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Human Relations
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Post-socialist segmented capitalism: The case of Hungary. Developing business systems theory

Roderick Martin

Central European University Business School (Budapest, Hungary), martinr{at}ceubusiness.com

The article uses business systems theory to analyse post-socialist Central and Eastern Europe, focusing on Hungary. The article briefly reviews five models of post-socialist capitalism — liberal market, coordinated market, heterarchy, neo-colonial and comparative business systems. The article identifies four critical features of postsocialist transformation: asset ownership, capital accumulation, access to local, national and international production systems and the degree of differentiation between state and economy. Four groups — state, privatized, de novo and international — are identified in Hungary, whose business system is segmented, exhibiting a low level of integration. This segmentation is linked to the legacies of socialism, the political history of the transition, including the international context, and uneven post-socialist economic development. The article closes with a plea for `more history and less systems' in the comparative analysis of capitalisms.

Key Words: Central and Eastern Europe • comparative business systems • comparative management {blacksquare}Hungary • post-socialism • segmented capitalism

Human Relations, Vol. 61, No. 1, 131-159 (2008)
DOI: 10.1177/0018726707085948
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