What Makes Firms Competitive? States,Markets, and Organisational Embeddedness in Competitive Firm Restructuring in Postsocialist Economies

The prevailing transitions literature suggests that dynamic firms in postsocialist economies are the result of macroinstitutional reforms leading to the making of markets. This article builds on work in comparative political economy and economic sociology to show that the degree of competitive behaviour of postsocialist firms is determined not by the existence of general market institutions alone but by the kinds of organisational allies firms possess and the kinds of markets they compete in. Using firm survey data across 28 postsocialist economies, the article examines the determinants of competitive restructuring by firms, including product innovation, standards upgrade, financial transparency, and investments in research and development. The article confirms insights from comparative political economy which suggest that dynamic enterprise sectors emerge when governance is effective. However, at the firm level, the article finds that transnational ties and supportive policy environments are most significant in the making of dynamic postsocialist enterprises. The article also highlights important regional variation in firm behaviour and discusses the relationship between institutional frameworks, organisational embeddedness, and firm restructuring in postsocialist economies.     

Shenzhen: city of suspended possibility

This essay on Shenzhen, China, presents three vignettes addressing the question of home in a city of migrants. The first section explores the ubiquitous narratives of success forming the city's foundational myth. The second follows this myth into the world of a Shenzhen filmmaker and his characters, as they navigate the tension between the idea of home and the urge to start anew, resulting in the suspended possibility of the title. The last section looks at young architects who hope to preserve the city's heterotopic sites of migrants and original villagers through architectural innovations. The cases show how an economy of desire supplements the political economy of this export-driven city. The city appears as an urban desiring machine that produces itself as an object of desire for the migrants of all classes who flock to its factories, "urban villages", white-collar jobs, luxury villas and underground economy. The essay is an encounter with the mythology of success and failure, the intertwining of home as an end and home as the beginning, and with the manipulation of space that allows residents to control their own subjectivity.     

Whither State Ownership? The Persistence of State-Owned Industry in Postsocialist Central and Eastern Europe

After widespread privatization in the 1990s, the early 2000s witnessed the reemergence and consolidation of state owned industries in the postsocialist states of Central and Eastern Europe (CEE). To counter views that state owned industries have largely disappeared from postsocialist CEE due to extensive privatization, the paper demonstrates the continued economic significance of state owned industries across the region. The paper then offers a typology of state-firm relations and highlights differences in empirical cases of large state-owned firms that have emerged in the region, distinguishing between market-oriented and politicized firms. Finally, the paper develops a comparative, macro-level processual analysis accounting for the institutional and political factors that explain why some postsocialist states have developed state-owned industries that operate successfully in competitive markets while others have developed highly politicized state-controlled firm. It finds that political factors are what chiefly account for the emergence of successful state sectors in the region.