‘Post NIDL' and Industrialization in a Peripheral Society : A Case of Malaysia

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This research addresses the likelihood that globalization in the economy changes strategies of transnational corporations (TNCs) and transforms the existing international division of labor, that is, the new international division of labor ("NIDL") into "post-NIDL". In the shifting process to post-NIDL, affiliates of TNCs located in peripheral societies are likely to be restructured and, as a result, some of peripheral societies are also likely to go up to the semiperipheral status in the world-system as relatively more relevant sites for production of high-end products. This process can be called "semiperipheralization". In this research, following facts were mainly found.(1)In the shifting process to post-NIDL, capital-intensity or automation of production system is supposed to increase in peripheral societies. Field researches confirmed this tendency in a degree, but introduction of "cell production system" is likely to have influences on this tendency.(2)In the shifting process to post-NIDL, skill formations of workers are supposed to proceed and industrial relations will become cooperative in peripheral societies. Field researches confirmed systematization of training programs in almost all Japanese transplants. But small group activities, which are symbols of cooperative industrial relations, were not found in so many transplants and trade unions were not organized in many factories. This means that "despotic" industrial relations are still dominant in Malaysia.(3)In the shifting process to post-NIDL, various relations are supposed to be formed between TNCs and local firms. Field researches confirmed that many Japanese TNCs had subcontracting relations with local firms, but that outsourced products were not necessarily technologically high-end.