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Governing the Workplace: The Workplace and Regional Development Implications of Automotive Foreign Direct Investment in Hungary

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  • Adam Swain

Abstract

SWAIN A. (1998) Governing the workplace: the workplace and regional development implications of automotive direct foreign investment in Hungary, Reg. Studies 32, 653-671. This paper examines the connections that exist between the workplace implications of automotive foreign direct investment in Hungary and the unfolding uneven development of capitalism in East-Central Europe. It develops a conceptual framework in order to critically analyse the role played by foreign direct investment in the restructuring of the Hungarian space-economy. Drawing on ideas about the governance of socio-economic systems, the paper argues that foreign investments can be conceptualized as a 'site' where the interaction between competing institutions operating at different spatial scales is translated and instantiated in the material and discursive practices which constitute work. In this way factory regimes are nested in a web of interactions which govern industrial and regional change. This approach is used to analyse the different ways in which Magyar Suzuki and Ford Hungaria sought to establish hegemonic factory regimes in their greenfield manufacturing plants by instantiating mechanisms of control in corporate-centred practices such as recruitment procedures, training, and the organization of work and learning. At Magyar Suzuki attempts to establish a hegemonic factory regime were characterized by coercion and were met by workers' resistance whilst, at Ford Hungaria, management sought internalization through consent. The paper suggests that the hegemonic factory regimes which emerged in both plants were constituted by, and constitutive, of an increasingly fragmented Hungarian industrial economy which could constrain the governability of the space-economy. SWAIN A. (1998) Gouverner le lieu de travail: le lieu de travail et les consequences eventuelles pour l'amenagement du territoire de l'investissement direct etranger dans l'automobile en Hongrie, Reg. Studies 32, 653-671. Cet article examine les liens qui existent entre les consequences eventuelles pour le lieu de travail de l'investissement direct etranger dans l'automobile en Hongrie et le developpement irregulier du capitalisme qui se devoile dans l'est de l'Europe centrale. On developpe un cadre conceptuel afin d'analyser d'un oeil critique le role joue par l'investissement direct etranger dans la restructuration de l'economie spatiale hongroise. Puisant dans des idees a propos du 'gouvernement' des systemes socio-economiques, cet article soutient que l'investissement etranger peut etre conceptualise en tant qu'un 'lieu' ou l'interaction des institutions rivales qui fonctionnent ades niveaux spatiaux differents se traduit et se repere par les pratiques materielles et discursives qui constituent le travail. De cette facon, les regimes au sein des usines s'embo L tent dans une toile d'interactions qui gouverne le developpement industriel et regional. On se sert de cette facon pour analyser les diverses manieres dont Magyar Suzuki et Ford Hungaria ont chercheaetablir une hegemonie dans leurs usines situees dans des 'terrains vierges' par la mise en oeuvre des mecanismes de controle dans les pratiques d'une societe, telles les methodes de recrutement, la formation, et l'organisation du travail et de l'apprentissage. A Magyar Suzuki les tentatives d'etablir une hegemonie se sont caracterisees par la coercition et ont eteopposees par les ouvriers, alors qu'a Ford Hungaria la direction a demandel'interiorisation par consentement. Cet article laisse supposer que l'hegemonie qui s'est fait jour dans les deux etablissement a eteconstitutee par et constituante d'une economie industrielle hongroise de plus en plus morcelee, ce qui pourrait entraver la capacitede 'gouverner' l'economie spatiale. SWAIN A. (1998) Auswirkungen auslandischer Direktinvestitionen der Automobilindustrie am Arbeitsplatz und in der Regionalentwicklung Ungarns, Reg. Studies 32, 653-671. Dieser Aufsatz untersucht die Verbindungen, die in Ungarn zwischen Auswirkungen auslandischer Dirktinvestitionen der Automobilindustrie am Arbeitsplatz und der aufkommenden ungleichen Entwicklung des Kapitalismus in Ostmitteleuropa bestehen. Es wird ein konzeptueller Rahmen entwickelt, um die Rolle auslandischer Direktinvestitionen in der Umstrukturierung der Ungarischen Raumwirtschaft einer kritischen Analyse zu unterziehen. In Anlehnung an Gedanken uber die Herrschaft sozialokonomischer Systeme wird die These aufgestellt, dass auslandische Investierungen als 'Standort' aufgefasst werden konnen, an dem die Wechselwirkung zwischen konkurrierenden Firmen, die auf verschiedenen raumlichen Ebenen operieren, in Material und weitreichende Verfahren, welche die Arbeit darstellen, ubersetzt und in ihnen vergegenwartigt werden. Fabrikordnungen werden damit in ein Gewebe von Wechselleitungen eingebettet, die industriellen und regionalen Wandel bestimmen. Dieser Ansatz wird dazu benutzt, die verschiedenen Wege zu analysieren, auf denen Magyar Zuzuki und Ford Hungria versuchen, hegemoniale Betriebsordnungen in ihren "im Grunen errichteten" Produktionsstatten einzufuhren, indem sie Kontrollmechanismen in korporativ verwurzelte Gewohnheiten wie Rekrutierungsverfahren, Ausbildung und die Organisation von Arbeit und Ausbildung unmittelbar einsetzen. Bei Magyar Zuzuki waren Versuche, eine hegemoniale Betriebsordnung einzufu¨hren, durch Zwangsmassnahmen charakterisiert, und stiessen bei den Arbeitern auf Widerstand, wa¨hrend die Betriebsleitung bei Ford Hungria Internalisation durch Zustimmung zu erreichen suchte. Der Aufsatz weist darauf hin, dass die hegemonialen Betriebsordnungen, die sich in beiden Niederlassungen ergaben, Bestandteil der zunehmend fragmentierten Industriewirtschaft Ungarns und sie herbeifuhren, eine Tatsache, welche die 'Regierbarkeit' der Raumwirtschaft stark einschranken konnte.

Suggested Citation

  • Adam Swain, 1998. "Governing the Workplace: The Workplace and Regional Development Implications of Automotive Foreign Direct Investment in Hungary," Regional Studies, Taylor & Francis Journals, vol. 32(7), pages 653-671.
  • Handle: RePEc:taf:regstd:v:32:y:1998:i:7:p:653-671
    DOI: 10.1080/00343409850119535
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    References listed on IDEAS

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    1. Hans-Werner Sinn & Alfons J. Weichenrieder, 1997. "Foreign direct investment, political resentment and the privatization process in eastern Europe," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 12(24), pages 178-210.
    2. David Bartlett, 1996. "Democracy, Institutional Change, and Stabilisation Policy in Hungary," Europe-Asia Studies, Taylor & Francis Journals, vol. 48(1), pages 47-83.
    3. Hatzius, J., 1997. "Foreign direct investment," LSE Research Online Documents on Economics 20351, London School of Economics and Political Science, LSE Library.
    4. Kevin Morgan, 1997. "The Learning Region: Institutions, Innovation and Regional Renewal," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 491-503.
    5. Elmar Altvater, 1998. "Theoretical Deliberations on Time and Space in Post-socialist Transformation," Regional Studies, Taylor & Francis Journals, vol. 32(7), pages 591-605.
    6. Attila Havas, Attila, 1995. "Hungarian car parts industry at a cross-roads: Fordism versus lean production," MPRA Paper 79305, University Library of Munich, Germany.
    7. J Hatzius, 1997. "Foreign Direct Investment," CEP Discussion Papers dp0336, Centre for Economic Performance, LSE.
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    1. Petr Pavlinek & Adrian Smith, 1998. "Internationalization and Embeddedness in East-Central European Transition: The Contrasting Geographies of Inward Investment in the Czech and Slovak Republics," Regional Studies, Taylor & Francis Journals, vol. 32(7), pages 619-638.
    2. Havas, Attila, 2007. "The Interplay between Innovation and Production Systems at Various Levels: The case of the Hungarian automotive industry," MPRA Paper 52744, University Library of Munich, Germany.
    3. Elina De Simone & Marcella D’Uva, 2017. "Social Support, Industrial Parks and FDI Location Choice Across Hungarian Counties," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(3), pages 1031-1045, September.
    4. Andrew Hopewell, 2001. "The Changing Spatial Structure Along the Austro-Hungarian Border," NEURUS papers neurusp14, NEURUS - Network of European and US Regional and Urban Studies.
    5. Havas, Attila, 2006. "Private Sector R&D in the New Member States: Hungary," MPRA Paper 55786, University Library of Munich, Germany.

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