15
(19.1%), it would be neccessary to go beyond the
aggregated data and to carry out a deeper analysis of the
internal structure of this type of work organisation

National Differences in Organisational Models

(The Case of CEE Countries)

Country

Learning
Organisation

Lean
organisation

Taylorism

Traditional
organisation

Czech
Republic

35,2

31,1

10,2

23,3

Poland

33.8

18.7

8.6

38.8

Slovakia

29.2

34.0

16.1

20.5

Slovenia

43.0

12.6

11.1

33.2


Hungary

43.0

14.6

12.4

29.7


NMS+2

34.4

22.6

11.4

31.4


EU
-
15

39.1

28.2

13.6

19.1

National Differences in Organisational Models

by Group of Countries (The Case of Baltic
Countries)

Country

Learning
Organisation

Lean
organisation

Taylorism

Traditional
organisation

Estonia

36.7

23.3

12.1

27.8

Latvia

23.3

17.2

11.3

48.0

Lithuania

34.7

17.8

9.7

37.6


NMS+2

34.4

22.6

11.4

31.4


EU
-
15

39.1

28.2

13.6

19.1

National Differences in Organisational Models

by Group of Countries (The Case of Mediterranean
region
)

Country

Learning
Organisation

Lean
organisation

Taylorism

Traditional
organisation

Cyprus

41.6

20.6

9.7

2
7
.
9

Malta

36,7

16,9

22,2

24,0

NMS+2

34.4

22.6

11.4

31.4

EU
-
15

39.1

28.2

13.6

19.1

National Differences in Organisational Models

by Group of Countries (The Case of Balkan region
)

Country

Learning
Organisation

Lean
organisation

Taylorism

Traditional
organisation

Bulgaria

26,4

22,3

13,6

3
7,4

Romania

34,8

30,0

15,8

19,2

NMS+2

34.4

22.6

11.4

31.4

EU
-
15

39.1

28.2

13.6

19.1




Members of the research team participating in
the work focused on the production
paradigm analysis within the Working Group
of Sociology of Organisation and Work
(
www.sow.hu
)


Csaba Makó, Miklós Illéssy, Péter Csizmadia,
Katalin Melles and Emőke Palócz