VARIETIES OF CAPITALISM

Varieties of capitalism and HRM

Varieties of capitalism and HRM

Introduction

Varieties of capitalism, a concept developed by political scientist, Peter A. Hall, and the economist David Soskice. Expresses the conviction that the capitalist economy does not assume a unique and universal, but varies between nation states (Aglietta, 1998, 33). Hall and Soskice identify two main types of capitalist economy.

The liberal market economy is exemplified in the case of the U.S., although Britain, Ireland, Canada, Australia and New Zealand have also been described as the liberal market economy. Germany is the paradigmatic case of coordinated market economy, but this label is also applied to Japan and northern European countries. The distinguishing characteristic of each type is that they solve the problems of "coordination" (between the company and their financiers, employees, suppliers and customers) in different ways (Albert, 1991, 78).

In free market economies (LME), the coordination occurs primarily through market mechanisms, while coordinated market economies (CMEs) formal institutions play a more central role in the governance of the economy and the regulation of relations firm with stakeholders. For example, large marine ecosystems, wages are set by market forces, while the CME, are determined through collective bargaining at the industry level between employers associations and trade unions. The concept of varieties of capitalism has been very influential in recent years in the field of comparative industrial relations and is often considered as the basis for an argument against the belief that globalization is driving the convergence of national industrial relations systems (Amsden, 1989, 74).

Although the influence, the concept has also been criticized. Critics have suggested that Hall and Soskice theory cannot explain the innovation or change in national systems, does not take into account the degree of variation in the forms of capitalism in national economies, and take sufficient account of differences between economies that are placed within each broad category (i.e., ignores the important differences between British and American capitalism).

"The Varieties of Capitalism' and employment system

The scope and variety of work related to school varieties of capitalism is so great that without a definition, the argument would lack coherence. Therefore, this study focuses on a small number of recent and representative works that first widely shared similar assumptions about the institutional foundations of national economies, and secondly, places the focus on the question of continuity and change. The camp VoC includes works such as Hall and Soskice (2001a, 2001b), Streeck and Yamamura (2001), Yamamura and Streeck (2003), Schmidt (2003), Amable (2004), Morgan et al. (2005), and Hancke et al. (Forthcoming), to name a few. As the most representative and frequently cited, is the volume edited by Hall and Soskice (2001a, 2001b), this work is largely in response to their work (Aoki¸ 1994, 141).

In the center of VOC perspective is the importance of "coordination system" and the idea of "institutional complementarily." In simpler terms, the institutional subsystems - that govern the capital and labor - cast capitalist models, and when present in the "right" way, mutually ...