Csaba Makó Insitute of Sociology Hungarian Academy of Sciences sow.hu

1. FDI (ownership), Innovations and Production Paradigms in Comparative Perspective Some preliminary remarks Csaba Makó Insitute of Sociology Hungarian Academy of Sciences www.sow.hu

2. Contents • The importance of FDI in the modernisation of Central European Economies • Impact of FDI (ownership) on the diffusion of (product and process) innovations • Organisational innovation in comparison: Hungarian firms vs. MNCs • Production paradigms in an international perspective: EU-15 vs. NMS+2

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

4. FDI inflows to Central and Eastern European Countries (CEEC) (Fink, 2004, p.4)

5. Dominant role of MNCs in Hungary (1999) * Average wages in Hungarian-owned firms = 100 %

6. Ownership and Innovation 1999 – 2001 (Iwasaki 2004, p. 111)

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

8. Rate of Organizational Innovations in Comparison (%)

9. 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.

10. Distribution of organisational models by group of countries *Terms used by Lorenz 2004.

11. 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

12. 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

13. 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

14. 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

15. National Differences in Organisational Models(The Case of CEE Countries)

16. National Differences in Organisational Modelsby Group of Countries (The Case of Baltic Countries)

17. National Differences in Organisational Modelsby Group of Countries (The Case of Mediterranean region)

18. National Differences in Organisational Modelsby Group of Countries (The Case of Balkan region)

19. 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