This book challenges the widely accepted notion that globalization
encourages economic convergence--and, by extension, cultural
homogenization--across national borders. A systematic comparison of
organizational change in Argentina, South Korea, and Spain since 1950
finds that global competition forces countries to exploit their
distinctive strengths, resulting in unique development trajectories.
Analyzing the social, political, and economic conditions underpinning
the rise of various organizational forms, Guillén shows that business
groups, small enterprises, and foreign multinationals play different
economic roles depending on a country's path to development. Business
groups thrive when there is foreign-trade and investment protectionism
and are best suited to undertake large-scale, capital-intensive
activities such as automobile assembly and construction. Their growth
and diversification come at the expense of smaller firms and foreign
multinationals. In contrast, small and medium enterprises are best
fitted to compete in knowledge-intensive activities such as component
manufacturing and branded consumer goods. They prosper in the absence of
restrictions on export-oriented multinationals.
The book ends on an optimistic note by presenting evidence that it is
possible--though not easy--for countries to break through the glass
ceiling separating poor from rich. It concludes that globalization
encourages economic diversity and that democracy is the form of
government best suited to deal with globalization's contingencies.
Against those who contend that the transition to markets must come
before the transition to ballots, Guillén argues that democratization
can and should precede economic modernization. This is applied economic
sociology at its best--broad, topical, full of interesting political
implications, and critical of the conventional wisdom.
