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Endogenous coordination: multinational companies and the production of collective goods in central and Eastern Europe

Hancké, Bob (2012) Endogenous coordination: multinational companies and the production of collective goods in central and Eastern Europe. Stato e Mercato: Quadrimestrale di Analisi Dei Meccanismi e Delle Istituzioni Sociali, Politiche ed economiche , 2012 (2). pp. 203-227. ISSN 0392-9701

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Abstract

Most accounts of business coordination assume historically given conditions for this to emerge. Business coordination is therefore difficult, perhaps impossible, to construct endogenously. This paper examines a process of «endogenous coordination» through an analysis of reindustrialization and industrial upgrading in Central Europe during the 2000s. Because of its recent post-cornrnunist history, during which existing institutions of economic governance were dismantled wholesale, Central Europe is a particularly unlikely place for complex forms of business coordination to emerge. Demonstrating the empirical possibility of endogenous coordination, and identifying conditions under which it has emerged, thus shifts the debate from pessimistic fatalism to a more optimistic world of possibility. The paper identifies the following conditions for business coordination to emerge. One, a pattern of industrialization that combines sophisticated skills and capital goods, leading to higher asset specificity and fixed costs; two, bottlenecks in the production of collective goods associated with these assets against the background of potentially high returns in investment; and, three, the existence of a third party, which provides a forum for deliberation and strategic coordination while holding effective sanctioning capacity.

Item Type: Article
Official URL: http://dialnet.unirioja.es/servlet/revista?codigo=...
Additional Information: © 2012 Fundación Dialnet
Library of Congress subject classification: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Sets: Departments > European Institute
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 10 May 2013 09:10
URL: http://eprints.lse.ac.uk/47739/

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