Globalisation and Comparative Capitalism: The Industrial Relations of Volkswagen and Ford in South African Export Zones

Abstract

In the modern era of „globalisation‟ the strategic autonomy of both firms and states is considered to be on the decline. Developing countries such as South Africa are considered to be especially susceptible the demands of highly mobile and fickle capital. The result is said to be a convergence on neoliberal policies, including in labour relations. However the Varieties of Capitalism (VoC) approach has argued that the modern era of globalisation has seen a continuance of diversity amongst Liberal and Coordinated Market economies. This diversity, in turn, influences the strategies of firms that are embedded in these economies. Using a case study in a VoC analysis, this thesis will show that Volkswagen and Ford retain the industrial relations strategies of their home economies, even when operating in institutional environments considered to be the most conductive to convergence; Export Processing Zones in a developing country (in this case South Africa). The thesis thus illustrates the path dependency of firms in their multinational operations.