Abstract
Does the internationalisation of economic activities reduce the differences between locations in core and peripheral regions of capitalist production? This article contributes to this discussion by emphasising an inherent contradiction of transnational production: companies must draw upon divergent regulatory scenarios and strategies of labour utilisation and articulate them in their organisational structures in order to utilise ‘locational advantages’ and meet profit targets, but the integration of these divergent scenarios creates considerable organisational tensions. This scenario is illustrated through an analysis of the high attrition rates produced in the South Indian IT hub of Bangalore and how this is managed by one German software production company.
Highlights
In his monograph ‘Global Shift’, Peter Dicken points to a widespread belief in the homogenising impact of economic internationalisation
Managing attrition in a German product company This very rough sketch of the conditions of operation for our German product company in the ‘low cost location’ of Bangalore has emphasised that high rates of attrition constitute an integral part of this regulatory scenario, are deeply rooted in social practices and are further promoted by state policies and corporate strategies of labour utilisation
German developers may well feel left behind, even whilst the Indian project managers are frustrated because their positions are not taken seriously. These problems, which arise from a transnational company’s attempt to establish the home base’s standards in a different location, point to the inherent contradictions of transnational production mentioned above. This brief outline has shown that the operations of our German product company in Bangalore bring into question some of the assumptions both of ‘hyper globalists’ and of many Indian employees that transnational production will result in a homogenisation between core and peripheral locations of capitalist production
Summary
In his monograph ‘Global Shift’, Peter Dicken points to a widespread belief in the homogenising impact of economic internationalisation. The production of attrition – approaching labour market regulation in Bangalore According to our hypothesis, companies from capitalist core countries operate in ‘low cost locations’ to increase profits but at the same time face problems articulating very different regulatory scenarios within their organisational structures.
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