- New Horizons in International Business series
Edited by Martin Heidenreich
Chapter 12: Multinational Companies and the Production of Collective Goods in Central and Eastern Europe
12. Multinational companies and the production of collective goods in Central and Eastern Europe1 Bob Hancké The comparative study of capitalism has, since the publication of the Varieties of Capitalism volume (Hall and Soskice, 2001), directed attention to market and strategic coordination as the critical variables that differentiate (as ideal types) liberal and coordinated market economies (LMEs and CMEs) – and beyond. Business coordination can help us to understand how France adjusted (Hancké, 2002) after failing to reinvent itself along CME lines (Culpepper, 2001). It is a useful perspective to make sense of the development of Latin American political economies (Ross-Schneider and Soskice, 2009) and of the economic organization of Mediterranean countries (Molina and Rhodes, 2007). In its ‘negative’ version, lamenting the absence of domestic business coordination – or at least some of its proto-institutional forms such as high trust or social capital (Stiglitz, 2000; Levy, 1999) – as a condition for economic upgrading, business coordination is an equally crucial variable in understanding divergent outcomes. All these views share the underlying idea that business coordination is exogenously given, usually handed down through history, or – conversely – destroyed under particular historical conditions. Hall and Soskice (2001) are relatively silent on the origins of coordination, and Hancké et al. (2007) explore these to some extent, but ultimately conclude in favour of the historical hypothesis. Whilst the argument in Feldmann (2007) is more dynamic – transition policies in Estonia had a networkdestroying and in Slovenia a network-preserving effect, two pathways that he causally relates to the absence or...
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