Domestic Political Institution GBE:the “politics” for global business

catch-up

Dr. Nanang Pamuji MugasejatiJurusan Ilmu Hubungan Internasional

Fakultas ISIPOLUniversitas Gadjah Mada

Email: nanang.pamuji@mugasejati.comTwitter: @nanangpamuji

Jaminan adanya “keamanan ekonomi” (economic security) :

“safeguarding the structural integrity and prosperity generating capabilities and interest of a politico-economy entity in the context of various externalized risks and threats that confront it”. (Dent, 2003: 253)

The 'structural integrity' aspect essentially relates to maintaining the internal construction of the economy during its interactions in the global economy, and its ability to meet the basic demands of economic agents located therein.The 'prosperity-generating capabilities' aspect broadens the conventional boundaries of the economic security concept beyond its usual attention to minimizing direct and immediate economic vulnerabilities.

Finance-credit security: ensuring the financial solvency of the FEP power in the international system, as well as its maintenance of access to, or influence or control over sources of international credit.

Techno-industrial capability security: preserving and developing the ability of the economy to generate prosperity, productivity and other welfare-creating factors, and involves maintaining the economy's position as close as possible to the technological frontier. This may derive from indigenous or foreign sources, and relate to issues of access and acquisition of foreign technology.

Socio-economic paradigm security: the 'defence' of a society's preferred socio-economic paradigm and its welfare goals where defined. This often entails the resistance of foreign pressure to adapt to new inter- national norms that are associated with a counter-paradigm.

Transborder community security: regionalized concerns that may either precipitate transborder economic crises or concern localized inter- dependence issues, e.g. sub-regional economic integration. These often centre on transborder spillovers or externalities that require market failure correction policies, and hence the management of a shared transborder economic space.

Systemic security: upholding the integrity of the international economic system, entailing co-operative and concessionary acts to uphold multi- lateral regimes of systemic governance, facilitate inter-state bargains and maintain overall systemic stability.

Alliance security: maintaining and developing international economic partnerships with state and non-state actors in pursuance of the above interests. This may take various forms, ranging from donor-client alliance relationships to looser co-operative or co-ordinative arrange- ments between relatively equal partners.

safeguarding the

structural integrity

Safeguarding interest

of a politico-economy

entity

Economic Security

Safeguading

prosperity generating capabilitie

s

Linda Weiss (ed.),States in the global economyBringing Domestic Institutions Back In

Bad Policy under Globalization.......

The structural pressures of openness are supposed to work their effects on policy in the following way: economic openness creates a new capitalism of ‘entry’ and ‘exit’.

As barriers to trade, investment, and finance fall, governments increasingly compete to attract and retain mobile capital; they must therefore pursue policies that complement the preferences of multinational corporations (MNCs) and financial markets lest these highly mobile investors exercise the exit option and take flight to lower-tax and welfare-conservative environments.

As a result, financial openness and corporate mobility are expected to exert downward pressure on fiscal and social policy, forcing welfare retrenchment, corporate tax cuts, and shifts in the tax burden from capital to labour. This is the effect popularly known as a ‘race to the bottom’.

Good Government Policy....

Strong exposure to world markets (qua globalisation) has a tendency to heighten insecurity among broad segments of the population, which in turn generates demand for social protection. So rather than implementing generalised cuts, governments will often have strong political incentives either to sustain or to increase domestic compensation.

Good Policy......... that the strength of economic opennesscorrelates with a heightened perception of vulnerability, giving rise to an ideology of social partnership and complementary (corporatist) institutional arrangements.

---- inovation policy---- strategic industrial policy

1. Menghindari Democracy Dilemma

4. Mengelola dilema short-

term dan long-term goals

3. Menyeimbangkan dimensi trust

dan distrust dalam demokrasi

2. Mengatasi Democracy Irrationality

DomesticPolitical

Institution

I. Democracy Dilemma: Efisiensi vs Political Consent (ijin politik)Economic Development Policy vs Politik Balas JasaKnowledge vs Public Opinion

II. Mengatasi Irrationality dalam Demokrasi

Popular Judgment (warren hardin error)Political ImageBrandingLogo, etc

III. Trust and Distrust Democracy

Demokrasi adalah mata uang dengan sisi “distrust” dan “trust”. Dilema antara self-interest dan social cooperationEconomic development memerlukan competition dan cooperation

Perubahan Lingkungan bisnis

global?“externalized risks and threats

andopportunities”

Perubahan Setting Global

Liberalisasi Rejim / Organisasi Ekonomi InternasionalPerkembangan Teknologi InformasiPerubahan karakter Kompetisi

Karakter KompetisiEntry Barriers:(1) production-related scale economies, including learning economies, threshold barriers and economies of scope; (2) barriers related to intangible investments required for developing the knowledge and competence base as much as complementary support services; (3) barriers to entry and exit of supplier networks, such as subcontracting and OEM (original equipment manufacturing) arrangements; (4) barriers related to sales, marketing (especially with regard to distribution channels and the creation of global brand images), and after-sales services.

Competition was…Competition used to center primarily on cost reduction. Non-price competition was largely restricted to a few high value-added market niches.

or

Focus of competition has been on product differentiation, based on proprietary designs and market segmentation.

Competition is… In almost every sector of the industry, firms have to cope with much more complex requirements, where price and non-price forms of competition are closely intertwined.

Price competition + product differentiation + speed to marketScale EconomiesComplex Capability Requirements

Competition is…

Volatility:

(i)periodic spurts of very rapid capacity expansion;

(ii)a complex supply chain that leads to periodic shortages in key components;

(iii)highly volatile demand patterns.

Partial Globalization Strategies

(one way direction)(a) the complete centralization of production in one location,

usually the home country of the corporation, that serves as the sole export platform;

(b) attempts to shift from export-led to investment-driven international market share expansion through the wholesale transfer of the domestic production system;

(c) decentralization of international production, both in terms of geographic dispersion and in terms of the governance structure;

(d) "global strategies“: the parent company tries to impose centralized control over existing international operations and suppliers.

Global Production Network

Global

Production: goods and services

Network: bukan pasar, bukan hirarki, tetapi

“kerjasama” antara aktor yang relatif otonomi dan bersifat dilematis,

bisa dalam pengertian non-equity cooperation

Network of Firms

Inter-Firm GPN1. Supplier networks: between a client (the "focal company" which can be either a manufacturer/final assembler or mass merchandiser) and its suppliers of intermediate production inputs, such as materials, parts and components, sub-assemblies, and software. Supplier networks are defined to include subcontracting and a variety of other arrangements, such as consignment assembly, original equipment manufacturing (OEM), original design manufacturing (ODM), "contractmanufacturing," and "turnkey production."

Producer networks: co-production arrangements that enable competing producers to pool their production capacities, financial capabilities, and human resources in order to broaden their product portfolios and geographic coverage.

Technology cooperation networks facilitate the exchange and joint development of product design and production technology, involve cross-licensing and patent-swapping, and permit the sharing of R&D. Under such arrangements, knowledge typically flows in both directions and all participants need to master a fairly broad array of technological capabilities.

Customer networks: forward linkages of manufacturing companies with distributors, marketing channels, value-added resellers, and end users, in order to facilitate the penetration of existing markets or the development of new markets.

Standards coalitions are initiated by potential global standard setters with the explicit purpose of locking-in as many firms as possible into their proprietary product, architectural, or interface standards.

Determinants of Networking and Strategic Coupling

Cost reduction and market access (spatial fix) exploitation of uncertainty through improved operational flexibility, compression of speed-to-market through reduced product development and product life cycles (organizational fix) learning and the acquisition of specialized external capabilities (technological fix)Shifting of market penetration strategies from established to new and emerging markets.

Threats or Opportunities?

KLASIFIKASI PERUSAHAAN MENURUT POLA INTERNASIONALISASI

Regional exporterRegional exporter adalah perusahaan yang hanya memiliki intensitas R&D yang rendah, hanya meliputi cakupan geografis yang terbatas, serta rang memiliki motivasi untuk melakukan ekspansi bisnis. Namun demikian, perusahaan eksportir regional memiliki kecanggihan dalam strategi produk serta melakukan investasi yang besar dalam penjualan dan distribusi. Contohnya adalah Hanwha dan Hyosung dari Korea Selatan.

Global exporter dan importer

Global exporter dan importer: perusahaan dalam kelompok ini melakukan investasi besar-besaran dalam pengembangan sales dan distribusi, akan tetapi hanya sedikit mendorong proses penelitian dan pengembangan. Perusahaan lebih terfokus kepada pengembangan kualitas produk daripada produksi massal dan persaingan harga. Pengembangan pasar internasional dilakukan secara bertahap.Contoh: Hutchison-Whampou (Hong Kong) and Li-Fung Ltd. (Hong Kong).

OEM ODM technology fast follower

OEM ODM technology fast follower. Kluster ini melakukan investasi dalam inovasi produk lebih banyak daripada dalam pemasaran. Namun, dibanding dengan kluster keempat, komitmen inovasinya sedikit lebih rendah. Perusahaaan dalam kluster in hanya fokus kepada pengembangan teknologi yang telah matang untuk menghasilkan produk-produk yang terstandardisasikan untuk pasar global. Contoh: Lite-on and Hyundai Mobis.

OEM/ODM Technology Leader

OEM/ODM Technology Leader. Perusahaan yang termasuk di dalam kelompok ini sangat memusatkan perhatian kepada penelitian pengembangan dan inovasi sebagai sumber leverage-nya. Perusahaaan ini juga harus mampu beradaptasi dengan perubahan tunutan pasar yang sagat cepat dalam era modern saat ini. Salah satu ciri menonjol dari perusahaan ini adalah tidak banyak melalukan investasi dalam penjualan dan pemasaran, karena hanya berperan sebagai bagian mata rantai pasokan bagi perusahaan-perusahaan downstream. Contoh: TSMC dan Quanta dari Taiwan dan Hynix dari Korea Selatan.

Quanta

Quanta

Global market niche player

Global market niche player: perusahaan dalam kategori ini memiliki intensitas R&D yang tinggi, memiliki cakupan geografis yang luas, namun hanya memiliki penjualan yang menengah. Strategi produknya juga tidak terlalu bervariasi karena hanya terfokus ke ceruk pasar tertentu yang relatf sempit. Contohnya adalah Asus dan Honhai dari Taiwan.

MNC ChallengersMNC Challengers. Perusahaan di kluster ini menjalankan strategi bisnis yang sophisticated, baik dalam pengembangan produk maupun dalam pemasaran. Dalam kategori ini, melakukan investasi yang sangat tinggi dalam inovasi produk dan sekaligus pemasaran global. Oleh karenanya, perusahaan-perusahaan ini berkompetisi langsung dengan MNC. dari negara-negara yang mapan. Contoh: Samsung, LG, Acer, Lenovo.

GLOBALSOURCES.COM

Kawasan Industri Utama di Asia

Determinan Keberhasilan Pembangunan Bisnis

Munculnya Komunitas Transnasional

Perubahan dalam Organisasi Industri

cost reduction (spatial fix)Flexibility (organization fix)Faster time-to-market (technological fix)

Kebijakan Pemerintah (industrial upgrading policy)

Tiga Roadmap Kebijakan Pembangunan Teknologi

Kemitraan strategis (strategic coupling) melalui kemitraan internasional

Kemitraan strategis melalui inovasi domestik

Kemitraan strategis melalui penyediaan platfrom produksi

Kemitraan strategis melalui Kemitraan Internasional

Tujuan Kemitraan Strategis Efisiensi BiayaSpesialisasi VertikalSpeed to Market (fedex, gelogistic, ups, dhl )

Peranan Komunitas Transnasional Transnasional link, business intelligence, pengetahuan pasar

Organisasi Industri Global localization of MNCs

Kebijakan pemerintah Upgrading human capital, infrastruktur dan teknologi

Contoh SingapuraTaipei Hsinchu

Sektor Industri Elektronik, petrokimia, finansial, transport dan logistik

Tujuan kebijakan teknologi Catch-up

Kemitraan strategis melalui Inovasi Domestik

Tujuan Kemitraan Strategis Memanfaatkan subsidi yang disediakan pemerintahMemenangkan kompetisiMembangun perusahaan flagshipMemanfaatkan produk dan proses teknologi baru

Peranan Komunitas Transnasional

Reverse brain drain

Organisasi Industri Path skipping, path creating, merek nasional

Kebijakan pemerintah Kebijakan industri strategis

Contoh Seoul Metropolitan Area (Korsel),Taipei–Hsinchu (Taiwan), Singapura,Yangtze and Pearl River Deltas(Cina)

Sektor Industri Elektronika, otomotif, transportasi dan komunikasi

Tujuan kebijakan teknologi Hegemoni teknologi baru di tingkat global

Kemitraan strategis melalui Platform Industri

Tujuan Kemitraan Strategis Biaya produksi yang lebih rendahSubkontrak dan outsourcing internasionalMemanfaatkan teknologi transportasi yang baik

Peranan Komunitas Transnasional Kompetensi manajerial dan perantara

Organisasi Industri UMKM, sentra industri

Kebijakan pemerintah Insentif fiskal dan finansial

Contoh Penang,Selangor (Malaysia),Greater Bangkok (Thailand), Yangtze dan Pearl River Delta(Cina)

Sektor Industri Elektronika, otomotif, apparel, mainan anak

Tujuan kebijakan teknologi OEM ODM fast followers

Peta Jalan Perubahan Teknologi dan Pasar

Persiapan (Preparation):Menyiapkan penanaman modal ditambah skill,

pengetahuan, kepastian hukumPembenihan (Seeding):Akuisisi teknologi dan persiapan untuk

mengadaptasi dan memperbaiki teknologiPropagasi:Finansial, pengembangan infrastruktur,

pengembangan produk, penguatan litbang untuk membangun teknologi baru

Keberlanjutan (Sustainability):Pendalaman struktur industri, kapasitas riset,

Struktur sosial inovasi

Tahap-Tahap Pembangunan

Model I: dengan menggunakan modal dalam negeri dan bertumpu pada perusahaan besar (model Korea)Model II: dengan mendorong penguatan kapasitas riset dan inovasi darah dan mendorong pembenukan UKM (model Taiwan)Model III: menggunakan PMA sebagai basis pembangunan (model Singapura)

Model Pembangunan

Indigenisasi: menyerap teknologi dari luar, menyesuaikan dan memperbaiki

Difusi: menyebarkan teknologi ke semua stakeholder

Nurturing: Mengembangkan teknologi baru

Tujuan

Sumber: Mathews dan Cho, Tiger Technology: The Creation of a Semiconductor Industry in East Asia, 2000

ORGANIZING CATCH-UP POLICY WITHIN GLOBAL PRODUCTION NETWORK

Studi KasusSuzhou Industrial Park

Yangtze River Delta, Cina

VIDEO

Bacaan:Dent, M. Christopher. “Transnational Capital, the State and Foreign Economic Policy: Singapore, South Korea and Taiwan,” 2003. Ernst, Dieter, “From Partial to Systemic Globalization: International Production Networks in the Electronics Industry”, 1997Yeung, Henry Wai-Chung, “Regional Development and the CompetitiveDynamics of Global Production Networks: An East Asian Perspective”, 2009Mathews and Cho, Tiger Technology, 2000Weiss, Linda (ed.), States in the Global Economy: Bringing Domestic Institutions Back In, 2003