The new sociopolitical and economic dynamics of digitalisation and automation in Romania's automotive industry

Popescu, Irina Alina et al. Article The new sociopolitical and economic dynamics of digitalisation and automation in Romania's automotive industry Amfiteatru Economic Provided in Cooperation with: The Bucharest University of Economic Studies Suggested Citation: Popescu, Irina Alina et al. (2025) : The new sociopolitical and economic dynamics of digitalisation and automation in Romania's automotive industry, Amfiteatru Economic, ISSN 2247-9104, The Bucharest University of Economic Studies, Bucharest, Vol. 27, Iss. 68, pp. 55-75, https://doi.org/10.24818/EA/2025/68/55 This Version is available at: https://hdl.handle.net/10419/318583 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Transformations of the Socio-Political-Economic Systems at the Confluence with New Technologies: Revisiting the “Liberalism Versus Statism” Dilemma in the Context of the Industrial Revolution 4.0 AE Vol. 27 • No. 68 • February 2025 55 THE NEW SOCIOPOLITICAL AND ECONOMIC DYNAMICS OF DIGITALISATION AND AUTOMATION IN ROMANIA'S AUTOMOTIVE INDUSTRY Irina Alina Popescu1 * , Irina Elena Ion2, Klára Čermáková3, Radu Cristian Mușetescu4, Ramona Iulia Dieaconescu5 and Ana-Maria Marinoiu6 1)2)4)5)6) Bucharest University of Economic Studies, Romania 3) Prague University of Economics, Czech Republic Please cite this article as: Popescu, I.A., Ion, I.E., Čermáková, K., Mușetescu, R.C., Dieaconescu, R.I. and Marinoiu, A.M., 2025. The New Sociopolitical and Economic Dynamics of Digitalisation and Automation in Romania’s Automotive Industry. Amfiteatru Economic, 27(68), pp. 55-.75 DOI: https://doi.org/10.24818/EA/2025/68/55 Article History Received: 28 September 2024 Revised: 10 November 2024 Accepted: 20 December 2024 Abstract The Fourth Industrial Revolution, characterised by the convergence of digital, biological, and physical innovations, is fundamentally transforming industries, economies, and the very fabric of society. This study focusses on the Romanian automotive industry - a sector at the forefront of technological disruption, examining the impact of digitalisation and automation (D&A) on the labour market and the broader societal implications. First, this research examines the perceptions and experiences of employees and trade union representatives within this industry, addressing critical issues such as changes in working conditions, job security, workload, and workplace safety. Second, this study discusses how these firm-level changes in D&A inform the emerging political economy of digitalisation in Romania, with a special emphasis on the ongoing debate between liberalism and statism. The research is based on the analysis of secondary sources, as well as the analysis and interpretation of valuable primary data collected through the semi-structured interview method, explored in depth with the help of latent content analysis. The findings of this study indicate a predominantly positive perception of D&A implementation, but are accompanied by several challenges, especially changes in working conditions and the * Corresponding author, Irina Alina Popescu – e-mail: [email protected] This is an Open Access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. © 2025 The Author(s). AE The New Sociopolitical and Economic Dynamics of Digitalisation and Automation in Romania’s Automotive Industry 56 Amfiteatru Economic nature of managerial work. Findings offer insights into the intersection of technological progress and sociopolitical dynamics and highlight the need for innovative, well-targeted public policies to manage these transformations, such as industrial, labour market, and continuing education policies, also inviting us to imagine a new social economy of advanced technological progress in the context of the Fourth Industrial Revolution. Keywords: digitalisation, automation, labour market, technology, sociopolitical economic systems, automotive industry JEL Classification: O33, P16, J23, J24 Introduction The dawn of the Fourth Industrial Revolution, characterised by the fusion of digital, biological, and physical innovations, has ushered in an era of unprecedented technological advancement, bringing society in the face of a much feared ‘robotic brutality’ (Prainsack, 2020, p. 439). This technological leap forward, in which digitalisation and automation (D&A) play a significant role, is reshaping industries and economies, also altering fundamentally the fabric of society, the welfare state, and, on the overall, socioeconomic and political systems. This conjecture has inspired, starting with the 2000s, a buoyant scientific literature on the relation between technology and socioeconomic and political transformations (Eichhorst et al., 2020; Bryan and Williams, 2021; Busemeyer et al., 2022; Collington, 2022; Acemoglu, 2023; Bucur and Rus, 2024). Based on theoretical ground, these advancements are also revitalising the age-old debate between liberalism and statism, a tension that has long been a central theme in political and economic discourse. This central dilemma has resurfaced with renewed vigour and complexity in the policy arena and in research (Azoulay et al., 2019; Ridley, 2020; Busemeyer et al., 2022; Acemoglu, 2023). This debate is particularly pertinent in Europe, where the tradition of social democracy often stands in contrast to more liberal market-oriented approaches and where there is an increased social investment, although to different degrees for the member states (Busemeyer et al., 2022). If until recently technology was not the main catalyst of welfare regimes, now a new political economy of digitalisation and a new economy of the welfare state are silently emerging (Eichhorst et al., 2020; Ridley, 2020; Collington, 2022). Still, despite the research ‘enthusiasm’ for these perspectives, the logic of the digital economy, its future zeitgeist, social contract, and policy instruments remain rather unclear (Collington, 2022; Busemeyer et al., 2022) in worldwide social sciences, including Romania, in which this type of scientific preoccupation is limited and fragmented. In this context, this study addresses these research gaps by providing an in-depth analysis of the impact of emerging technologies, specifically D&A, on sociopolitical and economic systems, with a focus on the labour market in the automotive industry, currently at the forefront of technological disruption. This research addresses a significant gap in the academic literature on the impact of digitalisation and automation (D&A) on the workforce in the automotive industry by focussing on the employees and union leaders from a local context (Romania), a dimension not explored in existing research. Although several previous studies (Türkes et al., 2019; Cséfalvay, 2020) have analysed the general implications of D&A on the workforce, these do not provide a detailed understanding of individual-level dynamics, such as the specific collaborative attitudes of production line employees or contextual union strategies. Transformations of the Socio-Political-Economic Systems at the Confluence with New Technologies: Revisiting the “Liberalism Versus Statism” Dilemma in the Context of the Industrial Revolution 4.0 AE Vol. 27 • No. 68 • February 2025 57 Furthermore, they do not address the implications of D&A on sociopolitical and economic systems, focusing mostly on the point effects of emerging technologies. This gap is concerning given the industry’s important role in the national economy and labour market. The limited exploration of D&A’s implications in Romania, coupled with the challenges of implementing European social protection policies, highlights the need for more comprehensive research. This study makes a valuable contribution by identifying unique aspects, such as the pressure of digitised work pace, the redefinition of supervision through advanced technologies, and the integration of reluctant employees. This level of granularity, in combination with local empirical data, expands theoretical and practical discussions about how D&A shapes working conditions and provides new directions for policies for the equitable deployment of technologies. In this context, this study aims to examine how D&A changes can inform the new political economy of digitalisation in Romania, with a particular focus on revisiting the liberalism versus statism dilemma. The degree of novelty and originality of the article is particularly given by two essential dimensions of our research. First, we explored the effects of D&A as perceived by employees in the automotive industry, who are among the most affected stakeholders by technological change. This research direction focused on changes in working conditions, job losses, workload, and work safety. Second, the research proposes a scientific reflection on the intersection between D&A effects and sociopolitical and economic organisation, with an emphasis on re-discussing the classic liberalism-statism dilemma. The achievement of these research objectives is based, from a methodological point of view, on the collection of primary data through semi-structured interviews conducted with 21 employees, both in management and execution positions, some of them trade union representatives, from two large manufacturers (‘Prod. 1’, ‘Prod. 2’) and a component supplier company (‘Supplier’) from the automotive sector in Romania. The interviews were carried out in the context of the European funded project BARMETAL (Digitalisation, Automatisation, and Decarbonisation: Opportunity for Strengthening Collective Bargaining in the Metal Sector) implemented by the Bucharest University of Economic Studies in the period 2022-2024. Data analysis and interpretation were conducted within the framework of pluralistic economic thought, using a qualitative research methodology to explore participants’ perceptions and reflect on the impact of D&A on socio-political and economic systems. Next, the study presents the current state of knowledge and the research methodological framework, followed by the exposition and interpretation of the scientific results regarding the perceived effects of D&A, with an emphasis on exploring how these influence contemporary sociopolitical and economic systems, thus revitalising the dilemma classic liberalism – statism. The concluding section suggests both the need and some of the possibilities for a new social economy of advanced technological progress capable of meeting the current challenges posed by D&A. 1. Literature review The relationship of sociopolitical and economic systems with technology began to be explored in the scientific literature starting in the 2000s, as researchers increasingly recognised the significant impact that technological advancements, particularly in digitalisation and automation (D&A), can have on economic structures, labour markets, and AE The New Sociopolitical and Economic Dynamics of Digitalisation and Automation in Romania’s Automotive Industry 58 Amfiteatru Economic governance. This body of work has expanded to examine how these technologies reshape power dynamics, influence policy decisions, and drive socioeconomic inequalities, highlighting the complex relationship between technological innovation and societal change (see, for example, Busemeyer et al., 2022; Tinmaz and Fanea-Ivanovici, 2023). Currently, production jobs are particularly at risk due to automation and the use of robots in factories. However, the services sector is also undergoing significant changes as new software products are introduced (Acemoglu and Restrepo, 2019). Additionally, D&A are driving an increased demand for high qualifications and digital skills (The Council of the European Union, 2023). At the same time, the demand for nonautomated jobs is increasing, with new employment opportunities emerging (Acemoglu and Restrepo, 2018, 2019). In this context, technological progress has come to exert a powerful influence on income distribution, monetary, and social inequality, and consequently, on redistribution policies and social intervention (Prettner and Strulik, 2020; Bryan and Williams, 2021; Acemoglu, 2023). The social protection system and social dialogue are important instruments for reducing job polarisation, traditionally part of the architecture of many European welfare states. For example, recent European legislation (such as Directive (EU) 2019/1152 on Transparent and Predictable Working Conditions in the European Union) supports the revival of the tradition of labour relations and social dialogue, with the final goal of providing improved social protection (European Union, 2019). Several authors (Prainsack, 2020; Busemeyer et al., 2022) have urged for novel and better articulated social and legal norms and institutions adapted to emerging technological changes, such as policies for the labour market, training, education, and welfare (Eichhorst et al., 2020). However, these policies must be informed by empirical evidence. At the European level, several programmes are already in practice to address the challenges posed by Industry 4.0 and support workers’ adaptation to technological change, including in the automotive sector. D&A effects are especially pronounced in the labour markets and at the firm level, affecting the employees. The effects on the labour market are mainly generated by the fact that D&A increase capital and labour productivity, also changing their allocation to production. At the company level, these effects could materialise in productivity gains and improved financial results (Acciarini et al., 2022). Still, many other complex changes are affecting both individual actors and holistically the entire market, such as a massive transformation in the nature of work. In this sense, changes in important business functions, such as management and control, were signalled in the direction of ‘intensification’ of managerial work, the use of linear control methods, and digitalised data (Bonekamp and Sure, 2015). In some cases, data on workers’ productivity are provided directly by different gadgets wore by workers at work, which monitor in real time their actions and performances, suggesting the risks of operating a ‘superpanopticon’ (Poster, 1990) designed for permanent surveillance. Intensified supervision leads to a decrease in worker control and autonomy (Moore et al., 2017; Crouch, 2018). In general, some effects of D&A at the company level have been viewed positively, including increased interdepartmental and interdisciplinary teamwork, greater flexibility at work, improved employee well-being, enhanced teleworking options, better work-life balance, and more efficient communication (Bonekamp and Sure, 2015; Jasova and Kaderabkova, 2021). However, other effects have also been perceived negatively, such as precarious employment, low social protection, alienation of workers, and unauthorised data usage (Acciarini et al., 2022). Other changes impacting employees, companies, and markets relate Transformations of the Socio-Political-Economic Systems at the Confluence with New Technologies: Revisiting the “Liberalism Versus Statism” Dilemma in the Context of the Industrial Revolution 4.0 AE Vol. 27 • No. 68 • February 2025 59 to workers' competencies and job polarisation (Cetrulo et al., 2023). Job polarisation typically occurs between those in medium-skilled occupations and those in low-skilled jobs, which are more susceptible to automation (Balsmeier and Woerter, 2019; Eichhorst et al., 2020). For the automotive industry, various socioeconomic effects of digitalisation and automation (D&A) have been identified, including impacts on employment, particularly an increased demand for a skilled and educated labour force (Cetrulo et al., 2023). Advanced production technologies replace manual work in preparatory tasks, such as welding and mechanical activities. At the same time, new occupations, especially in ICT and engineering, orientated toward fostering innovation, are created in the sector. The existing literature investigating the effects of D&A in the context of Romania is highly fragmented, dealing, for example, with the digitalisation of public services and administration (Panait and Rădoi, 2021; Popescu et al., 2023) or the effects of D&A at company level (Iliescu, 2020; Szentesi et al., 2021; Pînzaru et al., 2022; Stoica et al., 2022). Regarding the research on the adoption of new technologies in the automotive sector in Romania, the existing studies are still few (for example, Türkes et al., 2019 or Cséfalvay, 2020), and these do not address the effects of D&A on sociopolitical and economic systems. Türkeș et al. (2019), for example, surveyed the opinions of managers of small and medium sized companies in Romania regarding technology in the automotive sector. They found that managers had a high level of knowledge of the requirements of advanced technologies and the willingness to use such technology. However, barriers such as limited resources, insufficient manpower, and the pressures derived from continuous employee education impeded the adoption of new technologies. Cséfalvay (2020) pointed out that in Central and Eastern European countries, including Romania, industrial robots are used in a less sophisticated manner. Especially used in production, robots are concentrated in the automotive sector, performing less innovative assembly operations. The relatively high use of robots in the mentioned region depends on the results of localisation strategies of Western companies, as is also the case of their business strategies (Guga, 2023). The scarcity in the field contrasts with the social and economic importance of the Romanian automotive sector, which occupies a central role in the Romanian economy. Manufacturing and trade in the automotive industry are estimated to contribute 28% to the Romanian gross domestic product and 26% to Romanian exports (Ernst, 2022; Popescu and Ion, 2024). In 2023, the sector employed 5.8 % of the Romanian labour force, which is equivalent to 163,000 workers, according to Eurostat (2024). An articulated academic reflection on the intersection between emerging technologies and sociopolitical and economic organisation has been missing from the academic debate in Romania. Similarly, consistent and dedicated public debate or programmes addressing the specific changes produced by technological advancement in the automotive sector are currently absent (Guga, 2023). The Romanian welfare state mainly shares the characteristics of the Central and Eastern European model of welfare, based on a reduced public financial capacity, lower social protection, and lower democratic participation (Alexopoulou et al., 2022). After the fall of the communist regime, the Romanian welfare state has undergone deep and abrupt transformations, mostly marked by a pronounced neoliberal orientation, complemented, however, by well-defined, still under-financed, social, and redistributive policies. From this ‘dualised welfare system’ (Raț et al., 2019), mixed results have emerged, both in terms of economic achievement and social protection. AE The New Sociopolitical and Economic Dynamics of Digitalisation and Automation in Romania’s Automotive Industry 60 Amfiteatru Economic Furthermore, there are difficulties in reducing poverty and inequality and providing effective social protection to vulnerable categories (Ban, 2016; Raț et al., 2019). At the European level, European policies also reflect a hybrid approach that combines elements of both liberal market principles and state intervention, suggesting a general shift in the direction of increasing social investment, as discussed by the scholarly literature (Ridley, 2020; Eichhorst et al., 2020; Collington, 2022). Also, these measures illustrate a changing role of the state toward maximising employability and productivity, meanwhile, providing ex ante support to workers, rather than ex post (Eichhorst et al., 2020). In this context, this discussion emphasises the need for a more comprehensive understanding of how technological progress influences the broader sociopolitical and economic systems, particularly in crucial sectors like automotive manufacturing. 2. Research methodology The main objective of the research is to analyse the impact of digitalisation and automation (D&A) on sociopolitical and economic systems, with a special focus on the labour market in the automotive industry in Romania. The research aims to provide a deep understanding of how these emerging technologies influence economic structures, working conditions, job security, and sociopolitical dynamics in the context of the automotive industry. The research also aims to explore the dilemma between liberalism and statism within the new political economy of automation. This study uses an inductive reasoning and qualitative research methodology, since it allows for a detailed exploration of the perceptions and experiences of stakeholders in the automotive industry, in our case, automotive industry employees. Inductive reasoning is a method of evaluating qualitative data that is driven by a set of empirical observations to be analysed with the objective of identifying theoretical patterns. Research begins with a topic and lets data guide theory development. The main purpose of the inductive method is to allow research findings to emerge from primary data without being constrained by formal methodologies (Thomas, 2006). Using qualitative research allows us to explore in depth the complex nuances of personal perceptions and experiences regarding sensitive aspects of D&A in the automotive industry, as suggested by various authors (Grosso et al., 2021; Acciarini et al., 2022). Also, a qualitative approach allows us to contextualise the changes related to D&A according to the specifics of the Romanian automotive industry, in the context where the economic, political, and social conditions significantly influence the way in which D&A are implemented and perceived. The method of semi-structured interviews is recognised as a flexible and adaptable technique to obtain in-depth information about respondents’ perspectives and experiences of the respondents. It combines rigid structural elements (predefined questions) with the flexibility to explore emerging topics during the discussion (Patton, 2002; Kvale and Brinkmann, 2009; Bryman, 2016). In this study, the interview guide included predefined questions to cover key themes (e.g., employee perceptions of D&A, changes in working conditions), but also allowed flexibility to explore emerging topics, such as perceived pressure in the context of digitalised pace of work. This approach ensured the collection of rich and nuanced data, according to the methodological recommendations in the specialised literature. The interview guide was provided by the coordinator of the consortium of Transformations of the Socio-Political-Economic Systems at the Confluence with New Technologies: Revisiting the “Liberalism Versus Statism” Dilemma in the Context of the Industrial Revolution 4.0 AE Vol. 27 • No. 68 • February 2025 61 institutions where the research was carried out and was based on the conceptual framework developed previously, within the BARMETAL research project. The first stage of the research involved extensive documentation related to the sociopolitical and economic context of the Romanian automotive industry, as well as current trends in D&A, analysing automotive industry reports, academic studies, European and national legislation, and official statistics. In the second stage, primary data was collected through semi-structured interviews with 21 executive and managerial employees, some of whom were union representatives, from two car manufacturers (hereafter referred to as ‘Prod. 1’ and ‘Prod. 2’) and an automotive component supplier company (hereafter referred to as ‘Supplier’). Data were collected between February and October 2023. The demographic profile of the respondents can be found in Table no. 1. Table no. 1. Respondents’ demographic data Respondent code Company Function Trade union member Gender (M/F) Age (years) Education R1 Supplier General Director No M 55 Higher education R2 Supplier Technical Director No M 36 Higher education R3 Supplier Milling machine operator No M 37 Secondary education/postsecondary R4 Supplier Machine operator No M 30 Higher education R5 Prod. 1 Production line operator Yes M 40 Secondary education/postsecondary R6 Prod. 1 Quality controller Yes M 28 Secondary education/postsecondary R7 Prod. 1 Responsible with technical and equipment check Yes M 42 Higher education R8 Prod. 1 Basic logistic operator Yes F 36 Higher education R9 Prod. 1 Senior analyst business applications and programme development Yes F 57 Higher education R10 Prod. 1 Quality engineer Yes F 60 Higher education R11 Prod. 1 Camera control operator Yes F 58 Secondary education/postsecondary R12 Prod. 1 Logistics operator Yes F 30 Secondary education/postsecondary R13 Prod. 1 Operator Yes M 42 Secondary education/postsecondary R14 Prod. 1 Operator Yes M 46 Secondary education/postsecondary AE The New Sociopolitical and Economic Dynamics of Digitalisation and Automation in Romania’s Automotive Industry 62 Amfiteatru Economic Respondent code Company Function Trade union member Gender (M/F) Age (years) Education R15 Prod. 1 Analyst of supply chain management Yes M 39 Higher education R16 Prod. 2 President Yes M 52 Higher education R17 Prod. 2 Operator electrician Yes M 40 Secondary education/postsecondary R18 Prod. 2 Installation operator Yes M 38 Higher education R19 Prod. 2 Cargo receptionist Yes M 49 Secondary education/postsecondary R20 Prod. 2 Universal rectifier Yes M 52 Secondary education/postsecondary R21 Prod. 2 Engineer, legal consultant Yes M 46 Higher education Note: Prod. = Car manufacturer; M= masculine; F = feminine Of the total of 21 interviews, 15 interviews were carried out in person in the company premises (‘Prod. 1’, ‘Prod. 2’ and ‘Provider’), while 6 interviews were conducted online through Zoom. The average duration of the interview was 53 minutes. Sampling was carried out according to the principles of theoretic saturation (Flick, 2009), based on which research data collection ceases when the data stop bringing new information on the topic of interest. The interviews were recorded and transcribed in Romanian. After an initial discussion on the profile of participants and their job roles, participants were required to list the technologies they were using in their day-to-day work. Some examples of questions asked to respondents are: ‘In general, what consequences has the introduction of digital technologies and automation had on the organisation of work so far?,’ ‘How did the work process change, and which parts underwent major changes? Why?,’ ‘What have been the changes in the tasks and activities of workers working with these technologies / in these processes? Of what kind?,’ ‘Do you perform more or less tasks after technologisation?,’ ‘Has there been professional enrichment or deskilling?,’ ‘Have your working hours and work rhythms changed?,’ ‘To what extent has your work been standardised?,’ ‘Have there been, or will there be substitution of workers or shifts of workers from one unit to another, from one task to another?’ Latent content analysis was implemented to analyse the primary data collected in this research. Latent content analysis was chosen due to its ability to reveal deeper meanings and themes hidden within a text, which are not immediately obvious. Latent content analysis is a rigorous methodological approach used to systematically analyse textual data, including interview data, and its meanings, supposing the isolation of reduced pieces of the data that correspond to different concepts and the organisation and interpretation of these pieces with the purpose of explaining a phenomenon (Kleinheksel et al., 2020). The process corresponding to this analysis involves a detailed and interpretative examination of the text, requiring a comprehensive understanding of the context in which the communication takes place, as well as the sociocultural norms that may shape the implicit messages conveyed (Atlas.ti, 2024). Coding was carried out manually. Theoretical and emergent codes were Transformations of the Socio-Political-Economic Systems at the Confluence with New Technologies: Revisiting the “Liberalism Versus Statism” Dilemma in the Context of the Industrial Revolution 4.0 AE Vol. 27 • No. 68 • February 2025 69 workers affected by job loss or transition to new fields, thus reducing job polarisation and its associated social risks. Next, labour market legislation must respond to novel challenges and risks associated with the type of work in which human employees interact with robots, such as those observed in our research, for example, an increased pace of robot work, compared to that of humans, new difficulties in robot supervision or both robots and humans’ supervision. Automation and the intensive use of digital technologies on the job require a review of workplace safety and health policies, including the rights of employees regarding electronic surveillance, the ‘right to disconnect’, and the use of personal data. These should include updated regulations to protect workers from risks associated with new technologies, such as technological stress, constant monitoring, and digital ergonomics issues. In general, these two possible interventions for the labour market are in line with existing research that observes an already increasing importance of social investment and intervention (Prettner and Strulik, 2020; Bryan and Williams, 2021; Agemoglu, 2023). In what regards, continuing education policy, the results of this study confirm the need for training or requalification in the context of D&A, as these have proven to be essential tools used by companies to align to D&A and ensure worker protection in the context of technological change. From a public policy perspective, training or requalification courses were instruments that allowed employment maximisation, in line with Eichhorst et al. (2020). Furthermore, insufficient training and requalification was perceived as a harsh barrier to competitiveness. By prioritising continuous education and professional development, societies can better harness the potential of D&A, ultimately driving economic growth and ensuring that the workforce remains relevant and empowered in the knowledge economy (Popescu, 2012). In general, this research reconfirms the importance for human capital policies of skills development and professional requalification in the context of current socioeconomic and political transformations, especially for vulnerable categories of workers, but also, generally, for supporting employment. The study advocates for the need to invest in professional training and retraining of the workforce to adapt to the demands of new technologies. Continuing education policies should include training programmes in digital and technical skills, accessible to all types of workers, to ensure that they can meet the challenges posed by D&A. The findings of this study provide a complex framework for analysing the impact of D&A on the automotive workforce from the perspective of the dilemma liberalism versus statism. On the one hand, the positive perceptions expressed by employees and union representatives could be interpreted as an argument in favour of economic liberalism. It suggests that free markets, supported by technological innovation and firm-level strategic decisions, are able to generate beneficial outcomes for employees and companies without massive government intervention. The fact that employees do not perceive D&A as a threat and that firms invest in training and retraining staff, without resorting to layoffs or wage cuts, supports the idea that market mechanisms can contribute to the adaptation of the workforce to new technological realities through economic incentives. On the other hand, the important role unions play in the adoption of D&A strongly advocates efficient social dialogue. Moreover, the negative aspects highlighted by the study also suggest several limits of a purely liberal approach. The difficulties experienced by employees in maintaining the pace of work imposed by automated technologies, the AE The New Sociopolitical and Economic Dynamics of Digitalisation and Automation in Romania’s Automotive Industry 70 Amfiteatru Economic difficult adaptation of older workers to technological progress, the increased dependence on colleagues, and the complexity of digital surveillance underscore the challenges that D&A can bring in the absence of appropriate regulations. For example, concerns about protecting employees' privacy and the ‘right to disconnect’ point to the need for public policies that protect workers' rights in the face of excessive digitalisation of work. The reduction of human interactions and the increased reliance on digital communication also highlight the potential negative effects of D&A on the cohesion and effectiveness of work teams, suggesting the need for regulatory measures to ensure a balance between technology and human interaction. Overall, the results of our research suggest that there is a sociopolitical and economic dynamic specific to D&A, which generates new needs and social claims in terms of welfare, addressed to a new emerging political economy, as shown by other similar studies (Ridley, 2020; Eichhorst et al., 2020; Collington, 2022). Conclusions This paper provides the results of a detailed research on the impact of new technologies, especially D&A, both at the company level and on the sociopolitical-economic system, starting from the analysis carried out in the Romanian car industry. Analysis of firm-level D&A effects suggested a complex and heterogeneous picture of D&A effects and a set of implications for public policy making. This research provides valuable information on the complex and multifaceted effects of D&A in the automotive industry by identifying four key themes: collaborative attitude, working conditions, high-tech specialisation of the workforce, and labour supervision. The added value of this study lies in the comprehensive assessment made of how these themes, identified through the latent content analysis method, are developed and complemented. Thus, this study also provides practical information for companies, unions, and policy makers on how to ‘navigate’ the opportunities and challenges of technological progress, ensuring that the benefits of D&A are maximised while minimising potential risks to the labour force. The findings of the study reflect the new tensions between liberalism and statism in the context of D&A in the automotive industry. Although market mechanisms and firm initiatives have generated significant positive results, there are clear limits to them that suggest that state intervention is also necessary to protect employee welfare and maintain equity in the context of rapid technological transformations. This argument emphasises the importance of a balanced approach, where both market mechanisms and public policies play a crucial role in managing the impact of D&A on the workforce. Overall, this research shows that a new political economy of digitalisation and a new economy of the welfare state are quietly emerging, while also providing arguments for imagining a new social economy of advanced technological progress capable of responding to today's challenges brought by D&A. Implications for industrial policy, labour market policies, and continuing education policy were also discussed in the research. The present study contributes significantly to the literature on the impact of D&A on the workforce, bringing valuable insights into several relevant theoretical directions. First, the study provides empirical evidence in favour of technological adaptation theory. The results of the study offer empirical evidence on the collaborative attitude of employees toward the implementation of new technologies, complementing the theories of resistance to change and the adoption of innovations. According to Rogers (2003), the acceptance of Transformations of the Socio-Political-Economic Systems at the Confluence with New Technologies: Revisiting the “Liberalism Versus Statism” Dilemma in the Context of the Industrial Revolution 4.0 AE Vol. 27 • No. 68 • February 2025 71 technologies is facilitated by their perception as beneficial. This study supports this perspective, demonstrating that employees perceive technologies as work support, which reduces resistance to change, as suggested by Kotter and Schlesinger (1989). Second, the high-tech specialisation of the workforce, evidenced by reskilling programmes, extends the applicability of human capital theory (Becker, 2009) in the digital age. The study reveals that investments in training increase employee value, which is essential for the integration of advanced technologies. Last but not least, the collaboration between employees and technology highlighted in this study supports the technology-organisation-environment framework (Baker, 2011) that explores the complex relationships between technology, organisational structures, and human interactions. Our study extends these frameworks by empirically detailing the integration of D&A technologies in the automotive industry and the resulting social dynamics. The improved working conditions through automation observed in this study confirm the findings of the work of Karasek and Theorell (1990), who point out that automation can reduce heavy physical tasks and improve safety. However, the intensification of work pace reported by respondents adds an underexplored dimension to the literature, suggesting a reassessment of work-life balance theories in the context of digitalisation. The study on the impact of D&A in the automotive industry in Romania highlights significant managerial implications, focussing on the need for an integrated strategic approach to the management of human resources and operational processes. Managers must develop advanced coordination and supervision skills, given the increasing complexity of automated processes and the extensive use of digital data for decision-making. In addition, continuous training of employees becomes essential to adapt to new technologies, which requires additional investments in professional development programmes. At the same time, managers must navigate the challenges associated with digitised surveillance, maintaining a balance between controlling productivity and respecting employee privacy. In this context, an effective social dialogue, including the participation of trade unions in strategic decisions, becomes vital to ensure a positive organisational climate and a sustainable technological transition. Although this research makes valuable contributions, the conducted study also has several limitations. First, specific to qualitative research, the results cannot be generalised to larger statistical populations. Second, the research is based solely on the opinions of the respondents, which can be distorted by a number of elements, such as lack of information or social desirability. In this context, extending such research, based on quantitative or mixed methods, together with the multiplication of research methods and tools in order to triangulate the results, for example, by analysing financial data of companies or formal policies, could render a richer and more complete picture of the transformations brought about by D&A. This research opens several avenues for future exploration. First, expanding the research through quantitative methods could provide a generalisable picture of the phenomenon, complementing the current qualitative data. Second, a comparative analysis between various industries could highlight sectoral specificities regarding the effects of automation on the labour market. Another direction is the detailed exploration of the public policies needed to support technological transition, with a focus on social protection, continuing education, and regulations on digital work surveillance. It would also be valuable to AE The New Sociopolitical and Economic Dynamics of Digitalisation and Automation in Romania’s Automotive Industry 72 Amfiteatru Economic investigate the relationship between the perception of new technologies and the economic results, which could contribute to the foundation of more effective management strategies. Equally, the analysis of the ethical and legal implications of the use of advanced technologies in industry could complete the picture of the emerging new political economy at the intersection of liberalism and statism. Acknowledgement This research was funded by the EU SOCPL Industrial Relations programme under grant agreement no. 101052331 – ‘Digitalisation, Automatisation and Decarbonisation: Opportunity for Strengthening Collective Bargaining in the Metal Sector (BARMETAL).’ The views expressed in this document are the sole responsibility of the authors and do not necessarily represent the official position of the European Union. 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