Corporate Consociations – Conditions of Success and Failure Cover Image

Корпоративне консоцијације – услови успјеха и слома
Corporate Consociations – Conditions of Success and Failure

Author(s): Stefan Vukojević
Subject(s): National Economy, Business Economy / Management, Fiscal Politics / Budgeting
Published by: Институт за политичке студије
Keywords: corporate consociations; strategy of most similar system design; favourable conditions; Belgium; Bosnia-Herzegovina; Lebanon; Cyprus

Summary/Abstract: In this paper, the author has analysed the presence and impact of favourable conditions on the sustainability of the corporate consociational systems. Corporate consociations have specific (rigid) organization of political institutions; they spring from the clearcut ethnic, religious and linguistic identities of social segments, unlike liberal or liberal/corporate consociations. With the help of the comparative method i.e. the most similar systems design, the author has, based on the presence of favourable conditions, explained different results of political sustainability and stability of corporate consociations. The research sample has included Belgium from 1993 as an example of a successful consociation; Bosnia-Herzegovina from 1995 and Lebanon from 1989 as examples of unstable consociations; Lebanon 1943-1975 and Cyprus 1960-1963 as examples of consociational failures. Theoretical framework consisting of five favourable conditions contributing to consociational stability and sustainability has been applied to the sample. The conditions are: 1) Favourable external environment, 2) Consociational arrangement as a result of internal compromise, 3) Territorial concentration of social segments, 4) Tradition of political accommodation, 5) Acceptance of consociational institutional arrangement. After identifying the conditions and the extent of their presence in the named sample, the author has concluded that each of the favourable conditions does not have the same influence on the explanation of different outcomes concerning the sustainability of corporate consociations from the sample. The explanation of the success of corporate consociations is related to the presence of tradition of political accommodation and acceptance of consociational institutional arrangement, which are present in the successful Belgian case. Instability in B-H and Lebanon from 1989 can be explained on the basis of the vast absence of the named two conditions, whilst they differ from the failure examples (Lebanon 1943-1975 and Cyprus 1960- 1963) in the existence of favourable external environment. Failures in Lebanon and Cyprus can be explained by the absence of conditions 1, 4 and 5.

  • Issue Year: 2017
  • Issue No: 2
  • Page Range: 135-151
  • Page Count: 17
  • Language: Serbian