The Oxford Handbook of Business History (Oxford Handbooks in Business & Management)

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THE OXFORD HANDBOOK OF

BUSINESS HISTORY Edited by

GEOFFREY JONES and

JONATHAN ZEITLIN

OXFORD UNIVERSITY PRESS

OXFORD UNIVERSITY PRESS

Great Clarendon Street, Oxford OX2 6DP Oxford University Press is a department of the University of Oxford. It furthers the University's objective of excellence in research, scholarship, and education by publishing worldwide in Oxford New York Auckland Cape Town Dar es Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi Shanghai Taipei Toronto With offices in Argentina Austria Brazil Chile Czech Republic France Greece Guatemala Hungary Italy Japan Poland Portugal Singapore South Korea Switzerland Thailand Turkey Ukraine Vietnam Oxford is a registered trade mark of Oxford University Press in the UK and in certain other countries Published in the United States by Oxford University Press Inc., New York © Oxford University Press 2007

The moral rights of the authors have been asserted Database right Oxford University Press (maker) First published 2008 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, or under terms agreed with the appropriate reprographics rights organization. Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above You must not circulate this book in any other binding or cover and you must impose the same condition on any acquirer British Library Cataloguing in Publication Data Data available Library of Congress Cataloging in Publication Data Data available Typeset by SPI Publisher Services, Pondicherry, India Printed in Great Britain on acid-free paper by Biddles Ltd., King's Lynn, Norfolk ISBN 978-0-19-926368-4 13579108642

ACKNOWLEDGEMENTS

The Editors would like to acknowledge the editorial and logistical assistance of Katherine McDonald at Harvard Business School in preparation of this Handbook. Katherine took on the responsibility over two years of monitoring the progress of each chapter manuscript, undertook adroit language and style editing, and engaged in regular, sometimes daily, communications with authors. At Oxford University Press, David Musson initiated the entire project, and subsequently he and Matthew Derbyshire have been unfailingly helpful and supportive as it progressed. The whole project proved rather more lengthy and time-consuming than the Editors had imagined. We would therefore like to thank our respective families, Dylan and Rattana, and Claire, Sam, and Josh. Geoffrey Jones Jonathan Zeitlin

CONTENTS

List of Figures List of Tables Noteson the Contributors 1.

x

xi XlI

Introduction

1

GEOFFREY JONES AND JONATHAN ZEITLIN

PART I APPROACHES AND DEBATES 2.

Business History and History

9

PATRICK FRIDENSON

3. Economic Theory and Business History NAOMI

R. LAMOREAUX,

37

DANIEL M. G. RAFF, AND PETER TEMIN

4. Business History and Economic Development

67

WILLIAM LAZONICK

5. Business History and Management Studies

96

MATTHIAS KIPPING AND BEHLUL USDIKEN

6. The Historical Alternatives Approach

120

JONATHAN ZEITLIN

7. Globalization

141

GEOFFREY JONES

PART II FORMS OF BUSINESS ORGANIZATION 8. Big Business YOUSSEF CASSIS

171

viii

CONTENTS

9. Family Business

194

ANDREA COLLI AND MARY ROSE

10.

Industrial Districts and Regional Clusters

219

JONATHAN ZEITLIN

11.

Business Groups and Interfirm Networks W.

12.

244

MARK FRUIN

Cartels

268

JEFFREY FEAR

13.

Business Interest Associations

293

LUCA LANZALACO

PART III FUNCTIONS OF ENTERPRISE 14. Banking and Finance

319

MICHEL LESCURE

15. Technology and Innovation MARGARET B. W. GRAHAM

347

16. Design and Engineering

374

WOLFGANG KONIG

17. Marketing and Distribution

396

ROBERT FITZGERALD

18. The Management of Labor and Human Resources

420

HOWARD GOSPEL

19. Accounting, Information, and Communication Systems

447

TREVOR BOYNS 20.

Corporate Governance

470

GARY HERRIGEL

PART IV ENTERPRISE AND SOCIETY 21.

Entrepreneurship GEOFFREY JONES AND

5°1

R. DANIEL WADHWANI

CONTENTS

22.

Business and the State

ix 529

ROBERT MILLWARD

23. Skill Formation and Training

558

KATHLEEN THELEN

24.

Business Education

581

ROLV PETTER AM DAM

25.

Business Culture

603

KENNETH LIPARTITO

Index

629

LIST OF FIGURES

4.1

4.2 7.1 11.1

12.1

Comparing the optimizing and innovating firm US Old Economy and]apanese business models compared Business enterprises and globalization waves Complex organizational forms and levels of ownership, control, and intragroup/internal transactions A spectrum of cooperation

72

80 144

246 272

LIST OF TABLES

3.1 3·2 3·3 9. 1 12.1 13.1 13.2 13·3

Use of economic theory and methods in articles published in Business History Review Use of economic theory and methods in articles published in Business and Economic History Use of economic theory and methods in articles published in Business History Family business distribution in 1995-2000 Number of domestic cartels Forms of capitalist action Historical processes of peak association formation: a typology Formation, legitimation, and institutionalization of peak associations

Foundation date of the first peak associations in certain industrialized countries 13·5 Modes of interest intermediation during World War II 14.1 Financing patterns and financial systems around 1990 14.2 Banking systems and thrift institutions (% of total assets) 14·3 Banking ratios of commercial banks (1913-14) 17·1 Levels of GDP per capita, 1870-1973 17·2 Growth in consumer expenditure, 1914-1973

41 42 45 201 275 294 301 302

13-4

305 30 8 321 328 333 404 4°7

NOTES ON THE CONTRIBUTORS

Rolv Petter Arndam is Professor of Business History at BI Norwegian School of Management in Norway. He has a Ph.D. in History from the University of Oslo. His research interests include the history of business education, and globalization since the 1980s, with a special focus on emerging economies and cross-cultural management. He is the author of several monographs as well as numerous articles. Trevor Boyns is Professor of Accounting and Business History at Cardiff Business School at Cardiff University,UK, where he is also Assistant Director of the Accounting and Business History Research Unit and Director of Postgraduate Studies. A former President of the Association of Business Historians, he has a Ph.D. from the University of Wales. His research interests include the economic and business history of Wales and the history of the development of cost and management accounting in Europe (especially France, the UK, Italy, and Spain). He has published widely in journals and was the founding assistant editor and currently the joint editor of Accounting, Business & Financial History. Youssef Cassis is Professor of Economic and Social History at the University of Geneva, Switzerland, and a Visiting Fellow at the London School of Economics and Political Science. His publications include City Bankers 1890-1914 (Cambridge, 1994), Big Business: The European Experience in the Twentieth Century (Oxford, 1997), and Capitals of Capital: A HistoryofInternationalFinancial Centres 1780-2005 (Cambridge, 2006). He was the co-founder, in 1994, of Financial History Review, which he co-edited until 2005. He is currently President of the European Business History Association. Andrea Colli is Associate Professor in Economic History at Bocconi University, Italy, where he is the Director of the undergraduate studies program in International Markets and New Technologies and Deputy Director of EntER, a research center on entrepreneurship and entrepreneurs. He has a Ph.D. in Economic and Social History from the same university. His research interests range from family firms to the history of multinationals. He has published several books and articles on the history of the Italian industrial enterprise, the history of family capitalism, and the dynamics of small and medium-sized enterprises. He is currently a member of the Board of the European Business History Association.

NOTES ON THE CONTRIBUTORS

XlIl

Jeffrey Fear is an Associate Professor at the University of Redlands in the United States. He previously taught at Harvard Business School and the University of Pennsylvania. He has a Ph.D. in history from Stanford University. His research interests include the study of organizational capabilities and learning, German and European history, and specializes in German business history. His book, entitled Organizing Control: August Thyssen and the Construction of German Management (Cambridge, Mass., 2005) combines each of these interests. He has published widely in journals. Robert Fitzgerald is Reader in Business History and International Management at Royal Holloway, University of London, UK. He has a Ph.D. from the University of London. He is the author of books and numerous journal articles on labor management, business organization, and comparative and international business, as well as marketing. Patrick Fridenson is Professor of International Business History at the Ecole des Hautes Etudes en Sciences Sociales, Paris, France. He previously taught at the University Paris X-Nanterre, and has been Visiting Professor at the University ofTokyo. He is the author, co-author, or editor of several boks, including The Automobile Revolution (Chapel Hill, NC, 1982), The French Home Front, 1914-1918 (Oxford, 1992), Thomson's First Century (Iouy-en-Iosas, 1995), Histoire des usines Renault, vol. I (Paris, 1998), and the author of many articles. He is a former President of the Business History Conference of the United States and a former member of the Executive Committee of the International Economic History Association. He is editor of the journal Entreprises et Histoire. W. Mark Fruin is Professor ofCorporate and Global Strategy in the College of Business at San Jose State University in the United States. Currently, he is researching governance, functional and performance differences relating to hierarchical and scale-free network organizations. He is also interested in the emergence of organizational and knowledge management practices in different industry and national environments, including China, Japan, and the United States. Howard Gospel is Professor of Management at King's College, University of London; a Research Associate at the Centre for Economic Performance, London School of Economics; and a Fellow of the Said Business School, University of Oxford, all in the UK. His research interests include the development of employer labor policy, corporate governance and human resource management, forms of employee representation, and training and development. He has published widely on these topics in historical and contemporary contexts, often with an international and comparative perspective. Margaret B. W. Graham is Associate Professor of Strategy and Organization at the Desautels Faculty of Management, McGill University, Canada. She holds a Ph.D.

XlV

NOTES ON THE CONTRIBUTORS

in History and an MBA from Harvard University. She has published RCA and the VideoDisc: The Business of Research (1986), R&D for Industry: A Century of Technical Innovationat Alcoa (co-authored by Bettye H. Pruitt) (1990), and Corning and the Craft of Innovation (co-authored by Alec T. Shuldiner) (2001). She is a founding director of the Winthrop Group, Inc., a group of consulting historians and archivists, and for several years in the 1990S she was an executive at Xerox PARC (The Palo Alto Research Center). Gary Herrigel is Associate Professor of Political Science at the University of Chicago, United States. He received his Ph.D. from the Political Science Department and the Program in Science Technology and Society,MIT. His research interests include comparative business history, comparative industrial analysis, political economy, economic sociology, and economic geography. Herrigel has published IndustrialConstructions: The Sources of German IndustrialPower (Cambridge, 1996) and co-edited Americanizaiton and its Limits: Reworking US Technology and Management in Postwar Europe and Japan (Oxford, 2000) with Jonathan Zeitlin, in addition to many scholarly articles dealing with business and industrial governance matters both historical and contemporary. Geoffrey Jones is Isidor Straus Professor of Business History, Harvard Business School, United States. He previously taught at the universities of Cambridge and Reading, and at the London School of Economics, in the UK. He is the author and editor of many books and articles on the history of international business, including British Multinational Banking 1830-1990 (Oxford, 1993), Merchants to Multinationals (Oxford, 2000), Multinationals and Global Capitalism (Oxford, 2005), and Renewing Unilever (Oxford, 2005). He is a former President of both the European Business History Association and the Business History Conference of the United States, and is co-editor of the journal Business HistoryReview. Matthias Kipping is Professor of Strategic Management and Chair in Business History at the Schulich School of Business, York University, Toronto, Canada. He has degrees in history and public administration from Germany, the United States, and France, and held previous appointments at the University of Reading, UK and Universitat Pompeu Fabra, Barcelona, Spain. His main research interest is the international transfer of management knowledge, in particular the evolution and role of management consultants and management education. He has published widely on these topics in business history and management journals. A book on The Management Consultancy Business in Historical and Comparative Perspective is forthcoming with Oxford University Press. Wolfgang Konig is Professor of the History of Technology at the Technical University of Berlin, Germany. He earned distinctions at the Verein Deutscher Ingenieure and the Verband der Elektrotechnik, Elektronik, Informationstechnik (VDE) for his contributions on the history of technology and electrical engineering and on

NOTES ON THE CONTRIBUTORS

XV

technology assessment. His interests include the history of education, the engineering profession, and mechanical and electrical engineering, the historiography of technology, technology assessment, and the philosophy of technology. He is currently working on technology in consumer society and is finishing a book on the technical interests of Emperor Wilhelm II. Naomi R. Lamoreaux is Professor of Economics and History at the University of California, Los Angeles in the United States and a Research Associate of the National Bureau of Economic Research. She received her Ph.D. in 1979 from the Johns Hopkins University. She has written The GreatMerger Movement in American Business, 1895-1904 (Cambridge, 1985) and Insider Lending: Banks, Personal Connections and Economic Development in Industrial New England (Cambridge, 1994), as well as a number of articles on various topics in business history, financial history, and the history of technology. Her current research interests include projects on the organization of invention in the late nineteenth and early twentieth century United States, corporate governance and business's choice of organizational form in the United States and France in the same period, and the emergence of the public/private distinction in American history. Luca Lanzalaco teaches Political Science and Public Policy at the University of Macerata, Italy. He is the author of numerous books and articles in Italian and English on political institutions and the organization of business interests, including

Dall'impresa all'associazione. Le organizzazioni degli imprenditori: La Confindustria in prospettiva comparata (Milan, 1990); Le politiche istituzionali (Bologna, 1995); Istituzioni, organizzazioni, potere: Introduzione all'analisi istituzionale della politica (Rome, 1995); and Istituzioni, amministrazioni, politica: Analisi delle istituzioni e ruolo degli apparati amministrativi (Naples, 2000). William Lazonick is University Professor at the University of Massachusetts Lowell, United States, and Distinguished Research Professor at INSEAD, France. His research seeks to understand how institutions and organizations support innovative enterprise, and the implications for income distribution and employment stability. Michel Lescure is Professor of Economic and Social History at the University of Paris X-Nanterre, France. His publications on business and financial history include Les banques, l'Etat et le marche immobilieren France al' epoque contemporaine (Paris, 1982), PME et croissance economique en France dans les annees 1920 (Paris, 1996), Banques locales et banques regionales en Europe au XXe siecle, edited with Alain Plessis (Paris, 2004). He is currently the manager of the research center Institutions et Dynamiques Historiques de l'Economie. Kenneth Lipartito is Professor of History at Florida International University, United States, and editor of Enterprise & Society: The International Journal of

XVI

NOTES ON THE CONTRIBUTORS

Business History. A specialist on technology, business, and culture, he is the author or editor of five books, including Constructing Corporate America: History, Politics, Culture (Oxford, 2004), Investing for Middle America: John Elliott Tappan and the Origins of American Express Financial Advisors (New York, 2001), and The Bell System and Regional Business: The Telephone in the South, 1877-1920 (Baltimore, 1989). His articles have appeared in numerous journals. Robert Millward has been Professor of Economic History at the University of Manchester in the UK since 1989, having previously held the Chair in Economics at the University of Salford. His research interests are in economic organization, including the history and economics of industry and the public sector. He has published widely in journals. His latest book is Private and Public Enterprise in Europe: Energy, Telecommunications and Transport: c 1830-1990 (Cambridge, 2005). Daniel M. G. Raff is Associate Professor ofManagement at the Wharton School and Associate Professor of History in the School of Arts and Sciences at the University of Pennsylvania in the United States. He is also a Research Associate of the National Bureau of Economic Research. He previously held teaching appointments at the business and law schools ofColumbia University, the Harvard Business School, and Oxford University. He has published widely in journals such as AmericanEconomic Review, American Historical Review, Business History Review, Journal of Economic History, and Journal of Political Economy. Mary Rose is Professor of Entrepreneurship in the Institute of Entrepreneurship and Enterprise Development in the Management School at Lancaster University, UK. She specializes in business history, especially international perspectives on family business and also the history of textiles. Throughout, her work has linked business history methodology with the study of entrepreneurship and her most recent work explores these links to the field of innovation. She has published numerous books, edited collections, and journal articles. She is Director of the Pasold Research Fund and was President of the European Business History Association 2003-5·

Peter Temin is Elisha Gray II Professor of Economics at the Massachusetts Institute of Technology (MIT), United States. He was a Junior Fellow at the Harvard Society of Fellows and has a Ph.D. in Economics from MIT. He was Head of the Economics Department and currently is its Director of Graduate Studies. His research interests include the development of American business and industry in the nineteenth and twentieth centuries. He has written books on the iron and steel and pharmaceutical industries, edited books on business history more generally, and written many articles on business and economic history. Kathleen Thelen is the Payson S.Wild Professor of Political Science at Northwestern University in the United States, and a Permanent External Scientific Member of

NOTES ON THE CONTRIBUTORS

XVll

the Max Planck Institute for the Study of Societies in Cologne, Germany. Her most recent single-authored book, How Institutions Evolve: The Political Economy of Skills in Germany, Britain, the United States and Japan (Cambridge, 2004) was selected as winner of the 2006 Mattei Dogan Award of the Society for Comparative Research and co-winner of the 2005 Woodrow Wilson Foundation Award of the American Political Science Association. Other recent publications include Beyond Continuity: Institutional Change in Advanced Political Economies (co-edited with Wolfgang Streeck, Oxford, 2005). Behlul Usdiken is Professor of Management and Organization at Sabanci University, Istanbul, Turkey. He has previously taught at Bogazici University and Koc University. His research has appeared in numerous journals. He was co-editor of Organization Studies 1996-2001. His research interests are in organization theory, history of managerial thought, and history of management education. R. Daniel Wadhwani is Assistant Professor of Management and Fletcher Jones

Professor of Entrepreneurship, University of the Pacific in the United States. He previously taught at Harvard Business School and the University of Pennsylvania. His research interests include entrepreneurship and financial system development in historical perspective. His co-authored paper with Geoffrey Jones, "Schumpeter's Plea: Historical Approaches to the Study of Entrepreneurship': won the Best Conceptual Paper Prize from the American Academy of Management's Entrepreneurship Division in 2006. Jonathan Zeitlin is Professor of Sociology, Public Affairs, Political Science, and History at the University of Wisconsin-Madison in the United States where he is also Director of the Center for World Affairs and the Global Economy (WAGE) and the European Union Center of Excellence. He previously taught at Birkbeck College, London, and was Research Fellow at King's College, Cambridge, in the UK. He is the author and editor of numerous books and articles on the comparative and historical analysis of business organization, employment relations, and socia-economic governance, including Local Players in Global Games: The Strategic Constitution of a Multinational Corporation (Oxford, 2005), Governing Work and Welfare in a New Economy: European and American Experiments (Oxford, 2003), Americanization and its Limits: Reworking US Technology and Management in PostWarEurope andJapan (Oxford, 2000), and World ofPossibilities: Flexibility and Mass Production in Western Industrialization (Cambridge, 1997). He is co-editor of the journal Socio-Economic Review, a member of the editorial board of Enterprise & Society, and a former Trustee of the Business History Conference.

CHAPTER 1

INTRODUCTION GEOFFREY JONES JONATHAN ZEITLIN

THIS Handbook provides a state-of-the-art survey of research in business history. Business historians study the historical evolution of business systems, entrepreneurs, and firms, as well as their interaction with their political, economic, and social environment. They address issues of central concern to researchers in management studies and business administration, as well as economics, sociology, and other social sciences, and to historians. They employ a range of qualitative and quantitative methodologies, but all share a belief in the importance of understanding change over time. As the chapters in this Handbook show, this research domain is wide-ranging, dynamic, and has generated compelling empirical data, which sometimes confirms and sometimes contests widely held views in management and the social sciences. However, much of this research is presented in specialist journals and in books, a form of publication which business historians-like other historians-regard as essential for understanding complex issues, but which most management and social science researchers seldom read. As a result, business history research is often overlooked, even by scholars who assert that "history matters" or emphasize the importance of path dependencies. This Handbook seeks to liberate this research, by presenting it in a form that researchers in other disciplines can discover and access. For many years by far the most recognized scholar in business history was Alfred D. Chandler Jr. Although business history had been written for several decades before Chandler began publishing in the late 1950S and 1960s, he is rightly

2

INTRODUCTION

regarded as the founder of the modern subject. Chandler was so influential not only because he undertook first-rate historical research, but also because he advanced a number of general propositions which exercised enormous influence on a generation of management researchers. In three major studies, each dealing with the growth of big business in manufacturing since the nineteenth century and its role in the growth of the United States as the world's largest economy, Chandler identified the role of organization building and professional management in the performance of firms. Chandler (1962), in a study which considers the growth of the multidivisional organization during the first half of the twentieth century, argued that new organizational structures result from changes in the strategic direction of firms. Chandler (1977), which examined the rise of large-scale business in the United States before 1940, explored why professional managers replaced markets in co-coordinating goods and services. Chandler (1990), which made a comparison between the United States, Great Britain, and Germany, showed how firms that made a three-pronged investment in production, distribution, and management were able to become first-movers in many industries. The influence of Chandler's insights and research is acknowledged in many essays in this volume. Some essays are focused on the central themes in Chandler's work, such as the growth of big business (Cassis) and innovation (Graham). However the chapters in the Handbook also demonstrate how far contemporary business history has moved beyond the Chandlerian paradigm, with its focus on large manufacturing firms, mass production, mass distribution, and corporate R&D; its presentation of the US case as a normative, even teleological model of business development; and its explanation of the rise of the modern managerial enterprise as a functional response to the imperatives of markets and technologies. The chapters in this Handbook demonstrate how research agendas have changed and broadened. There is much more research on forms of business enterprise beyond the large, vertically integrated, horizontally diversified, professionally managed corporation. These include industrial districts and clusters (Zeitlin), family enterprises (Colli and Rose), business groups (Fruin), and entrepreneurial startups (Jones and Wadhwani). There is also much more emphasis on the porous and variable boundaries of the firm (many of whose "core" functions such as finance, research, or hwnan resource management may be wholly or partially externalized) in different national, sectoral, and historical contexts, as well as on the reciprocal interactions between business enterprises and their cultural and political environment. There has also been a distinct shift in chronological focus. While the hundred years between 1850 and 1950 were central to Chandler's work, the Handbook essays report extensive research conducted on the business history of the second half of the twentieth century. This was an era during which, for example, large diversified and integrated firms were replaced in part by markets or networks, while the global pre-eminence afUS-based firms was challenged in many sectors.

INTRODUCTION

3

Even where the focus remains Chandlerian, addressing big business, mass distribution, or corporate R&D, the Handbook chapters demonstrate how recent scholarship has greatly qualified if not overturned altogether some ofthe key claims of the Chandlerian paradigm, concerning the national and sectoral incidence of large managerial enterprises, the origins and effectiveness of the multidivisional form, and the centrality of internal "paths oflearning" to technological innovation. Business historians have not converged on a full-fledged alternative to the Chandlerian paradigm, but the field has nonetheless evolved over the past generation in a much more open and pluralistic direction. The Handbook shows that the growth of comparative research has been an important driver of changing scholarly agendas. While the prevalence of quantitative methodologies and the consequent need for large datasets has contributed to an overwhelming focus on the United States in many areas of management research, the chapters in this Handbook demonstrate how far business history has developed into a truly international and comparative field, and how much it has to gain by embracing a more fully global perspective. Most business historians still work primarily within their own national frameworks. This provides one important obstacle to accessing the literature, which is often written in languages other than English. However, as the following chapters show, the leading scholars in the field are increasingly capable of drawing sophisticated, fine-grained comparisons across different countries and regions, at least among the advanced industrialized economies of North America, Western Europe, and East Asia. A number of the contributors to this Handbook examine the cross-border activities and strategies of firms, states, business associations, cartels, entrepreneurial diaspora, and other transnational actors. Their international and comparative perspective raises new questions about national trajectories of business development, and enables business historians to contribute actively to current debates in adjacent fields such as comparative political economy and global history. The wide-ranging topics and approaches covered by this Handbook reflect the fact that business history, as both a body of literature and a community of academic researchers, has both a narrow and a broad definition. The narrower definition includes researchers who conduct primary archival research, although using a plurality of sources and methods, on the history of business enterprises, who belong to the professional business history societies now established in many countries, and publish in the "core" business history journals, including Business History, Business History Review, Enterprises et Histoire, Enterprise & Society, Japan Business History Review, and Zeitschrift fur Unternehmensgeschichte. The broader definition comprises scholars from a variety of social science disciplines (including management studies) who study the historical development of business (sometimes doing original archival research of their own, and sometimes bringing new theoretical perspectives and conceptual frameworks to bear on existing research).

4

INTRODUCTION

These two circles interact and enrich the field, which remains open to multiple methodologies and new questions, without falling under the spell of crippling orthodoxies which constrain research agendas. This is evident in the four opening chapters of the Handbook on the relationship between business history and other adjacent disciplines (history, neo-classical economics, evolutionary/institutional economics, and management), as well as in many of the more thematic chapters that explore key issues in contemporary political economy and/or management debates, including corporate governance (Herrigel), entrepreneurship (Jones and Wadhwani), industrial districts (Zeitlin), finance (Lescure), business interest associations (Lanzalaco), and skill formation and training (Thelen). The "open architecture" of business history as a discipline means that it is unusually well-placed to participate in vigorous two-way exchanges with scholars in adjacent fields. On the one hand, careful empirical research by business historians can effectively challenge or qualify many of the "stylized facts" on which influential theoretical analyses in the social sciences sometimes rest. Corporate governance and financial systems are particularly striking examples, as few if any of the typological frameworks influential in the comparative literature (insiders vs. outsiders, stakeholders vs. stockholders, banks vs. capital markets, common vs. civil law) can account persuasively for the range of variation observed by historians over long time periods within and across countries. On the other hand, comparative socialscientific analyses suggest new questions for business historians, concerning the morphology and explanation of cross-national differences in the organization of business interest associations, the development of vocational education and training systems, and other similar issues which have not hitherto figured prominently in national historiographies. The organization of this volume reflects and embodies these broad trends in the field. Part I examines the central methodological approaches and theoretical debates within business history, while situating them in terms of its complex, overlapping relationship to other adjacent fields.Part II surveysa variety of forms of business organization and emphasizes the diversity of routes to economic efficiency and business success in different times and contexts. Part III focuses on a series of key functional activities of business enterprise (including some that are often neglected in the narrower business history literature such as design and engineering and accounting systems), analyzing the variety of institutional mechanisms through which these have been performed inside and outside the firm itself. Part IV considers the changing relationship between firms and their wider social, cultural, and political contexts, stressing the reciprocal interactions between enterprise and society. No single volume can be fully comprehensive. There are topics to which the editors would have liked to devote greater coverage. These include the regulatory role of the state, for example through antitrust/competition, industrial, and

INTRODUCTION

5

environmental policy, which is addressed in the chapters by Millward on business and the state and by Fear on cartels among others, but which merits more extensive comparative analysis. There are two serious omissions caused by the inability of the commissioned authors to complete chapters due to other obligations. We had hoped to include a chapter on the role of gender in business by Mary Yeager. This is an important research area which is highlighted in a number of chapters, including Fridenson, Colli and Rose, Jones and Wadhwani, and Lipartito, but which deserves a full-scale chapter of its own in which the largely national studies to date could be placed in a systematic comparative context. Kwolek-Folland (1998) provides a pioneering historical overview of women in business in the United States, while Yeager (1999) provides an edited collection of studies from around the world. The editors had also hoped to include essays on business history in developing countries, but this goal was abandoned after C. K. Lai was unable to complete his essay on the business history of the Chinese-speaking world. The literature on the history of business beyond the United States, Western Europe, and Japan is not extensive, but it is growing. Both Canada and Australia have quite extensive business history literatures which are rarely incorporated into wider narratives (Taylor and Baskerville 1994; Fleming et al. 2004). The literature on developing countries is scarcer, and also overlooked. Monolingual English speakers are often simply unaware of the increasingly rich literature in Spanish on Latin America and in Chinese on East Asia. Family firms and business groups feature extensively in much of this literature, as do relations with governments and the historical impact of imperialism. A number of chapters in this Handbook, however, do extend their thematic analyses beyond the industrialized world to cover the colonial, postcolonial, and emerging markets in Asia, Latin America, and Africa. For further information, there are valuable surveys of the business history literature on China by Faure (2006), on India by Tripathi (2004), and on Latin America by Barbero (2003). Tignor (2007) discusses the limited research undertaken as yet on the business history of Africa.

REFERENCES

BARBERO, MARfA INES (2003). "Business History in Latin America: Issues and Debates", in F. Amatori and G. Jones (eds.), Business Historyaround the World. New York: Cambridge University Press. CHANDLER, A. D. (1962). Strategy and Structure: Chapters in the History of the American IndustrialEnterprise. Cambridge, Mass.: MIT Press. - - (1977). The Visible Hand: The Managerial Revolutionin AmericanBusiness. Cambridge, Mass.: Harvard University Press. - - (1990). Scale and Scope. Cambridge, Mass.: Harvard University Press.

6

INTRODUCTION

FAURE, D. (2006). China and Capitalism: A History of Business Enterprise in Modern China. Hong Kong: Hong Kong University Press. FLEMING, G., MERRETT, D., and VILLE, S. (2004). The Big End of Town: Big Business and Corporate Leadership in Twentieth-Century Australia. Cambridge: Cambridge University Press. KWOLEK-FoLLAND, A. (1998). Incorporating Women: A Historyof Women and Business in the UnitedStates. New York: Twayne. TAYLOR, G. D., and BASKERVILLE, P. A. (1994). A Concise History of Business in Canada. Toronto: Oxford University Press. TIGNOR, R. 1. (2007). «The Business Firm in Africa". Business HistoryReview, 81/1, p. 87-110. TRIPATHI, D. (2004). The OxfordHistoryof Indian Business. New Delhi: Oxford University Press. YEAGER, M. (ed.) (1999). Women in Business. Cheltenham: Edward Elgar.

PA R T I

APPROACHES AND DEBATES

CHAPTER 2

BUSINESS HISTORY AND HISTORY PATRICK FRIDENSON

2.1 INTRODUCTION BUSINESS history as a specific field was not born inside the historical profession. It appeared in the United States at Harvard Business School in 1927. N. S. B. Gras held the first chair in business history. There is no doubt that the funding for this position came in reaction to the "muckraking" critiques that had dominated public discourse since the turn of the century in order to promote a positive view of the business world (Tedlow 1985).Very early the new field attracted attention elsewhere. The new and innovative French historical journal the Annales, founded by Marc Bloch and Lucien Febvre in 1929, carried an article by Gras as early as January 1931. Marc Bloch had been in contact with Gras in 1929 suggesting the foundation of an ''American Annales" (Harvey 2004). Under the modest title, "Business and Business History", the American historian suggested that the young subdiscipline should expand globally and enrich historical knowledge. However, these hopes of internationalization would be fulfilled only after World War II. Today business history has indeed become universal. For quite a while, however, and in spite of the initial support from the Annales, the value and methods of business history were questioned by many historians-first by economic historians and later by others. At the same time, the fact that business history could be taught in departments other than history, mostly business administration and economics, meant that its practitioners could come from these very disciplines and that research and teaching

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APPROACHES AND DEBATES

in business history brought them in contact with the trends at work in the historical profession. The purpose of this chapter is to assess the results of this double process for a field which is thus steeped in two worlds: inside history and outside history. What has business history brought to historians? What have historians brought to business history? This will lead to a third question: how do business historians fare within the historical profession?

2.2 THE IMPACT OF BUSINESS HISTORY

2.2.1

An Array of New Sources

The growth of business history has enriched the repertory of sources in three significant ways. From the 1950S business history has been one of the pioneering forces for oral history. The 150 life stories ofFord Motor Company managers and employees gathered by the American historian Allan Nevins and his team as one of the foundations for their three-volume history of the firm was a path-breaking event (Nevins with Hill 1954-63). They helped to make oral history credible. Business history never fell into the religious wars that general history fought from the 1970S onward about the validity of such sources (Descamps 2001). Business historians have known from the start that they had to apply the same critical stance to oral evidence as to other sources. They began to think about the role of memory in shaping the recollections they gathered and about the role of the historian in the construction of oral testimony. At the same time they became conscious that the historian when doing oral history is not in the same position as in a library or in an archival depot. He or she is playing a social role and becomes involved in a web of expectations and relationships. Oral history has become a standard practice in business history for the study of the zoth and zist centuries to an extent that is still unrivaled in most other parts of the historical profession. Business archives and those of related institutions (like chambers of commerce or trade associations) have gradually been visited by historians in pursuit of more general themes. For example, a French historian has shown that in the first half of the 19th century the Paris Chamber of Commerce was a major site for the elaboration and discussion of economic knowledge and in some cases more important than universities or engineering schools (Lemercier 2003). An American historian was able to analyze the rebuilding of continental "bourgeois Europe" in the aftermath ofWorld War I and in an age of inflation by tapping the resources ofleading Italian, German, and French companies' archives to check the actions and representations

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of business leaders in relation to other leaders and to the masses (Maier 1975). A British historian changed the understanding of the French Popular Front by showing that the surprise expressed by the business and government negotiators after the Matignon Agreement on June 7, 1936 was a pure legend deliberately fabricated in order to justify their respective concessions and that the bargaining had been prepared by secret contacts (Rossiter 1987). Products, artifacts, machines, buildings-in short material culture-have been used quite early and extensively as sources by business historians. This interest in material culture was also motivated by a growing relationship between business history and history of technology. Gradually business historians have learned to act as antiquarian engineers and to carry out close studies of the three-dimensional objects themselves. In this manner, business historians have been part and parcel of the move that led from industrial archaeology to industrial heritage (Chapman and Chambers 1970). It should immediately be added that they were not the only ones. In Sweden the initiative came in the 1970S from workers, with the movement "Dig where you stand". Ten thousand groups of "barefoot researchers" studied the history of their. own jobs and workplaces. It was the starting point for similar activities in other countries like Canada or Germany (Thompson and Burchardt 1982).

2.2.2

The Return of the Actors

After the end of World War II, historical research became dominated by what could be termed anonymous forces. There was the spread of the economic history of prices and, in parallel, of crises, both of which had begun in the 1930S and emphasized the role of the conjuncture. There was Fernand Braudel's flamboyant geohistory, which focused on space, cultural areas, and climate. Marxism, influential not only in Eastern Europe but also in Japan, gave priority to macro-categories like capital, profit, rent, labor. and wages. Economics, fueled by macroeconomics, played a similar part with such concepts as growth, development, and take-off. In Latin America at the time, development and underdevelopment were the only questions raised by historians. On top of this came the impact of theoretical approaches which became influential in the 1960s such as modernization theory versus diometrics in the US and structuralism in Europe. In this context the works of business historians worldwide, even when they were centered on the firm and not the entrepreneur, helped to provide an alternative to the structuralist or macro approach which grew and came to dominate not only economic history, but most of the social sciences. Here actors never disappeared, even when they were usually limited to three categories: owners, entrepreneurs, and managers. When the structuralist and macro approaches broke down at the end of the 1970S, business historians were ready for the new trend, often termed the return of the actors.

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APPROACHES AND DEBATES

But in fact what they had to offer to other historians was a qualified return of the actors. This can be shown by looking at two of their main concepts: decision and strategy. Decision in business was not a spasm of the free and voluntary actor, as in political, military, or religious history. It was a process-a continuum of reflections, projects, conflicts, and compromises. Such an approach is exemplified in the book of the Japanese business historian Akio Okochi, Management in Vision. The Entrepreneurs: How they Make Decisions (approximate translation of the Japanese title; Okochi 1979). A major qualification has been added by the historical alternatives approach jointly introduced 20 years ago by Charles Sabel and Jonathan Zeitlin (Zeitlin, this volume). In particular, it showed that for any given problem in business there was no automatic solution, or no "one best way" as American consultant Frederick W. Taylor would have put it, but always a choice between two or several possibilities. This was a major blow against historical determinism and functionalism. The time was gone when leading economic historians like Francois Crouzet could explain the First Industrial Revolution in Britain by the exhaustion of British forests as a source of energy. This approach even cautioned business historians against the seductions of the models of irreversibility and path-dependence later successfully devised by economist W. Brian Arthur and economic historian Paul David (Arthur 1994; David 1997). Actors and organizations were not trapped for eternity within their walls. There could be periods and conditions when viable alternatives could be designed and tested. Later,in a second step, business historians showed that, even with the emphasis on the possibility of choice just hinted at, such deliberation about alternatives could not always explain the outcome. There were major cases where a gap could be identified between the available options as presented in written and oral sources and the final decision (Lamoreaux 2001). It is arguable that, in conjunction with the works of political scientists, these approaches have modified to a certain extent the view of decision making in other fields of history. Even more influential was the concept of strategy. Reinvented in 1962 by the American business historian Alfred D. Chandler (Chandler 1962), a strategy characterized "the determination of fundamental long term goals for an enterprise, the adoption of action goals and the allocation of the necessary resources". The long-term vision was defined by a leading group of entrepreneurs, managers, and owners to select technology, markets, and institutional adaptations in order to improve performance. It was inscribed in organizational structures. Companies were institutions with goals. It meant that companies were not simply opportunistic or adapting to external change. They would be rational actors, behaving functionally in relation to their resources, previous experiences, and competitors, by mobilizing their current or potential assets and assessing their short-term results in connection with their view of the future. In other words, organizations were ruled by inertia and a change in strategy would appear only when the environment modified itself, including the eruption of crises. In European history, the concept

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of strategy became all the more popular as the French sociologist Pierre Bourdieu defined it in 1972 in rather similar terms for both individuals and social groups, to the point that he lauded Chandler's analyses in one of his last books (Bourdieu 2005). But historical sociology (Freeland 2001) has recently challenged some major bases of this approach, as it mobilized first-hand material on "furious conflicts" between owners and top management of corporations and stressed the dangers of "overlooking the social and nonrational bases of corporate governance': a scholarly result that historians of non-economic types of organizations should bear in mind.

2.2.3

From Economic to Political Crises

The analysis of decision and ofstrategy by business historians brought nothing new to historians in terms of the different dimensions and scales of time, compared to Braudel's conceptualization ranging from market time to longue duree, which has still to be replaced. Nor did it alter historians' established understanding of crises. Accordingly, although regularly confronted with the manifestations of various types of crises in the firms that they research, business historians interpreted them either as accidents or as effects of the conjuncture and the external environment or as consequences of "erroneous strategic choices". Indeed, there is no entry for crisis in the index of the recent survey edited by Amatori and Jones (2003). Yet it should be immediately observed that in studying one type of crisiswars-business historians, often after a period of hesitation, finally did remarkably well. Just as a French Prime Minister observed in World War I that war is too serious a business to be left to generals, it is also too serious to be left to military historians. The history of armament firms-such as Putilov in Russia, Vickers in Britain, Krupp in Germany, Schneider in France, and Ansaldo in Italy-has attracted many business historians. One now classicalapproach deals with how these firms pioneer technologies that then become civilian and thus dual (Fridenson 2004a). For the United States, David Hounshell, building on the earlier work of historians of technology (Smith 1977), has argued that the fountainhead of mass production was US government armories, driven by the "technological enthusiasm" of engineers "heedless of cost" (Hounshell 1984). But one of his colleagues, Donald Hoke, has replied that the American system of manufactures had also another origin, via cost-conscious private entrepreneurs (Hoke 1990). A similar argument to Hounshell's has been presented for France: the search for interchangeable parts began there, in the late isth century, with military engineers (Alder 1997). As the Italian case in particular shows (Segreto 1997), armament companies establish webs of connections with government and public agencies as wellas with political parties. Their engineers and workers often enjoy a specific status. They playa specific part in national economic development and in international relations. The taxation of war profits is a highly contentious issue which may take many years to settle.

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APPROACHES AND DEBATES

The regulation of the international arms trade since the end of World War II is of major importance in scientific, economic, and political terms, as recent works on COCOM have begun to show. To quote Luciano Segreto, business historians are tracking the affairs of no less than two Roman gods, Mars and Mercury. Beyond firms specializing in armament, the outbreak of war extends this orientation to formerly civilian firms. This is a particularly complex task for multinationals. Here the work of the American historian of multinationals Mira Wilkins should be mentioned. In her pioneering history of Ford as a multinational (Wilkins and Hill 1964), she was the first to show what could happen in the subsidiaries of the same multinational situated in enemy nations. More generally, business historians were able to show that wars could not be dealt with as simple parentheses in economic growth or as periods of destruction of lives, infrastructures, and capital. They are major episodes in the learning of people and organizations, in the modifications of their representations, in the change of their products, markets, and performances, and in networks and trade associations. They also matter in the renewal of business elites. In Japan and Germany a number of family dynasties were replaced by salaried managers, and this shift influenced the postwar boom (Morikawa 1992; [oly 1996). The reconversion of war industries to peace production is often a source of crises. But it also creates incentives to transfer experts and skilled workers with advanced knowledge, like the Japanese military aircraft engineers whose capabilities have been revealed by business historians to have been key to the modernization of the postwar Japanese automobile industry. On a more dramatic issue, research on the expropriation of Jewish business property during World War II initiated by Swiss historians (Bergier 2002), soon followed by historians of other nations, greatly extended our understanding of the genocide as well as showing the dispersion of the size of such enterprises and also the courage of persecuted Jews. Similarly, the significance of periods of dictatorship has become much better appreciated since business historians contributed to their approach. This includes China, Japan, Latin America, as well as Germany, Austria, Italy, Portugal, Spain, and Greece. It also includes Eastern Europe and Russia. The old question of financial support of authoritarian regimes by parts of business elites has found new examples, but such studies generally showed that after the seizure of power, tensions and contradictions were inevitable between former partners because of the difference of agendas and horizons. They also indicated that authoritarian regimes nevertheless promoted state-owned enterprises and in some cases welcomed subsidiaries of multinational enterprises (Chick and Lanthier 2004). In the Soviet Union, Eastern Europe, and China, on the contrary, business historians demonstrated the permeability and subordination of state-appointed management to political representatives inside and outside (Cohen 2004). Another area where business history has illuminated major questions has been its contribution to understanding decolonization. The role of business enterprises in colonial and postcolonial English-speaking Africa has been upgraded, showing

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competition and conflict between colonial firms and local enterprises (Tignor 1998). In India, indigenous entrepreneurs were able to take over British firms long before the end of the British Empire and rapidly thereafter (Misra 1999).

In the French Empire large colonial firms struggled first against independence, but were flexible enough to anticipate decolonization and managed to stage their reconversion, i.e, stay afterwards and integrate the independent economies into the European economic space (Hodeir 2003). But we do not yet have researches on the former French colonies' business people comparable to those already available on India or Nigeria.

2.2.4

The Dynamics of Change

But more generally history is par excellencefocused on the interpretation of change. I would like to sketch out various ways in which business historians have attempted to make a contribution to history in that perspective. Of course, this is an oversimplification as business history is never pure, but always impregnated by business administration, economics, sociology,political science, and today tempted by constructivist models. Business history's input is rich and varied. First, no longer limiting itself to the study of headquarters devising strategies, products, and services top down and experiencing turning points, it highlights firms as organizations within which change takes place (Hounshell 1984; Freeland 2001; Tones 2005b). Second, while of course most enterprises have not persisted, and many have split (as in India during the 20 years after the 1947 independence: Tripathi 2004), business history depicts some enterprises as islands of relative stability on a sea of economic fluctuations and continuous market evolution. Stability is presented as having two external sources. The first are national cultures, as reflected inside companies and in their relations with the outside world. In India the central role of families in society accounts for the predominance of family businesses and their remarkable durability (Dutta 1997; Lachaier 1999). In the Netherlands there is an emphasis on managers possessing an engineering or technical background and logic of mutual trust (Blanken 1999). German business historians have been busy for 30 years investigating whether their society followed a specific path (Sonderweg) leading to a "Rhenish capitalism" connecting business, labor, and government. This approach may have some limitations in hiding intranational contrasts and the multiple ways in which firms interpret the national culture, as well as obscuring the openness of most national cultures to international influences and collaborations (Herrigel icco). However, its immediate effects are quite positive. It puts business historians on the path of comparative history. This is no small result. In 1928 the French medieval historian Marc Bloch launched the first major call for comparative history. Its development was much slower than

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expected. Yet we should recognize that this is one of the areas in history where at least a fraction of business historians have been in the foreground. In Europe, America, and Japan during the past 20 years more and more cross-national comparisons and studies of national differences have been launched by single authors (see for instance Chandler 1990; Welskopp 1994; Cassis 1997; or Jacoby 2005) or by international teams. Binational firms (Jones 2005b) or joint ventures have also attracted business historians' attention. A related issue is that of "collaborative capitalism" (Sabel and Zeitlin 2004). Such initiatives also find echoes among political economists, with the Varieties of Capitalism school (Hall and Soskice 2001). Another source of stability is, since the late ioth century, the growing use of management tools, from accounting ratios to communication systems, from market surveys to motivation studies and from operational research to total quality management (Yates 1989; Shiomi and Wada 1995). These invisible instruments are produced by engineers, accountants, consultants, and even academics. They are on the market. They embody knowledge. They crystallize information, experience, and innovation. They interlock managerial beliefs, technologies, and document types. Their introduction by companies with or without consultants, in their original form or in a modified version, is usually quite lengthy and complex and sometimes difficult (McKenna 2006). Their efficiency has an often unforeseen price: they solidify practices, relations, structures. They are initially loaded with meaning and contribute to motivate executives and employees, but gradually lose some of their significance and hence the institutions have to be recalibrated. Business history adds two caveats.These tools may be used as tricks to win the cooperation of managers to corporate policies (Freeland 2001). Their stability may lead to obsolescence and thus to inaccurate information and misleading targets (Johnson and Kaplan 1987). This approach has received interest on behalf of historians interested in regulation and who are looking to understand how rules come to be adopted and to be abandoned. It also draws the attention of historians of technology who focus more on visible instruments. Stability is also ascribed by business historians to two types of internal causes. Firms, just like most other human organizations, are at one level physical and technical spaces which ingrain their logic, their architecture and technical solutions, and their procedures and constraints. Historians see the competition between greenfield and brownfield plants. On another, more abstract level, business historians are all sensitive to the inertia of organizational systems. This approach puts them in contact with historians of political parties, bureaucracies, and churches. Together they disagree, however, with the sociology of organizations which believes that in such systems the initiative of the actors is marginal or peripheral. Also, when business history depicts firms as agents of change, it produces three areas of possible encounters with other historians. One is the relation of tradition and change. Whereas previously business history just extolled innovation, new products, and services, if not new industries, in a quite Schumpeterian way, in

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recent years it has moved to a much greater consideration of tradition. "Traditional" industries have continued for a relatively long time. They can bring the profits necessary for investments in other fields and broaden markets. They can be carried on side by side with modern production for quite a while. Here Japanese business historians have been highly innovative by describing the potential of such neglected firms producing pottery, soy sauce, or refined sake thanks either to cottage industry or to modern manufacturing (Kasuya 2004). Similarly, Swiss and French historians have rehabilitated the potential of mountain-based traditional industries, like clock-making, founded upon agricultural solidarity and demand (Judet 2004). In the United States between the Civil War and World War I, specialty firms making goods to order or in batches-i.e. not featuring stadardized production-created regional synergies and economies of scope and diversity; they had a crucial impact on the development of the second industrial revolution (Scranton 1997). Tradition in a specific firm may not necessarily be an obstacle to progress, but can be a point of departure for gradual change and for organizational learning. Here the pioneering three-volume work by Japanese historian You Nakanishi, which explores in great detail the shift in Nagasaki shipyards from traditional works to modern, presents a model study (Nakanishi 1982-2003). A further area where business history has stimulated interest among historians is, by contrast, a negative vision of change-processes leading to the closing (or relocation) of companies, plants, offices and the discontinuation of products and services, even to the destruction of capital or know-how. Social, cultural, and political historians see their impact on employment, welfare, age structures, housing, education, votes, and cultural activities and explore the ways in which local communities in relation to local and national governments struggle between renewal and decay. Business historians who were previously seen by other historians as preaching the stability of the large corporation have become messengers of the importance of uncertainty and risk, hence of flexibility, in human actions. I have therefore recently argued that business failure has become a necessary dimension of the future of business history (Fridenson 2004b). A third area is a positive view of change. This was already true of the picture of proto-industrialization that emerged from the works of economic historians. Business historians analyzing industrialization have either continued it by applying their lens to industrial districts past and present (Zeitlin, this volume) or have qualified it by emphasizing the role of the merchant economy in the first industrial revolution itself (Gervais 2004). Furthermore innovation, usually building on the works of the economists and in particular a neo-Schumpeterian perspective, has been their leitmotiv. Business historians have shown the gaps and processes between projects and achievements and the many pitfalls that separate invention from marketable and profitable innovation, including innovation failures. They have stressed the available options: continuous improvement, repeated innovation, and breakthrough. They have related them to external institutions and to

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regulation. For instance, Akio Okochi (1992) focused on the invention of activities and connected their development to the patent system. Business historians readily extended the concept of innovation to human resource management, marketing, finance, and now sustainable development (see Graham, this volume). However, a few major points should be emphasized. What business history offers to other historians are patterns of how institutions overcome zones of tensions by questioning prevailing schemes and by reconsidering initial, established knowledge. Change appears neither smooth nor quick nor entirely predictable. Learning is neither uniform nor memorized once for all, and relevant cognitive mechanisms are paramount. But change is more than a process of adaptation or of selection between available methods. When it is fulfilled, it amounts to no less than a process of creation. How much of such creations can be repeated, transferred, imitated, or hybridized remains one of the major topics of discussion in business history. Americanization ofcompanies and nations or their Iapanization have given birth to a vast flow of literature (Harp 2001; Kleinschmidt 2002; Zeitlin and Herrigel zooo). Far from the unilateral views of either economists or political historians, business history has avoided the dual pitfalls of an analysis in terms of either progress or hegemony and exploitation. Keeping in mind the theme of unequal exchange, it has stressed the limits of foreign influence, the selectiveness of the transfers, the creativity of the adaptations, and even the existence of "crossings", i.e. transfers from the borrower to the other nation. Fruitful comparisons or connections are thus made possible with history of science and technology or with history of culture.

2.2.5 Society and Politics Business history has opened research domains which were not really covered by other types of history. For instance, history of education, which has greatly expanded worldwide since World War II, had usually neglected the history of technical and vocational training. In most countries this task was taken up by business historians in search of an understanding of labor markets and human resource management. Their position helped them to avoid two classical pitfalls, which would have been to underestimate the importance of self-taught people and of on the job training or to deduce from the contents taught what was the actual practice at work. Byilluminating the schools created by companies or by chambers of commerce at different levels of curricula, business historians showed companies as transmitters of knowledge and could cast new light on the competition or collaboration between the business world and the education system, an alternative oflingering consequences which also helps historians to understand the shifting frontiers between private and public in industrial societies. In addition, business historians have been some of the prominent students in the history of business schools and

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-----------.---.----_.

of engineering schools. Their aim has been to understand the professionalization of managerial activities, thus giving rise to a dialogue with the social historians (and sociologists) interested in the genesis of professions and of professionalization in general. They were able to trace the development of new contents, like the entire field of marketing in business administration, and of new methods, like case studies, which the US exported globally. They shed light on the changes in comparative advantage such as France taking the lead in engineering schools and commerce schools in the early 19th century and then losing ground to German and American universities at the end of the same century. Or, to cite another example, smaller countries like Belgium or Norway pioneering relations between university and industry in the interwar years or after World War II (Bertrams 2006; Thelen, this volume; Amdam, this volume). In this respect business history, partly stimulated by Michael Porter's research on the "competitive advantage of nations" (Porter 1990), has made a distinctive contribution to the growing body of literature written by historians on the growth and decline of national power. Similarly, the development of the history of medicine and health often ignored the history of work injuries and occupational illnesses. Although a few social historians and historical sociologists ventured into this area, it was mostly explored by a number of business historians. They highlighted the continuing importance of the problem for both individuals and families and even its contemporary recrudescence. They also showed that the very idea of the ability to work was socially constructed between the stakeholders and how people could be excluded. They documented the difficult position of company physicians and the growth of ergonomics. They underlined the spread of intermediate zones between activity and retirement: illness, invalidity, unemployment, and early retirement (Omnes and Bruno 2003). Thus business history stresses the importance of the history of the body, just like gender history or the history of medicine. Along the same lines, the history of housing and architecture has benefited in recent years from the new interest of business historians who moved from the earlier study of company towns to national assessment of the importance of employers' housing efforts. Such works showed that the resources allocated were much higher than had been thought previously. They also depicted the specificities of migrant workers' housing policies and their consequences on their relationship with host countries' citizens. Finally,they suggested that any attempts by employers to keep workers' stability or even trust by providing housing seduced only a limited proportion of wage-earners. The majority preserved their autonomy. If we now move from human capital to broader issues, business historians have been instrumental in delineating how companies contribute to the production of society. The work of the German historian Iurgen Kocka on the engineering company Siemens between 1847 and 1914 is particularly relevant here (Kocka 1969). It highlights the interaction of bourgeois society and the creation of the "modern" business organization. Contrary to flexible production systems, the family firm

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helps economic activity to become a separate sphere of social activity. It transforms social contacts into business contacts. Then paternalistic ties to workers have to be abandoned. The family has to give more autonomy to engineers and workers. New relationships and procedures with aU of the firm's employees have to be specified and clarified. In short, because deepening industrialization requires a specialization of tasks, it makes formal rules and procedures more necessary and creates distinctions between professionals and workers, which contributes to class consciousness. German professionals adjusted readily to the new structures because German society and culture had long been familiar with the idea of an efficient bureaucracy, a continuity which, according to recent research (Fear 2005), may have been exaggerated, as German management emerged more collegial, entrepreneurial, and decentralized than is generally believed. Indeed, since the firm's success was the measure of their own competence, they pursued it even more purposefully than family heads who had seen it often as a means to dynastic prestige. Industrialization causes the very definition and composition of the middle class to change, so that it no longer could be equated with "bourgeois". Hence, a fluidity of classstructures and boundaries and material productivity erases material differences. The reader should note that this analysis of the creation and diffusion of formal organizations and rule-oriented behavior, of the productivity, durability, and conflicts and by-products of the systems and structures overlooks what is not formally organized, such as gender or symbolic systems and the experience of daily life. Companies shape society not only in themselves, but also through their products and services (Harp 2001). In postwar Japan the top electrical goods firms thought about America's dynamics and moved into consumer electronics in a deliberate effort to produce an American-style middle class oriented toward purchasing expensive electrical goods (Partner 1999). In many respects firms are also agents of internationalization. Some of them import raw materials, products, services, brands, knowledge, methods, capital, and people (Wilkins 2004). Others or even the same firms export them or invest abroad. Both categories may join international technical organizations or cartels and accept international codes of conduct (Jones zoosa). Such firms thus not only overcome national borders, they combine embeddedness in local and national identities, openness to outside influences and cultures, and promotion of their own model. Business history illuminates also the shifting boundaries between private and public in society. The creation or development of public enterprise is never only of economic significance. In Spain, for instance, it was supported by the army during the autarkic period of the zoth century (San Roman 1999). Business historians have also made major contributions to the history of public governance of the economy at local and national levels, showing how it was fashioned by the very nature of the enterprises and trade associations which it had to supervise and how bargaining with them was a key mission of top civil servants. Economic policies may be the locus of creative adaptation: in postwar Japan exchanges of information took place

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between the policy-makers and the private sector, leading to the discovery of policy issues and the means to deal with them (Hashimoto 2001). Business history has decisively contributed to the social history of politics that has been undertaken to renovate political history worldwide. It shows firms to be direct and indirect political actors at local, regional, national, and international levels. For at least two centuries they or their trade associations have not restricted themselves to the defense of "free enterprise" versus regulation or nationalization or to topics such as customs tariffs, prices, economic and financial policy, or industrial relations-all areas where they seek autonomy from pure politics (Plumpe 1999). Resorting simultaneously to the quiet methods of influencing media, of lobbying, and in some cases (as business historians have shown for public works, armament, or oil) corruption, they also openly express their voice on political matters, whether local, national, or international. A number of businessmen apply for political functions. Business supports intermediary bodies (chambers of commerce and trade associations) as necessary relays between citizens and governments. Business historians bring four main conclusions to historians of politics (Tolliday 1987; Dunlavy 1994; Kipping 2002; Laird 2006). Political structures affect the dynamics of business enterprise in ways that are not directly connected to the political nature of government, whereas business may precipitate a transformation of structures. In intervening in the public sphere, businessmen face as many divisions as other social groups (see Lanzalaco, this volume). Their ability to bargain, to compromise, and to build networks or alliances contradicts the common wisdom of a unilateral or even authoritarian government of the economy by politicians and civil servants. And, finally, minority groups within business suggest influential solutions in international relations. Let us turn now in the opposite direction and consider the sensitivity of business historians to changes in historical reflections.

2.3 THE

IMPACT OF HISTORY

Over the past 40 years business history has increasingly opened itself to new trends which came to inspire other historians. This hybridization in turn made business history more reflexive, thus more creative. The following review is by no means exhaustive.

2.3.1

Cultural History

The spectacular boom of cultural history since the 1980s has exerted a growing influence on business history. It came through its methods and concepts, but also

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through its objects. Cultural history promoted individual and collective representations as meaningful-as "real" as actions and deeds or artifacts. This liberated business history from the tyranny of positivism which had often limited it to facts, results, and performances. It did not estrange it from numbers. On the contrary, it contributed to the growth of accounting history and to its extension to information and control systems. Several types of accounting methods were thus seen not only as "invisible technologies", as mentioned above, but also as attempts to construct or embody new representations of the firm (Boyns, this volume). Cultural history also carefully distinguished the production of representations from their reception. It showed that the reception process is not passive; it is selective, transformative, and creative. Such an analysis contributed to shift the focus of many business histories from the producer to the distributor (Welskopp et al. 2003) and to the customer. It gave a new impetus to the history of advertising, public relations, and distribution. Marchand decisively showed how public relations, advertising, and marketing are neither simple manipulations of the minds nor mere technical servants of products and services, but can accumulate knowledge about taste and practices (Marchand 1998).Marie Chessel (1998) has described for France how in advertising such talents were institutionalized as a new profession between 1900 and 1940. Its features were moving from empiricism to science, transmitting knowledge and taking variety into account. Similarly the publication of house organs became a profession in the hands of true journalists and was soon paralleled by customer magazines (Marchand 1998; Malaval 2001). The resulting interest in how firms channel the reception of products, services, and of their representations led business historians to put more emphasis on how the uses of such goods depart from the prescriptions and on how sales specialists cannot succeed without taking into account the interactions between producers, distributors, and customers in local or national markets. Within the history of multinationals, what happened at the local level could no longer be analyzed in terms of faithfulness to headquarters or of exotic variations on a universal corporate theme. Also, most impressive in this direction is the study of the perception and transfer of American and Japanese management and production methods in ten large German firms between 1950 and 1985 (Kleinschmidt 2002). Focusing on the mental horizons of how managers learn and decide about such transfers, Kleinschmidt stresses both that supposedly purely rational decisions are deeply embedded in corporate and national cultures and that transfer processes are dynamic and shape corporate culture. They are not unilateral and involve some element of transfer in the other direction. Cultural history also induced business historians to look into the study of the cultural investments of businessmen and firms: from art collections to the relations between art and industry, there is a promising field which includes architecture, sculpture, photography, or painting and puts art historians in contact with business historians (ChesseI1998; Harp 2001). There was only one step to a business history ofleisure, which emerged in the last decades of the twentieth century. On its agenda

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....

came the business history of tourism, itself illuminating such topics as identity, mobility, learning, and cultural transfer (Berghoff et al. 2002). It completed earlier investigations of the cultural industries, which previously had often been left to other parts of history or social sciences: the press, books, records, radio, film, and television are no longer just sources, or pastimes (and such a business history now includes entertainments such as theatre or circus or the production and use of musical instruments), but have become respectable topics, although studied by a minority. Furthermore, they push topics such as information and leisure to the foreground of business history. Paradoxically cultural history led business historians to explore the part played by the past in management and society. Whereas the media always celebrates companies as builders of the future, business historians have illuminated how much they refer to the past and not simply when looking for patents. Memory, as both an individual process and a collective one, became a legitimate goal of analysis. Its constant work of selection and reconstruction-and of oblivion-means that the past in a company is not just like a database. It is a series of explorations and reinterpretations-also fueled by outside actors like the media or academicswhich may have far-ranging consequences in decision making, in practices, and in representations. Its relevance for business historians thus goes far beyond corporate legends, but it includes them. It covers a major issue for business historians: brands, as well as perpetual reuse (sometimes misuse) of past products, services, images, and words. It looks at the continuous influence of the past on the present and at the ways in which traditions are constituted and passed on. They always leave some blind spots (Lipartito 2003), which are important too. Meanwhile there is a constant use and abuse of history by management scholars and consultants of which historians should beware. Taking into account the importance of memory may have another effect. Influenced by the success of such different history books as Pierre Nora's Les lieux de memoire (1996-8, 2001, a third of which was translated into English as Realms of Memory) and Raphael Samuel's Theaters of Memory (1994), some business historians have begun to explore the significance ofindustrial heritage as a testimony both of what is no more and of what is in continuity with today. They have started to consider how firms are inscribed in various territories and how their corporate culture contributes to and interacts with local, regional, and national cultures.

2.3.2 Gender In more than one way the recent boom of gender history complements the influence of cultural history on business historians. It too focuses on discourses and representations. Taken up first and foremost by female business historians, it explores the family as a business unit, then the definition and evolution of gender roles among

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entrepreneurs, managers, employees, and workers. It adds the gendering of labor markets and of human resource management (including family allowances) and the gender segmentation of marketing, distribution, and consumption, including the topic of male domination. It stresses how women and men manage and interpret their lives in relation to one another. Only a few points require mention here. Such research has completely changed our understanding of internal and external labor markets. It has shown that, barriers to upward mobility and other "glass ceilings" notwithstanding, there is an autonomous and generally dynamic role of women workers in "traditional" industries such as silk weaving in western Japan (Hareven 2002) and in more modern branches like the metalworking industries in interwar Paris despite the world economic depression (Omnes 1997). The same applies to entrepreneurs. The discrimination and dependences experienced by immigrants in interwar Paris did not preclude the emergence of foreign women entrepreneurs in some parts of industry and services (Zalc 2005). Whereas the pioneering works by Iurgen Kocka on white-collar employees in Germany focused on the growing bureaucratization of society, more recently business historians around the world have emphasized that the growth in size of this occupational group had a major gender component through a change in the sex ratio. Once a male-dominated space, women increasingly began working in offices. Delphine Gardey has shown for France that this shift was facilitated by new technologies, such as the Remington typewriter, and resulted from a deliberate choice by middle-class women who had little vocational training rather than from the promotion of women workers. But employee jobs lost some of their social cachet, while contrasts with the experience of blue-collar workers in terms of the work environment and the use of working time simultaneously increased (Gardey 2001). Gender history and cultural history have been colonized by enterprising business historians worldwide who want to expand a business history of consumption. A good example of such perspectivesis provided by Kathy Peiss'research on cosmetics (Peiss 1998). She argues that women were not oppressed by the beauty industry, but enthusiastically participated in its formation. Social relationships, rituals, and female institutions enabled them to use these products to express themselves. Accordingly, shampoo, created for working-class women, began to be used by middle-class women, who extended the market of the product in quite an unusual way-from the bottom up. Among American business historians two different views have appeared which can be exemplified by comparing two books which typify this approach. Following a far more radical line of interpretation than the late Roland Marchand or Chandler, Regina Blaszczyk argues that "supply did not create demand in home furnishings, but demand determined supply" (Blaszczyk 2000). In other words, in this branch firms succeed not when they try to shape consumers, but when they guess at what they want and endeavor to provide it

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with the help of "fashion intermediaries". Women as consumers playa distinctive role in a number of industries. First, their tastes support flexible batch production. Then when standardization comes they demand goods that continue to adjust to individuality and personal taste. Pamela Laird accords a lesser degree of sovereignty to the people themselves. She focuses on how professionals hired by business leaders or under contract with them moved from notifying customers to turning them into consumers by changing the form and function of advertising (Laird 1998). Can consumers be created? Or can they manage their desires and to which extent? At this stage of research the question remains open to debate among business historians.

2.3.3 Social History Social history had its hour of glory much earlier than the other fields we have analyzed and which in many respects are its children. Business historians continue to draw from it central reflections: how does the complex dialogue between enterprise and society evolve? Does the composition of the workforce matter? What is the significance of personnel turnover and labor conflicts? Social historians have had the merit not to limit historical analysis to skilled labor. Thus Raphael Samuel (1977) has stressed the ubiquitous influence of hand labor during the industrial revolution in Britain. Other historians have since shown that unskilled and semi-skilled labor played a major role in most sectors of national economies. In this perspective, human labor can be seen as a linchpin between technological innovations and business structures. In a similar vein Rudolf Boch (1985) has renewed the study of skilled labor in small and medium-sized enterprises in his work on the shock of globalization on cutlery workers in the industrial district of Solingen (Germany) at the end of the 19th century. Globalization paved the way for the influence of unions and Marxist socialists who, like civil servants and engineers, saw no future for flexible production. But the various players were finally able to draw up a new social compact which made a new specialization and the revitalization of Solingen products possible. They could now compete with the English cutlery of Sheffield. In this perspective business historians usually choose other topics on which to focus than social historians: wage differentiation, work incentives and productivity systems, job classifications, vocational training, internal and external labor markets (Gospel 1992), pensions (Hannah 1986). Also, in keeping with recent sociological research, they put more emphasis on the positions of white-collar employees, middle managers, executives, studying their career routes and the importance of networking in managers' success (Cassis 1997; Laird 2006). A few historians have undertaken to consider companies as heterogeneous and potentially conflictual communities. This was the perspective of the pioneering

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book by French social historian Rolande Trernpe who, looking at the coal mine of Carmaux in southern France between 1848 and 1914, was able to analyze at the same time its aristocratic owners, its professional managers, and the transformation of its peasant workers into full-time workers (Trernpe 1971). Another great work is the late Italian business historian Duccio Bigazzi's book on the first 20 years of the Milan automobile company Alfa Romeo (Bigazzi 1988). The careful analysis of the company's evolving strategies and markets is skillfully combined with insights into the representations and practices of the various internal actors: entrepreneurs, managers, designers, technicians, and workers. Two American social historians have almost simultaneously stressed that the construction of the modern corporation cannot be explained only top down and by a look at how transaction costs help trace borders between markets and hierarchies. Lenard Berlanstein in a history of the Parisian Gas Company, an early large corporation which with some 10,000 wage earners between 1855 and 1910 was "the city's single largest employer of clerical and factory labor': has shown how both gas workers and gas employees resented the supervision by engineers as arbitrary and struggled to obtain the interposition of work rules and intermediary hierarchies between them and the engineers. They finally resorted to political lobbying and asked the city of Paris, from which the Company held the concession, to regulate its industrial relations, and finally to take over the company itself in 1910 (Berlanstein 1991). This was the blueprint for most French nationalizations after World War II. In a totally different social and political context, Olivier Zunz has shown how the new white-collar employees in American large corporations wanted rules to clarify and try to stabilize the uncertainty of their daily lives and of their careers and that one element of companies' reaction was the provision of gendered welfare programs within individual corporations (Zunz 1990). It can thus be said that much of the private bureaucracies of these corporations did not originate in top management rational strategies but in its responses to demands from below. Social history, as is well known, has provided numerous histories of conflicts and strike waves. For the zoth century, it has extended the framework of such perspectives to nationwide social contracts. This has led business historians to define authority as a relationship (Cohen 2004) and to take a much more active interest in the management of human resources and of industrial relations, in the relations of firms with public opinion and in their negotiations with political authorities. They have thus devoted more attention than social historians to institutions, to law, and to regulatory processes. Beyond work, three elements of the relations between business and society have attracted a considerable amount of scholarship in recent years among business historians: welfare, philanthropy, and environment. These are areas where their contribution is threefold: they give full weight to the multiple role of business in society, often underestimated by other historians (for instance employer-provided welfare in the origins of social security), they broaden our

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understanding of the nature of the firm (Rosen and Sellers 1999), and they take into account both the social costs of business and its current search for sustainable development.

2.3.4 From the Study of Medicine and Science to Business Practice The influence of the recent body of history of medicine and of public health extends well beyond the history of the pharmaceutical industry and its contribution to a diversified history of innovation. It has enriched the investigations of business historians in the history of the demographic breakdown of the labor force and of aging and in the complex relations between the evolution of working time and health. This kind of approach even includes deviant behaviors (from alcohol to drugs) in a broader view of how in history men and women in business whatever their hierarchical position manage their lives at work. Furthermore, it fuels the growing interest in the history of risk and uncertainty in business. The intense renewal of the history of science and the autonornization of the history of technology have both had prolonged effects on business history. The emphasis on networks rather than on individuals or firms by the American historian Thomas Hughes has revolutionized the history of innovation. Instead of maintaining the firm as their unit of analysis, business historians following his lead have taken into consideration the management of multi-firm, networked systems (like the electrical power grid). This has been true of students of the network industries in communications, transportation, energy, and finance. The network approach also alters our understanding of the boundaries between business and society. The theme of the social construction of technology, although criticized by some business historians (Hounshell 1995), has been taken up by many of them. By connecting actors, networks, and systems, it has enabled them to give a deeper significance to innovation which can no longer be reduced to lowering costs and increasing productivity. For instance, many of Du Pont's major innovations, from nylon to the atomic bomb, may be ascribed to the constitution of a new profession: chemical engineering, which was also a key element in the weaving of intense connections between the corporation and government in war and peace (Ndiaye 2001). In recent years, the proponents of this approach have stressed the importance of industrial customers and household consumers as co-constructors of a number of technologies and medical drugs. This new direction found an immediate echo in the business history of information processing (Yates 2005). Finally, the liveliness and intellectual liveliness of history of science helped spawn a great interest in the multiple uses of science in business. There has been work on how the reference to science was used to legitimize new developments such as

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"scientific management" of production, how psychology and statistics were applied in marketing, how psychology, ergonomics, information sciences were used in human resource management, or how operational research renewed production management and finance. Economic research by banks or electrical companies and industrial research have become welcome areas for business historians. In a parallel vein, the study of think tanks (with the Rand Corporation in the US as the most prominent example) has been developed, with the goal of understanding how these small groups, interconnecting science, technology, business, and politics, shape a variety of social actors.

2.3.5 Between Micro-history and Global History As we just mentioned when quoting Thomas Hughes, a key issue for business history has been the proper unit of analysis. This debate is internal to the subdiscipline. It now connects to a broader debate in general history about the relevant scale of analysis. In continental Europe, micro-history has influenced the rest of history since the end of the 1970S. Born among early modern Italian historians like Carlo Ginzburg and Giovanni Levi, it has insisted that historical observation at the smallest level of analysis (a person, a small group, a local community) was the only way to detect some phenomena and also that this level was the only one left where "total" history may still be attempted after the demise of the various macro-interpretations in the 1970s. A few business historians have ventured such analyses, but many more have used its French derivative of the 1990S, the jeux d'echelle, i.e. a combination of micro, meso, and macro analyses (for instance Dessaux 2003). This method of using different, multiple lenses on the same object takes into account the advance of cultural history and the growing necessity of a plurality of approaches in order to seize the significance of a historical object. More recently, in the zist century, the opposite approach is being developed from the United States, the "new global history", which targets the multifaceted nature of globalization processes. It has already been applied to topics such as food, migrations, the city, and childhood (see the website 1987). Scholars have questioned the contribution of unique Japanese cultural traditions to business. Some have placed more emphasis on the creative borrowing of western ideas by Japanese managers. Both Frederick Taylor and the American prophet of total quality management W. Edward Deming found a place in Japanese managerial thinking, though their ideas were used in ways perhaps different than the authors intended. Discursive constructions of management practices, as much or more than ancient traditions, may be responsible for the Japanese style of business (Tsutsui 1998). Studies of Asian business culture resonate with scholarship on the varieties of capitalism within the West. Here too it has been noted that the American model was not adopted wholesale, but interpreted through the lens of local culture in European nations after World War II (Zeitlin and Herrigel zooo; Hall and Soskice 2001). Economic change may be seen as a cultural process, involving emulation, rhetoric about what is "advanced" and "successful", and linguistic struggles over notions of progress or the public good. An alternative to models that posit either convergence or the functional value of difference are works suggesting that modern economic structures emerged out of earlier practices. Scholars of China argue that "western" economic institutions, including private firms and contracts, developed indigenously (rather than being emulated) in so-called "traditional" Chinese society (Enterprise & Society 2005). Such views call into question notions that western (or eastern) historical patterns developed unique forms of business. In fact, the same practices may well emerge out of distinctive cultural histories. Refusal to accept western economic practices has also been interpreted as a form of cultural resistance, a resistance that reflects fundamental differences in notions of economic value. As anthropologist James Scott has argued, traditional cultures invaded by western imperial powers have often resisted economic subordination through notions of a moral economy. Prasannan Parthasarathi has examined the intrusion of British colonial policy into Indian caste-based weaving networks holding strong ideas of a moral economy (Parthasarathi 2001). With respect to multinational firms, Patrick Fridenson cautions that styles of management and practices can vary significantly depending on the home country of managers and chief stockholders. In the end, people are the irreducible element of business, and people have identities-local, national, perhaps even global, but identities that go beyond the firms for whom they work (Fridenson 1996).

25.2.2

Identity

Just as business structures and practices do not make a smooth transition from premodern to modern, neither do people. Even for the most powerful agents of the

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modern world, business people, the new and modern emerges out of, and in some cases preserves, the premodern and traditional, with plenty oflocal variation. Joyce Chaplin's An Anxious Pursuit (1993), for example, notes how planters in the lower colonies of North America drew on Enlightenment notions of progress to refashion their natural environment for profit. They were modern and capitalist in outlook, but also deeply conservative and committed to slavery. Seeing the modern and traditional riding side by side in the same carriage of identity is typical of a number of studies of the growth of commerce in the eighteenth and nineteenth centuries. The assessment of personal creditworthiness, for example, has always contained an irreducible subjective element, variously encoded as character or morality. Older notions of reciprocity and mutuality carried over even into twentieth-century credit relations (Finn 2003). At the same time, borrowers sought to increase creditworthiness and mitigate risk through their personal and kinship networks (Matson 2004). Even as credit became more widely available and transparent, there were still matters that could not be reduced to rational calculation (Smail 2003). Bankruptcy law has often been cited as an example of the shift from a traditional, morally inflected definition of risk to a modern, market-oriented one. But in Victorian America, Scott Sandage has argued, bankruptcy laws did not eliminate notions of character or personal responsibility, but reframed them in new, formal systems of credit reporting (Sandage 2005). Conversely, but in parallel fashion, studies of modernizing economies such as China have noted that although family business and kinship networks remained important, they did not conflict with or preclude the construction of more "modern" impersonal institutions of trust and credit (Sheehan 2003). Like anthropologist Claude Levi-Strauss' bricolage, the institutions of finance are assembled from materials at hand. Such an approach argues for greater attention by business historians to discourses and rhetoric. Toby Ditz's study of eighteenth century merchants, for example, views business correspondence not just as a source of information, but as a literary device by which merchants fashioned themselves (Ditz 1994). Such self-fashioning could serve an instrumental purpose, such as gaining time against creditors, but it also created a moral and gendered identity for business people, with implications for other social relations. As Daniel Rabuzzi shows, the information contained in merchants' handbooks went well beyond the functional to outline a public persona for the would-be man of commerce (Rabuzzi 1995-6). Even in their private dealings, business people were taking on civic and public roles that had to be articulated in texts and public documents. Similarly,Natalie Davis argues against the long tradition in social theory of seeing Jewish business activities as representative of the modern spirit of rational calculation. Instead, she emphasizes the porous boundaries between commercial activities of Iewish merchants in the early modern period and their religious and family lives. Business account books, rather than being transparent, were actually deeply embedded in family lore, narratives, and ethnic identity (Davis 1999).

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In business, as in all else, life does not divide neatly into separate realms. David Hancock's pioneering work on British merchants in the eighteenth century moves from their business ventures, family and kinship networks, to their values as expressed in art, architecture, and consumption (Hancock 1995). Peter Earle's The Making of the English Middle Class brings together the business practices, material culture, patterns of consumption, and family life of the artisans and commercial gentry of London (Earle 1989). Leonore Davidoff and Catherine Hall do likewise, with greater attention to gender, focusing on the commercial classes outside London (Davidoff and Hall 1987). They argue that business retained an evangelical sense of mission and religious values. For industrializing Germany, Iurgen Kocka makes a Weberian case that "the spirit and practice of capitalism emerged from non-capitalist structures and nourished them for a long time" (Kocka 1999). Particularly important was the family, which nurtured entrepreneurship. Reversing the usual assumptions, however, Kocka argues that the pre-industrial, pre-bourgeois family was the key institution, in contrast to those who see family as antithetical to large-scale industrial capitalism. Studies of small business and the non-industrial sector have likewise found that pre-industrial family forms and values remain important well into the industrial era (Crossick and Haupt 1998; Harlaftis and Theotokas 2004). Studies have noted how differences in family background may be crucial in determining firm strategy and structure, or in providing opportunities for growth and profit (Arnold us 2002; Buchenau 2004). While much literature shows the complex, uncertain relationship between economic change and identity, another body of work looks at the processes whereby the capitalist class developed an awareness of itself as an agent of modernization. Sven Beckert argues, in Thompsonesque fashion, that through political discourse New York's various business interests coalesced into a ruling class in the wake of the Civil War and growth of an industrial labor force (Beckert 2001). In the era of the corporation, the same process of class formation can been seen taking place inside the firm. Olivier Zunz has argued that large corporations "made" America corporate by creating a new class of middle managers, dispersed across the nation in the many communities in which large corporations operated (Zunz 1990). Studies of business functions, such as sales and marketing, also note the ways in which firms or entrepreneurs combined religion, morality, occult philosophies, and scientific principles to forge the modern corporate worker personality. Indeed, some of the most successful firms have instilled in their employees, sales personnel in particular, a powerful sense of mission. Part of the reason is that sales has long been an avenue of advancement for the middle class or a road to middle-class status for ambitious members of the working class. A strong sense of purposeful community characterizes the effective sales forces (Spears 1995; Friedman 2004). Sales has also had a strong gender dimension. Women were frequently relegated to special sales roles involving direct contact with the public, where supposedly female

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virtues were thought to create the proper selling personality (Porter Benson 1986; Hornstein 2002). Sales work often provided a point of entry for women otherwise excluded from the corporate world. For men, on the other hand, sales connoted a loss of status from that of the independent producer. Through self-help manuals, diaries, and other texts, men in business constructed new narratives for their lives that reconciled them to their new duties (Augst 2003; Hilkey 1997; Davis 2000). Many studies of ethnic or immigrant entrepreneurs have emphasized their use of cultural resources to build enterprises (Fontaine 1996; Rath 1999). German immigrant guitar maker C. F. Martin, for example, brought a craft tradition of musical instrument making to the United States. Rather than adapting to an American impulse for mass production, he built up a high quality, exclusivebrand reputation that emphasized old world craftsmanship (Gura 2003). This functional and instrumental view of ethnicity, however, has been challenged by works that emphasize differences in education, access to capital, and other more traditional economic resources in explaining immigrant business ventures. Comparing Jewish entrepreneurs in London and New York who came out of the same Eastern European communities, Andrew Godley found that those who went to America soon exhibited greater entrepreneurial initiative than their London counterparts, something that presumably did not reflect cultural background so much as environment (Godley 2001). Questions remain whether immigrant and minority business activity should be seen as a means of preserving an existing culture, or as the source of cultural change and transformation (Stolarik and Friedman 1986). Non-elite entrepreneurs may have seen their task as preserving their families, rather than as seeking great wealth and elite status. Juliet Walker's works on black business in America, for example, note that even under slavery African-Americans revealed a strong entrepreneurial spirit, one that originally may have reflected their African heritage of market activity and long-distance trade. But for African-Americans, profits and capital accumulation took second place to self and family liberation (Walker 1983, 1988; Winch 2001; Weare 1973). Work on women in business has challenged the very definition of business (Scott 1998). Women often perform economic activities in the home, or in contexts that at first appear not to be business activity at all-in philanthropic or religious institutions for example (Kwolek-Folland 1998; Goldman 1981). Studies incorporating gender, race, and ethnicity into business challenge notions of business as a universal, affective-neutral act quantified by some transparent measure of profitability. Perhaps nowhere is the line between business and other activities less clear than with religion. The traditional view of modernization would suggest that with economic growth and rationalization, we move from religiously inspired to secular pursuits, presumably in business as in all else. In classical Weberian terms, religious authority is usually opposed to the legal rational structures that characterize the modern age. Weber and others following him, of course, also noted the ways in

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which religion could serve to introduce secular acquisitive values and promote rational, calculating practices. Recent studies tend to confirm this latter aspect of the Weberian paradigm. Dissenting or minority religious groups, such as Quakers and Huguenots, have often played a disproportionate role in business activity (Jeremy 1990). Moreover, some of the most powerful and successful entrepreneurs have often expressed a strong sense of religious duty and stewardship, seeing their business activities as God's work (Dellheim 1987; Kemp 2002; Hughes 1986). Yet modernization has not produced the secular society Weber would have expected by now, not even in the sleek offices of the modern firm. Some businesses with purely secular purposes rely more on charismatic than rational forms of leadership (Biggart 1989). Indeed, the continued emphasis on "leadership" in large corporations can be seen as an attempt to infuse personality and charisma into soulless bureaucracy. Since the nineteenth century, moreover, religious institutions have availed themselves of the same organizational and marketing tools that business firms use, further blurring the line between secular and sacred pursuits (Giggie and Winston 2002; Nord 1996).

25.3 ORGANIZATIONAL CULTURE The concept of firm or organizational culture first appeared in the literature on labor management early in the twentieth century. In reaction to Frederick Winslow Taylor's mechanistic view of worker motivation, more psychologically and sociologically astute scholars revealed the hidden world of the shop floor (or office cubicle) beyond the control of top management, most famously in the Hawthorne studies of the 1920S (Cohen 2001; Rosenband 2000; Gillespie 1991). Later studies treated organizational culture more broadly, seeing in well-functioning organizations an alignment between strategy, structure, and culture (Schein 2004; Deal and Kennedy 1999). This approach often takes the pronouncements of top management as indicative of the values and perceptions of everyone in the organization. Indeed, management is sometimes seen as the clever manipulation of firm culture by the CEO. By changing values, leaders can bring employees in line with the firm's strategic goals (Casson 1991). There is little doubt that firms have an official culture. David Nye explored the "image worlds" of General Electric's public presentation of itself. Stephan Harp has argued that Michelin used its famous anthropomorphic character to both humanize the firm and to create a sense ofFrenchness for the company as it adopted what were perceived as suspiciously "foreign" managerial tools such as Taylorism. In his careful study of the Japanese firm Kikkoman, Mark Fruin paid attention to the philosophical dimensions of firm management based on Confucianism (Nye

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1985; Harp 2001; Fruin 1983). But official culture is not always integrative. Critical

assessments of the legaciesof Taylorism and post- Taylorism, for example, note ways in which they served as foundations of management self-identity as the justification for managerial capitalism shifted from rights based on ownership to expertise and professionalism (Shenhav 1999). One important implication of historical studies of firm culture is that culture is dynamic, and that firms are always drawing inspiration and ideas from the cultural materials at hand. Eric Guthey, for example, has noted how Ted Turner constructed a powerful identity for himself as an outsider that both helped to redefine what leadership in a large organization meant, and also served as an effective tool of entry into an industry, telecommunications, that was stable and regulated (Guthey 2001). The best studies of organizational culture recognize that one must compare the official pronouncements of values with the acceptance or rejection of them at other levels of the organization (Dellheim 1986). There may be numerous subcultures striving for power within an organization. Nikki Mandell's history of welfare work inside large American corporations of the early twentieth century, for example, notes how the language of family was important, both as a way of asserting control over workers as company "dependents" but also as a way for the women who ran company welfare offices to carve out for themselves a space within the corporate hierarchy (Mandell 2002). Far from being an impediment to change, moreover, a complex and contested firm culture can also serve as a source of competitive advantage (Cheape 1985; Silcox 1994). Used in this manner, cultural diversity is enabling, not a problem to be managed. This broader view of corporate culture argues against drawing a straight line from strategy to structure to culture, seeing instead that firms may take their own unique paths to success (Smith 2001). Local variations among firms in the same industry facing similar conditions suggest the creative ways in which actors use alternative readings of the market for innovative purposes. Within the firm, differences in values, orientation, and identity among members permit such creative and variable responses (Church 1994; Fear 2001). This perspective is particularly useful when dealing with information. Erica Schoenberger argues that before managers can take action, they must place information in an interpretative framework that tells them what is important, relevant, and meaningful (Schoenberger 1997). In any system of knowledge, or discourse to use Foucault's term, what counts and who gets to say what counts are crucial questions. Power is the struggle over the right to interpret and assign meanings to things. Schoenberger suggests that managerial identity is crucial to strategy, for the framework of meaning and knowledge is congruent with the identity of the key decision makers. The danger firms face, therefore, is not resistance by subcultures but rather the opposite: a culture reduced to a single perspective or identity.

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Jeffrey Fear shows in his study of Thyssen that culture permeates practices and is constituted through discourses and debates over strategy and structure taking place within the firm. By debate and discourse, firm members come to understand and constitute their way of doing things (Fear 2005). Robert Freeland has argued that the M-Form was determined by debate and discourse not function and technology. Alfred Sloan decentralized General Motors (GM), but then spent his career deliberately blurring the lines between the formal structure and the informal but vital relationships between headquarters and operating units (Freeland 2001). In this, Sloan was practicing the approach outlined by BellExecutive Chester Barnard, who came to his ideas at roughly the same time. Barnard's ideal executive was a consummate performer, slyly bending the formal rules of organization to cultivate human relationships and adapting abstract managerial schemata to complex reality (Barnard 1938). There was as much aesthetics as rationality in executive behavior. It was, however an aesthetic sense of what was right, fitting, and proper that eventually impelled GM's directors to implement full decentralization, with negative consequences for performance. They had adopted the M-Form from DuPont, where executives had mingled informally in Delaware, but failed to notice that this crucial mitigating factor would be absent in the sprawling GM empire. These sorts of subtle cultural and social nuances were lost as the M-Form came to be seen as a pure, rational organizational structure appropriate to all large, diversified firms. The auto maker's executives could not escape the very structure and form of knowledge they themselves had created. One might argue that GM was a victim of ideology-a blind commitment to a system of ideas that hid an underlying reality. Ideology has also been studied as a tool of managerial interest and self-creation. In a wide-ranging history of management compensation schemes, Ernest Englander and Allen Kaufman show how corporations have increased the power and compensation of top managers. These shifts they link to a new ideology of management, created by academic economists, business school faculty, and associations of CEOs through organizations such as the Conference Board. They argue for contingency rather than conspiracy in explaining these shifts, but they suggest that a powerful ideology was at work justifying the privileged position of the very top managers (Englander and Kaufman 2004).

25.4

BUSINESS MAKING CULTURE

Many authors have commented on business's cultural influence, mostly to condemn it as a corrupting force. There is much to be gained, as I will argue in this section, from abandoning traditional models of the business-culture nexus. Taking the insights of business historians together with the literature on consumption,

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leisure, and popular culture can provide a much fuller and more sophisticated understanding of how business makes culture.

25.4.1 Consumption Three basic models mark the study of culture and consumption. One takes a Weberian approach, finding a growing rationalization of consumption in modern society, with the business firm an agent of this change (Lears 1994). A second finds an expanding market commodifying more and more areas of experience, to the detriment of authentic cultural expressions (Horowitz 1992; Daniel 2002). A third pits consumers against business, and sees in consumption an oppositional force to the power of producers (Bourdieu 1984; de Certeau 1984).5 While many authors admit that consumption has long been a part of human experience, works nonetheless seek to distinguish the moment that the ancient practice of consuming goods gave way to a consumer society. This shift is usually thought to have occurred, in the West at least, sometime between the seventeenth and nineteenth centuries (Stearns 2002). Some scholars locate it in England, others in the Netherlands, and still others France (McKendrick et al. 1982; Schama 1987; Williams 1982). Works on other parts of the world generally find a transition to a consumer society occurring apace with economic growth and industrialization, often led by multinational corporations (Bauer 2001). In this regard, Timothy Burke notes the subtle interaction between sales, consumption, and self-definition that followed the penetration of Unilever personal care products into Africa. Unilever marketing created not just new desires, but new "needs" or standards of cleanliness. Corporate hegemony reworked existing cultural categories and exported western notions of uplift and civilization along with products (Burke 1996). But other works studying the penetration of corporations into foreign economies actually found that consumers were able to resist corporate designs by practicing consumption in unpredicted ways (Scarpellini 2004; Fox and Lears 1983). Studies have likewise interpreted the advertising of products in diverse ways. Some have seen in advertising messages pervasive notions of modernity (Leach 1993; Marchand 1985). To others the modernity promised by marketers is an elaborate mechanism to discipline and regulate consumption in line with the needs of mass production (Laird 1998; Lears 1994). Still others have put a more positive spin on the regulation of desire. Advertising and marketing, they argue, supported wise choices by consumers and promoted economic growth by assuring a steady market for mass-produced goods (Pope 1983; Calder 1999). 5 Business historians, on the other hand, have sometimes followed a fourth variant, seeing in consumption, and mass consumption in particular, a democratic tradition (Tedlow 1990).

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A key issue is the nature of the consumer-producer relationship. Is it more like finance, where marketing institutions are simply intermediaries connecting two sides of a market? Or is it more dialectical, whereby the signal from consumer to producer must be interpreted, rather than simply passed on? Some works suggest that producers engage in a form of entrepreneurship as they seek out their consumers, drawing on their own cultural knowledge to understand their customers (Koehn 2001). Regina Blaszczyk's close study of this process identifies "fashion intermediaries" who must imagine consumers and engage in a creative process involving both design and discourse with the factory (Blaszczyk 2000). A recent article by Daniel Robinson addresses the simultaneous creation of goods and meanings (Robinson 2004). Marketing, he argues, is both a functional and representational process, with messages as much the "thing consumed" as the object itself. These works call into question both corporate hegemony and consumer resistance. Instead, they problematize production and place it in a dialectic with consumption. The act of consumption constructs mental categories ("needs")' to be sure, but these exist beyond the control or often the self-awareness of consumers and producers alike (Douglas and Isherwood 1979). The means and practice of consumption also require close investigation from a cultural perspective. Department stores, for example, captivated consumers with their dream-world displays of opulence, their clever orchestration of modern materials, and their new, large-scale approach to sales. William Leach and Rosalind Williams emphasize the ways in which stores defined a new type of consumerism, giving rise to new cultural agents such as window dressers and lighting technicians and calling upon other institutions, such as universities and museums (Leach 1993; Williams 1982). Michael Miller, on the other hand, saw in the grand Parisian department store, the Bon Marcne, a link between French traditions of family and household and a new bureaucratic world of regulated work and consumption (Miller 1981). Even revolutionary forms of consumption can, as Miller found, also be conservative forces, preserving and reinforcing the role of women as shoppers. Shopping has been seen as a transformative experience, connected with the rise of consumer society, the growth of the city, and the expansion of individualism (Zukin 2004). It is often at the point of sale that consumers have the greatest agency (Benson and Ugolini 2003). Shopping has also been a highly gendered activity. To conservatives who feared incipient female liberation, the pleasures of shopping pointed to decline and decadence; to women seeking freedom and adventure in the city, it became one of the most important forms of licit public pleasure (Abelson 1989; Rappaport 2000). As much if not more than the purchase of goods, the shopping experience has raised debates about social order, political virtue, and moral decline in practically every economically advanced nation. The reordering of urban space for profit itself has a long history. One of the best examples of creative destruction can be found in the building up and tearing down of urban landscapes (Page 1999; Rilling 2001). The building of the modern city is

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also one of the best examples of the intersection of profit and mentality. Nicholas Papayanis argues that it was the idea of circulation as a way to make the city clean and safe, and to control crowds, that spurred private and government capital to flow into Paris's urban transportation system in the nineteenth century (Papayanis 1996). Robert Fogelson has pointed out that while economics drives much of the contemporary urban landscape, even profit-oriented business interests have based their calculations on a presumed model of what space-in this case the classic urban downtown-should look like (Fogelson 2001). Rearrangement of space was a business activity to be sure, though creative entrepreneurs also carried notions of community into their plans (Hardwick 2003).

25.4.2 Material Culture and Design If culture is seen as deriving from both the material and ideational, then the products that businesses make and sell are cultural forms as well as material objects. Certainly the term material culture seeks to capture this sense that as we make and use things, we also define ourselves. New materials have often started out as solutions to problems of production, but then captured the imagination of consumers, as with aluminum and plastics (Meikle 1995; Schatzberg 2003). In almost every society, electricity has quickly come to express values and beliefs about progress through technology (Nye 1990). Railroads, automobiles and telephones have all been held up as icons of modernism (Lipartito 2003; Tobey 1996). In postwar Japan, electrical goods were used in strategic fashion as part of a scheme for modernization of the countryside, to break down Japanese rural traditions (Partner 1999). In each case, the meaningful materials of the modern world have come about as business ventures and worked their way into consciousness through the interaction of producers and consumers. Lesscertain is how well modern business and technology fit with aesthetic values. The machine age spurred members of the Arts and Crafts Movement to seek a return to joy in labor and to rediscover the aesthetics of earlier, simpler times. On the other hand, German architect Peter Behrens made his most important architectural statement right in the heart of the industrial world, in his design of the AEGturbine factory. In this and other commissions Behrens created a corporate identity for the giant German corporation (Anderson 2000). In the United States business patronage has supported major figures in design, who nonetheless took as their mission the taming of raw commerce with good taste (Meikle 1979; Adamson 2003). As Marina Moskowitz has shown, the concept of an American standard of living has done dual service. Technically, it referred to a system of efficient production, but culturally it expressed a moral imperative about a certain style oflife (Moskowitz 2004). In many cases, design could simultaneously investigate new, even revolutionary possibilities of industrial technology, while hewing closely to older cultural values.

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Alison Clarke notes how Tupperware used a modern material (plastic) and innovative design to promote a very traditional virtue of frugality during the Great Depression. It succeeded not through the new marketing avenues of chain stores or by national advertising, but by drawing on female networks in the "Tupperware party", invented by saleswoman Brownie Wise (Clarke 1999). Even where businesses have self consciously embraced modernism in design they have often done so as much for aesthetic as for pragmatic purposes. Corporate offices fashioned in the international style announced a firm's commitment to progress and modernity (Martin 2003). In fact, at times such expressions contradicted practical necessity. Firms that eagerly embraced modern architectural principles for their headquarters and research laboratories found that modernism served their functional requirements poorly (Knowles and Leslie 2001). Important as design and material culture are in their own right, business history can also link such matters back to production. Studies of industrial districts and specialty goods industries note the close connection between products that are highly differentiated with respect to style and flexible production strategies. Such differentiation is rooted in national tastes and styles, asWhitney Walton notes in her study of France's rejection of British mass production methods at the Crystal Palace exhibition in 1851. Indeed, just as important as the actual products and designs on display was the discourse over their meaning, as French producers interpreted their opportunities and comparative advantage in distinction to the British emphasis on standardization and large-scale production (Walton 1992).

25.4.3 Business in Everyday Life The number of ways in which business has penetrated aspects of what used to be private life has expanded enormously over the past century. The very idea of leisure stems from the transformation of work and family life in an urban age where most people earn their living working for others (Beder 2000). Businesses have seen in that transformation new opportunities for profit. In an urban society, the desire to reconnect with nature manifests itselfin tamed commercial spaces where nature can be observed at a safe distance (Davis 1997). Even supposedly pristine national parks have had aspects of a "brand name" tourist attraction (Daniel 2002). No firm has better exploited this possibility than the giant Disney corporation, whose founder, Walt Disney, was a man given to straightening the chaos of nature with a vengeance (Foglesong 2001). Even more than with the consumption of things, the consumption of experiences, packaged and marketed for profit has drawn the fire of social critics for undermining genuine experiences (Butsch 1990). The relationship between business and popular culture, however, may not be quite so one dimensional. In the highly ordered spaces of theme parks, trimmed wildernesses, and suburban living,

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one also has to ask, is anyone deceived? Perhaps some people actually prefer a rationalized nature to the real thing, and applaud the virtuoso performance of business organization and technology. The practices of everyday life in fact have long had a business dimension. As Carole Frick shows for Renaissance Florence, for example, clothing was crucial to constructing an identity for the city's elite. Business enterprises in response constructed elaborate costumes to be worn for key ceremonial occasions. The expensive finery was then taken apart and reused, permitting producers to make profits and keeping prices low for consumers (Frick 2002). Business and culture, profit, consumption, display, power and identity all went hand in hand. The pursuit of profit did not disrupt or negate cultural meaning; indeed it contributed to it. In other times as well, successful business enterprise became the institutional mechanism for cultural expression and the construction of identity. Studies of the French wine industry show a clear transition from local production to national or even international commodity as far back as the seventeenth century (Brennan 1997). The same is true of products such as Champagne and Camembert cheese, which made the shift from relatively obscure local goods to symbols of the French nation in the nineteenth century. The actors behind these transitions were business people, to be sure, but they were also the very same local producers and merchants who had run the industries for generations. National brands in this case were created not by outside corporate interests, but from within traditional systems of production and distribution (Guy 2003; Boisard 2003; Terrio 2000). A different issue inheres in what has been the most closely studied cultural enterprise-film. On the one hand, film was a new form of entertainment, started as a business, and controlled by entrepreneurs who used corporate methods. Works on "the business" (as it is called by its participants) have addressed competition among studios, the expansion of Hollywood overseas, and the creation of the film star in the service of product differentiation (Trumpbour 2002; Kerr 1990; Gomery 1992). It remains uncertain whether film is to be understood through the lens of profit alone, or whether national cinemas express an ideology, or indeed if the two go hand-in-hand. Some works find a dovetailing of studio interest in profit with American interest in, literally, projecting itself to allies and non-aligned nations during the Cold War. Certain classes of goods, such as food, exhibit an almost inseparable relationship between their lives as for-profit commodities and the meanings that they hold for those who consume them. Works on sugar show that though a desire for sweetness may be universal, the way that craving is expressed can vary tremendously. As Sidney Mintz argues, those variations can reflect sugar's level and mode of production and its place in the world market (Mintz 1985; Woloson 2002). Studies of fashion show a similarly intimate relationship between mental and material history. Carol Turbin has investigated the production, consumption, and cultural meaning of the

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"white collar", as a changing symbol of masculinity, a marker of the division of labor, and a product of household labor (Turbin 2000). Personal goods such as these have a strong cultural valance, which makes it difficult depict their business side in any simple, one-dimensional way. As Nancy Troy demonstrates in her study of the fashion industry, early twentieth-century couturiers skillfullyblended appeals to uniqueness and high art with production and marketing strategies that made their designs available to the middle class (Troy 2004). In her study of how clothing and style move across cultures Alexandra Palmer depicts the business of haute couture as a set of international relationships between designers, producers, and consumers. Fashion moved across cultural boundaries but was locally mediated and adapted (Palmer 2001). Rather than cultural forms becoming inexorably globalized and homogenized by multinational business, we see that the local and global, the elite and the mass produced continue to interact and co-exist. Kathy Peiss uses the beauty business to interrogate one-dimensional models of the "growing commercialization" of modern life. How ideas of beauty are inscribed in different ways at different times is an institutional process, engaging not only multinational corporations, but local producers, often of non-elite and minority backgrounds, and prescriptive literature, literature that itself is a business. Unpacking the institutions that define "the market" and problernatizing business in this way shows how enormously complex is the relationship between meaning and profit, identity and commerce, business and culture (Peiss 2000). In fact, ambiguity about the line between commerce and culture can be seen even in those industries most focused on money and profit. Financial institutions and mutual insurance plans have since the eighteenth century served in many nations the purpose of social uplift and reform (Wright and Smith 2004; Zelizer 1983). Entrepreneurs devised new investment schemes as alternatives both to class conflict and to more radical restructurings of society (Lipartito and Peters 2001; PohI2001). Insurance began with a mixture of profit and social reform (Goodheart 1990). Pursuing the "business of benevolence': corporate executives started voluntary associations to achieve similar ends (Tone 1997). More generally, business has been used as a powerful model of social order. At various times, business people have proposed managerialism to solve social problems, and surpass the limitations of local cultures and politics (Scott 1992; Farber 2002). Henry Ford, Frederick Winslow Taylor, Thomas Watson, Alfred P. Sloan, and other major figures of the Second Industrial Revolution became symbols and spokespersons for a new industrial order that expressed ideas far beyond the obvious ones of material abundance and productive efficiency (Nye 1979; Merkle 1980). An error made by those who ascribe motivations to business actors without studying them up close is to assume everyone in business knows exactly what their self-interest is (and indeed that business has a unitary interest) and can easily and

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instrumentally serve it. Ifbusiness people are treated like other agents-bound by their systems of ideas, conflicted about their wants and interests, subject to an array ofsocial and cultural disciplines-then it is worth taking their ideas and expressions at their full depth, and not reducing them to narrow self-interest.

25.5

CONCLUSIONS

As this chapter has shown, scholarship has been moving toward the reintegration of business and cultural history, in ways that offer payoffs for both. The best of this work avoids much of the determinism and teleology of older approaches, finding that business can be practiced, quite successfully, in many different ways in different cultural settings. Authors have abandoned the assumption that western history was driven by the rationalization of economic activity and the disarticulation of production, organization, and exchange from the socio-cultural matrix. They have rediscovered the ways in which business practices in modern industrial societies are deeply embedded in cultural settings. Even in a global economy, firms and national economies continue to show much variation. Indeed, the more research is done on business, the more difficult it becomes to see business moving toward a single, universal model of efficiency. The new scholarship challenges business historians to recognize the more expressive aspects of business culture, beyond what culture may contribute instrumentally to firm growth. At the same time, it challenges cultural historians to see the connections between business and culture as polyvalent. Too many cultural historians assume that the search for profit negates any genuine cultural expression and treat markets as abstract forces that always and everywhere operate in the same fashion. As Kathy Peiss cautions, in doing so they produce an inflexible vision of "business as a monolith", with "motives uniform ... actions synchronized ... effects transparent", exactly the opposite of what cultural history should do (Peiss 2000: 486). Cultural theory also offers an alternative to economics for the study of business history. Recently, economics has moved strongly in an institutional direction. Even the market is now understood as an institution, with its characteristic rules, practices, and history. But any effort to build economic theory on an institutional base must fail if it offers no scope for the way that humans make meanings and construct knowledge (Suny 2002). Where a cultural approach to business subsumes economics is in its much more sophisticated treatment of information and knowledge. Many economic models of business (and economic activity in general) proceed from the assumption that actors learn directly from experience, in an unmediated, almost instinctual way.

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No thinking, figuring, or contextualizing of information through a framework of knowledge is needed here. Even more sophisticated models that take information into account presume that it flows, like a signal, within firms, between firms, or between the firm and the market (Lamoreaux et al. 2003). Cultural theory rejects this abstract view of communication as signals passing between fully constituted actors. Instead, it sees language as constitutive, with communicants making themselves and grasping reality through language. The issue is not simply the limits or imperfections of information, but the way in which knowledge is constructed, and in turn constructs its subjects. This perspective contradicts some foundational beliefs of business history. The discipline still largely assumes that the market and profit arbitrate questions of culture, much as they are presumed to arbitrate strategy and structure. But there are many ways to make a profit, many ways that firms can organize and act and still be successful. The disciplinary problematic is to investigate how firms make these choices, if there are no unambiguous signals from the market dictating "one best way" of organizing and acting. How actors learn what counts, how they influence those with capital to lend, how they sort through information to make choices, and how they represent themselves and their firms to others are crucial aspects of business behavior. 6 Such matters should be objects of study for business historians. They can get at them by paying more attention to image, display, and symbol, all of which firms spend abundant money on. They can look deeply inside the firm, at the discourses and debates over key decisions that constitute knowledge, enable action, and tell business people who they are and what they should be doing. This new synthesis of business and culture will require a willingness to use old sources in new ways. The information and texts of business life can be read for the meanings and values they encode, the way of life they express, the arguments they make. Images and representations of business practices, protocols and rules for behavior, dramatizations of business life all become important to understanding the core economic functions of firms. The causal arrow runs two ways here. Culture as the semiotic system through which business actors understand their environment and themselves affects strategy, structure, and behavior. But as cultural actors, businesses shape cultural discourse and practice. Discovering the mutual constitution of culture and business offers a new means to understanding the multiple, nondeterministic ways in which economic activities have been and may be practiced in capitalist societies.

6 One of the most important forms of knowledge used by business, accounting, is itself culturally constructed. The ways firms account for themselves can vary widely, with implications for their strategy and organizational designs. For an insightful introduction to "critical accounting theory" see Fear (2005. appendix B).

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INDEX

A&P 409 Aachen 585 Aalders. G. 154-5 AASCB (Association to Advance Collegiate Schools of Business) 595 ABC (activity-based costing) 449, 458, 463 Abe, Takeshi 221 n. Abegglen, J. 77 n. Abel, Heinrich 567 n. Abernathy, William 352 Abrahamson. E. 103 absorption cost 457 abuse 279 Academy of International Business 104 acceptable behavior 263 acceptance services 329 account books 607 accountability 450 accounting standards 451 international 452 national 450, 452 Accounting Standards Board (UK) 451 accounting systems 285-6, 585. 586 conventions 131 methods 22 seealso AICS accreditation 595 Acernoglu, Daron 560, 565-6 acquisitions, see mergers and acquisitions adaptation 12, 160, 181,183, 225 creative 20 deliberate 127 economic and social problems of 531 model worthy of 358 mutual 259 new technologies 559 adjustment 132-3 Adler, Paul S. 257 administration science 100 adoption 205 Adriatic coast 233 adverse selection 341 advertising 126, 155. 398, 403, 406, 414

associational 397 changing the form and function of 25 characters in 402-3 consumer 399 drawings be used in 379 efficacy questioned 413 emotive/emotional 397,4°3,408 expenditure on 409 greater opportunities for 400 history of 22 innovative 397 intensive 398. 411 mass 402, 405 pervasive notions of modernity in messages 613 pervasiveness of 405 potential impact of rising expectations on 415 television 410. 413 advertising agencies 414 influential 408 US influence on role and function of 415 AEG 179, 181, 202. 283, 615 AEI (Associated Electrical Industries) 182 aerospace 181,182 aesthetics 612, 615, 616 affiliates 160, 250,339 cross-border flows of trade between 153 diversified business groups 254 financial ties with 260 foreign, dissemination of techniques learned from 159 knowledge transfer to 153-4 manufacturing firms begin research and development in 157 sequestrated 147 Africa 5 business schools 596 colonial 5.512,513 English-speaking 14 extended family 197 indigenous business systems less able to absorb foreign capabilities 159 multinational investment widely spread in 157

630

INDEX

Africa (cont.) penetration of personal care products into 613 political risk 156 post-colonial 5, 14 servicing colonies 545 transporting of humans to the Americas 143 uncertainties regarding property rights and enforcement of contracts 152 seealso South Africa, West Africa African-Americans 403 entrepreneurship 508-9, 609 after-sales service 413 Agence Havas 414 agency theory 45, 51, 103 top-down models of 46 agglomerations 149, 256 regional 502 specialized 219, 222 aggregate tracking mechanism 356 aggregation 131 sectoral forms of 306 aging 27 AGIP (Azienda Generale Italia Petroli) 532, 544 agricultural sector 50 sharecropping 51 solidarity 17 strong periphery 336 ahistorical thinking 69 Ahmedabad 159 Aichi Horo 258 Aichi Industries 258 AICS (accounting, information and communication systems) 447-69 AIM (Asian Institute of Management) 596 Air France 545 air transport 182 socio- political dimensions 545 aircraft industry 82, 391 alloys 354 big companies 387 more interest in new design than in mass production 389 Airline Deregulation Act (UK 1978) 544 airlines 280, 533 American, out-competition by 545 deregulation 544 early and pervasive privatizations 548 economic organization of 545 expensive, but widespread travel 148 financial struggle 545 protected by subsidy 588 telecommunications, privatization and 544-9 airspace 545 Ajinomoto seasonings 406

Alaimo, Aurelio 221 n., 225 n. Alaska 148 Alchian, A. A. 244 n. Alcoa 270, 277, 352, 355 alcoholic beverages 160 AIdi 416 Alemann, U. von 300 n. Alfa Romeo 26 Allen, Michael Thad 132 n. Allevard & Le Creusot 455 alliances 127,154, 285 ability to build 21 intraclass 300 making and breaking of 133 seealso strategic alliances Allied Suppliers 400 allocation of resources 12, 19, 74, 75, 78, 183 control over 72 deliberate 73 financial 88 innovative investment strategies 87 optimal 68 role ofthe firm in 69 strategic 76 alternative technologies 232 altruism 209 aluminium 270, 280, 354, 460 Aluminium Industrie AG (Swiss-German) 277 amalgamations 227, 230 Amatori, F. 13, 29, 50, 120 n., 130 n., 221 n. Amdam, Rolv P. 50, 107, 582, 583 American Academy of Management 100,101 American business schools 590, 591-2 first 584 flagship of 589 late adopters of the model 590 leading, number of international students 152 main provider of graduates for managerial positions 583 transferring knowledge internationally from 589 seealso HBS American Can 178 American Cereal Company 402 American Challenge, The (Servan-Schreiber) 185 American Federation of Labor 81 "American menace" 382 American Society for the Promotion of Engineering Education 389 American Tobacco 177,178, 409 Americanization 18, 97, 107 business education 581, 582, 588-91, 597 Amin, Ash 223 n. "Amos and Andy" (radio program) 409

INDEX

Ampex 359 Anderson-Skog, L. 529,550 angel investors 518 Anglo-European banks 329 Anglo-Florentine buyers 234 Anglo-Persian Oil (Anglo-Iranian Oil) 155,182, 543

Ankara 587 Annales (journal) 9 anonymous relationships 342 Ansaldo 13 Ansell, Christopher 231 n. anthropology 101 anti-cartel policy 272 anti-entrepreneurial culture 506 anti-merger policy 271 antitrust 4, 268, 279, 281,351 advent of 284 consent decrees 229 fear of homegrown actions 278 immunity from lATA 545 law favors horizontal merger over cooperation 484 legislation 228, 282 policies 126, 272 prominent jurists 229 prosecution 355 troubles 253 unified field theory of corporate development constructed around 282 seealso Clayton; Sherman antitrust regulation 273, 274 changing, impact of 103 form and intensity of 231 Aoki, M. 82 n. 87 n. AOL 188 apparel 416 Apprenticeship Law (Denmark 1889) 573 apprenticeships 229, 381, 389, 561, 563, 567 collective arrangements for strengthening 568 contribution to economic efficiency 569 destruction of 572 gender stereotyping 560 imposing restrictions on training 571 in-plant 564 overall decline in 571 regulation of 573 strong 573 survival and upgrading of training 570 well-developed programs 560 Arab diasporas 509 architectural principles 616 Argentina 151,278

631

Arisawa, H. 454 Arita pottery 230 Armani 200 Armour 178 arms trade 13, 14 Armstrong, P. 450 Arrighetti, Alessandro 227 artels 490 Arthur, W. Brian 12 artisans 200,301,3°2,425,608 independent 224, 570, 572, 573 master 571 protection of 329 skilled 222 Arts and Crafts Movement 615 Arve Valley 222, 224 ASEA 460 ASEAN (Association of Southeast Asian Nations) 205 Ashton, David 559 n., 565 n., 568 Asia 106, 146. 151,606 antisocial characters 263 business schools 596 challenge to Europe and America 605 colonial 5, 512 cultural forces 206 emerging markets 5 ethnic entrepreneurs 513 evolution oflarge business groups 206 firms catching up with the West 257 global firms analyzed 257 indigenous business systems less able to absorb foreign capabilities 159 intricate holding company structures 195 low-wage producers 531 M-form firms 247 multinational investment widely spread in 157

post-colonial 5 procurement of commodities in 143 servicing colonies 545 voyages of discovery to 143 seealso East Asia; South Asia; Southeast Asia ASME (American Society of Mechanical Engineers) 391 aspirations 397 middle class 403 ASQ (AdministrativeScience Quarterly) 99-100 assembly-line methods 46,151, 159.428 first manufacturer to introduce 181 Ford-type 421 interchangeable parts 176, 177 spread of 429 asset specificity 47-8, 123 n., 259

632

INDEX

assets 172, 173, 178, 179, 180, 336 balance sheet 451, 397 bank 89 cash or money 332 confiscation of 181, 249 de-specifying 125 n. diversifying risks without selling 486 family 203 financial 334, 340 financing investments in 327 foreign ownership virtually eliminated 148 intangible 209, 212 key, ownership and control of 252-3 knowledge 75 liquid 332 mobilizing 12 overseas, total loss of 148 potentially illiquid 337 responsibility for managing 253 short-term 332 using for benefit of promoters and shareholders 187 valuable 85 ASSI (Associazione di Studi e Storia dell'Impresa) 29 association 245 Association of American Draftsmen 381 Association of Business Historians in Great Britain 29 associationalisrn 273, 274, 305, 306, 397, 476, 478 associations 351 artisanal 566, 573, 574 Astra 415 asymmetric information 56, 149, 232, 234, 329 problems of 340,341,511 ATtkT 354,355,529,546 break-up/divestiture 544,547 Atlantic and Pacific 403, 416 Atlantic crossings 545 Atlantic economy 143 Atlas intercontinental missile 385 atomic bomb 385 attitudes 202, 206, 208 balanced 210 cultural 397 family 205 nationalistic 593 ordinary postwar consumer 415 political 278 social 506 striking contrasts in 204 Auchan Groupe 416, 435 auditors 450, 477

Augsburg 378 austerity 411 Austin Motors 182, 461 Austin, B. 582 Australia 5, 48, 50, 56, 251, 252 accounting 451 business education 596 cartels 278 education 562 foreign-owned corporate sector 160 large firms 173 universal banking 331 Austria 14. 68. 405 apprenticeship combined with part-time classroom-based vocational training 563 bartks 334 business education 586,587 cartels 275, 278 chambers of commerce 304 financial intermediaries 326 market capitalization 333 universal banks 331 vocational education and training 562 autarky 20, 125, 130, 381, 388, 533 promoting 531 authoritarian regimes 308 business enterprises tolerant of 154 financial support of 14 industrialization under 571 authority 26. 603, 609 decentralization and devolution of 231 hierarchical 81 auto parts 230 suppliers of 250, 259, 261 automation 81 world leaders in 83 automobile industry 44,148,151,157,270 big companies 387 coming to terms with organized labor 429-32 development of production methods in 106 international 160 large firms recognized unions 430 productivity gains at expense of product innovation 390 suppliers 152 threats and incentives designed to encourage foreign firms to create 156

seealsounder variouscompany names, e.g. Daimler; Ford; General Motors; Honda; Nissan; Opel; Renault; Toyota; Volkswagen autonomy 19, 20, 154, 350, 353 decision-makers 257 fiscal 227

INDEX

local government 227, 231 manager 473 subsidiaries 153 subunits enjoy 245 aviation industry 544-5 Axelrod. Robert 264 Azienda Autonoma delle Ferrovie dell Stato 536-7 Azienda di Stato per i Servizi Telefonici 546 Baccarat Crystalworks 455 bachelor degrees 594 backlashes 142. 147 "backshadowing" 129 backward induction 46-7,55 backwardness 324, 340, 415 economic. catching up 513 relative 413 stigma of 415 Baden-VVurttemberg 224 Baethge, Martin 567 n, balance of power 422, 471 balance sheets 451 restructured 86, 87 Balanced Scorecard approach 463, 464 Balderston, C. Canby 490 n. Baldwin Locomotive Works 379, 390 Balfour Williarnson 179 ball bearings 460 ballistic trajectories 387 Baltimore fire (1904) 271 banana republics 158 bank-based financial systems 323 bank loans 87. 89 unsecuritized 88 Bank of America 184 Bank of England 337 Bank of France 228 Bank ofItaly 228 Bank of Iapan 87,88 Bankers Trust 189 Banking Acts (US 1933h935) 337 banking system 51. 319-46 central to industrial finance 88 highly concentrated 511 history 30 multinational 149 regional, multi-tiered 228 regionally decentralized and fragmented 472 regulations 126 some governments structure 90 bankruptcy 201, 607 banks 77, 87, 188, 206. 208, 253, 404

633

business groups were restructured around 249 close relationships with entrepreneurs 517 conservative 337 country 517 dominating role of 189 economic research by 28 escape from governments 149 expansion limited 179 financial condition of 89 financial control by 487 for-profit 342 giant firms 179 government reliance to provide with credit 511 holding equity stakes in firms 474 importance of 322 improved position of 481 industrial corporations much less dependent on 89 main 477-8, 486 military government control of 478 multinational 329, 330 non-profit 342 overseas 145, 329 persistence of 228 private 175, 519 promotional and developmental role of 517 public 328 relationships with 206 relative job security 435 role of 88 rural 227 semi-public 328 shifts in the power of 475 short-term role in industrial finance 472 significant role in entrepreneurial finance 518 small 337 state role in directing lending 477 strategies that strengthen the hand of 481 strong 481

zaibatsu 476-7 seealso central banks; city banks; clearing banks; commercial banks; cooperative banks; credit banks; industrial banks; investment banks; joint-stock banks; large banks; merchant banks; mixed banks; regional banks; relational banking; savings banks; specialized banks; trust banks; universal banks Banque de Paris et des Pays-Bas 175

banto 253 bar code technology 448 Barbero, Maria Ines 5

634

INDEX ----------------------_._----

Barcelona 595 Barclays Bank 180,184 "barefoot researchers" 11 bargaining: complex relations among national states 277 constant 270 enhanced clout 283 industry-level 566 informal 430 bargaining power: political 206 significantly affected 422 seealso collective bargaining Baring Brothers 175, 179, 329 Barnes, J. A. 255 Barnes, W. 582 Barnes and Noble 111 Barney, J. 111 barriers 54, 151,286 Barsoux, J.-L. 582,592 Bartlett, Christopher 257 BASF 177,181 Basic Law (West Germany) 475 Baskin, J. 86 n. BAT (British-American Tobacco) 159 batch production 25 Bauer, Clemens 490 n. Baumol, William J. 510,521 bauxite 280 Bayer 177.181 beauty industry 24, 160, 618 Becattini, Giacomo 219, 222, 232, 234 Bechtel, W. 453 Bechtel (company) 200 Becker, Gary 562 Beckert, Sven 608 Beecham 182,400 behavioral economics 131 Behrens, Peter 615 Behr, Marhild von 567 n. Beitz, W. 374 Belgium 231, 533 banking and finance 153, 329, 331, 332, 334, 335, 337

business education 586, 588 cartels 278 coal deposits 541 government revenues from privatization 548 loss of total foreign investment 147 market capitalization 333 new state (1830) 536 pioneering relations between university and industry 19

railroads 536 state formation 535 Bell 352, 547 Bell Brothers 174 Bell Laboratories 229 benchmarking 125 n. collective 234 open systems 235 benchmarks 173, 194, 199 Benetton 200,415-16 benevolence 618 Bengalis 159 Benington, John 231 n. Berg, Maxine 132 Berg, Peter B. 561 Bergisches Land 224 Berk, Gerald 121 n., 229, 235, 453, 457, 540 Berlanstein, Lenard 26 Berle, Adolf 74, 98 Berliet 460 Berlin 405, 414 banks 338, 340

Handelshochschule 585 Bernstein, Michael Andre 128-9 Bessemer converters 177 best practice: adoption of 284 drawings 380 help to spread 453 Bethlehem Steel 178

Betriebwirtschaftslehre 591 beverages 151,409 alcoholic 160 BHC (Business History Conference) 39,42,51, 52,365

Bhimani, A. 447, 463 BI Norwegian School of Management 597 Bianchi, Ronny 225 n. Bibendum 405, 415 big business 3,171-93,275,280 active role in shaping form and content of higher education 75 analytical basis for assessing performance of 91 Chandler's framework for understanding the rise of 515 curtailment of power of 540 dominant sectors 405 engineering graduates to 456 growth in manufacturing 2 growth of 200 international variation in dominant forms of organization 10l

INDEX

legislation against 540 rise of 47 Big Science model 357, 359 Big Six enterprise groups 88 Bigazzi, Duccio 26 Biggart,N. W. 101 bilateral agreements 277 bill discounting services 335 binational firms 16 Binda, V. 103 biographies 503,504,505,509 biomedical equipment 233 biotechnology 130 n., 359 Birkett, W. P. 464 Birmingham 132 Jewelry Quarter 226 Birmingham University 586 birth-death ratio 208 Bismarck, Otto von 176

Bjarnar, O. 107 black-and-white production plans 383 blacks 508, 609 Blaich, F. 157 Blair, Margaret 472 n. blast furnaces 177 Blaszczyk, Regina 24, 614 Blauband margarine 414 Bloch, Marc 9 blockholders 471 Bloom, H. 595 blue-collar employees 24, 75, 437 employment security 83 enterprise unions 83 militant labor movement 83 reliance on skills of 568 skill formation 567 temporary 85 Blue Funnel Line 251 blueprints 380, 391 BNP (Banque Nationale de Paris) 189 Board of Trade (UK) 269 boarding schools 583 boards of conciliation and arbitration 226 boards of directors 74, 332 family member percentage of 253 need to balance interests of shareholders 211

power to appoint members 197

Boccaletti, E. 508 Bocconi University 593 Bach, Rudolf 25, 133 n., 224 n. Boddewyn, J. 100 Bolckow Vaughan 174

635

Bologna, Sergio 223 n. Bologna (packaging machinery cluster) 222 Bombay 159 Bon Marche 405, 614 bond markets 327,328, 483 effective abolition of 478 bonds 75, 86, 326, 327, 328, 337, 472 securitized 88 Bonin, Hubert 50 Bonnet, Clarence 293 n. Bonsack, James 177 bookkeeping 450,452 double-entry 448 industrial 454 booms: cartel 275,281,285,288 consumer 398, 408, 409, 411, 412, 413, 415, 416 cycles of 545 railroad 175 stock market 8, 87, 326 Boot, Arnaud W. A. 472 n. Booth, Alison 1. 559 Boots 182 Borders III Borneo Co. 251 Borsalino 406 Borum, F. 112 Bosch Company house journal 389 Boston Associates 204, 206 Boston Consulting Group 130 n. Boston Manufacturing Company 455 boundaries of the firm 125 diminishing importance of 257 effective 130 bounded rationality 131 Bourdieu, Pierre 13, 583 bourgeois society 10, 20 aspiring 405 dynasties 173 industrial 310 interaction of 19 Bourguignon, A. 464 Bouvier, Jean 31 Bouyx, Benoit 563 Bowden, S. M. 44 Bowman, J. R. 297 Boyce, Gordon 50 Boyer, Robert 125 n. Braczyk, Hans-Ioachim 126 n. branch networks 331 Brand, D. 297 brand management 150 brand names 146, 285

636

INDEX

- - - _...•

_-_ _----._--_. ..

Brandeis, Louis 229 brands: advertised 402, 406 American 414 challenges of building 151 distinctive 402 family 212 foreign-owned 414 global 160 local 160 major 402 national 160, 617 own-label 416 personalities representing integrity, reliability or wholesomeness of 402 products converted into 397 proprietary 410, 411 regional 160 well-known, re-establishing 411 Braudel, Fernand 11,13 Brazil 28, 29, 151,152 automobile industry 156 predatory price wars against new competitors 280 requirements for development of banking lacking 330 breakfast cereals 402 Brescia 235 Bretton Woods Agreement 337 breweries 253, 281, 404, 414. 455 bribes 77 brico/age 607 Brinkley, D. 391 Brioschi, Francesco 232 n. Brisbane 251, 252 Britain 147. 223 access to raw materials 549 accounting 449 n., 451. 453, 454. 455-6, 457,

business elites 109 business history 29, 44, 48, 49, 51, 56 business-state relations 536 cartels 274, 275, 276, 277, 278, 279, 281, 282, 284 chemicals 181-2 chronic undersupply of training 561 coal deposits 541. 542 colonial administrators/policy 155, 606 comparison between US, Germany and 2, 44 control of sea transport 549 corporate governance 109, 471, 472, 473, 478, 479,480,482.483,484,485,489

decline 198, 199, 506, 605 deregulation 544 design 381, 382, 388, 389, 391, 392 development of outdoor trade 110 diversification and divisionalization 99 dominions of 330 economic growth 508 education 568,586.594,605 eighteenth-century merchants 608 electricity companies 550 entrepreneurship 44,5°6,5°7,5°8,5°9,513, 518

alliance of unions and independent artisans 572 anti-industrial spirit 507 apprenticeship 569 armament firms 13 banking and finance 175, 179, 184, 329, 330-1,

factories 605-6 family control of business 203, 204 FDI (1914) 146 flexible labor markets 560 foreign firms 157 free-standing firms 146, 251 GDP 326,4°7,413 government revenues from privatization 548 guilds 303 historically unitary polities 231 ideological lead on privatization 532 ideological surges 549 imposed international law 145 industrial districts 221, 227 industrial research 359 Industrial Revolution 12, 25, 174, 207, 455, 462 industrialization 570 industrialized R&D 354 innovation 354, 361, 364 interwar, contraction of gross profits 325 labor management 423, 424, 425, 429, 430,

332, 334, 335, 336, 338, 339, 340, 34 1, 473, 517, 5 18,519 best performing companies 180 BIAs 297, 299, 300, 301 n., 302 big business 172,173, 176, 178,179,180,181-2. 184-9 business education/schools 582,583.586,589, 59 0, 594, 597

lagging economic performance 353, 361 large companies set up new research laboratories 359 largest companies 180, 435 leverage 321 mainstream economic history 103 management oflabor 421

460. 461, 462

432.433

INDEX

manufacturing production 324, 327, 531, 532 marginal costing 459 market capitalization 333, 480 marketing and distribution 398, 399-400, 401, 402, 404, 405, 40 6, 407, 408, 410-11, 414. 415, 416 mergers and acquisitions 177-8, 187 motor cars 181 multidivisional structure 183 multinationals 104, 105 nationalization of coal companies 542 natural gas 543 negative effects of lock-in 359

oil 543,544 organizational centralization 306 overseas marketing 50 ports 285 private sector 533 public ownership 531 rail network!railroads 175, 539 research and development centers 154 self-financing 325,326 sequestration of affiliates 147 shipping 537 skills 559, 561. 568 technology 354 telecoms 546 tobacco 177 trading companies 153, 246, 250, 251-2 training 567-8, 570 unfavorable cultural habits 605 union membership 429, 430, 432, 439 voluntarist tradition 569 wholesale shift to private enterprise 548 British Airways 529, 544, 545 British Commonwealth 562 British Empire 15. 153, 155, 184, 403 commercial presence eroded 159 lost 411 organizing and financing operations in 179 persistence of 184 special strategic concerns arising from 546 British Engineering Employers' Federation 298

British India 147 colonial regime 512-13 British National Oil Corporation 544 British Petroleum 182 British Rail 536, 547 Brody, D. 74 n., 79 n. bromine 285 Brown, John 210, 378, 379 Brown, Phillip 559

637

Brown, R. A. 147 Brown-Boveri Company 376, 384,385 brownfield plants 16 Brunt, Liam 517 Brusco, Sebastiano 219 Brussels 589 BSA 416,461 BSN-Danone 433 BT (British Telecom) 187, 544, 547 Bubble Act (UK 1720) 202,337 Bubble Economy burst (1990) 78, 89 Buchheim, G. 384 budgeting 460-2, 585 Buick 410 Bulgaria 278 Bundesrepublik 227 bureaucracies 152, 254 associational 311 coordinating mechanisms in place of 353 efficient 20 robust 491 n. bureaucratization 24 Bureaux d'Etudes 384 bureaux techniques 384 Burhop, Carsten 50 Buridan's ass 131 Burke, Timothy 613 Burnham, ,. 98 Burroni, Luigi 225 n., 232 n. Burt 245 n. business administration 19, 31, 176 business culture 209, 211, 6°3-28 cooperative 226 lack of trust and social cohesion within 226 business cycles 350 business elites 14, 109,583, 585, 586 technical universities as main provider of new members 595 business enterprises 150 global 156 heterogeneity of 146 limited ability to learn and absorb new technologies 159 mechanisms by which capital funneled into 49 national identities 147 railways and the rise of 426-8 tolerant in relationships with authoritarian regimes 154 business groups 2, 5, 244-67 ad hoc or permanent 174 centered 258 evolved into conglomerate forms 263

638

INDEX

business groups (cont.) large 153, 206 powerful 159 Business History (journal) 3, 44, 48-52 special issues 49, 112 Business HistoryReview (journal) 3, 51-2 Business History Society of Iapan 43 business interest associations 3, 293-316, 473 cross-national differences in organization 4 business models 79 New Economy 82 business schools 48, 582, 595-6 accreditation of 595 cross-national partnership agreements 596-7

history of 18 services previously provided by 592 seealso American business schools; European business schools business strategy 101, 122 business studies 183 business success 4, 264 business systems 397 comparative/national 101 indigenous, less able to absorb foreign capabilities 159 Bussiere, Eric 225 n. Butterfield & Swire 251 buy-ins 209 buyouts 189, 209 leveraged 76, 187 Bygrave, W. 86 n. Byrkjeflot, H. 583 Byrt, W. 589 C&A 200

CAB (US Civil Aeronautics Board) 545 Cable and Wireless 546 cable industry 284 cabotage rights 548 cachet 407, 408, 411 CAD (Computer-Aided Design) 376,387 Cadbury 400,404 Cadbury Report (UK 1992) 211 Cadillac 410 Calabria 536 calculators 386, 448 Calcutta 159, 514 California 519 call centers 422, 435 management systems 435 Callon, Michel 127 n. Calomiris, Charles 51, 339 camaraderie 260

Camembert cheese 617 cameras 403 Campania 536 Cam pari 406 Campsa 543 Canada 5, 11)146, 153, 231 accounting 451 cartels 278 decentralized government 534 education 562 foreign-owned affiliates 154 higher business education 588 canals 41) 535, 539 canned food 280,415 Canon 84 canonical model 222, 224, 232 capabilities 159, 247 BIAs properties and 299 combinations of knowledge and 232 conglomerates take advantages of 248

consumer product sectors 399 creative 150 distributing 177 dynamic III early development of 411 family company 199 firm-specific, international transfer of 49 foreign 159 frequently needed 248 functional 79 historical development of 111 import-export 249 innovative 76, 77, 79. 133, 233, 361 integrated 82 internal production 259 limited 245 managerial 122) 150, 205, 248, 259 marketing 404 organizational 78-9, 103, 105, 156, 185, 205, 257, 27 1, 285 physically and organizationally centralized 256 productive 83, 88 productivity-enhancing 255 purchasing 177 relationship-based 264 research 160 resource-based 264 capacity 126 excess 284, 544-5 growth encouraged 283 important to utilize 286 lost incentive to expand 284

INDEX

Capecchi, Vittorio 222 Capie, F. 340-1 capital 249, 251, 259, 260, 296, 330 accessto 508,609 allocation of 323, 324, 337, 338 cost of 286 cross-border flow of 144 cross-class strategic alliances between labor and 299 debenture 327 destruction of 17 fixed 335 foreign 538 free flow of 487 growth from internal sources of 324 high cost of 339 increasing requirements 479 large-scale needs 480 long-term financial strategies 210 long-term risk 517,518 markets depth and liquidity 473 massive external requirements 325 mechanisms by which funneled into business enterprises 49 misallocation of 324 mobility of 145 nationalized 482 opportunity cost of 457 ownership of a crucial element of 197 paid-up 175 physical 85 pooling 518 preference 327 ratio of deposits to own 332 reliance on banks to mobilize 336 resources for funding growth 253 scarce 324, 336 share 179, 196 shortage of 148, 536 surplus 343 systems to plan and control the use of 461 trading firms prospered without raising a lot of 246 women lack legal right to 203 working 341 seealso human capital; venture capital; also underfollowing headings prefixed"capital» capital-adequacy ratios 78, 89 capital equipment 122 depreciation of 457 capital flows 144, 152 cross-border 148, 486 international 184, 337 restricted 486

639

capital-intensive industries 198,199,220 attempt to form cartels 270 large firms expanding in 181 small-batch production 283 capital investments 400 capital markets 227, 294 absence of foreign competition in 487 conflicting interests in 297 debt -equity ratios 321 enabled to play significant role in corporate control 327 fragmentation of 336 funds raised for free-standing firms on 251 global/world 141-2, 143, 147 group successfully insulated from pressures of 252 hindered development of 338 neoclassical 324 opening up of 78 regional and interregional integration 51 regulations 126 unified and centralized 336 well-functioning 336 capital transfers 325 capitalism 311, 530 Anglo-Saxon 187 attempt to manage its excesses 269 autonomous and spontaneous action of 301 BIAs' significant impact on evolution of 293 class inequality of 296 collaborative 16 collective action 295, 297, 309 conventional distinctions between socialism, fascism and 532 cooperative 184,282,286 counter-intuitive affinity between Protestantism and 614 development of 304,306,310,456-7 differing ideologies about performance under 532 diversification of interests 298 entrepreneurial 311 family 195, 199, 208, 210, 282 global 149, 150 initial phase of 480 intermediate phase of 480 intraclass conflicts 297 logic of action 296 managerial 180, 185, 282, 311,353, 611 national, attempt to create peaceful cross-border relationships 309 national identities 147 personal 198 proprietary 200

640

INDEX

_ .. _-_ ..•.. _-.-.•__ ......

•..

capitalism (cant.) Protestantism and 508 Rhineland model of 189 shift from traditional to corporate 201 spirit and practice of 608 stop-go, boom-and-bust volatility under 288 strict link between nation-state and 309 welfare 51,423 seealso varieties of capitalism Cappelli, Peter 130 n. car dealerships 412 car owners 409 careers 25,74 bottom-up 380,381 lifetime 435 Cargill 149 Caribbean 512 Carlos, Ann M. 50, 51 Carmaux 26 Carnegie, Andrew 504 Carnegie (firm) 428 Carnegie Foundation 588 Carnevali, Francesca 121 n., 226, 227 n. Carpenter, M. 86 n. Carrefour 410, 416, 435 Carron ironworks 455 cartels 3. 5, 20, 44, 53.174, 268-92, 485 coal, powerful 178 creation of new 127 frustration over failed attempts to form 54 increasingly severe controls on 189 manufacturing 253 monitoring 55,286 prohibiting 229 seealso international cartels case-law decisions 478 cash 325.332 cash-flow requirements 341 cash orders 403 Casino 416 Casper, Steven 130n. Cassis, y. 2. 16,41, 102,225n. Casson, Mark 48, 49, 53 n., 105.507 Castel Goffredo 227 catalogue purchasing 403, 409 Catalonia 329 catalytic converters 353 catch-up 257.258n.• 513, 517 Cathay Pacific Airways 251, 252 Catholics 224,5°8,596 CATIA 387 causal performance models 464 causality 320, 505.508, 605

""

.•.•.. _ - - - - - - - - - -

Cayman Islands 149 CBI (UK Confederation of British Industry) 300, 302 CEIBS (China Europe International Business School) 596 cement cartels 279 Cemex 151 Central America 158 central banks 182 Central Electricity Board (UK) 543 Central Europe 147 Central Union of German Cooperative Societies 405 centralization 46, 152, 178,256. 306-8, 336 administrative 231 associative 300 banking system 227 industrial policy and labor relations 228 rigidity created by 341 CEOs (chief executive officers) 610 associations of 612 graduates from grandes ecoles 595 power to appoint 197 ceramics 406 certification 563 CGE 182 chaebols 151, 201,205, 255 chain stores 401, 403, 405, 409, 414 low cost 410 chambers of commerce 10, 18,21, 230, 304, 586 separating BIAs from 298 seealso ICC Champagne 617 Chandler, Alfred D. 1,12,13,16, 24, 31, 39-44, 45, 46,47,49,52-3,55.69-7°,71,74 n., 82, 96-9, 101, 102-3, 104, 106. no, 111, 113, 120,121, 122, 130,131, 172,173, 176,181, 183, 194,198.199. 228-9, 246,24A 256,262.282,348-9,400, 404. 450, 456, 457, 461,479. 480, 481,486, 487,504,5 15,604 Chandlerian firms 178.180, 489-90 fully-fledged 178 further development of 185 now-extensive historical record on 516 widespread in Europe (1990s) 189 Chandlerian paradigm 2, 38, 50, 171 alternatives to 3. 31 decline of 51 dominance of 174 preoccupation with 491n. reliance on 489 spread of 43 studies motivated by 362

INDEX

-----'-----

change 414 acceleration in pace and volatility of 232 adapting to 12 ambiguous and uncertain 478 challenge of managing 210 cultural 609 demographic 422 dynamics of 15-18 entrepreneurs often act as agents of 507 environments militating against 452 gradual 17 historical 503, 520 important driver of 144 industrial 134 n., 397, 503 institutional 112, 181, 204. 544 organizational 98, 202, 311,531 positive view of 17 social 604 structural 233, 340, 397, 398, 531, 591, 592 seealso economic change; technological change Channon, D. F. 99 chaos/randomness 256 n. Chaplin. Joyce 607 Chappe flag-waving telegraph 545 character 607 charitable foundations 227 Charlton Mills 455 charter flights 545 charts of accounts 452-3 Chase Manhattan Bank 184 Chatfield. M. 454 cheap labor 207, 571 n. cheating 270, 271. 273 Cheffins, Brian 483-6 chemical engineering 27 chemicals 122, 176, 177, 178. 179. 180, 181, 182, 185, 405, 456, 460

heavy 414 chemistry 354 Chen,M. 205 Chessel, Marie 22 Chevrolet 410 Chick, Martin 49, 541, 550 chief engineers 380 children 423, 425 Chile 596 China 5, 14,28,29,143,148.151,606.607 business schools 596 challenges of doing business in 153 cigarette business 159 coastal 251 commercial diaspora 147

641

- - - - - - - - - - - - - - - _.._.---

consolidated under communist rule 251 entrepreneurship 514.518 export-orientated industries 151 growth 151, 233 industrial clusters or specialized towns 233

labor management 426 market-oriented policies and opening to foreign investors 150 national product standards 257 opium trade 147 rapidly adapting firms 257 re-entry of Western firms into 151 requirements for development of banking lacking 330 responsibility accounting 462 n. shipping lines from Japan to 533 social values and attitude to family 205 software firms 507 uncertainties regarding property rights and enforcement of contracts 152 China Navigation Co. 251 Chinese communities 5, 513. 514 diasporas 509 entrepreneurs 518 chocolate 400, 404 choice(s) 46,47 associational 295 collective 133 consumer 160, 410, 613 consumer culture based on 407 consumption 399 deliberative 128 designs of organizations involve an element of 99 economic 133 managerial 312 political 540 product 398 "right" 132 small everyday 128 technological 506 seealso strategic choices Cholet 132, 224 Christensen, Clayton 349 Chrysler 185, 189, 248, 258 Church, Alexander Hamilton 457, 458 Church 301 Cincinnati machine tool makers 229 cinema 148 Cinzano 406 "circular flow" theory 68 Cirio 415

642

INDEX

Cisco Systems 189 Citic (China International Trust & Investment) 252 Citicorp 188 Citigroup 188 Citroen 182. 414, 431 city banks 230, 249 City of London 179,154,206,223,225 international activities weakened by two world wars 184 knowledge advantage of 330 Civil Aviation Board (UK) 544 civil law 278,323, 335. 483, 510 economic rules 511 civil servants 21, 545. 586 top 20 Clark, J. B. 459, 460 Clark. P. 109 Clark, T. 107 Clarke, Alison 616 class. see social class class conflict 295 n. associationalism led by 306 intraclass 297. 299. 300 new investment schemes as alternatives to 618 class consciousness 20 class divide 572 class struggle 603 Clayton Antitrust Act (US 1914) 262,263.337 cleanliness 613 clearing banks 329 large 341 passive 339 clerical labor 26. 80 Cleveland 360 Cleveland refinery 53 cliometrics 11, 40, 103 "cloaking" strategies 155 closed innovation system 353-4, 364 clothing 410 clusters 2, 106, 130 n., 207, 219-43, 249, 359 growing 208 hi-tech 208 linked to software end users 250 Clyde, River 251 CMEs (coordinated market economies) 560, 562, 563, 565, 566

CNPF (Conseil National du Patronat Francais) 302

coal 26, 182, 271, 535, 542 control of production 282 key economic role of 541 modest supplies 530

output 543 safety issues 541-2 strategic significance 533 Cease, Ronald 47 n., 51 Coca-Cola 155, 252, 402, 409. 414 Cochran, S. 153 Cochran, Thomas 505, 603-4 COCOM (Consultative Group Coordinating Committee) 14 co-coordinating goods and services 2 codes of conduct 20 co-determination legislation 475 codification 451 Coenenberg, A. G. 454 co-evolutionary processes 111, 353, 360, 364, 470 systems and institutions 348 training and collective bargaining institutions 567 Coffee, John C. 471 coffee 50 cognition 504-5, 520 cohesion 257, 306 economic 206 social 206, 226 structural equivalence vs. 245 n. cold storage 251, 252 Cold War 280, 617 battle against communism 589 Cole, Arthur 503, 505. 515, 520 Coleman, Donald 43 Colgate 402, 403 collaboration 15.16,18,364,473 cartel 285 interfirm 153 leading firms with Nazi Germany 154-5 more formalized 232 pragmatic 125 n. collateral 89,334, 341, 511 stock sometimes accepted as 473 collective action 302 capitalist 296, 297, 302. 309 costs of 296 logic of 295-6, 297. 299 problems 297, 562 worker 296 collective bargaining 75, 274, 295, 307, 420, 423, 439.5 66

conducted mainly at enterprise level 431 constrained 432 contracted 432 declined in coverage and content 430 escape from 433 extensive 427

INDEX

foundations for 81 industry-wide 430 informal and spasmodic 429 multi-level 431 national 426 rare 427 recognition of 429 regional 426, 430 regulated labor markets 473 structure of 299 underdeveloped 429 collective deliberation 133 collective services: necessary 227 provision of 226, 229, 230 collectivist training system 574 college degrees 75 colleges 208 high quality 569 junior 590 undergraduate 584, 593 Colli, A. 2, 5, 106, 203, 205, 221 n., 235 n., 254, 502 collieries 177, 178 Collins, M. 340-1 collusion 270, 282, 284, 422 aluminum MNCs and governments 280 facilitated 286 illegitimate 268, 274 interfirm 189 most notorious 278 oligopolistic, tacit 271 strengthened 287 co-location and separation 366 Cologne 223, 585 Colombia 514 colonialism 5, 28, 514 close relations with authorities 159 competition and conflict, firms and local enterprises 15 economics literature on 512 empires 146,155 multifaceted impact of 512-13 role in explaining slow growth 512 trading systems 143 colors 380 Columbia Gramophone 403 combined cyde gas turbines 547 "command centers" 149 Corrunentry-Fourchambault 462 commerce: and culture 618 identity and 618 international 142, 144

643

commerce faculties 30 commercial and technological intelligence 235

corrunercial banks 182, 229, 320, 329 debt finance by 324 distinction between public or semi-public banks and 328 domestic behavior of 330 for-profit 336 long-term and intimate relations between clients and 473 restrictive rules on development of 337 separation of investment and 184, 322 short-term lending 336 support for industry 341 Commercial Codes 451 commercial gentry 608 commercial intermediaries 328 commercial service districts 223 commitment 81, 83, 207 cultural 480 family members 209 financial 85-6, 87, 342 long-term 327 political 480 "politically correct" 352 potential, to family control 208 commodities 145, 146 agricultural 157,280 for-profit 617 giant trading firms 149 international trade in 152 major exporters of 157 vertical integration weakened or eliminated in most 148 world trade in 149 commodity cartels 280 commodity chains 145 commodity markets: global, disintegration of 147 world 143 commodity producers' cartels 276 common adversaries 30 common currency 343 common law 278, 323, 335, 451, 483, 510 economic rules 511 common shares 246 Commons, John 422 cornmunicationfs) 386 advances 246 cheap and fast 464 distinction between data processing and 547 network industries in 27

644

INDEX

communication(s) (COtIt.) new methods between design and manufacture 379 revolution in 145 vested interests of state and business 535 seealso AlCS communication technology 82, 255 extensive use of 435 new 254 Communism 148, 224, 251, 431 battle against 589 collapse/fall of 150, 452 intellectuals 31 spread of 155 Communist Party 155,182 "cornmunitarian market" 232 community-based strategies 204 commuting 412 Compagnie Francaise des Petroles 182, 543 Companies Act (UK 1948) 204 companylaw 202,203 company physicians 19 company schools 574 company towns 19.158 comparative advantage: changes in 19 flouted theory of 363 fluid, international division of labor based on 287 soil and climate give 512 comparative history 15-16 comparative-static tests 40, 41 compensation 612 group schemes 46 stock-option 86, 87 straight-wage schemes 46 competences 146, 152 specific 160 competition 4, 18, 202, 244, 540 active financial markets 338 acute desire to limit 270 associational 309 barriers against 303, 480 benefits and risks of 269 cartels and 269, 286 coloniallirms and local enterprises 15 compromises that fundamentally restructured the nature of 285 cooperation and 132, 220, 262, 263, 264, 276, 283 cultural commitment to 480 cut-throat 573 degree of 422 dynamics of 54

dysfunctional market 283 excessive 276, 484 fair 262 foreign 90, 487 future 269 global 256 grand scale 539 greenfield and brownfield plants 16 humiliating 359 incorporating research into innovation for the purpose of 362 increased levels of 464 institutional mechanisms for regulating 230

interfirm 397 internal 271 labor market 78 legislation forbidding regulation of 299 market 71 national 310, 381 perfect 91, 126 political commitment to 479, 480 primacy of freedom of 278 product market 429, 433 productive 133 provinces 534 rechanneled 283 regulated 229 "ruinous" 453 Schumpeterian 72 second-best forms of 269 simultaneous 351 small-numbers 45 studio 617 unfair 262, 303 unrestricted 329 seealso international competition; price competition competition authorities 281 competition policy 274, 548 competitive advantage 19, 54, 72, 78, 79, Ill, l26 flexibility the main source of 199 global firms unlikely to realize 256-7 international, loss of 81 key to 206 logistics, bulk purchase and price 411 reliant on quality of information flow 199 savings of materials costs 83 source of 90 temporary 208 competitive disadvantage 78 competitive pressures 104, 255 competitive pricing 284

INDEX

competitiveness: enhanced 233, 488 international 106 regeneration of 133 sustaining 132 complacency 506 complaints 382 components 250 compulsory organizations 230, 303 computer companies 359 computers 188, 189, 211,357,386, 387 advent of 448 development of 463 seealso Sun Computervision 387 concentrated ownership system 471, 474, 475, 478, 480, 481, 482-3, 486, 488, 489

concentration 150, 227, 284. 332, 334 fragmented sectors 230 growth of 229 industrial, promotion of through mergers 227 speeded up 272 concurrent engineering 384 Condon, Edward U. 355 confectionery 400 confederations 300, 301 important 309 more inclusive 306 Confindustria 301, 302 conflict 26, 195, 226, 306 capitalists, with one another 297 colonial firms and local enterprises 15 death leading to 211 families and businesses 209 family solidarity and profit maximization 254

generational 210 industrial. reduction of 307 intensity and regularity of 209 internal 132. 133 intrasectoral 297 labor 25 leadership succession in family business 210 military 309 scope for 132 seealso class conflict conflict of interest 339, 570 conflict resolution 125 institutional mechanisms for 230 conformity 209 Confucian philosophy 205, 514. 606, 610 conglomerates 75-6, 205. 247. 325 business groups evolved into 263 component businesses of 248

intensive advertising approaches 411 widespread forming of 187 conglomerations 332 Congresses of the International Economic History Association 30 conjuncture 11,13 consanguinity 205 consciousness 604, 605. 615 Conseil des federations industrielles 309 Conseil d'Etat 534 conseilsde prud'hommes 226 conservatives 614 Consett Iron Co. 174. 455 Consolidated Goldfields 187 consolidation 74, 150, 182, 247, 487 BIAs 297, 298, 3°2, 303, 306-8 conspicuous consumption 401 conspiracy 268,269,285 constant returns to scale 126, 541 constraints: creative responses to 123 market 68, 72 technological 68, 72 Constructing Corporate America (Maclean et al.) 109 construction industry 279 consultancy services 107-8. 195, 342 n. disputes frequently settled by 210 growing volume on family business 209 consumer culture 415 consumer durables 176. 410 consumer expenditure on 409 consumer expenditure 409, 410 consumer goods 400, 404 demand for 406 economic dynamism from 410 emergence of 398 fast-moving sector 432-4 lack of large-scale producers 407 limited growth of indigenous manufacturers 405 undifferentiated 406 consumer industries 182 consumer markets: hyper-segmentation of 160 optimization of 396 psychological aspects of 397 strong differences between 160-1 consumer revolution 413 consumers 27, 613 access to 401 aspirations and social circumstances 397 cognizant and hidden wishes of 408 greater understanding of 408

645

646

INDEX

consumers (cont.) instinctive reassurance amongst 402 interaction of producers and 615 invention of 399 nation of 400 new, perceived potential of 415 poor 122 priority to wishes of 397 self-awareness of 614 wise choices by 613 womenas 25 consumption 155, 296 n., 405. 608, 612, 613-15, 616,617

business history of 24 culture of 406-8 expanded 414 expanding into countries with different culinary traditions 160 gender segmentation of 24 individual 415 mass 148, 396-9, 613 new opportunities 412 numerous and important centers of 414 per capita 411 personal 198,415 transformed patterns 410 contacts 209, 518 direct, with the public 608 contagion models 245 n. container services 281 contexts 124,520 business 421, 424 economic 431 historical 505, 515 institutional 126 legal 423 market 422 national 564 political 421, 423, 431, 439 social 365. 423,424, 505 technological 421 Conti, Giuseppe 228, 232 n. Continental model 451 contingency 128-9, 133, 612 contingency theory 98, 99 contingent markets 126 contract law 259 contracting paradigm 50 contracts: complexity of writing for complex technologies 146 cost-plus 357 employment 478

enforceable 126 financial 320 government 454, 544 "lease-back" arrangements to firms 285 long-term 271, 273 multiple bidding for 539 shorter-term 564 uncertainties regarding enforcement of 152 contribution margin accounting 460 control 255 computer 435 direct, tight and coercive systems of 425 indirect methods of 259 managerial 183 manufacturing conception of 282 sales conception of 282 seealso corporate control; ownership and control convergence 319,339,436,464,606 global 343 cooking oil 402 Cooper, R. 463 cooperation 311 competition and 132, 220, 262, 263. 264, 276 economic 288 family 480 interfirm 269-74,480 international 288 legitimate, illegitimate collusion and 268, 274

long-term 353 necessary but insufficient precursors of 270 organized 244 peace and 288 simultaneous 351 strengthened 287 subsidiaries 233 theorizing 286 trust and 226, 254 cooperative associations 329 cooperative banks 231, 328, 329, 340 promoting 336 Cooperative movement 400 cooperative ventures 50, 244 cooperatives: producer 490 rural 329 Coopey, Richard 519 coordination 129, 259. 363 complex problems 245 facilitating among employers 563 global 281 industry, hindered 284

INDEX

managerial 130 n. mechanisms 226 coordination costs 257 COPA (Confederation of Professional Agricultural Associations) 309 Copenhagen Business School 112 copies 380, 386 copper 280, 517 core companies 88 core-competencies III Corley, T. A. B. 49 Corning 351,355. 515 Cornish copper mines 517 corporate control: active market for 477 capital markets enabled to play significant role in 327 exerting 323 market for 471 corporate culture 414, 611 rational decisions deeply embedded in 22 transfer processes shape 22 corporate governance 4, 255, 470-98 central issues 274 comparative 109 defined 211 efficient 323 labor systems shaped by 423 reform of 211 social and nonrational bases of 13 corporate intranets 260 corporate laboratories 352,354, 355, 356 laboratories promoted to 359 problems surfaced for 357 corporate law 248, 474. 476 corporate property relations 471, 472 corporate strategy 350 successes and failures of 30 corporatism 297. 307, 569 n. state 308 corruption 540 armament 21 developmental constraint for developing countries 161-2 oil 21 cosmetics 24, 160, 416 cosmopolitanism 415 cost accounting, see cost/management accounting Cost Accounting Standard (Japan) 453.454 Cost Accounting Standards Board (US) 454 cost calculation practices 453, 454, 455, 456 keeping separate cost accounting and 460

647

cost control 383 cost drivers 463 cost efficiencies 283 cost/management accounting 390. 448 n., 457, 458.465

impact of war on 453 literature on 454 new approach to 459 single chart for financial and 452 six major phases in development of 449 standards 235, 453 cost savings 53 Costa Rica 158 costing 448 n. theory and practice 454-64 Cote, L. llO cottage industry 17 Cottereau, Alain 133 n.• 221 n., 226, 228 n. cotton 159, 204, 219, 270, 406, 531 cartels 276, 277 finished goods 251 importing merchants 251 spinning 87, 276, 425 weaving producing centers 230 Cotton Acts (UK 1948 & 1959) 531 Cotton Spinners Association 285 Council of Ministers (EU) 452 Courault, Bruno 223 n., 224 n. Courlet, Claude 222, 224 n.• 232 n. Courtaulds 532 coverage ratios 332 Cox, Howard 49 craft guilds 227, 303 abolished 229 craft industries 133, 426 communities 427 musical instrument-making tradition 609

craft unions 567, 571, 573 emergence of 570 survival of 573 craft workers 379. 389 craftsmanship 609 Cramer-Klett 378 craving 617 creative destruction 68, 503, 614 creative regions 360 creative work 380, 384 creativity 18 cautious reflections on changing patterns of 377 stifling 350 technological 208

648

INDEX

credit 51, 88, 132, 322, 409 access to 230 endorsing applications 229 government reliance on banks to provide 511 guarantee schemes 230 installment 341 privileged 328 short-term 338,340,341 trade 335 widely available and transparent 607 credit checks 226 credit houses 330 Credit Lyonnais 179. 330, 332 Credit Mobilier 175. 331 credit organizations 518 credit professionals 330 Credit Suisse 330 Credit Suisse First Boston 188 creditors 323. 341, 479 legal protection for 483 provision of information for 451 creditworthiness 607 criminal investigations 279 criminalization 281, 287 Crisco 402 crises 13, 232 n., 280 economic 297, 324, 337, 338, 593 eruption of 12 financial 184, 331,334, 451, 532. 548 fiscal 536 inventory 461 social 338 source of 14 critical industries 276 Crocker-Hefter, Anne 130 n. crop growing 512 crop performance 157 cross-border activities 3 cross-licensing 351 cross-national comparisons 16 cross-national differences: education 559 training regimes 559. 567, 570 cross-shareholding 77. 186. 249, 475 highly complicated, stock bound up in 478 large-firm 486 significant, managers engaged in 474 cross-subsidization 550 "crossings" 18 Crouch, Colin 125 n .• 126 n., 127 n., 222, 225 n., 227, 559 n., 560. 561, 563, 564, 569 n., 574 Crouzet, Francois 12 crowding-out 322

Cruikshank. J. L. 582 Crystal Palace exhibition (1851) 616 Cuba 51 Cuevas, Ioaquim 50 culinary traditions 160 Culpepper, Pepper D. 561 cultural determinism 605 n. cultural factors 388 national 506 cultural history 17,18, 21-3, 24 advance of 28 Cultural Revolution (China 1966-76) 251 culture 20, 109. 196-7 informal rules of the game 203-6 locally determined system of 207 material 615-16 organizational 610-12 seealso business culture; corporate culture currency 86, 87 custom production 382, 390, 391 customer cartels 273 customer magazines 22 customer orientation 382 customized products 121 Cusumano. M. 82 n. cutlery 25, 133, 219 cybernetics 385 Cyfarthfa ironworks 455 CzechosLovakia 275, 278 Daerns, Herman 42, 52 Daewoo 201 Daft. R. L. 100 Dagenham 126 Daiei 414 Dai-Ichi Kangin (Dai-Ichi Kangyo Bank) 88 Daimler Benz 189 Daimler Motoren 172 Dalian Institute of Technology 596 Danone 433 Darlington 175 Darrnstadter Bank 179 Dartmouth College Amos Tuck Business School 584 data processing 547 databases 387 Daum, Arnold R. 54 n. Daumas, Jean-Claude 223 n., 235 David, Paul 12, 127 n. Davidoff, Leonore 213, 608 Davis. Natalie 607 Deakin, B. M. 276, 280-1 death duties 203

INDEX

De Beers 270, 271 debenture capital 327 debt 76,86,325 bank 89,474 institutions needed to force firms to repay 323 primary, non-financial enterprises do not directly access 327 requirements that guarantee recovery of 341 write-downs 229 debt-equity ratios 88,321-2 high 342n. debt finance: bank-intermediated 324 preference for 253 debt-monitoring hypothesis 342 n. decartelization 279 devastating effect of 284 Decazeville ironworks 455 decentralization 40, 98, 125, 129,130,132, 183. 221 n., 226, 252 authority 231 commercial banking system 229 excessive,disadvantages of 185 full 612 high 257 industrial development 340 interfirm networks 245 labor management 434 regional economies 227 specialty trades 229 decision 12,13 decision-making 282 compressed time-frame for 448 concern with what costs were relevant for 449 consensus 160 family firm 202 group 462 see also managerial decision -making; strategic decision-making declining industries 44 decolonization 280 anticipated 15 understanding 14 Deeg, Richard 228,336 default 341 defense 278 defense contractors 358,530 "defensive" model 297 De Haviland 182 Dei Ottati, Gabi 232,233 Delany, W. 100 Delaware 612 Demag 178

649

demand 17, 24, 25. 258,356, 401 adjusting employment to fluctuations in 79 consumer goods 406 efficiency assessed relative to particular patterns of supply and 126 flexibility in adapting to changing patterns 220 fragmentation and specialization 130 future 411, 461 how to balance supply and 125 innovative products 90 instability of 270 labor 422 market 98, 283 outstripped 413 shifting 122 demand-side variables/factors 336,339 demergers 187 Deming, W. Edward 606 democratic theory 296 democratization 306 demographics 2°7, 400, 408 changes 422 characteristics 404 factors 401 surveys 415 Demsetz, H. 244 n. Deng Xiao-ping 596 Denmark 147, 278, 230,331, 548, 570 agriculture 133 business education/schools 582,583 calculation principles 453 cartels 278. 281 industrial districts 224, 225,230 privatization 548 railroads 536 survival of craft-based unions with strong apprenticeship 573 telecoms 546 vocational education and training 562 dental hygiene 402 department stores 400, 401, 403, 404, 406, 409 control over clothing sales 415 custom of urban middle class 412 dream-world displays of opulence 614 established 405 installment plan 414 operation on national scale 414-15 departmental surrogates 351 deposit banks 320, 336 depreciation 325,457, 477 capital equipment 457

650

INDEX

depressions 311, 409,430 cycle of 406 cycles of 545 late 19th-century 332 world 24 seealso Great Depression deregulation 133.150,529,532,547 pervasive pattern of 544 policy instruments and 548 underlying problems which prompted 547 way paved for 545 Deregulation Act (US 1978) 545 derivative localities 223 Derrida, J. 109 design: major figures in 615 material culture and 615-16 modernism in 616 design and engineering 374-95 design function 362 designers 618 boundary between draftsmen and 380. 381. 386

chief 384 deskilling 379 Dessaux, P. A. 28 destabilization 339 detergent producers 409, 433 determinism 12.99, 121-2,128 Deutsch-Luxemburg 177 Deutsche Bank 179,188,189,330 Deutsche Bundespost 547 Deutsche Reichsbahn 537 Deutsche Techniker-Verband 381 Deutz 178

deux cents families 173 developing countries 5. 148 corruption a major developmental constraint for 161-2 emerging clusters in 233n. foreign-owned plantation companies 157 higher prices than customers in wealthy countries 280 highly urbanized 406 hostile environment for foreign firms 155 important element in context of 529 knowledge spillovers from foreign firms to 158 labor management 426 developing countries political rule-making 512 progressively closed to international trade 148 significant leverage over wealthy countries 280

trade flows between developed and 145 transfer of knowledge to 158 unpredictable political and economic conditions 153 development finance 88 development teams 384 developmental associations 457 developmental borrowers 330 deviant behaviors 27 devolution 231 De Wendel 175, 180 Dewerpe, Alain 228 n. diachronic approach 324 diamonds 270, 271 diaspora communities 3, 146,147, 509. 518 dictatorship 14 Dictionaryof Business Biography (Jeremy) 509 Dienel, H.-L. 545 diesel-powered ships 537 Diet (Japanese parliament) 538 Dietl, Helmut 323, 324 differentiation 328,329, 331. 433 financial systems 326 legal and organizational axes of 330 manufacturing base emphasizing 415 promoting among capitalists 298 structural 301n. seealso product differentiation diffusion 302, 304-6, 488 business education 586-8 international 386 knowledge 154 management education ideas 591 marketing approaches 397 stock ownership 327 teclmological 273 territorial 300-1 "Dinah Shore Show" 410 diplomacy: business 287 economic 277 geopolitical 277 direct costing 449 n., 459 relative 460 Dirty Harry (film) 263 disclosure: low 471 opposition to 211 regulations 195,204 rigorous standards 471 discontinuation/discontinuities 17,142 Disconto-Gesellschaft 179 discount stores 410

INDEX

discounting policies 228 disease 143, 158 Disney, Walt 504 dispersed ownership system 471, 478, 481, 482-3, 489

disposable income 397, 401 disputes 210 frequently settled by consultants 210 institutions for resolution of 226 disruptive innovation 352-3 dissemination of ideas 107 distortions 269, 283 distress prices 54 distribution 178 gender segmentation of 24 history of 22 ingenious strategy 271 international networks 148 marketing and 396-419 mass 2, 3, 41, 48, 121 retail 231 single product 183 storage and 543 superior 285 three-pronged investment in production, management and 2 vertically linked networks 250 seealso size distribution distribution networks 177, 396, 400, 409 international 148 Ditz, Toby 607 divergence 436, 452 cross-national 488 diversification 40, 98, 157,189, 247, 250 n., 252, 253-4,433

associated with ineffective governance and poor monitoring 185 bank 331 capitalists' interests 298 close family control of 205 conglomerates characterized by 187 constrained and related strategies 255 far more pronounced 186 financing sources 325 largest 100 industrial firms in US 99 linked or technology-related 251 merchant houses 179 new products 183 owner/investor strategies 488 product 282, 402 risk 485, 486 sizeable discount 248 strategic 350 via acquisition 252

diversity 17,125, 248, 435 cultural 611 dealing with 432-4 management of 424 organizational 111 divestiture 547 divestment 189 dividend payments 75, 86 dividends: laws outlawing 477 payments missed 487 division oflabor 121, 208, 385, 422 extended 223 gender 126 hierarchical and functional 72, 78, 79 how to organize 425 interfirm 223 internal 262, 425 international 287, 423 marker of 618 quasi 30 redefined 285 divisionalization 99, 10 3 divisions 433 divorce rate 197 DKB 249 Dobbin, F. 530,539,540 Docker, Dudley 504 dogyo kumiai 229 dollar shortage 150 dominant logic 110 dominant price-setting 282 Donaldson, L. 99 Dore, R. 82 n., 605-6 Dosi, Giovanni 130 n. Douglas, Mary 604 n, Douglas, Y. 112 Dow Chemical 285

Dowd,T. 530, 539, 540 Dowlais Iron Company 174, 455 downsizing 75 downstream command 255 downstream trading relationships 286 downturns 8 attempt to manage macroeconomic fluctuations during 287 tendency for firms in LMEs to respond by laying off workers 565 drafting machines 386 draftsmen 374, 377, 379, 391 boundary between designers and 380, 381 crowded together with designers 386 school 381

651

652

INDEX

draftsmen (cont.) sharp distinction between professional engineers and 381 strong competences in generating and reading engineering drawings 389 Dragonair 252 drainage systems 158 drawings 374,375, 37 6, 379, 381, 387, 391 best-practice 380 dimensional 380 documentation and communication with suppliers 391 flow production of 384 microfilm representation of 386 multiplied 380 reading and interpreting 383 record offices for 385-6 rough 378 strong competences in generating and reading 389 systems for generating 387 Dresdner Bank 179 Drucker, P. F. 98 drugs and toiletries 409 drugstores 416

Dubbel 383~4 Duisburg 223 Duke 177 dumping 283 Dun and Bradstreet records 509 Dunlavy, Colleen A. 470 n., 534, 550 Dunlop 182, 461 Dunning, J. H. 105, 144 DuPont (automobiles) 27,39,4°,98,183,212, 273

MDF developed at 456 DuPont de Nemours (chemicals and health care) 178,354,355,516,612 DuPont Powder Company 461 durability 15, 208, 388, 390 Dutch catchword 382 seealso Netherlands Dutta, S. 205 dye products 111, 177,279, 351, 355 Dyer, W. G. 100 dyestuffs firms 278 dynamic accounting 456 dynasties 14, 173, 200 desire to found 204 dysfunction 283, 285, 604 Earle, Peter 608 early industrialization 202, 206, 324, 377-8, 398

American patenting system in 511 artisanal sector 572 importance of family business in 197 securities markets little utilized by domestic firms for much of 473 East Asia 3, 147, 159 extended family 197 family and business culturally inseparable 201 "great divergence" between Western Europe and 143 large firms 205 literature in Chinese on 5 local and regional production systems 220 seealso China; Japan; Taiwan East India Companies 143 Eastern Europe 11,14, 50 charts of accounts 452 collapse of Communism 150 expansion of business education 594 Jews 507, 609 uncertainties regarding property rights and enforcement of contracts 152 Eastman, George 351 Eastman Kodak 178,351, 403 Eck, Iean-Francois 221 n. eclectic paradigm 105 eclecticism 503, 504

Ecoles desArts et Metiers 381, 392 econometric data 361 economic activity 49-50 economic agents: capacity to imagine and weigh up alternative courses of action 123 reasons for their actions 131-2 economic change 204. 502, 503, 603, 606 internal conflicts over challenges posed by 133 mainsprings of 128-9 rejected frameworks for understanding of 127 uncertain relationship between identity and 608 economic cycles 311 economic development 40, 67-95,324, 336, 347, 477

banks outperform markets at low levels of 323 business and government in 90-1 business groups facilitate 254 business groups identified as playing crucial roles in 244-5 desire to promote 534 government promotion of 529 national, crucial roles in 274 natural resources could restrict 388 policies 478

INDEX

positive correlation between financial wealth and 320 public 476 rapid 406 rejecting the idea of an underlying logic of 133 rejection of "narrow track" models of 121 successful 360 whether international cartels promoted 284 economic geography 106,149 economic governance 125-6 economic growth 14, 415, 609, 613 cartels have not damaged 269 channels through which the emergence of financial systems affects 320 culture as adjunct to 603 explaining patterns of 510 fostered by patent system 511 importance of creation of large-scale, managerially directed firms 42 internally generated driving force in 347 knowledge about how to achieve and sustain 158 long-run 320, 323, 506, 510 modern, advent of 144 national patterns (c.1990) 323 phases of 310 promoted 613 Protestantism and 508 railroad's most important contribution to 41 rapid 513 slow 506 sustained 538 economic history 29,39, 40, 69, 97,103 business and 30, 42-4 marginalization within economics 109 economic integration 231 European, proponents of 150 world ]44, ]45 economic performance 254,506, 507,533 best 323 commitments to broad ideological stances about 530 differing ideologies about 532 financial systems and 338-43 lagging 353 long-run 505 mining companies 542 national, culture and 605-6 relative decline in 339 stubborn interest in 30 economic policies 299, 309 liberal 145 major 307n.

653

economic power ]5] economic recovery 362, 363,477 economic restructuring 2]9 economic theory 30, 37-66, 69, 271 developmental 69 relationship between cost and 459 seealso neoclassical theory economics faculties 585 economies of scale 54, 78, 122, 176.246, 283,511 achievement of 79, ]77.]78, 400 banks prevented them from benefiting from 339 distribution, manufacturers needing quickly to build 412 external 434, 532 increasing the need for 79 lack of 405 large 545,546 less important in promoting technological innovation 515 potential, exploitation of ]30 n. pursuit of 122 realized 259 theoretical ]26 urban retailers' gains in 403 economies of scope ]7,176, 246, 511 achievement of 79, 177, 178 aiding the development of 517 arising from use of common materials 122 banks could not benefit from 339 cooperative competition in 283 distribution, manufacturers needing quickly to build 412 important information 322 lack of 405 large 546 needed to carry products over large distances 401 potential, exploitation of 130n. realized 259 urban retailers' gains in 403 economies of variety 122 ecosystems 158 Edeka 405, 416 Edison, Thomas A. 112, 348,353 education 263.363.389,477, 569-7 0 business 581-602 changing opportunities 209 collective vocational systems 226 cross-national differences 559 differences in 609 engineering 381, 382 government investments in 90

654

INDEX

education (cont.) greater participation of women in 560 high school 80 history of 18 level improved 183 mass 593 national systems 562 positive relationship between wages and 559 primary and secondary 82 professional 364 scientific 569 technical 568 university 80, 392, 565 vocational 4, 564 seealso higher education; management education efficiency 16, 341 allocative 323 assessed relative to particular patterns of demand and supply 126 begetting market power 55 competition essential to 288 diversity of routes to 4 financial 342 ideal 91 internalizing innovation in pursuit of 350 management 453 market power begetting 53, 55 persistent, family firm 207 processes aimed at achieving manipulated by employees 462 productive 618 technical 286 technological 120 efficiency movement 383 efficiency theory 103 EFMD (European Foundation for Management Development) 592, 595 Egypt 158 Ehrmann, H. W. 298 EIASM (European Institute for Advanced Studies in Management) 589, 592, 593 Eisenhardt, K. M. 98 Elbaum, Bernard 44, 569 electric arc furnaces 235 electric lighting/lamps 112, 270 Electric Railway 412 electrical companies: economic research by 28 stress on technology, product quality and advertising 413 electrical domestic appliances 408-9 electrical engineering 177, 178, 179, 181, 182, 183, 284, 378, 453

companies 84

electrical equipment 181, 185, 377 electrical goods 432 expensive 20 electrical industry 405 electrical machinery 375 Electricite de France 541 electricity 145,151,181,182, 186,354, 428,529,615 interstate transmission of 542 key economic role of 541 municipal ownership 542 privatization of transmission grids 547 run by private enterprise under concession systems 534 technological advances in supply 547 technological changes in 532, 544 electrification 350 electrochemical industries 353,354, 360 electronic age 284 electronic data interchange 448 electronics 160, 208, 356, 359 consumer 20 rapid growth of firms 360 regional 229 salaried managers in 78 solid-state 357 transition from vacuum tubes to transistors 353 elites 617 corporate 415 economic 206 financial 534 indulgent 401 investors 487 political 568 privileged 587 ruling 568 small, power in the hands of 512 state 568 seealso business elites e-mail 448 embeddedness 20, 22, 564-6, 605-10 embezzlement 226 emerging markets/economies 5,150,151,264 business groups found in 248, 254, 258 constraint on 152 minimizing the gap between advanced and 257 n. self-financing 325 tolerance of risks of 156 Emilia Romagna 207, 233 Ernirbayer, Mustafa 123 n. empires 28, 146 seealso British Empire; French Empire; Ottoman Empire

INDEX

empirical variables 125 empiricism 22. 509, 520 causal 505, 508 ~de-ranging 503

employee ownership 358 employer associations 294, 295. 306, 309, 424. 426,566

birth and development of 298 effectiveness vis-a-vis interlocutors and membership 299 lAs' pivotal role in founding 297 employment: adjusting to fluctuations in demand 79 bureaucratic 427 contingent 434 high degree of insecurity 82 lifelong 80, 83, 84 long-term commitments 564 permanent 83.84,87 some of the largest bureaucratic systems of 427 starting age of 423 territorial pacts 231 variegated and flexible 434 women's 437 employment relations 244 n., 420, 426 externalization of 439 how to organize 425 internalization of 439 employment security 75, 83 enemy nations 14 enemy-owned companies 147 energy: companies and the state 541-4 exhaustion of forests as a source of 12 network industries in 27 privatization of 548 Energy Policy Act (US 1992) 547 Engerman, Stanley 1. 512. 530 engineering 151 American system of manufactures 428 applied 569 design and 374-95 superior professional education in 364 well-recognized expertise in 414 engineering colleges 380 engineering departments 355,356 engineering drawings 374, 375, 376, 379, 380, 384, 385-6

making 381 minor role 390 reading and interpreting 381. 383, 389 engineering journals 386 engineering schools 19.380,389

655

engineers 26, 82 design office the most important occupational branch for 381 military 13.14 possessing no practical experience 380-1 preference for 585 specialized 83 training for 567 n. England 144. 613 country banks 517 sixteenth-century 508 England and Wales 175, 330 businessmen active in 509 Englander, Ernest 612 Engwall, 1. 107. 108, 582, 583, 590 ENI (Ente Nazionale Idrocaruri) 532, 543-4 Enlightenment 607 Enron 2ll, 452 enterprise groups 88. 184. 249, 273 interconnected 477 Enterprise & Society (journal) 3, 52 Enterprises et Histoire (journal) 3 entertainment 23, 188, 617 entertainment districts 225 n. entrepreneurship/entrepreneurs 4,37,5°.268. 285. 501- 28

behavior in peasant activities 207 corporate methods 617 cost-conscious 13 creative regions more likely to develop complementary services that sustained 360 diaspora 3 dynastic 205 effervescence 208 ethnic 609 family nurture of 608 foreign women 24 functions 353 how American values encouraged 603-4 immigrant 609 importance of 142 indigenous IS, 531,537 initiatives 106 innovative 324, 502 inventors 352 new investment schemes as alternatives to class conflict 618 organization 348 powerful 610 Schumpeter's notions of 43. 68, 502, 503, 515 small ventures 146 start-ups 2 strategies 295 studies of 109-10

656

INDEX

entrepreneurship ... (cant.) successful 159,506.508,5°9,610 valuable employees 358 weakness of 336 entry: ease of 226 rapid 208 entry barriers 303 competitive 397 environmental policy 5 EPA (European Productivity Agency) 589, 592 epochs 128 equality 560 equilibrium 69, 347 competitive 503 disruption of 68 EQUlS (European Quality Improvement System) 595 equity 145 direct holdings 475 equity financing growth 423 equity issues 321 sharp increase in 327 equity markets: emergence of 324 stunted development of 337 undeveloped 253 well-developed 322 world. faltering 150 equity shares 247 equity stakes 88, 332 Erba toothpaste ergonomics 19, 28, 386 Ericsson 16o, 460 Erie Canal 539 error detection/correction 125 n, "root cause" 234 ESCP (Ecole Superieute de Commerce} 585 Esso 544 Estee Lauder 200 Estevez-Abe, Margarita 560, 566 Estonia 548 ethics 159 labor 207 professional 31 ethnic minorities 513 ethnicity 147. 514, 609 access to resources by 509 functional and instrumental view of 609 tight immigration controls based on 147 EU (European Union) 231, 423. 474, 548, 596 attempts to encourage harmonization of financial reporting 452 energy market liberalization 548

pressures from the drive to single market 532 significant role in privatization proce~ 548-9 Eurobond markets 330 Eurodollar markets 149, 330 European Association for Banking History 30 European Association of Management Training Centres 593 European Business History Association 29, 50 European business schools 101, 583.585-8. 589. 593,594-5 active cooperation with 593 stronger international profile 594-5 strongly influenced by American role models 597 success of MBA programs at 594 traditional 590-1 European Coal and Steel Community 278 European Commission 231 European Economic Community 279 European empires 147 European Single Market 343, 532 consolidation of 548 Europeanization 309 evaluation techniques 234 evening courses 381 evolutionary branching points 128 evolutionary economics 38, 53 n., 103,109, 131 heritage of 105 evolutionary ideas/theories 111, 127, 516 based on path-dependent firm innovations 516 exchangecontrols 153,155 exchange rates: efforts to influence 152 varying 195 executives 25,74 seealso top executives exigencies 398 exit 208 expansion: covering costs of 479 financing 339 foreign 104 geographical 283 global/international 142 higher education 593, 596 limited 179 linked closely to marriage strategies 203 overseas 617 expatriates 158 Scots 402,514 expenditure patterns 398

INDEX

experience 16 technological 82 experimental workshops 230 experimentation 260, 490 controlled 433 hybridizing 132 labor management 433 expertise 81, 351, 359. 611 major source of 209 noted in collaborative product development 123 n. strategic decision-making 76 well-recognized 414 explanatory variables 304 exploitation 47, 130 n., 132 of opportunities 513 self or family 132 world resources 145 exploration 148 Explorations in Economic History (journal) 49 Explorations in Entrepreneurial History (journal) 503, 504 explosives 180 export cartels 274, 276 exports 148 cloth 531 commodity 157 promoting 280 expropriation 14, 148, 477 compulsory 535 high risk of 512 potential 277 extended family 197, 198, 224 elderly people revered as part of 209 specialization among 208 external finance 326-32, 340, 472 robustness of markets for 483 externalities 126 locational 400 poaching 562 externality principle 48 extractive industries 174 trading firms in 246 Exxon 185, 188

fabriques collectives 220-1. 228 faceless bureaucrats 80 factor-market conditions 91 factor supplies 122 Factory Accounts (Garcke and Fells) 454 factory dormitories 426 factory labor 26 factory system 425 management 160

657

Fagerberg, J. 71 failure 17,196-7,365, 605 entrepreneurial 507, 509 seealso market failure Fair Trade Commission (Japan) 279 Fairchild 358 Fairchild Semiconductor 504 family structure 126, 611 family business 2, 5, 19-20, 146, 183, 194-218, 245, 253, 254, 60 7

cartelized 274, 282 closely held 472, 473. 474-5 conservative 531 durability 15 gender and 23-4 high levels of ownership and control 250 predominance of 15 transformation into public companies 327 vibrancy of 44 FamilyBusiness Magazine 195 FamilyBusiness Review (journal) 195 family wealth: dilution of 203 preserving 252 protecting 203, 205, 209 Far East 530 Farjoun, M. 110-11, 112 Farr, J. R. 303 Farrell, Henry 227 Fascists/Fascism :n8, 302, 415, 430, 530 autarkic policies 533 conventional distinctions between socialism, capitalism and 532 differing ideologies about performance under 532 manufacturing under 530-1 fashion 25,411,415-16 international hub of 150 locally mediated and adapted 618 male 402 "fashion intermediaries" 614 fast-food restaurants 422 low-level mundane work in 435 fast-to-market ambitions 264 Faure, D. 5 FCC (US Federal Communications Commission) 546,547 FCI (Finance Corporation for Industry) 519 FDI (foreign direct investment) 144 American, in Europe 185 creating attractive conditions for 363 early pioneer of 146 new outflows 148 political risks of 148

658

INDEX

FDI (cont.) stock reduced of to zero 147 world 146, 150 Fear, J. 5, 102, 253, 450, 605 n., 612, 620 n. Febvre, Lucien 9 Federal Express 130 n. Federal government powers 534 federal systems 231 Federal Trade Commissioners (US) 229 federalism 227 federations 301. 309 coordinated 153 interindustry 249 intermarket 249 n. long-lasting 244 more inclusive 306 Federico, G. 529 Feilden Report (UK 1963) 384 Fellmann, S. 583 female liberation 614 feminist theory 213 Ferguson. T. 531 Ferrera, Maurizio 231 n. Ferrero Barilla 200 Ferri, Giovanni 228, 232 n. Fiat 200,211, 225, 415. 431 fiber optics 516 fiduciary systems 481 Filipino trading communities 514 film 617 American industry (1895-1920) 111 cameras and 403 finance 28,72.79.85-9 access to 532 banking and 319-46, 475 bridging 475 entrepreneurial 516-19 insider 423 international 200, 330 network industries in 27 start-up 230 sustained 91 seealso external finance Financial Accounting Standards Board (US) 451 financial centers 149 world 179 financial distress 77 n., 328, 341 financial districts 223, 225 n. financial history 30, 328, 335. 336

Financial History Review 30 financial institutions 88,327, 328, 405. 618 apparent harmony with securities markets 475

different types of 86,332 efficient, development of 324 equity stakes 472 non-profit 342 Paris-centric 228 political concern to limit concentrated economic power 481 powerful 323 private sector 519 regulated 184 role of 208 specialized 230, 324 transformation of 75 financial intermediation 149,320,326-32,334 financial markets 103. 196, 323 actions undertaken to improve efficiency of 337 development of 336, 452 efficient, lack of 326 families raise resources on 196 fully-fledged, some countries early in developing 338 globalization of 478 international. physical location of 149 labor systems shaped by 423 maturity 334 predominance of 322 pressure for development 486 recovery of 326 share of 326 specialized 322 stunted 336 take-off of several 327 well-developed 322,334.335 financial reporting 449 convergence in respect of 464, 465 development of standards 450 fraudulent 451 harmonization of 452 subservience to 458 financial returns 73, 85, 90 financial sector: diversified 476 structure of 320 financial services 323. 424 patterns which have long existed 435 financial statements 450, 451-2 financial systems 4. 319-38, 517 and economic performance 338-43 evolution of 487 historical evolution of 486 shaped 510 variations in 335-8

INDEX

Financial Times top 100 business schools 596 financiers 179 Pinanzkapitaliry Fincham, R. 107 Findlay, R. 144 Fine, Ben 44 Fine Cotton Spinners' and Doublers' Association 178 Finegold, David 130 n., 561, 571 fines 281 Finland 233, 278 business schools 583, 591 telecom firms, joint ventures 548 Finlay (James) 179 Finnish Institute of Management 591 fire insurers 271 First Industrial Revolution 12, 17, 25, 174-6, 197-8, 207, 374, 455, 462

early forms of labor management 425-6 understanding the causes of 503 first-mover advantage 329 long-lasting 400 first-movers 2,271,584 First National City Bank 184 first-tier firms 260 First World War 13, 147, 180, 307-8 impact of 311 industries weakened as a result of Germany's defeat 181 strengthened position of unions 429 fiscal conditions 149 Fisher Body 51, 123 n. fisheries 112 restructuring initiatives for 280 Fishlow, A. 330 fishmongers 274 fixed costs 72, 73, 91, 92, 274, 546 determinants of 460 development of productive resources entails 78 distinction between semi-fixed, variable and 459 flexible use of labor enables firm to avoid 79 high 177, 275, 535, 540 fixed-price stores 414 flashbacks 128 Fleischman, R. K. 461 flexibility 17,257, 350, 433 access to information needed for 200 adapting to changing markets and demand patterns 220 charts of accounts 453 dark side of 132-3

659

flexibility dealing with 432-4 era of 128 job 433 key to 206 lack of 357 main source of competitive advantage 199 source of 341 flexible regional economies 132,134 n. 228 institutional supports for 231 flexible specialization 97, 106, 121,124, 129, 134 n . boundaries between mass production and 130 new organizational framework for 220 flight and hotel packages 545 Fligstein, N. 103, 282 Florida, R. 106 fluid dynamics 386 Fogel, Robert 40, 41 Fogelson, Robert 615 Fohlin, Caroline 332, 342 n., 470 n., 476 food and drink 144, 151,178, 181,182, 183, 185, 402--6, 409, 415, 432, 433

branded 410 leading firms 411 most important family-owned multinationals 203 one of the world's largest multi-brand companies 416 foodstuffs cartels 277 Ford,lfenry 382,391,4°3,618 Ford Foundation 588, 589, 591, 592 Ford Motor Company 10,14,46,126,153,156, 181,182, 185, 198, 200, 204, 409

aircraft building 391 car dealerships 412 centenary 212 international expansion 142 research and development centers 154 union recognition 430 Fordism 97, 128, 352, 439 foreign banks 330 foreign exchange 329 foreign firms 145, 147, 151,188-9 collaboration 155 gender implications of employment policies 158 governments blocking 148 historical impact on developing countries 157 importance of 157 knowledge spillovers to developing countries 158 large employers oflabor 158 local entrepreneurial responses to 162

660

INDEX

foreign firms (cont.) local response to 157 openness towards 154 reactions against 155 sensitivities towards 155 strategies and ethical responsibilities in repressive regimes 156 transfer of organization and technologies across borders 159 widespread decline in receptivity to 148 foreign influence 18 foreign investment 28, 328 seealso FDI foreign investors 157 foreign occupation 430 foreign policy 277 foreign practices 124 foreign trade 534 asymmetries 254 foreign workers 572 foreknowledge 45 Foreman-Peck,James 44,508,5°9,529 foremen 81.83,379 "foreshadowing" 129 forests: exhaustion of 12 jungle. cutting down 158 "formal monism" 452 Forsyth, Douglas J. 231 n .•336 Fortune 500 listing 200, 247 Foucault, M. 106,456, 611 Fox, Alan 427 FPC (US Federal Power Commission) 542 fragility 124 France 26.31,147,176.178,537,538, 613 accounting 451, 452, 455, 460, 461-2, 463, 464 advertising 22 apprenticeship 563 armament firms 13 banking and finance 175, 331, 332,334.335. 336, 337, 343,474, 518 best performing companies 180 BIAs 298,299.3°2,305 big business 173, 175. 179, 182, 183, 184,185.186, 188,189 blueprint for most nationalizations 26 electricity companies 550 business education/schools 582, 583, 584, 585-6,5 89,59°,591,594,595,597 business history 17, 29 capital guarantees 536 cartels 274,276. 278, 279 central government power 534

centralization 306 chambers of commerce 304 coal 541, 543 consumer product sectors 399 corporate governance 109, 471, 472, 474, 478. 480. 481,483, 487, 489, 491 design 376, 378, 381, 382, 384. 389, 392 diversification and divisionalization 99 economic performance 506 education 586 energy policy 541 engineering schools and commerce schools 19 entrepreneurship 506 external finance 326 fabriques collectives 220-1, 228 government attempts to reduce strategic weakness 530 government revenues from privatization 548 grandpatronat 172 guilds 303, 304 historically unitary polities 231 holding companies 183-4 ideological radicalism mainly involving SMEs 311 industrial districts 222, 225,226, 232n. industrial research 359 industrialized R&D 354 innovation 365 interest groups 543 labor management 423, 428. 429. 431. 432, 433 large companies set up new research laboratories 359 largestcompanies 180,435 les trentesglorieuses 228 loss of total foreign investment 147 management oflabor 421 market capitalization 333. 487 marketing and distribution 404, 405. 407.410. 414-15,416 mixed banks 153 motor cars 181 multidivisional structure 183 nationalization of coal companies 542 negative effects oflock-in 359 North Africa interests 544 prime concern (from 1860s) 533 rail network 175. 536 railroad conventions (1883) 536 rejection of British mass production methods 616 savings banks 329 school-based training systems 574

INDEX

securities markets 451 n. sharecropping in early modern agriculture 51 state control 182 telecoms 546 textile industry 173 training dominantly school based 563 union membership 429. 430, 432. 439 university degrees 183 uproar caused by entry of Coca-Cola 155 vocational education and training 562. 564

wine industry 617 women in offices 24 franchises 146. 413, 416 Franco dictatorship 533 Franco-German cooperation 278 Franco-PrussianWar (1870-1) 536 Frankfurt 175 Frankfurt School 603 Franks, Julian 484 fraudulent activity 451, 452 free enterprise 21 free riders 54 n., 125, 296, 561, 565 free-standing companies 49. 104, 146, 251 clustered in business groups 153 funds raised for 251 free trade policies 512 Freeland, Robert F. 51, 104, 123 n., 612 "freeters" 84 freight shipments 41, 274 French Empire 15, 403 French Popular Front 11 French Revolution 228 Freyer, Tony A. 282, 512, 530 Frick, Carole 317 frictionless adj ustment 127 Fridenson, Patrick 5, 365. 606 Friedman, David 230 Friuli 227 frontier spirit 506 Fruin, W. M. 2, 153, 255, 610 Fry 400

Fudan University Department of Business Administration 596 Fuji Conference 29 full costing 449, 453, 458, 459-60 determining 462 modern variant of earlier methods 463 full employment 431 functional design 381-2 functionalism 12 Futagi 414 Fuyo (Fuji Bank) 88,249

661

GAAP (Generally Agreed Accounting Principles) 451.452 Galambos. Louis 30-1. 40, 102, 108. 353, 538• 539 Galeries Lafayette 405, 414 Gallman, R. 530 Gallup 408 Galunic, D. C. 257 game theory 46-7,51,55.297 gangmasters 428 Ganne, Bernard 228 n. Gardey, Delphine 24 Garner, S. P. 454 gas 26,182 field exploration 544 key economic role of 541 municipal ownership 542 run by private enterprise under concession systems 534 state-owned companies 532 GATT (General Agreement on Tariffs and Trade) 148 Gay, Edwin F. 39 GDP (gross domestic product) 327, 401 capitalization as a percentage of 487 per capita 404. 407. 408, 414 ratio of financial activity to 326 ratios of bank deposits to 487 gearing ratio 327 GEC (General Electric Company) 178,181,182, 185, 211,270, 273, 277,354. 355, 456, 610

budgeting and ROI 461 Geddes, Mike 231 n. Gemelli. G. 592 gender 23-5.212-13,423.560,608,609 access to resources by 509 and business education 583 division ofIabor 126 implications of employment policies of foreign firms 158 property rights 50 role of 5 gender bias 560 gender segregation 437 gender stereotyping 560 "genealogies of calculation" 450 Genell, K. 582, 594 general equilibrium theory 126 General Motors 39, 51, 98, 104, 123 n., 152. 153, 156. 181,182, 183. 185, 186

budgeting and ROI 461 car dealerships 412 decentralized 612 MDF developed at 456

662

INDEX

General Motors (cont.) trends in distribution, promotion, and product development 409 union recognition 430 general skills 562 general stores 404, 406 generalizations 48, 52, 70, 98, 156, 457 broad 509, 520 empirical evidence as a basis for 102 excessivelybroad 508 meaningful 504 valid 520 generation market break-up 547 generational succession 221 Genesove, David 51 "genes" 71 Geneva 281 Genoa 206

Genossensschaften 490 gentrification 506 geographic factors 401 geographical distance 143 reduced by technology 144, 148 geographical mobility 204 geography 400 geo-histo ry 11 geometries 387 geopolitical factors 545 geopolitical strategies 529, 533 changing priorities in 548 geopolitics 277, 280 hypernationalized 278 German Historical School 490 German Society for Business History 43 German states 533 German Yearbook on Business History 43 Germany 11, 25, 229, 301 n. accounting 451, 454, 456, 460 American and Japanese management and production methods in large firms 22 apprenticeship 563, 570 armament firms 13 associative systems 308 automobiles/motor cars 157,181. 364 banking and finance 175, 326, 329, 331, 332, 334, 335, 336, 337,338, 339, 340, 342, 475, 481, 489, 517,518 belligerent position in two world wars 544 best performing companies 180 BIAs 299, 305 big business 173, 175, 177, 178-9, 180, 181, 183, 185, 186, 188, 189 bond markets 327

business education/schools 582,583, 584-5, 587, 588, 590. 591

business history 15,19,31,50 cartels 270-2, 273, 274, 275, 276, 277, 278, 279, 281, 282, 284, 286

chambers of commerce 304 Chandler's work particularly influential in 43 chemical industry 177,181 coal 541, 543 comparison between US, Britain and 2, 44 consumer product sectors 399 cooperative associations 329 corporate governance 109, 471, 472, 474-6, 478, 479, 480. 481-2, 483, 485-6, 487, 488, 489,491 corporate law 202 corporation schools 574 debt -equity ratio 321 design 374, 376, 378, 381, 382, 383-4, 385, 387. 388, 389-90, 391, 392 diversification 99, 157,298 divisionalization of largest industrial firms 99 dye pharmaceutical companies 355 education and training 560, 561, 562, 564, 569-70,572,576,586 electrical companies 153 electrical engineering 181 entrepreneurship 507 family ownership 14,200,202,210 FDI 146, 147, 148 Federal Constitution (1919) 537 federalism 227 GDP per head 404

gender stereotyping in apprenticeship system 560 government revenues from privatization 548 growing threat of Russia to 533 guilds 303 heavy industry 177,181,282, 283 high-quality, high-cost producers 84 hyperinflation (1923) 184 immediate postwar reconstruction 359 impact of US machinery firms 157 industrial districts 221, 224, 225 industrial research thoroughly institutionalized 354 industrial system 567 industrialization 474, 571, 608 industry-level bargaining 566 innovation 351,361, 362-5 labor management 421, 423. 428, 429, 430, 432, 434

large-scale enterprise 404, 435

INDEX

663

._----- ---- --'------------_._----_.--------

leverage 321 management education 583 manufacturing sector 530-1 market capitalization 480, 487 marketing and distribution 404, 405, 407, 414, 415,416

mechanical engineering 130, 178 metal trading companies 145 Mittelstand 172, 200, 228, 231,336 multidivisional structure 183 opportunities to rebuild 359 organizational centralization 306 professionals 20 publications 44 rail network 175, 176, 539, 550 rebuilt international distribution networks 148 recovered economy 361 regulation 323, 534 research and development centers 154 salaried managers, family dynasties replaced by 14 scholars' resistance to economics 38 securities market law (1896) 485 self-financing 325 sequestration of affiliates 147 shipping 276, 538 skill formation 559, 561 standardized, assemble-to-order, and customized pump manufacturing 130 n. state and business 529 state formation 535 steel and auto industries 364 stock ownership 327 takeovers of collieries 178 telecoms 546 unification (1870) 537 union membership 429, 430-1, 432, 434. 439 universities 19, 183 unquoted companies (GmbH) 203, 491 vertical integration 178 white-collar employees 24 seealso Nazi Germany; Weimar Gerschenkron, A. 122 n., 335, 336, 340, 507, 513, 517

Ghana Institute of Management and Public Administration 596 Ghemawat, P. 98 Ghoshal, Sumantra 257 Gillette 204, 402, 403 Gilman, Nicholas Paine 490 n. Gimbel Brothers 403 Gingrich, Jane 231 n.

Ginzburg, Carlo 28 Glarus printed textiles 133 glass 455, 460 specialty 515 "glass ceilings" 24 Glass-Steagall Act (US 1934) 330,472 "glass technologists" 367 Glimstedt, Henrik 121 n., 127 n., 284 global consulting firms 464 global enterprise 105 global firm models 256-7 global giants 146 global history 28 global pre-eminence 2 global reach companies 264 globalization 81, 82, 141-68, 232, 307, 361, 450, 534 financial market 478 growing literature on 256 inconsistent effects of 309 international business education characterized by 582 multifaceted nature of 28 regionalization and 594-7 second-best solution to the end of 278 shock of 25 GmbH (Gesellschaft mit beschrankter Haftung) 203, 491 GNP (Gross National Product) 41 Go (Japanese board game) 285 goals: action 12 economic development 476, 477 Godley, Andrew 507 Goering chart (1937) 452,453,460 Goldman Sachs 188 Goldsmith, R. W. 320, 324, 333 golf courses 286 Gornpers, P. 86 n. Goodman, Edward 220 n. Goodrich, C. 539 Goodrich Company 178 goodwill 245 Goransson, Anita 50 Gordon, A. 82 n. Gore (W. 1.) 200 Gormly, C. 458 Gorton, Gary 51 Gospel, Howard F. 559, 567, 568,569 governance 379 associational 231, 476 development of a system 260 gap left by breakdown of international economy 148

664

INDEX

governance (cont.) institutions and 225-7 legally bounded nature of firms affects behavior and 245 market 269 multi-level 231 political 472 profitable relationships 322 structures 130 territorial 231 governance mechanisms 132. 226 closely controlled 256 collaborative 133 collective problem-solving 227 communitarian 232 n. global 286 hierarchical and non -hierarchical 233 strains on 232 government banks 328 government intervention 543 downplaying the importance of 106 politically acceptable 531 stronger forms 473 seealso state intervention governments 147 attempt to accelerate development 257 n. collusion among aluminum MNCs and 280 socio-political objectives 530, 535 Graham, Edward M. 288 Graham, M. B. W. 2, 18,515 Gramm-Leach-Bliley Act (US 1999) 337-8 Grand Moulin de Paris 414 Grand Rapids furniture manufacturers 229 grandes ecoles 583, 595

grandes ecoles de commerce 585-6 Granger Laws (US 1870S) 540 Granitz, Elizabeth 53, 54, 55 Grant, W. 311 grants 518, 592 graphics 386 computer 387 graphite electrodes 281 Gras, N. S. B. 9, 39. 40, 43 great banks 342 n. Great Depression (1930s) 51,86,148,181,276, 356 French big business weakened by 182 frugality during 616 Great Crash (1929) and 75 unionism 81 Great Merger Movement 74. 130 n. "great reversal" (1930-70) 326,327,334,337

Greece 14, 50 banks 332, 337 business history and economic history 29 family businesses 205 Greek diasporas 147, 509 Green, Andy 561,563 n. Green, Francis 559 n., 565 n., 568 greenfield plants/operations 16, 153 Greenhill. Robert G. 49 Greif. Avner 51 grocers 403 group affiliations 509

grupos economicos

151

Gualmini, Elisabetta 231n. Guatemala 158 guilds 227, 229. 303-4, 570 legislation that formally abolished 573 Guillen, M. F. 106 guilt 409 Gurley, J. G. 324 Hachette 405 Hadley, E. 77 n. Haier 151 hairdressers 274. 280 Hall, C. 213 Hall. Catherine 608 Hall, Charles Martin 352 Hall, Peter A. 472 n., 56o, 565 Hall, R. H. 99 Halske, Johann Georg 377 Hamilton, Eleanor 213 Hamilton, G. G. 101 Hamilton, Gary 518 Han Dan Iron and Steel Company 462 n. Hancke, Bob 560, 563 Hancock, David 608 Handelshochschulen 585 Hankyu Railway 412 Hannah, Leslie 40, 42, 44 n., 55 n., 229 n. Hansen, Hal 569-70, 571n. Hansen, Per H. 531 Hansmann, Henry 472 n. Hanson Trust 187 Hara, Terushi 44 hard-core cartels 273 hard labor 25 hardware 260 Hargadon. A. B. 112 Harley, Knick 51 Harp, Stephan 610 Harris, H. 79 n. Harrison, G. C. 461

INDEX

Harrod's 400 Hartmann. M. 583 Harvard Business Review 194-5 Harvard Graduate School of Business 75, 408 Harvard University 408 Center for Research on Entrepreneurial History 69.503-4,505 seealso HBS Harvey, Charles E. 44 haulage 251 Hausbanken 340 Hausman, William J. 39 n., 52 n. haute couture 618 Hawker Siddeley 182 Hawthorne studies (1920S) 610 Haydu, Jeffrey 569n. HBS (Harvard Business School) 9,97,99, 596 close personal networks with scholars at 591 established (1908) 584 executive programs 590 health 27 history of 19 heavy industry 177, 181, 182,282, 283,340, 363, 428-9 decline of 410 meeting demand for large one-off products 389 HEC (Ecole des Hautes Etudes Commerciales) 585,587,588,597 hedging strategies 124,127, 131 Hefner-Alteneck, Friedrich von 378,379 Hegel, G. W. F. 131 hegemony 107, 310,613, 614 Heineken 200 Heinrich, Thomas 225 n. Heinz 403 heirs 203, 205 strengthening of 304 Helper, Susan 51 n., 123 n., 127, 132 n., 234 n. Henkel 433 Henley Management College 590 Hennart, lean-Francois 49 Hepburn Act (US 1906) 540 Herrigel, G. 4,107,109,121 n., 125 n., 221 n., 224 n., 227, 273,510 Hertner, Peter 48 heterogeneity 488, 489, 490 Hewlett Packard 353, 358,360 "hidden" goods 400 hierarchical position 81 hierarchical responsibilities 79

665

hierarchies 43, 74, 186,244, 269, 377, 384 borders between markets and 26 command-and-control 263 employment 428 fully integrated enterprise 271 gendered and educationally segmented 435 imbalances 132 intermediary 26 job and promotion 427 managerial 55, 174, 178,183, 252,331, 360, 427, 515,517 rules and 153 social 464 sophisticated 424 wage and benefit 427, 431, 435 white-collar 427 high-technology sectors 155 benefit from government research expenditures 518 contemporary regions 224 districts 225 n. emergence of 307 industrial collaboration 364 producers 257 qualified and experienced labor 82 R&D in 357, 364 start-ups 76,5°1,520 war boost to industries 181 higher education 81 big business active role in shaping form and content of 75 European 593 national systems of 591 products of investments in 77 strengthening national systems of 593 strong belief in investment and expansion in 593 transformation of 75, 82 Hikino, Takashi 130n. Hill, F. E. 10 hindsight abuse 129 Hindus 159 Hippel, Eric von 257, 264 hire purchase 414 hiring and firing 79, 80, 246, 260 mid-career 84 temporary blue-collar employees 85 Hirsch, Jean-Pierre 228 Hirst, Paul 121 n., 125 n., 129n., 134n., 220 n., 227 n. "His Master's Voice" 403 Hishagi-Osaka 230 historical alternatives approach 120-40, 224

666

INDEX

historical analysis Il2 historical inheritances 224 history 9-36 management 97, 104-8 seealso business history; cultural history; economic history Hitachi 186, 413 company as enterprise community 431 Hitler, Adolf 279, 362 Hitotsubashi 587 Hodder, J. 87 n. Hoechst 177,181 Hoffman, Elizabeth 51 Hoffmann, Ernst 567 n. Hofstede, Geert 204 Hoke, Donald 13 holding companies 174, 183-4, 196, 542 bank 332 closely held 251 family-based 253 giant 77 intricate structures 195 limited partnership structure 476 mergers created by 484 operating subsidiaries 263 replaced by cross-ownership 205-6 state 532 subsidiaries of 251 Holland, John H. 264 Holland, see Netherlands Holloway (Thomas) 400 Hollywood 225 n., 617 Holm, P. Il2 Holt & Co. (Alfred) 251 Home Base model (Porter) 256-7 Home Depot 435 Homestead Act (US 1862) 538 Honda 186,413 Honduras 158 Hong Kong 205, 252 Hong Kong and Shanghai Banking Corporation 329 Hong Kong Stock Exchange 252 Hoover, Herbert 278 Hoppmann, Erich 284 horizontal integration 247, 282, 352 horizontal keiretsu 86-9 Horn, Norbert 43 Hoskin, K. W. 456 hostile neighbors 533, 538 hostile takeovers 187,189, 206 springboard for 204 Hounshell, David 13, 79 n., 516

hourly workers 80, 81, 424 segmentation between salaried managers and 83 house organs 22 household products 403 household staples expenditure 410 housing 19, 407, 427 Houy, Y. B. 160 Hovenkamp, H. 511 Huawei 151 Hudson's Bay Company 143 Huener, J. 531 Hughes, T. P. 388 Hughes, Thomas 27, 28, 350 Huguenots 610 human capital 19, 198 investments in 85, 559, 566 long-term strategies 210 human resource management 24, 26, 100, 101, 42 0- 46 psychology, ergonomics, information sciences usedin 28 human resources 122 reproduction of 125 human rights 423 Humboldt 178 Humphrey, John 233 n. Hungary 278, 586 hunting and fishing 286 Hutchinson, Diane 48 hybrid disciplines 355 hybrid forms 129, 160, 323 potentially disruptive impact of experimentation 132 predominance over pure types 124-5 solutions 107 technological 127 hydrocarbons 543 hydro-electricity 534. 541 hygiene 161 hyperinflation 184 hypermarkets 416 hypernationalism 277. 278 hyper-rationality 131-2 hypotheses 7°,98 explicit tests of 50 monocausal 322 refutable, confronting with evidence 56 Hyundai 201 "I Love Lucy" (TV show) 410 IASB (International Accounting Standards Board) 452

INDEX

IASC (International Accounting Standards Committee) 451,452 lATA(International Air Transport Association) 281.545 Iberia (airline) 533 IB~

185,189,229,352,387

leahn, Carl 187 ICC (International Chamber of Commerce) 3°8-9,540,546 ICFC (Industrial and Commercial Finance Corporation) 519 ICI (Imperial Chemical Industries) 110,182,187, 273. 278, 286, 532

ICT (information and communication technology) 448.458 ideal-types 121,178, 223, 470, 471 identity 100. 606-10 brand 406 collective 222, 224 commerce and 618 construction of 617 corporate 615 differences in 611 local 20 mixed, on the part of workers 435 national 20, 147 new 424 powerful 611 product 400 regional and city 405 social 205,423-4 ideological differences 529. 549 ideological radicalism 311 ideology 612, 617 political, change in 532 ie concept 205 lEA (International Electrical Association) 280

lESE (Business School of the University of Navarra) 595 IFRS (International Financial Reporting Standards) 452 IG Farben 181, 273, 278, 284 Igo stones 285 IKEA 200 Ikema, M. 582 ill-gotten gains 47 Illinois 339 illustrations 402, 414 imagery 410, 411 IMD Business School 595 imitation 358, 414, 415, 490 immigrants 424, 435

667

discrimination and dependences experienced by 24 extensive controls 148 Jewish 5°7,5°9,518.609 tight controls based on ethnicity 147 unskilled labor 81 Imperial Group 187 Imperial Tobacco 177> 178, 182, 400 Imperial University 587 imperialism 145 historical impact of 5 symbols of 155 imports: cheaper, shutting out 514 control of 543 rebates for 285 impulse purchases 411 incentives 46,52,74, 87, 152. 273. 510 cheating 270 combination of 209 economic 226 financial 230 individual market 560 individual-level 564 key 80 mixture of threats and 156 not providing enough for organizational change and integration 531 powerful 284 redesigned 286 selective 295 strategic 285 takeover oflocal telephone companies 546 inclusive tours 545 income 122 disposable 397, 401 farm 409 inequality of 156,338 per capita, persistent disparities in 559 relative high equality 338 rural household 401 smoothing 254 income distribution 126 incubators 112, 285, 360 independence 15 India 5. 151,156, 274 accelerating growth 151 affiliates of diversified business groups 254 business historians aiming at understanding 28 caste-based weaving networks 606 central role of families in society 15 commercial diaspora 147

668

INDEX

India (cant.) elderly people revered as part of extended family 209 expatriate Scotsmen 514 extended family 197 family at the very core of culture 205 first elite group to respond to British 159 "Hindu rate of growth" 508 indigenous entrepreneurs 15 labor management 426 large family firms 201 rapidly adapting firms 257 shipping business 285 seealso British India Indian diasporas 509 Indian subcontinent 143 Indian Tea Association 276 Indian tribes 158 indigenous practices 124 indirect costing 460 individualism 614 individuality 25 indivisibilities 122 Indonesia 28, 205. 530 industrial accounting 455 Industrial and Corporate Change (journal) 71 industrial archaeology 11 industrial associations 230 Industrial Bank of Japan 88. 328 industrial banks 328 industrial cartels 273. 274 industrial development 87 profound influence on 128 role of main-bank system in supporting 89

industrial districts 2, 4, 17. 25, 106, 200, 248, 340, 360, 361. 425, 616

flexible specialization can be pursued within 129 Italian families in 197. 205, 207. 208, 210. 220, 221. 222, 224, 234

national influences on the fate of 134 n. networks, family firms and 207-8 power, exploitation, and conflict within 132 regional clusters and 219-43 role of 105 skills training and innovative working 434 smaller-scale networks found in 416 industrial divides 128 industrial heritage 11, 23 industrial policy 4-5, 529, 531 national 269 rationalization and centralization of 228 significant tool of 279

"industrial public sphere" concept 227 n. industrial relations 126, 295, 299, 338, 420, 425, 431.567

divergent outcomes 569 n. diverse 426 functions performed by BIAs in 298 n. internalization of 439 large railway companies 427 major manges in 422 management of 26, 424 union-based system of 432 industrial research 28,100,105-9, 221, 226, 300, 34 2, 353, 354-5

cognitive aspects of 366-7 problem of the standard model 358 productivity difficulties 359 recent studies of 359 industrial revolution 320 seealso First Industrial Revolution; Second Industrial Revolution; Third Industrial Revolution industrial schools 391 industrial sectors 130-1 industrial securities 75 industrialization 17, 285, 304, 331, 425. 489, 570, 583, 613

artisanal associations survived 573 beginning of 381, 475 corporate artisanal sector viewed as impediment to 572 deepening 20 design and manufacturing at onset of 375 diffused 220, 224 educational system deeply affected by timing and character of 568 family firms a crucial dimension of 197 histories of 109 late 398. 407. 568, 569 narrow-track models of 121,122 n. occurred under authoritarian auspices 571 rapid 347. 398, 413 slower 455 speedy 399 textile industries at the forefront of 425 timing of 338 universal-bank-led 340 seealso early industrialization industry codes 229 inequality: class 296 extreme 512 gender 560 income 156, 338 North and South 28

INDEX

inertia 16.354, 452 lifestyle 397 means to escape 516 organizations ruled by 12 infant industries 278 inferiority 353. 355 inflation 10, 156, 414, 477 stoked by rising oil prices 279 information 46, 222 access to 200, 508 better 255 competitive advantage reliant on quality of 199 cross-continental 145 economics of 48, 103 financial 204, 449, 450 firm-specific 322 important 322 inaccurate 16 incomplete 131 institutions needed to force firms to reveal 323

new economics of 50 perfect 45, 47 privileged, detailed 341 scarcity of 330 shared 247. 353 symmetricizing 125 n. trusted source of 197 unreliability of 335 valuable 336 seealso asymmetric information; IT; also under following headings prefixed information information costs 103 reduction in 339 information exchange 20-1 collective 234 high levels of 263 orchestrated 229 information flows: facilitating 210 free 363 information processing: business history of 27 new technologies 254 information systems, see AICS infrastructure: ability to raise taxes to finance projects 511 active promoters of investment 513 building 145, 254, 537 global economy 145 improvements to 362 industrial 298, 307

669

investment in 513 removed 158 skill development 568 urban 400 Ingenieurschulen 385. 389 inheritance: leadership by 211 partible 202, 203, 210 inheritance law 202, 203 inheritors 180 INI (Instituto Nacional de Industria) 533 innkeepers 274 innovation 2, 16, 18, 38. 68, 78, 233, 342 authoritative study of 516 banks can inhibit 323 collective 225 "communities of practice" in 110 cornpetition essential to 288 competition may stimulate 285 contrasts in values and attitudes to 204 cross-border transfer of 157 cumulative 90 deliberate 122 design offices the centers of 379 devastating effect of decartelization on 284 diffusion of 222, 230 entrepreneurial 505 essence of 79 financial 327 foreign 124 fundamental phenomenon of 69 geography of 360 history of 27 how American values encouraged 603-4 importing 160 incremental 128, 245 n.• 349, 352, 358 indispensable foundations for business investments in 90 institutionalized 348 interfirm networks identified as playing crucial roles in 244-5 investments in 75, 85 key financial services that stimulate 323 key to 206 linear model of 356 major 27, 461 marketable and profitable 17 misconception that cartels halt 269 more frequent 257 national systems 361 necessary precondition for 55 organizational 40, 98 path-dependent firm 516 periphery-inward 257

670 INDEX --_.---------------------------innovation (cont.) political actors fundamentally shape private economy through 512 promoted by separation of ownership and control 75 radical 349, 352, 362 restrained 409 science-based 361 studies of 109 theory of 505 transportation 40-1 seealso technological innovation innovative enterprises 70, 89 construction of a theory of 91 funds available to 85 governments often subsidize directly 90 growth of 74, 87 organization and dynamics of 71 social conditions of 73, 91 theory of 73 innovative investment strategies 73, 74, 78, 86, 87,88

fixed costs of 92 INSEAD 589, 592, 594, 597 insider systems 478, 517 finance 423 holding model 489 lending 330, 331 instability: demand 270 excessive 484 financial 78 market 485 predictable response to 197 tendency of laissez-faire financial regimes toward 337 Institut Superieur de Commerce d'Anvers 588 institutional economics 109 institutional firms 564 institutional investors 76 institutional models 101 institutional racism 508, 513 institutional reform 133 institutional sclerosis 339 institutional structures 100 institutionalization 111-12,302, 306, 3°7, 311,570 academic, lack of 30 effective 573 innovation 348, 351-3, 354 R&D 348,349

institutions 286, 320, 342, 351, 353 academic 592 accreditation 595

co-evolution of systems and 348 collective bargaining 566 compensatory 335, 342 corporatist 308 educational 589 engineering 381 extractive 512 female 24 governance 225-7 improved 513 industrial relations 567 inherited 510 intermediate 226-7 labor-market 566 marketing 614 non-profit 328,329, 336 philanthropic 609 political-economic 565, 566 political-legal 510 powerful 323 private property 512 public 328 religious 609 research 362 institutions training 208, 559. 56o, 570 seealso national institutions insurance 188,303,352 mutual plans 618 insurance companies 176, 182 relative job security 435 integrated anchors 223 integrated circuits 360 integration 304-6 backward 126-7,177 European 307 forward 126-7, 177 functional 82, 83, 84, 150 geographical 150 hierarchical 83, 84 international 150 market 189 mass production and mass distribution 41, 48 not providing enough incentives for 531 organizational 78-9, 80 political 231 regional 150 world civilization 141, 142 seealso economic integration Intel 189, 358, 504 intellectual property 356 intelligence: distributed 257 foreign commercial and technological 235

INDEX

interaction 222, 245 bourgeois society 19 employers and workers 299 enterprise and society 4 frequent 247 frequent 256, 263 government, cartels, and corporate strategy 285 high velocity, limited possibilities of 255 mutual advantage drives 256 positive 262 producers, distributors and customers 22 reciprocal 4 redundancy of 257 state-entrepreneur 514 supplier-assembler 259 transnational 277 vocational training with political-economic institutions 565, 566 interactive localities 223 inter-business transactions 247 interchangeability 380, 390 interchangeable parts 176, 177,428 interdependencies process 122-3 interdisciplinary activities 366 interdivisional transactions 247 interest groups 311 different, relative strengths of 532 entrenched and stubborn 543 incumbent, role of 322 plurality of 542 political 277, 549 interfaces 385 interfirm mobility 81 facilitated 82 intergenerational succession 195, 196 impact of conflict on 209 less problematic 209 solution of problems 210 intergenerational transition 203 interindustry combinations 249, 258 n. intermarriage 203 intermediary bodies 21, 25, 614 Chinese positioned as 514 design and production 383 fashion 614 financial 320, 326-32, 334 important, in training 572 institutional 519 prominent 484 share of 326 intermediate products 283 intermediate technical schools 385

671

internal cleavages 132 internal venture units 516 internalization 186, 439 incomplete, inefficient 269 international business 50, 97, 142 earlier traditions of 152 important drivers of 146 large, long-established 200 management history and 104-8 international cartels 148, 150, 271, 284 chemical 283 classic works on 279 exposed 281 harm to trade 281 heyday of 276 major 280 prerogative of wealthier countries 280 rise of 278 robust 277 technology transfers and 284 international competition 84, 91, 220, 310, 361, 381

growth of 422-3 international finance 330 large family firms 200 International Harvester 178 International Potash Syndicate 277, 278 international relations 21, 287 International Steel Cartel 277, 278 International University Contact 593 internationalization 9, 253 commercial 309 enhanced 233 firms are agents of 20 local firms' attempts at 235 technological activity by large manufacturing firms 157 internationalization process model 105 Internet 26o, 261, 360 interoperability 261 inter-organizational fields 111 interpersonal relationships 210 Interstate Commerce Act (US 1887) 534, 540

intrafirm trade/transactions 150, 247 intragroup lending 249 intragroup transactions 255 high levels of 250, 258 low levels of 252 intraorganizational transactions 259 invalids 402 invention collectives 360 invention on demand 358

672

INDEX

inventions 17.348, 351 locking up the market for 350 significant 353 threatening 355 inventor-entrepreneurs 348 inventories 459. 461 investment asymmetries 254 investment banks 320,336 investment: direct 84 innovative strategies 78 seealso FOI investment banks 175, 184 American, leading 179 financial markets unable to develop without support of 322 main, operations orchestrated by 187-8 separation of commercial and 184. 322 investment decisions 73 investor sentiment 484. 486 invisible hand 53 invisible instruments 16, 22 "invisible objects" 221 n. IOE (International Organization of Employers) 308~ IPOs (initial public offerings) 76,86 Iran 155 Muslim entrepreneurs 513 Iraq 70 Jewish firms 147 Ireland 329, 365, 513 accounting 451 concerns about 533 software firms 507 IRI (Istituto per la Ricostruizione Industriale) 532 iron and steel 44, 181,185, 455, 456 large enterprises 178 leading producers 177 nationalized 182 rolling mills 200 takeovers of collieries by manufacturers 178 ironworks 455 irreversibility models 12 Israel 365, 513 Istanbul 587 IT (information technology) 82, 151,255, 360

blamed for major loss of jobs 356 extensive use of 435 hard\vare 188.189 large-scale systems 107 net exporter of skills in 561

shaping from tabulators through computer systems 352 skill shortages 566 Italy 14, 28, 29, 50. 106, 306• 533 aim of easing financial problems of some key sectors 532 apprenticeship 563 armament firms 13 associative systems 308 banking and finance 326, 328. 329, 332. 335. 336, 342, 518

BIAs 301, 302 business education/schools 586, 591 cartels 277, 278 coal 543 Communists and leftists 31 company law 202 consumer product sectors 399 desire to strengthen links between north and south 530 diversification and divisionalization 99 family firms 196, 197, 202-3, 205, 206. 207> 208. 210,211

Fascist regime 228. 302 guilds 303 ideological radicalism mainly involving SMEs 311 industrial districts 197. 207, 219-20, 221, 222. 224,225,234

industrial triangle 206, 220, 233 innovation 365 interest groups 543 intermediate institutions and local development 226-7 labor management 429. 431, 434 large firms 173 manufacturing sector 530-1 marketing and distribution 405-6, 407. 415-16 movement towards federalization and regional devolution 231 n. new state (1860) 536 railroads 536-7 regulation of business 534 reliance on British coal exports 541 securities markets 451 n. shipping 537,538 state and business 529 state formation 535 telecoms 546 training dominantly school based 563 union membership 429, 430 virtually complete public ownership 536 vocational education and training 562,564

INDEX

iterative co-design 125 n. Ito- Yokado 414 ITT (International Telegraph and Telephone) 160,185,187.546 Iversen, Torben 566, 575 n. Ivory Soap 402 Jacoby. S.M. 16, 79 n. Jamaica 158 James. H. 211 janitors 82 Ianome 412 Japan 11. 77-8, 172. 301 n. accounting 451, 454, 455, 456. 458, 459, 462, 464 American influence on development of companies 105 Americanization of businesses 97 banking and finance 87-9, 322. 323, 326. 330. 332,334,337,338,476-7,478, 518

BIAs 304, 305 big business 183, 186, 188, 189 bond markets 327 borrowing ideas 569 business education/schools 582,583, 584. 587. 588,5 89,59°,591

business history 17. 28, 30, 50. 293 n. business vitally shaped by its geopolitical setting 537 cartels 268. 270, 274. 276, 278, 279, 281. 284, 285 Chandler's work influential in 43 coal 541. 543 competition policy 274 competitive success of companies originating from 106 control of sea transport 549 corporate governance 471, 472, 476-8, 480, 4 81• 4 83, 486, 487, 488, 489

cultural traditions 606 deregulation 548 design culture 375, 378-9, 384, 389, 391, 392 development of mass production 126 "developmental state" prompting 532 "diversification" of capitalists' interests 298 economic development 320 electrical goods 615 electronics companies set up research laboratories in US 358 emergence of state 535 exchanges of information 20-1 exports 148 factories 605-6 family firms 14, 201, 205

673

FDI 149

fierce competition from 531 GDP 413 gender bias 560 general trading companies dismantled by Allied occupation 149 guilds 303 high quality general education 564 industrial districts 221, 229, 230 industrial research thoroughly institutionalized 354 industrialization 569, 571 innovation 363-4 job tenure 566 labor management 421, 422. 423, 425. 429, 432 late development used to explain efficacyof coordinated market development 257 n. major economies 171 management education 583. 592 managerial control 183 market capitalization 480 marketing and distribution 398. 399, 406, 407, 4 12- 14

militarization (1930S) 476,478 motor vehicle industry 123. 130, 159; seealso under companynames, e.g. Honda; Nissan; Toyota multidivisional structure 183 noted features of 415 oldest continuously operating enterprise among largest industrial firms in 253 opportunities to rebuild 359 organization 82-5 privatization 547. 548 publications 44 railroads 538 ratio of financial activity to GDP 326 raw material sources 530, 533, 537,549 recovered economy 361 relational regulation 323 remarkable ability to learn from Western firms 159 salaried managers replace family dynasties 14 scholars' resistance to economics 38 Second World War damage 408 seniority wages 566 shipping 537-8 skill formation 559 social values and attitude to family 205 state and business 529-30 steel and auto industries 364 stock ownership 327 television industry 283

674

INDEX

Japan (cant.) tiered supplier system 106 top electrical goods firms 20 training 570, 572 transferred parts of production system 160 union membership 429, 430, 431. 432 wholly-owned FDI blocked 155 women workers in traditional industries 24

seealso banyo; diigyii kumiai;jiba sangyo; kanren kigyo; kaizen; keiretsu; kigya shudan; kogaisha; kiigyii kumiai; kousuu; Meiji; noren wake; oyagaisha; sanchi; shiikiikai; shukko; sogoshosha; tenseki; toji; zaibatsu Japan Business HistoryReview 3, 43 Japan Paper Manufacturers Federation 276 Japanese Army and Navy 453 Japanese Business History Society 29 Japanese Cotton Spinners Association 274. 276, 284

Japanese National Railways 547 Japanese Productivity Center 590 Japanese Railways 538

Japanese Yearbook on Business History 43 lapanization 18 Jardine Matheson 147 Java (programming language) 256,257,260,261, 262

Jenks, Leland H. 505 Jeremy, D. J. 98 jeux d'echelle 28

joint-stock companies 253, 491 broadly held 476 closely held family firms dominated 473 enthusiasm for 474 independent 271 large-scale 489 minority interests within 472 outlawed 202 share gradually declined 475 state-owned 532 joint ventures 16,154,244,273 global tendency to develop 596 prospective partners 151 telecom firms 548

Ioly,H. 211 Jones, c. 49,111 Jones, Geoffrey 2, 4, 13, 29. 48, 49. 102, 105. 110, 120 n., 153,160, 246, 502

Jones. S. R. H. 53 Jonsson, S. 463

Journal ofEconomic History 51 Journal of International Business Studies 104 Journal of Law and Economics 51 journeymen 570,573 Iudet, Pierce 224 n. judicial reviews 279 Iungerhern, Sven 50 jungle forests 158 Justice Department (US) 229, 286 Jaeren 233

Ievons, w. S. 459 Jews: commercial activities and religious and family lives 607 Eastern European 507, 609 immigrant 507, 509, 518, 609 persecuted/attacked 14,359 removal from employment 154 jiba sangyo 221 n. [ini technology 261, 262 }IT (just-in-time) structures 234,255,259, 459

job classifications 160 job ladders 81 job security 439 relative 431. 435 job tenure 566 Johanson, J. 105 John, R. R. 102 Johnson, H. T. 450. 458. 463 joint committees 432 joint consultation 420, 434, 439 joint-stock banks 175.176.33°-1

Kaiser 416 Kaiserreich 227 kaizen costing 459

kanren kigyo 258 n. Kao 433 Kaplan, R. S. 450, 458, 463 Kaplan, S. L. 304 n. Karstadt 405, 414, 415, 435 Kast, F. E. 98 Kaufman, Allen 612 Keeble, S. P. 582

keiretsu 88-9, 186, 205, 250, 255, 258 establishment of 412 loosely inter-connected 477 relationship banking 341 wholesalers and retailers 413 Keller, Morton 229 n., 542 Kelly, Roy Willmarth 567 Kenly Smith, John 516 Kenney, M. 74 n., 79 n., 86 n., 106, 225 n. Kenya 155 Keynes, J. M. 396

INDEX

Khan, Zorina 511 Kieser, A. 102, 108

kigyo shudan 88, 249, 250, 255, 258 n. Kik 416 Kikkoman 201, 250, 252-4, 406, 610 Kikuya, M. 452 Kimizuka, Y. 455 Kingfisher 435 kinship 147, 204, 253, 286 family firm has three crucial elements of 197 property rights 262 ties 603 kinship networks 518, 607, 608 extended 254 Kipping, M. 103, 107, 108, 583 Kirkpatrick, I. 108 Kissinger, Henry 596 Klein, Benjamin 51,53,54,55 Kleinschmidt, C. 22, 107 Kleinwort 179 KLM 545 K-Mart 410 Knorringa, Peter 235 n. know-how 251 destruction of 17 diffusion slowed down 284 importance of sharing through cartels 28 4

technological 278 knowledge 16 accumulated 22 advanced 359 common 324 complex 245 n. cross- fertilization of 233, 248 cultural 614 expert 354 geographical stickiness of 158 insider 324 international 513 major source of 209 managerial 198 national strategies 365 new approaches to 30 scattered 324 scientific 111 sociology of 31 specialized 233 tacit 232, 234 transmitting 22 seealsolocal knowledge; alsounderfollowing headings prefixed "knowledge" knowledge assets 75

675

knowledge-based industries 151 highly specialized start-up companies in 273 knowledge diffusion 154 knowledge-intensive firms 108 knowledge spillovers 158 knowledge transfer 152, 153, 154, 158, 380, 587, 588-9

critical 517 family-based 200 Knox, William 567 Kobayashi, Kesaji 42 Kobe Higher Commercial School 587 Kobe University of Commerce 587 Koberg, Peter 491 Kobrak, Christopher 155,211,531 Kocka, Iurgen 19, 24. 40, 43, 491 n., 567, 608 Kodak 351-2, 354

kogaisha 258 n. kogyo kumiai 230 Kohlberg, Kravis, Roberts 187 Konig, W. 391

}(onzerne 282, 485 Korean War (1950-3) 259 Korvette 410 kousuu 464 Kranakis, E. 390 Kranz, O. 529

Kreditbanken

340

Kresge 410 Kristensen, P. H. 105,121 n., 126 n., 129 n., 133 n., 135 n., 151,224 n., 231 n., 573

Krupp 13, 175, 177,180, 181, 273, 428 Kudo, Akira 44, 107

kudoka 85 Kuhlmann 182 Kuhn Loeb 179 Kuijlaars, Anne-Marie 50 Kwolek-Folland, A. 5 Kynaston, David 225 n. Kyoto 230

la draperie elbeuvienne 235 labeling 400, 406 labor 306, 308 cheap 207, 571 n. commoditized 79 conflicts 25 contingent 433 cross-class strategic alliances between capital and 299 direct 462 employment of 79 female 437

676

INDEX

labor (cont.) high-technology, qualified and experienced 82 household 618 imported 158 management of 420--46 managerial 197 militant 83 saving of 409 shortages induced firms to substitute capital for 422 sweated 132 labor force: changing composition of 422 collective relations with 437 core 433 demographic breakdown of 27 elements of paternalism 433 industrial, growth of 608 larger, problem of attracting 425 "new" 432 temporary workers in 84 trade-off between risk distribution and 299 younger, uncommitted 84-5 labor-intensive industries 151, 152 light 130.220 labor-management relations 351 labor market imperfections 565, 566 labor markets: authority based on relevant technical skills 585 BIAs interact with workers and unions in 294 challenge oflabor movement occurred mainly in 306 changes in composition 433 collective bargaining regulated 473 competitors in 297 craft 427, 570, 571 external 24, 439 flexible 560 gender biases of 560 gendering of 24 global disintegration of 147 internal 24, 422, 423, 439, 56o, 572 shorter-term influences 422 skilled 566 tight 429 world 143 labor mobility barriers 15 labor policy 295 labor relations 107, 542 centralization of 228 interplay between development of vocational training and 567

rationalization and centralization of 228 special 532 labor supply: flexible 79 skilled 222 laboratories 391 blame for disappointments 358 centralized 364 dedicated 355 distinguished 353 in-house 352 licensing 366 pioneering 355 sales 366 seealso corporate laboratories; research laboratories Labour Party/Government (UK) 182,203. 473, 482 Lagos Business School 596 Lai, C. K. 5 Laird, Pamela 25 laissez-faire 337, 531, 539, 569 acceptable 549 Lamoreaux, Naomi 39 n., 45 n., 47, 48, 51, 55,103. 130 n., 470 n., 491 n., 511, 517, 518 Lancashire 219,251, 512 land grant policy 534. 538 Landes, David 122,506, 508, 605 Langlois, Richard N. 53 n., 55n. languages: common 534 superior professional education in 364 Lank, A. G. 209 Lanzalaco, 1. 4. 21 La Palornbara, Joseph 311 La Porta, Rafael 322, 482, 483, 510,511 large banks 341, 481 control over credit markets 486 marginalization of 184 role played in financing and directing major enterprises 43 substitutionary monitoring role played by 471 seealsolarge universal banks large corporations 132. 146 Chandler's account of the rise of 38 control of key functions 150 early 26 exploitation of world resources 145 flexible and specialized forms of production 130-1 managerial hierarchies 55 petroleum 148 white-collar employees in 26 seealso big business

INDEX

large-scale enterprises 91, 450 accepted form for 282 associated with coal, steel and engineering 404 corporate governance focus on 471 divisionalization of 99. 103 emergence of 74, 102 established 412 manufacturing 98,104 penalized when attempting to layoff "regular" employees 478 response to booming consumer demand 408

vertically integrated 98 world's first 143 large universal banks 334. 340, 517 emergence of 338 for-profit 335 main clientele of 339 Larson, M. J. 583 late development effect 257 lathes 177 Latin America 14,145 business schools 596 colonial 5 development and underdevelopment 11 emerging markets 5 evolution oflarge business groups 206 indigenous business systems less able to absorb foreign capabilities 159 literature in Spanish on 5 multinational investment widely spread in 157 post -colonial 5, 512 soil and climate give comparative advantage 512 universal banking 331 US mining operations 158 seealsoArgentina; Brazil; Colombia; Mexico Latvia 548 Lauder. Hugh 560 Lausanne 595 laws 263, 530 antitrust 284 cartel enforcement 273, 276 development of 202 enforced against bad actors 226 taxing private stockholdings 477 lawyers 304 Lazerson, Mark H. 232 n. Lazonick, William 38, 44, 53. 55, 69. 71, 74, 77, 79, 82, 86, 87. 91, 109, 123, 199, 516, 531

"Le Chaplier effect" 228 Le Printemps 414 Leach, William 614

677

leaders/leadership 25, 210, 211, 610. 611 business culture closely linked to 209 visionary 104 lean production system 432 learning 3, 18, 72 accelerated 257 collaborative 229, 235, 453 collective and cumulative 342 cross-border 257 managerial/management 83. 592 shop-floor 83 specialized 82 trial-and-error 260 seealso organizational learning learning bureaucracies 257 learning by monitoring 125 n., 127.131,234 leasing facilities 341

Lebas, M. 463 Lebergott, S. 400-1 Leblebici, H. 112 Lecuyer, Christophe 225 n. Lee, Clive 48 Lee,M. 594 Lefranc, G. 298 leftists 31 legacy groups 249 legal systems 511 constraints 202-3 differences in 278, 450 protection 276 weak 323 legitimacy 464 legitimization 301, 302 Lego 200 Lehrnbruch, G. 307 n. Leipzig 585 leisure 613, 616 business history 22-3 lender oflast resort: dependable 332 reliable. absence of 337 lending policy 332 Lerner. J. 86 n. Les Imprimeries Delmas 462 Lescure, Michel 221 n., 224 n., 228, 472 n., 502 Lesieur (Georges et ses fils) 415 Levenstein, Margaret C. 133 n., 270, 285 Lever, Lord 210 Lever Brothers 400. 405 seealso Unilever leverage 196, 254. 271, 278 negotiating 283 leveraged buyouts 76, 187 Levi, Giovanni 28

678

INDEX

Levi-Strauss, Claude 607 Levi Strauss (company) 200 Levy-Leboyer, Maurice 172 Lewis, D. 142 Lewis, Frank 51 Lewis (John) 400 liabilities 336 balance sheet 451 short-term 332 liberal political theory 286 liberalism 268, 279 liberalization 150,154,307 incorporation law 474 market 548 licensing 146, 351, 544 Lichtenstein, N. 79 n. Lid! 416 Liefmann, Robert 271 life cycle design and engineering 388 lifestyles 149, 397 consumer culture based on 407 desirable 402 modern 415 lifetime employment: permanent 478 some reduction of 431 lighting and lamps 386 Liguria 536 Lilenthal, J. 454 Lille-Roubaix-Tourcoing 223 limited liability 202, 251, 330, 337, 341, 472, 477. 491

enthusiasm for 474 lineage succession 250 n. linguistic struggles 606 Linux 261-2 Lipartito, Kenneth 52 n., 53, 109, 470 n., 491 n., 5°2

liquidity 327,332, 342 capital market 473 maintained 334 obsession with 339 securities market 476, 488 listed companies 86 Lithuania 548, 597 Liu Kwang-Ching 518 Lively,R. A. 539 Liverpool 251 living standards 401, 406, 407 American 615 higher 432 rising 423 similarity in 404 transformed 410

Lloyds Bank 184 LMEs (liberal market economies) 560,562-3, 565,566

LMS (London, Midland and Scottish) Railway 364 loans 87,88 bad 89 bank 340 foreign 179 high-risk, low-yield 89 non-performing 78 ratio to cash 332 short-term 341 stock sometimes accepted as collateral for 473 subsidized 228, 518 unsecured 341 lobbying 21,26,127,295,307 n., 309 local culture 23 local government 227, 231, 542 fiscal requirements of 550 intermediaries indispensable for 514 local knowledge 185, 233 acquired and exploited 251 locality role 204 localization 223 location 248, 257 lock-ins 359 potential 127 technological and resource 515 Locke, Robert R. 582,589-9° Lockheed 358 lockouts 431 locomotives 378 building style 388 Loft, A. 453 logarithmic tables 386 logic: organizational power 488 structural 133 logical analysis 91 logical error 91 logistics 411 logistics districts 223 London 44 n., 104, 175, 187, 251, 329. 473 artisans and commercial gentry 608 Eurodollar markets 149 initiatives to establish business schools offering MBA degrees 591 Jews in 507, 609 see also City of London; LSE London Association of Foremen Engineers and Draughtsmen 381 London Business School 589, 594 London School of Economics 586, 597

INDEX

long-distance deliveries 400 long-termism 199, 210, 322 longue duree 13 Lopes, T. 160 Lorenzoni, Gianni 232 n. Lost Decade (1990S) 78,89 Lot 545 "lounge wars" 545 Louvre 405 Low Countries 546 loyalty 209 class 401 consumer 396,4°0,4°1 LSE (London Stock Exchange) 246,327 Lufthansa 545 Lumezzane 227 Lundvall, Bengt-Ake 126 n. Lyman Mills 455 Lynch, Lisa M. 561 n. Lynn, 1. H. 293 n. Lyon 133, 226, 228 n.

Lyth,P. J. 545 Maastricht Treaty (1992) 548 McCloskey, D. N. 44, 506 McCraw, T. K. 102, 199, 533, 539, 540 McGowan, Sir Harry 286 machine-building industry 375, 377, 378, 379, 381 American success 391 machine parts: detailed design of 380 reducing the number of 382 machine tools 84, 230, 357, 379 better 380 numerical control of 387 machinery 177,178, 180, 425 crucial 285 high throughput 428 packaging 222 McHugh, A. 110 Macintosh, N. B. 464 McKenna, C. D. 107, 108 McKeown, T. J. 293 n. McKinlay, Alan 44, 49 Mackinnon, Sir William 504 McKinsey 107, 130 n., 159 Mackintosh 400 Maclean, M. 109 macroeconomics 11, 362, 396 availability of homogenous data 325 disturbances (1970S) 548 Maeve, R. H. 456 Macy's 403 Madsen, V. 463

679

Magazzini Bocconi 405 Maidenform bras 410 mail-order enterprises 401, 403, 404, 405 main-bank lending 88 Major League Baseball 112 Malay trading communities 514 Malaysia 205 male breadwinner model 560 male domination 24 MAN group 178, 378 man-made fibers 532 management 406 application of science to solution of problems 588 autocratic 205 bureaucratic 437 compensation schemes 612 development programs 81 discursive constructions of practices 606 executive training 590, 594 family firm 195, 207, 254 family scions banned from 249 hands-on 262 improvements in 410 international diffusion of American practices 149 labor and human resources 420-46 multi-firm, networked systems 27 multi-unit 456 new patterns of 198 outside shareholders press demands on 77 pre-eminence over shareholders 189 professional 2, 121, 253, 476 qualification system for 595 self-identity 611 strategic 98, 99, 100, 197 styles of 606 substituting the visible hand of 53 superior professional 364 systematization and rationalization of 68 three-pronged investment in production, distribution and 2 top and key positions reserved for relatives and family members 205 training professors in 593 union conferences with 83 "unitarist" model of 427 well-educated junior executives and engineers 247 management accounting, see cost/management accounting management by exception 460 management consultants 105, 159, 592, 594 management control 144

680

INDEX·

management education 97, 105. 107. 152 accounting 464 reports on 588 symbolic function of degrees 583 management faculties 30 Management Science (journal) 100 management studies 96-119 management tools 16 managerial agency costs 480, 481 indirect mechanisms to regulate 482 managerial corporations 198-9, 201 managerial decision-making 350,458 relevance of full costs or variable costs to 449 socialist interests that might place limits on 481 managerial revolution 74. 90 managerialism 618 development of 456 Manchester 591 Manchester Business School 589 Manchester University 586 Manchuria 530, 538 Mandell, Nikki 611 Manhattan Project 385 Mannesmann 189 manufacturers' associations 230 manufacturing industry 184, 424 adopting American methods 157 Chandler's focus on 199 companies instrumental in transferring products and brands across borders 146 decline of 434, 531 duality of techniques and organization 412 fascist regimes and 530-1 globalization of 81 growth of big business in 2 hands-on 389 heavy 460 "high-performance" and "high-involvement" policies 436 incentive to minimize technology leakages to competitors 158 industrial 277 initiatives 207 labor-intensive 152 large-scale 98, 104, 178-9 multinational firms 146, 300-1 new techniques 362 production easy and relatively cheap entry to 324 research and development in affiliates 157 specialty 122, 457 successes of 186, 531

Manufacturing Industry Cost Accounting Guideline (Japan) 453 Marceau, J. 583 Marchand, Roland 22, 24 Marche 207 margarine 160,405,414 marginal cost 459, 460, 541 setting marginal revenue equal to 45 marginal productivity wage 562 market access 79, 278 key 257 new 68 market-based financial systems 323,487 market capitalization 173, 327, 333. 480, 487 largest firms by 187 world's largest companies measured by 181 world's second largest firm by 182 market domination 334 market failure 254, 562 reaction to 197 substitutes for 256 market forces 187 pressures on firms to adjust employment more directly to 423 market intermediation 254 market mechanisms 103, 177, 202, 400 market penetration 412 market power 126. 271, 411 efficiency begetting 53, 55 importance of 130 n. result of a quest for 178 market pressures 474 market research 398,408 market saturation 351 market segmentation 397, 400 greater, long production runs not suited to 411 higher quality 84 market share 277. 282, 400, 546 achieved by better services 545 devastating effect of decartelization on 284 established 88 national deposit 336 predetermined 459 protection for infant industries 278 seized 403 setting 285 stealing 261 market signals 52 endogenous responses to 40 fixing wages and benefits according to 439 market time 13 market trends 297

INDEX

marketing 19, 22, 126, 132, 145, 178, 384. 613, 614, 618

adapting to changing, more mature demand 181 cooperative 274 crafted to appeal 156 distribution and 396-419 drawings used in 379 foreign firms introducing new methods 157 gender segmentation of 24 ingenious strategy 271 international campaigns 248 overseas 50 psychology and statistics applied in 28 renewable resources 145 strategies to diffuse products and brands internationally 160 marketing segmentation 282 marketization 452 markets 244 bond 327, 328, 337 borders between hierarchies and 26 boundaries of 422 changing 198,200,206,220 colonial 5 commodity 143 concentrated, urbanized 400 constant source of change within 503 consumer 160-1 contemporary upheavals in 220 creating 145 credit 51, 486 declining 206 deregulation of 547 differentiated 382 difficult adjustments to external shifts in 132-3 efficient, development of 324 exchange, world 152 export 389, 406 extension of 422 flexibility in adapting to 220 foreign, stimulating awareness of 234 fragmented 422 global 277 historical construction of 126-7 imperfect 254, 324, 338 importance of 322 integrated 143 intent to monopolize 271 international 298, 382, 487, 513 key 257 large and relatively homogeneous 422

681

large diversified and integrated firms replaced in part by 2 liquid 75, 86, 323 lucrative 414 manufactured goods, accelerating search for 144 mass, high-income 198 national 382, 401, 405 need to respond to periodic shifts in 225 non-military, accumulated capabilities in 77 oligopolistic 459 open 479. 4 80 organizational response to expansion of 479 outcome of struggles over the evolution of 133 perfect 323 post-colonial 5 problems concerning 45 protected 151 rapid growth of 400 raw material 297 small 338 smaller, politically limited 479-80 stark dichotomy of 269 turbulent 263 unregulated 149 volatile, stabilizing 284 seealso capital markets; emerging markets; financial markets; mass markets; national markets; securities markets; world markets Marks & Spencer 400, 411 marriages between cousins 203 Mars 200 Marshall, Alfred 219, 222, 223, 224. 227, 232, 340, 459.532

Marshall Plan (1948) 589 Martin, C. F. 609 Marwaris 159, 513 Marx. Karl 121, 603 Marxism/Marxists 11,25. 31. 38, 296, 604 masculinity 618 Mason, Edward 273, 279, 284 mass markets 382 emergence of 399-406 maturing of 406-16 unitary 397 mass production z, 46, 76, 121,124, 125, 134, 397, 401, 421,422, 439, 506, 613

boundaries between flexible specialization and 130 development of 126 economies of scale and scope achieved through 178 elements of 435

682

INDEX

mass production (cont.) facilitated 422 fluid and variable boundaries of corporation 129 fountainhead of 13 growth of 200 high-quality, low-cost 84 high rates of throughput in 81 imitation ofDS 415 importance of 390 inevitable preference for 122 integration of mass distribution and 41, 48 large-scale, decline of 224 large-scale, flexible alternatives to 106 logic of 106 more diffuse than custom production 391 more interest in new design than in 389 origins of 106, 220 rejection of 616 spread of 429 steel 176-7 Massachusetts 206 masters 422, 425,573 status distinctions between journeymen and 570 material culture 11 material success 410 materials: breweries and families combine to purchase 253 formulation 355 testing 384 Matignon Agreement (1936) 11 Matsushita, Mitsuo 274 Matsushita 88, 413 Matsushita Electrical Industries 412 Mattei 543 Maurer, Harry 280 Maurer. Noel 51, 510--11 Maurice, Marc 563 n. maximization 131 Mayer, Colin 321, 472 n. Mayer,M.99 MBA (Master of Business Administration) degrees 584, 590 British universities 594 criticized for being too academic 594 expanding programs 589 first joint program in China 596 initiatives to establish business schools offering 591 joint global executive programs 597 number of degrees awarded annually in US 594

rapid growth of 591 trend in Europe for graduates to be recruited to top management 595 Meadows, D. 1. 388 Means, Gardiner 74. 98 "meccano-set" principle 382 mechanical calculation 384 mechanical engineering 84, 178,185, 233. 378. 453 demoted 357 numerical control of machine tools 387 mechanics 386 mechanistic tradition 110--11 mechanized factory system 121 media 23,188 influencing 21 medicine 19, 27 Mediobanca 206, 211 Mediterranean countries 51,147 familialism 205 medium-sized firms 132, 173, 424 family, specialized, and internationalized 210 home of 178 huge financial transactions undertaken by 179 seealso SMEs megalomania 210 MEl 413 Meiji Japan 77,82, 87,229, 323 developing institutions to promote modernization 587 remarkable modernization 506 shipping 537 Melbourne university 596 Mele 405 memory 10, 23 Memphis 403 merchant banks 175, 179,211, 329 powerful 206 merchant naval fleets 549 tonnage 537-8 mergers and acquisitions 70, 75,153, 180,283, 251,283 bureaucratic pressures for 20 Cheffins's argument linking dispersal to 486 cross-border 189 discouraging 337 diversifications via 252 expansion via 252 facilitated 433 financed through leveraged buyouts 187 flotation of bond issues in conjunction with 86 foreign. key local companies 233 national, wide-ranging 181

INDEX

never-ending 545 proliferation of 327 promoted 284 promotion of industrial concentration through 227 state policies 231 strategy achieved through 186-7 waves of 150-1,177-8, 187, 188,473, 484. 485, 487 wide horizontal 177 merit 431 meritocracy 211 Merlo, Elisabetta 149-50 Merrill Lynch 188 Messina, Patrizia 232n. Metaligesellschaft 145 metallurgy 176,177,189,367 metals 178 fabricated 258 primary 181 metalworking 24, 222 dealings with unions 430 large-scale 428 metanational firms 257 methane gas products 532 Metro 416, 435 Meuleau, M. 582 Mexico 151,156,514 accounting 451 cartels 277 entrepreneurial opportunities (late 19th-century) 511 Mezzogiorno 342 M-form (multidivisional structure) 4°,97,98, 103, 183, 185, 189,247,353,432, 450, 456, 457, 462 communication formalized 379 determined by debate and discourse 612 diffused in Europe 159 emergence of 504 more coordinated structures 424 new pressures on internal organization that led to 282 origins and effectiveness of 3 overcoming the problems of 384 Michelin 182,200, 414 "Michelin Man" 405, 610 Micklethwait, J. 98 microeconomic theory 324 microelectronics 76 microfilm representation 386 micro-history 28 micro reactors 122 Microsoft 189,261

683

mid-career recruits 84 middle classes 406, 407 American-style 20 avenue of advancement for 608 designs available to 618 large, emergence of 158 women 24 Middle East 330 non-Muslim and foreign merchants 513 oilfields 543, 544 middle managers 25, 104,591 Midland Bank 184 Midland Chemical Company 285 migrant workers 19 Milan 26,15°,206,4°5,593 military ambitions 538 military business 357, 385 contracting 358,360 engineers 13,14 military regimes 430 Miller, Michael 614 Miller, p. 450 milling machines 177 Millward, R. 5 Milwaukee 403 Minard, Philippe 228,304 n. Miner, A. S. 111 minerals 145,157, 280 mines/mining 104, 182, 285 economic performance 542 establishment and maintenance of 158 foreign ownership virtually eliminated 148 investing in 145 one of the largest groups in the world 187 state company 544 Minguet, Guy 224 n. mini-mills 122, 130,281 Ministries of Post, Telegraph, and Telephone 546 Ministry of Finance (Japan) 478 Minnesota Mining and Manufacturing 354 Minoglou, Ioanna Pepelasis 50 minority groups 21 minority shareholder protections 474, 483 Mint, Sidney 617 Mintzberg, H. 110,594 Mirandola 233 Miranti, P. 86 n. Mirow, Kurt 280 Mische, Ann 123 n. mission 402 MIT (Massachusetts Institute of Technology) 387 MITI (Japanese Ministry of Trade and Industry) 230, 279,363

684

INDEX

Mitsubishi 88, 184, 249, 285, 413 government support for 537 Mitsubishi & Co. Ltd. 456 Mitsui 88, 184, 249 Mitsui Bussan 285 Mitsukoshi 406, 412 mixed banks 153 MNCs (multinational corporations) 48,49,50, 152,309,606,613, 618

ability to transfer knowledge difficult to understand and codify 154 banking 149 competition policies and the role of 529 first instances of manufacturing 146 food, family-owned 203 foreign 232, 233 free-standing 104 giant 185 growth of American firms in Europe 330 historical growth of 142 history of 22 integrated group 175 inward investment by 233 Jones's extensive work on 105 major, commodity cartels need tacit approval of 280 manufacturing firms 300-1 many new investments 148 national branches 257 operating in poor countries with weak state regulatory capacity 286 particularly complex task for 14 "pocket" 210, 235 n. role in facilitating, or resisting, corrupt practices 162 sources of advantage held by 56 strategies in apartheid-era South Africa 156 theory of 146 world's largest manufacturer of food and drink processing equipment 151 seealso subsidiaries Mobil Oil 185, 188 Model A Ford 391 Model T Ford 198, 382, 391 Modena 227 modern firms 246-7 modernism 616 icons of 615 modernity 409, 414 desire for 415 modernization 14, 335, 610 capitalist class as an agent of 608 corporate artisanal sector viewed as impediment to 572

modernization countryside 615 developing institutions to promote 587 education and technology important to 363 family-backed 202 industrial 206 remarkable 506 traditional view of 609 modernization theory n, 603 Modigliani-Miller finance model 323 Mogi- Takanashi families 253, 254 Mona Mine Company 455 monetary policy 330 money 332, 618 free movement across borders 487 "trust" 179 money-market instruments 334 monitoring 55, 286, 340, 463 client 341 computer, tight 435 effective 209 independent fiduciary systems for 481 learning by 125 n., 127,131, 234 mutual 234 operational management 479 performance 473 substitutionary 471 monitoring costs 339 monopoly 55, 91, 271, 337, 540 dominant, case undermined 547 government-sanctioned 352 guilds 303 private 546 seealso natural monopolies Montebelluna sport shoe district 233 Montgomery Ward 403, 409 Montreal 588 Moody's 86 Moore, K. 142 moral hazard 341 morality 607, 608 More, Charles 567, 569 MorganBarlk 484 Morgan Grenfell 179 Morgan (J. P.) 179,184,188 Morgan Stanley 188 Mori, Arinori 587 Moriguchi, Chiaki 51 Morikawa, Hidemasa 42, 77 n. Morinaga confectionery 412 Morris 182 Morris, Morris David 508 Morson, Gary Saul 128-9 mortgage institutions 328 Moskowitz, Marina 615

INDEX

motivation 350. 618 mechanistic view of 610 Motivational Research 410 motor cars 182, 185. 186 collateral damage to industry 357 motor vehicle industry 180. 460 catch-up with more advanced and internalized production systems 258 n. flexible production and product development techniques 130 most spectacular growth 181 quasi-independent supplier firms in 123 salaried managers in 78 seealso automobile industry Motorola 212 Motta 415 mountain-based industries 17 Mowery, D. 71, 74 n. "Mrs Middle Majority" 410 "muckraking" critiques 9 Mueller, G. 529 mule spinning 531 Mullin, Wallace 51 multibusiness firms 247, 248 interfirm networks resemble 255 multidivisional form, see M-form multinational investment 150,160 impact of national policy regimes on flows of 162 shifting geographical location of 159 widely spread 157 seealso MNCs multinationalization 277 multiple retellings 128 multiples 400, 404, 409 competitive advantages in logistics 411 control over clothing sales 415 influential, independent 414 problems for 410 supermarket 416 multiplexing 258 n. multi-unionism 431 municipal fires 271 municipal governments 227 municipal ownership 542 munitions 453 Munro, Forbes 50 Murmann, J. P. 111 Muslim entrepreneurs 513 mutability 124 Muth, Wolfgang 567 n. mutual advantage 255,256 mutual benefit 247

685

mutual interests 286 mutuality 607 Nadvi, Khalid 233 n. Nagasaki shipyards 17 Nakagawa. Keiichiro 40, 42, 43 Nakai Ichizo 455 Nakanichi,You 17 namesake groups 249 Napier. C. J. 450 Naples 175, 405 Napoleonic Commercial Code (1807) 451 Napoleonic legal code 202 narratives 129, 213, 609 narrow focus localities 223 NASDAQ 76, 86 nation states 142 national associations 29 National Bureau of Economic Research (US) 48 national cartels 276 national champions 155. 276, 280,474 National City Bank (US) 179,184 National City Bank of New York 331 national culture 15, 23, 506, 507 rational decisions deeply embedded in 22 national differences 16 national federations 300 national grids 542 National Industrial Recovery Act (US 1933) 276, 453

national institutions 514 impact of 227-31 standards 382 national interest 274 relationship between business and 278 national markets 90 integration of 141 National Provincial Bank (England) 175, 184, 330 national socialism 567 n. seealso Nazi Germany national sovereignty 544 nationalism 160. 593 growing 147 rising, world markets and 288 nationality 147 influence on entrepreneurship 509 location influenced by 146 political importance of 153 nationalization 21, 155, 176,182, 184,473, 474, 546 blueprint for most 26 coal companies 542 commercial banks 337 history of 530 literature on 532

686

INDEX

nationalization (cont.) pressure for 538 railroad 537 wave of 280 Native Americans 534 natural gas 543 privatization of 547 natural monopolies 541, 542, 543 control of 531 long-distance network with features of 546 ownership of 530 private, arm's-length regulation of 547 regulation of 530, 535 natural resources 104, 280, 388 dominated by a handful of companies 155 enclavist investments in 158 exploitation of 145 natural science model 101 natural selection 127,262 naval fleets 549 Navin, T. 74 n. Nazi Germany 156,160,161.,227,452,476,478 American cosmetics companies in 160 autarky and rearmament policies 381, 388 leading chemists and physicists fled from 359 leading firms' collaboration with 154-5 marginalization of big banks 184 scale of business complicity 531 NCR (National Cash Register) no, 378 Near East 142 Near East Development Company 543 Nederland Aardolie Maalschappij 544 Nelson, Richard 38, 53 n., 71 neoclassical theory 37, 38, 68, 70, 72, 90-1, 103, 109. 244 n., 286 kowtowing to the rule of 69 market imperfections 323 orthodox 504 rational actor models 131 neo-colonial rule 280 neo-institutionalists 103, 111 neo-liberalism 530 neo-Schumpeterians 71 nepotism 74 tension between meritocracy and 211 nesting 258 no, 259, 263 no Netherlands 29, 50, 51, 147, 199, 613 accounting 451 advertising agencies 415 BIAs 301 Britain values of scientific communities 359 business education/ssj, 587 cartels 278

development of financial markets 336 entrepreneurs 511 free-standing firms 146 guilds 303 industrial research 359 innovation 364, 365 intermarriage crucial in 203 lack of academic institutionalization 30 managers possessing engineering or technical background 15 marketing and distribution 405 natural gas 543 organizational centralization 306 railroads 539 ratio of financial activity to GDP 326 vocational education and training 562 seealso International University Contact network effects 261, 262 network industries 27 networked specialists 223 networks 49,125,273,360 ability to build 21 bank branch 145-6 cartels as a subset of 286 chaotic/random 256 no commercial 146, 514 cosmopolitan business 147 credit 518 crossed ownerships and interlocking directorships 184 cross-national production 152 decentralized 424 diaspora 509, 518 diversified 47(> emphasis on 27 ethnic 518 external family firm 206 family firm 1.99,201, 205, 206, 207-8, 518 female 616 financial 50, 206, 504 geographically localized 129 global 144, 149, 596 hierarchical 250 n. horizontal 286 hub-based 256 n. industry associations 352 informal community 564 n. information 50, 504 information technology can mandate 353 innovation 360 insider 511 intellectual 366 interfirm 151,244-67

INDEX

internal. of coordination 189 interpersonal 245, 255 kinship 254, 518, 607. 608 knowledge exchange 233 large diversified and integrated firms replaced in part by 2 large-scale operations 184 localized trust-based 106 narrow, banks operate within 330 pastoral sector 50 personal 591. 607 rail 536, 537 regional 223, 412 scale-free 250 n., 256 n. small-scale 406, 416 social 209, 245, 287, 366, 518 technological/technical 348, 352, 355 telephone 545-6 tight, based on exams from top schools 586 trading, extensive 406 trunk 536, 546 trust 209 vertical 210 weaving, caste-based 606 wholesaling 403 seealso distribution networks Neubauer, F. 209 Nevins, Allan 10 new combinations 503 New Deal 75. 184, 423, 430, 473 New Economic History 40, 42, 55. 69 interest in and willingness to make use of 44 "static sterility of" 49 New Economy model 82, 86, 188, 434 New England 330. 331. 360, 517 new entrants 486 new institutionalism 103, 510, 511, 512 New Jersey 360 New Look 588-91 new markets 70 access to 68 financial resources to develop new products for 76 large-scale and ongoing investments in 74 tacit and explicit support of governments 149 new media complex 223 New Orleans 251 New South Wales university 596 new technologies 24,189.198.425 adaptation to 559 American dominance particularly strong in 189 appropriation of 400

687

bursting of the bubble (2000) 188 communication 254 costs and complexities of developing 263 foreign firms introducing 157 geographical diffusion speeded up 284 hurdles to introducing 507 increasing costs and complexities of developing 263 information-processing 254 introduction of 422 large-scale and ongoing investments in 74

limited ability of business enterprises to learn and absorb 159 production and product-orientated strategies basedon 401 productive resources utilized to create 68 risky 517 transportation 254 New World 143 New York 54 n., 149. 179. 251. 360, 608 conspicuous consumption 401 Jews in 5°7, 609 regional entity for urban customers 403 state-financed projects benefiting 539 vying for world financial supremacy 184 seealso NYSE New York University 408 New Zealand 278, 331 newsagents 405 newspapers 400 Next 411 Niagara Falls 360 niches 127 profitable 350 protected 511 Nichii 414 Nicholas, Stephen 48. 50, 51 Nicholas, Tom 507, 509 Nicosia, F. R. 531 Nielsen 408 Nigeria 15. 155 NIH (Not Invented Here) 353 Nihon Yusen Kaisha 533 Nippon Telephone and Telegraph 547 Nippondenso 258 Nishijin silk weaving 230

Nishizawa,T. 583, 592 Nissan 186 company as enterprise community 431 franchised dealers 413 nitrogen cartel 277 Nobes, C. 450

688

INDEX

Noble, D. 74 n. Noda Shoyu Company, see Kikkoman Nomura 188 nonferrous metals 145 non-banks 322 non-ferrous metals cartels 279 non-financial enterprises 328 non-financial measures 463-4 non-performing loans 78 Nora, Pierre 23 Nordic countries: business education/schools 582, 587, 590

innovation 365 seealso Denmark; Finland; Norway; Sweden noren wake 258 n. Noritake ceramics 406 norms 507 cultural 485, 515 deviations from 354 informal 286 institutional 250 liberal and democratic 476 state directly involved in setting 563 seealso social norms North, Douglass C. 40, 510 North Africa 544 North Sea 148 North-South divide 280 North Staffordshire potteries 226 Northern Europe 424 Northwestern University 39 Norton, David 458, 463 Norway 233, 331, 548 business education 582 cartels 278 fisheries 112 natural gas 543 oil 544 pioneering relations between university and industry 19 promotion of social and political unification 533 railroads 536 scattered communities and fragile political structures 536 telecom industry 160 telecoms 546 Nouvelles Galeries 414 novelty 350, 362, 402 serious form as strategy 354 Noyce, Robert 348,364,504 nuclear family 197

nuclear power 544 electricity generation plants 541 investing in 530 Nuremberg 378 nutritional standards 143 Nye, David 610 NYK (Japanese shipping company) 274, 285, 537 NYSE (New York Stock Exchange) 74,246,327 stringent listing requirements 75, 76, 86 seealso Wall Street NYU Stern School of Business 597 obsolescence 16, 126 occult philosophies 608 occupational illnesses 19 Ocean Steamship Company 251 oceanic trade 145 Odaka, Konosuke 221 n. Odebrecht 151 OECD (Organization for Economic Cooperation and Development) 78, 281, 561 n., 562, 591 OEEC (Organization of European Economic Cooperation) 589 Offe, Claus 296, 297 official culture 610, 6n offshore operations 82, 85, 149, 435 Ohlsson, Rolf 574 Ohta 455 Ohtaya Kazo sake brewery 455 oikos 490 oil 178, 180, 181, 182, 185, 270, 533 control of imports 543 criminal investigation against companies 279 crisis (1973) 280 economics of 543 expelled foreign companies 156 inflation stoked by rising prices 279 international industry 70 investing in 530 key economic role of 541 state-owned companies 532 world cartel 277 seealso Standard Oil oil refineries 53-4 capacity 543 oilfields 158, 366 Okazaki, Tetsuji 50 Okochi, Akio 12, 18 Old Assyrian Kingdom 142 Old Economy corporations 82 Oldsmobile 410 oligopolies 271, 282, 459, 531, 541 Olivetti, Adriano 211

INDEX

Olivetti, Roberto 211 Olivetti 211,415 Olofsson, Jonas 574 Olson, Mancur 295-6, 297 Olsson, Ulf 50 Onoda Cement Manufacturing Co. 456 Ontario Hydro 534, 547 Oonk, G. 513 OPEC (Organization of Petroleum Exporting Countries) 280 Opel 157 open innovation system 353-4, 360, 364 open plan offices 160 open price associations 229 openness 330 barriers to 480 external 232 financial 487 historical 128 market 488 outside influences 20 towards foreign firms 154 trade and cross-border capital flows 486 operating systems 260, 261 flagship 261 Open Source 261 opium trade 147 opportunism/opportunistic behavior 12, 125, 226,245

n.

"comrnunitarian market" to contain 232 MNCs beset by 233 new business formation seen as 248 possibilities for 489 opportunity costs 457 optical glass 358 optimality 131 optimization 71, 347, 396 constrained 69, 91 fundamental obstacles to 131 Opus Dei 596 Oracle 189 oral history 10 organization 4, 72, 78-85 advanced 122 building 2 contemporary upheavals in 220 contingency theories of 98 economics of 101 flexible forms of 154 forms of 152,153, 154 incremental changes in 124 internal 125 malleability of technology and 123

689

"modern" 19 outcome of struggles over the evolution of 133 plasticity of 122-3 productive 124 science 31 "structure-conduct-performance" school of 91 territorial modes of 306 organization theory 100, 110, 111, 112 organizational behavior 100 organizational control 325 organizational design 99 theoretical developments in economics of 48 organizational forms 349 organizational learning 17,70, 81, 82, 87, 91, 103, 271,342,365

commoditized labor does not engage in 79 company-wide process of 83 contribution to generation of revenues 85 development of productive resources entails 78 necessary precondition for 55 organizational structure 98 organizational synthesis 348, 353, 355, 365 organizational systems 16 organized crime 77, 510 organized labor 429-32, 573 orientations 128 O'Rourke, K. H. 144 "orthodox" model 297 orthogonal projection 379, 391 Osaka 230 Osaka City University of Commerce 587 Osaka Shosen Kaisha 533 Osaka Stock Exchange 328 Ostwerke 414 O'Sullivan, Mary 74 n., 86 n., 109, 486, 4 87-8

Ottoman Empire 330 Muslim entrepreneurs 513 Oulton, Nicholas 561 outliers 223 outposts 538 output 122, 541 estimating 411 expansion of 91, 259 global regulation of 148 innovative 284 limited 273 mass 397 non-agricultural, hampered growth of 340 prodigious 246 outsider holding model 489

690

INDEX

outsiders 478, 6Il balanced attitude to 210 bank 330 distrust of 205 forced into existing cartels 276 minority status 159 undermined 210 united front against 273 outsourcing 82,125.151 growth in 435 international production systems highly externalized through 150 productive 309 overdrafts 326,341 overheads 457. 458 arbitrary allocations 463 sophisticated allocation methods 462 "overloans" 88 overproduction 356 overstocking dangers 403 "owl of Minerva" syndrome 221 owner-entrepreneurs 74, 75 ownership: concentrated 470, 471, 474, 475 diluted 253 dispersed 470, 47 1• 472, 473, 479 family 475 new patterns of 198 stable 211 transfer of 475 willingness to eschew 257 ownership and control 197, 259 centralized 245 closely held 252 disaggregated 246 divorce of 205 family-based 180, 195, 250, 252, 253, 254 firms not connected by 255 high levels of 248 intragroup, low levels of 250 irrevocably alienated 249 issues of 257 low levels of 249, 250 parent company 252 preserved 252-3 separation of 50, 74, 75. 76, 86, 174. 180, 247, 274, 4 23, 479, 481

unified 246

oyagaisha 258 n. Oyonnax 224 packaging 160,222,400.402,406 Packard, Vance 410

Padua Plain 543 Page, K. 1. 255 Pahl, G. 374 Palmer, Alexandra 618 Palo Alto 358 Panama 158 Panetonne 415 Paniccia (2002) 222 n. P&O 251 Papayanis, Nicholas 615 paperwork 391 Papua New Guinea 251, 252 parallel localities 223 PARC (Palo Alto Research Center) 358 Paribas 189. 332 Paris 24. 175, 405, 591, 592. 614 Chamber of Commerce 10, 585 urban transportation system 615 Paris-Lyon-Mediterranee 175-6 Paris-Orleans rail line 536 Parisian Gas Company 26 Parker, R. H. 450 Parker, William N. 40 Parmalat 452 Parsee community 159, 513 Parsons. Talcott 41, 70, 505 part-time workers 433 extensive use made of 435 Parthasarathi, Prasannan 606 partial equilibrium models 40 partible inheritance 202, 203, 210 partnerships 179 cross-national agreements 596-7 limited 476 social 433 parts manufacturers 186 passports 145 compulsory 147 patent laws 510 patent rights 273, 5Il exchange of 277 patents 54, 177, 273. 349. 351, 361 cartels and 273,284 evolution of international system 70 expiring, competing technologies for 355 paternalism 20, 204, 423, 426, 433, 437, 439 path-dependence models 12,127,202, 3Il, 338, 516 Patrick. H. 87 n. patriotic companies 356 Patzold, Gunter 567 n. pay systems 427 chronic gap between men and women 560 flexible 434

INDEX

limited 435 share- and stock-based 435 simple 426 payoffs 46 empirical 135 normative 135 relative 510 PC users 260 peace production 14 peak associations 298, 300, 301-2, 304, 310 formation of 306 institutionalized and centralized 306 more inclusive 308 Pearl River region 233 peasant activities 208 proprietorship 224 Pechiney 182, 359, 460 Peiss, Kathy 24, 618, 619 penetration 300, 302, 306-8 sectoral 301 territorial 301 Penney (J. C.) 409 Pennsylvania Railroad 176, 352 Penrose, Edith 40,41,53. 69, 70-1, 82, 98, 198,515 pension benefits 427 Pereire, Emile and Isaac 175 Perez, Paloma Fernandez 50 performance 2,103,259,363,431 banks' responsibility for monitoring 88 continuously monitored 262 creative 605 n. disappointing 187 entrepreneurial 507 export 84, 559 favorable 340 group, inconsistent 248 lagging 361 mediocre 185 monitoring 473 monitoring physical and financial indicators to assess and anticipate 463 negative consequences for 612 outstanding 208 pay for skills and 433 poor 44,185 relative decline of 199 superior 106, 256 virtuoso 617 seealso economic performance periodization 275-81 perishable goods 280 perishables 403 Perrow, C. 104

691

Perry, P. J. C. 567 personal relations 152, 208 personal responsibility 607 "personalities" 397 personnel managers 424 perturbations 256 n. Peters, Thomas 604 Petri, Rolf 284 petroleum 54, 148, 286 Pettigrew, A. M. 110 Peugeot 182, 414, 431 Pflieger-Haertel, H. 378 pharmaceuticals 151,182, 188, 355, 400 problems companies have trying to make technological transitions 366 transition to molecular biology 353 Ph.Ds (Doctors of Philosophy) 70,355,585,592 British 359 center for advanced studies in management to candidates 593 German-educated 355 researchers 358 young 29 Philadelphia 200.360,379. 390, 403 Philip Morris 410 Philippines 205, 596 Philips 359 Phoenix 177 photography/photographs 188, 379 physical properties 355 Pichler, Eva 561 Pickens, Thomas Boone 187 piecework 425 Piedmont 536 Pieper, R. 594 Pierenkernper, T. 300 n. Pierson, Paul 127 n. Piggly Wiggly store 403 Pigou, A. C. 562 PIGs (private interest governments) 303 n. Pine Sewing Machine 412 Piore, Michael 51,121 n., 220 n. Pirelli 211,415 Pischke, Iorn-Steffen 560,565-6 Pittsburgh 54,360 PlansComptables Generaux 452, 460 plantations 104 establishment and maintenance of 158 foreign-owned 148, 157 investing in 145 trading firms 246 pleasure 614 plexiglass 284

692

INDEX

pluralism 307 n. pluralist school 295, 296 "pluriactivity" 208 Plus 416 poaching 562,565 Pochet, Philippe 231 n. Podolny, J. M. 255 Poland 278 Polese, Francesca 149-50 political cleavage 336 political distance 148 political economy 4, 106, 125, 349, 559. 561 differing national models 564 entrepreneurship 510-14 political historians 17 political parties 301, 311 competition/relationship between BIAs and 299,311 political struggles 127,473 political turbulence 475 politics 618 cartels' relationship to 287 comparative 106, 559 group theory of 295 interconnecting science, technology, business and 28 interest group 277 "red" and "white" subcultures 224 society and 18-21 Pollard, Sidney 425, 455 Polsi, A. 336 Polyani, Karl 603 polyphony 128 polytechnics 362

polytechniques 585-6 poorer countries 146 cartels 277, 287 MNCs operating in 286 Pope, D. 397,409 Popp, Andrew 221 n., 223 popular culture 263, 613, 616 population 405 density 406 ecology 111 growth 142 populist democratic revolts 280 Porsche, Ferdinand 362 Porter, D. M. 455 Porter, M. E. 19, 101, 222, 256-7 portfolio investment 144 investment history of 28 ports 145, 285 Portugal 14, 50, 331, 532, 533

blockaded from British exports 541 coal 543 explorers to New World and Asia 143 government revenues from privatization 548 ideological surges 549 post-colonial countries/markets 5, 148 post-Pordism 220,421 postmodernism 3D, 108, 109 Post Office (UK) 546 post-Taylorism 611 pottery 226,230, 455 poverty: contribution of entrepreneurship to explaining patterns of 509 persistent patterns of 507 relief 329 power 611 asymmetries 232 emphasis on the role of 133 political 143, 481 sharing 510 social 133 power imbalances 132 power struggles 104 pragmatism 131,408 Prato 222, 233, 234 Prato Cassa di Risparmio 232 Pratt, Charles 54 n. preferences: consumer 160 taken for granted 296 preferred shares/stock 246, 327, 487 premium high-quality goods 389 pressure groups 295 price cartels 273 price competition 178, 413, 545 cut- throat 306 intensified 284 profit margins squeezed through 284 price-fixing 274,279 price signals 52 price wars 270 full-scale, avoiding 282 predatory 280 vicious 283 prices 157,229 ability to lower 270-1 administered 453 commodity 453 controlled and non-competitive 413 discount 410 distress 54 economic history of 11

INDEX

falling 399 tinal, control over 402 global regulation of 148 input, necessity to control 283 land 89 low 403,617 means of extending direct control over 276 shadowing 278 stock 87.89 using costs to determine 459 primary sector 174 primogeniture 202 principal-agent problems 52 Printemps 405 Prisunic 415 private ownership 531 private pension system 338 privatization 182, 187, 473, 529 government revenues from 548 history of 530 literature on 532 policy instruments and 548 telecommunications, airlines and 544-9 problem-solving: collective 227, 231 complex 263 joint 234 public 135 procedural cartels 273 process intensification 122 process technology 355. 356, 357, 363 Procter & Gamble 156.4°2,403,409, 433 product costs 286 product design 351 product development 409 collaborative 123 n. flexible technique 130 in-house complementary investments 70 potential impact of rising expectations on 4 15

"scientific" organization and coordination of 408 product differentiation 127, 283, 616 creation of the film star in the service of 617 product diversification 397 product lines: highly diversitied 283 new or higher value-added 283 product-market imperfections 254 product markets 79, 294, 422 competitors in 297 control by large firms over 486 degree of competition within 422

693

individual firms prevented from gaining advantage in 573 new 70 product planning departments 384, 392 product segmentation 282, 408 product substitutes 352 product technologies 356. 363 production 253 ability to eliminate waste in 83 adapting to changing, more mature demand 181 advances in 410 capital-intensive methods of 449 changes in organization of 40 closely related phases of 123 continuous-process 176 control over 379, 380 custom 382, 390, 391 development of systems 97 disintegration of systems 151 diversified quality 432 efficient 615 excess 283 expanded rapidly 258 externalized, network-based 260 factory and artisanal 425 flexible 25, 125-6, 130-1, 132 n., 134, 221. 224, 226,421

higher valued-added, quality-based 560 how to organize 425 hybrid 129 integrated systems 150 intermediate 207 international systems 150 joint 122 large-scale 284, 616 linking of product planning with 374 local systems of 208. 220, 222 means of extending direct control over 276 military 328,362 new processes 428 organization of 422 planning 383 problem of 407 rationalizing and optimizing 356 regional systems 220 renewable resources 145 scale-intensive Western system 105-6 scientific management of 28 separation of design from 382 single product 183 small-batch 283, 422 small scale 425

694

INDEX

production (cont.) specialized 131,200, 221 n., 223, 390, 4 21

three-pronged investment in distribution, management and 2 uncertainties about quality of 425 verticaUy linked networks 250 worker control over 427 seealso flexible specialization; mass production production costs: detailed information on 229 differential between cartel-set price and 283 production costs reducing 157 production management 28 productive capacities 177 productive efficiency 121 productive resources 68, 85 complementary 70 development of 78, 79, 90 innovating firm can transfer and reshape 70 utilization of 70, 78, 79, 90 productivity 20, 27, 107, 122, 325, 591 cartels and 284 enhancing 255, 284, 455 harder to measure 356 institutions can fuel 510 maximum 606 military emphasized performance over 357 national centers 589 research 359

R&D 361 strong link between skills and 559 productivity growth 235 entrepreneurial innovation the source of 505

professional associations 244, 595 professional mastery 304 professional schools 227 professionalism 6u professionalization 349 managerial activities 19 professionals 25, 80, 81, 82 profit and loss account 451 profit margins 342 n. profit maximization 41, 254 profit-sharing cartels 280 profitability 86, 185, 187,340, 609 boosted 254 faltering 538 high(er) 270,324 long-run 270 low levels of 325

profits 17,187, 456, 617, 618 gross, contraction of 325 illegal 280 retained 153 satisfactory 486 utility 542 war 13 programrninglanguages 261 Progressive Era 473, 540 project management 385 proletarianization 329 promotion (job) 74 internal 431 promotions (retail) 400, 409, growing sophistication of 415 sums spent on 413 property: ideal-typical systems 470 minority interests 476 transfer of 473 property rights 202, 472, 544 clearly defined 126 command-and-control hierarchies to promote 263 enforcement of 254, 510, 5U fusion of 487 gendered 50 guaranteed 145 political forces favoring stakeholders over 480 poor 197 poorly defined 5U role of 510 secure 512 uncertainties regarding 152 well-enforced 259 women 203 prosecution data 281 prosperity: future 209, 210 sustained 210 threatened 2U protection(ism) 106, 126, 512 high levels for agricultural products 148 minority 481 multinational manufacturing stimulated by the spread of 146 patent 511 product market 422 tariff 531,532 Protestant work ethic 159 Protestantism 507-8 counter-intuitive affinity between capitalism and 614

INDEX

695

---------,----------~-------------_._._--

proto-industrialization 17,122 n., 220 proto- multinationals 143 prototypes 390, 392 proto-venture capital firms 517 Provasi, Giancarlo 227 provincial banks 342 n. Provincial Hydros 534 proximity 149 distance and 366 proxy votes 77, 332, 340, 475 Prussia 491 n. railroad undertakings 537 virtually complete public ownership 536 psychological models 413 psychology 28, 99 cognitive 505 public duty 352 public goods 296 n. public health 27 public issues 179 public opinion 26 public ownership 531, 540 virtually complete 536 public policy 154-6. 310 cartels found useful instruments of 276 impact of 227-31 regulations 286 public relations 22 public securities offerings 74 public utilities 187,331, 542 Public Utility Commissions (US) 540,542 Public Utility Holding Company Act (US

qualifications 377, 586 national systems 591 qualitative studies 100, 101 quality 286, 323, 363, 388 branded, packaged goods carrying claims of 400 branding as marks of 402 commonly known 126 concern for 152 focusing on 400 manufacturing base emphasizing 415 oflegal protection provided to 335 own-label brands that combined price with 416 quantity and 397 quality assurance standards 234 quality control 186, 226 quality control cartels 276 quality standards 126, 150 rising 542 quantitative analysis 100 quantitative studies 509 quantitative tests 43 quasi-governments 143 Quebec 534 quota cartels 273, 286 quotas 178 setting 285 smaller firms purchased just for 283

1935) 542 public works 21 publications 22

adaptive or development-oriented 159 corporate 2, 3 expenditures subsidized and encouraged 363 government-funded 357 in-house 362 industrialized 351, 354, 364 institutionalized 348, 349 international 364 investment levels questioned 358 misallocation or overconcentration of significant resources in military projects 364 necessary investments neglected 363 permitting firms to invest and engage in 284 return on investment 356 Rabuzzi, Daniel 607 race 423, 609 access to resources by 509 race relations 508 racial caricatures 403 radar 385

publicly listed shares 76 publicly quoted enterprises 476 PUC (US Public Utility Commissioners) 546-7 Puig, Naria 50 "pull" marketing 403, 413 pulp and paper machinery 233 punched card documentation 386 punctuated equilibria 128 purchasing facilities 178 purchasing power 415 "pure market" model 564 Puritan values 506 Putilov 13 putting-out systems 490 Pyke, Frank 220 n. Quaker Oats 402 Quakers 508, 610

R&D (research and development) 157,233,284. 349

696

INDEX

radio 112,148,353,410 manufacturers 284 sponsorship of programs 409 Radio-Cite 414 Radio Normandie 414 Raft, D. M. G. 46, 48, 111 railroad/railway companies 182, 456, 540 American, fortunes of 530 biggest single group of major firms in most economies 424 bonds issued by 326 conventions (France 1883) 536 first link in north of England 175 labor management 426--7 long-distance shippers 539 ownership rights over 533 settlement lines 539 shares sold on London and New York stock exchanges 246 workshops owned by 427 railroadization 331 railroads/railways 40, 41, 53, 55, 87, 158, 350, 352, 353, 4 26-8, 533

building 229, 401 central government subsidies to 538 construction of 427, 539 economic impact 401 economics of operations 540 entrepreneurs 505 investment in 175-6 locomotive building style 388 maintained 427 multinational ownership of 104 opening new markets 144 persistent problem for 54 regulation of conveyancing 535 specifications to locomotive builders 378 strategic behavior in 51 strategic significance of 538 vital military importance 536 Railway Agency/Ministry (Japan) 538 railway station shops 414 Rajan, R. G. 322, 333, 472 n., 486, 487 Rajasthan 159 Ralli Brothers 179 Rama margarine 414 Rand Corporation 28 Rand Journal of Economics 51 rate regulation decisions 229 rational-choice approach 296 rational economics 410 rationality 131,612 secular 603

rationalization 68, 228, 341, 362, 384, 609

conglomerate movement 75 fragmented sectors 230 incorporating research into innovation for the purpose of 362 internalizing innovation in pursuit of 350 state 231 rationalization cartels 279 rationalization movement 383, 389 Ravensbruck concentration camp 132 n. Raveyre, Marie- Francoise 221 n. raw materials 144, 177 access to 278, 549 basic, sellers of 306 control of 54. 530 dependence for 533 distribution and control of 127 reliance for 537 specialized 235 raw materials cartels 277, 280 RCA 352,353 Reader, W. J. 273, 286 ready reckoners 386 ready-to-use parts 380 Reagan administration (US) 359,423 real estate 89 real wages 399, 406 rearmament 381,388,414 receiverships 229 recession cartels 279 recessions 78 resistance to price cuts in 229 reciprocity 4, 6.06, 607 reconstruction 415 reconversion 14, 15, 225 recruitment 426 more systematic 427 patterns 595 recycling 388 reductionism 604 re-engineering 363 regional associations 29 regional banks 228, 230 regional capitals 414 regional cleavages 298 regional culture 23 regional economies: decentralized 221 n., 227 important 49 seealso flexible regional economies regional industrial policy 287 regionalization 309

INDEX

Americanization as overshadowed by tendencies towards 581 globalization and 594-7 international business education characterized by 582 regulation(s) 21,149, 155,337 anti-monopoly 359 arm's-length 531, 536, 544, 546, 547, 550 banking 126 blurred 308 capital market 126 disclosure 195, 204 dual system of 546 environmental 353 external 450 financial 330, 337 government 269 harmonization of 451 history of 534 hybrid 545 interstate 542 labor 338 methods of costing 454 natural monopolies 535 neoclassical 323 New Deal 184 public 273 public policy 286 rail 537 relational 323 seealso antitrust regulation regulatory mechanisms 132 Reich, L. S. 284 Reichpost 546 Reichsbank 340 Reindl, J. 284 re-invention 363 relatedness 247 relational banking 341, 342, 473, 474, 475, 476, 488 n. absence of 482 distinction between arm's-length and 472 n. relative contribution costing 449, 460 religion 424, 608, 609, 610 Asian 605 connection between status, values and 603 entrepreneurship and 502, 507-8, 509 relocation 17 Remington 24, 403 Renaissance Florence 617 Renault 182, 414, 431, 460 renewal accounting 456 Renold Ltd. (Hans) 457,461

697

rent-seeking 510 rents: allowing firms to earn, from training 566 excessive 487 informational 322, 323 monopoly 486 taxability of 543 reorganization of work 429 repressive regimes 156 reputation 285 cooperative 276 undermined 48 Rerat, Prancoise 224 n. resale price maintenance 413, 416 research 102,348,355-9 archive-based 454 comparative 226 conducted on factory floor 363 cooperative institutions 226 cooperative venture 359 dominant.traditions 101 empirical 299, 309 engineering 366 European 101 family business 197 firm -level 342 fundamental 352, 355, 363 government investments in 90 historical 505, 510, 516, 520 large high-tech projects 364 management 98,99-101,195,520 nee-positivist methodologies 99 psychological 376 "pure" 352 regional 342 scientific 349, 366, 569 sociological 107, 195, 376 statistical, operational 589 systematization and rationalization of 68 university 75 seealso industrial research research-intensive industries 198 research laboratories 230, 355, 357 advanced 358 and institutes 230 large companies set up 359 Research Policy (journal) 71 Resistance (French politics) 182 resource-based view III responsibility accounting 462 restraint of trade 274 legislation that could punish 278 Restrictive Trade Practices Act (UK 1956) 279

698

INDEX

restructuring; BJA 309 initiatives for fisheries 280 radical, of society 618 retailers/retailing 188, 406, 414, 422, 424 alternative forms 414 concentration and power 411 exclusive 409 family firms 200 fixed 405 keiretsu 413 large 200, 410, 435 low-level mundane work 435 mass 416 national, well-established 400 promotion of competition in market 547 registered, association of 412 small 412 Western Europe 415 retained earnings 86, 324 abundant 89 growth typically financed by 480 retaliation 270 retirement 83 individualized systems 338 solidaristicsystems 338 "revenue borrowers» 330 revenue farmers 514 "reverse salients» 350 rewards 75, 80 performance measures and 464 Rewe-Zentral 416 Rhenisch-Westphalian Coal Syndicate 271 Rhenish capitalism 15 Rhone-Poulenc 182 Ribbon Dental Cream 402 rice 406 Richard, J. 452 Richardson, J. David 288 richest countries 146, 148 role of cartels in 281 rights: cabotage 548 management participation 246 minority 474, 483 ownership 259,397, 533 patent 273, 277. 511 social 423 stakeholder 473, 481 voting 196, 488 worker 473 seealso property rights Rimailho, Emile 460

Rinascente 405 ring spinning 531, 532 risk: attitudes to 202, 208 business groups appear to reduce 254 diversified 320, 485, 486 employers are exposed to different levels of 299 hedging against 124 history of 27 importance of 17 market-oriented definition of 607 political 148, 155, 156 pooling 320 reduced by investing in geographically or culturally proximate regions 146 spreading 153, 485 tolerance of 156 risk management 255,268,271,287,288 rituals 24 rivalry 209, 288 international industrial 277 internecine 364 national 278 sibling 210 River Rouge works 126 RJR Nabisco 187 road construction 539 Robber Barons 540 robbery 145 Roberts, H. 447 Robertson, Paul L. 53 n. Robinson, Daniel 614 Robinson, Joan. 320 "robust design» notion 112 Rockefeller, John D. 53, 54, 55 Rodan, Simon 257 Roe,~ark 322,480-2,483

ROJ (return on investment) 356, 456, 458, 461 role theory 41 rolling mills 177. 200 Roman gods 14 Romani, Christine 223 n. Romania 452 Rose, Mary B. 2, 5, 49, 202, 203, 204, 254, 502, 531- 2

Rosenberg, N. 74 n. Rosenbloom, R. S. 110 Rosenthal, Jean-Laurent 47,470 n., 491 n., 511 Rosenzweig, J. E. 98 Rostow, W. W. 121

Rothschilds 175, 179, 329, 330 Rowlinson.M, 109

INDEX

Rowntree 400, 411 Roy, W. G. 103,130 n., 133 n. Royal Africa Company 143 Royal Baking Powder 402 Royal Dutch Shell 182,185,543 royalties 543 rubber 178, 18o, 181, 182 rule-oriented behavior 20 rules 153,226 cost accounting 453 economic 511 enforcement of 341 international property 152 legal 322-3, 512 set entirely in prescriptive law or statutory regulation 451 stock voting rights 488 trade behavior 229 transparency 481 work 26 rules of the game 202, 203-6, 208, 269 institutional 513 rules of thumb 131 Russia 14, 146, 330, 452, 537 armament firms 13 collapse of Communism 150 growing threat to Germany 533 shipping lines from Japan to 533 wide-ranging international commercial and shipping business 147 Russian Revolution (1917) 147 Russo-Japanese war (1904-5) 537,538 Sabel, Charles 12, 51,55 n., 120, 121 n., 122 n., 123 n., 124 n., 125n., 127n., 128,129, 131,132,133, 135 n., 220, 221 n., 224 n., 226, 228 n., 229 n., 231 n., 234, 532, 573 Sabo 152 sabotage 81 Sado Gold Mine 456 SAF (Swedish Employers' Confederation) 301, 3°2,306 safety 426 SAGE (Semiautomatic Ground Environment) 385 Saglio, Jean 221n., 224 n. Sainsbury 400, 411 St Etienne 132 Saint-Gobain 175,182,455,460 Sakaki 230 Sakamoto, Akiko 561, 563 n. sake 406, 455 Salais, Robert 122n.

699

salaried managers 78. 87.178,180, 187 command of strategic allocation of resources 76 extensive delegation of power to 183 family dynasties were replaced by 14 rewards of 75 seen as "adopted family" 205 segmentation between other employees and 79-80, 83 shareholder interests not always well served by 187 strategic decision-making by 74 salaries 14,78, 80-1, 83 attractive 359 incremental 435 sales 398, 399 pressing problem of 407 worldwide 410 youth 411 sales schemes 402 sales work 608-9 salesmen 403 salt industry 285 Samaritaine 405 Samuel, Raphael 23, 25 San Francisco earthquake (1906) 271 sanchi 221 n., 230 sanctions 286 Sandage, Scott 607 Sandberg, Lars G. 44, 506 Sander'sche 378 sanitary conditions 280 Sanwa 88, 249 Sanyo 413 Sapolio soap 402 SARL (Societe 11 Responsabilite Limitee) 491 Sarno, David 353 Sass, S. A. 582,584 Sassen, S. 149 Sassoons 147 "satisficing" routines 131 Saudi Arabia 270, 280 savings: mobilizing 323 non-profit 231 short-term 327 savings banks 328, 329, 340 state promoting 336 Sawai, Minoru 221n. Sawyer, John 506 Saxenian, A. 74 n., 79 n. Saxonhouse, Gary R. 44, 284 Say Raffinerie et Sucrerie 405, 414, 415

700

INDEX

scale bottlenecks 122 scandals 211, 452. 474 Scandinavia 29, 51, 330, 587 business schools 595 civil law traditions 510 coal 543 entrepreneurs 511 rail networks 536 reliance on British coal exports 541 standardizing recording systems 453 state ownership of trunk lines 536 union membership 439 seealso Denmark; Finland; Norway; Sweden Scher, M. 87 n. Schlumberger 366 Schmalenbach, Eugen 452,456,459,585 Schmidt, R. H. 343 Schmitter, P. C. 296, 297, 303 n., 306. 307 n. Schmitz. Hubert 233 n., 235 n. Schmoller, Gustav 490-1 Schneiberg, Marc 121 n., 235. 453. 457 Schneider 13,175, 180, 428 Schocken & Sons 405 Schoenberger, Erica 611 Schoenfeld, H. M. W. 454 Schott & Genossen 358 Schroeder 179 Schroter, Harm 49, 104, 148. 271, 279, 284 Schultheiss Brauerei 404 Schultheiss- Patzenhofer Brauerei 414 Schum peter, J. A. 16, 17.43, 67-9. 70, 71, 72, 90, 91, 98, 109. 123, 124, 320, 348, 350. 396. 485, 502, 503, 505, 5°7, 515. 520 Schutte. Friedheim 567 n. Schwarz 416 Schweitzer. M. 449 science 22, 353, 588 behavioral 589 history of 18, 27, 31

interconnecting technology, business, politics and 28 science and technology 366 business, politics and 28 science-based companies 355 scientific breakthrough 356 scientific management 107, 428-9, 433. 435, 4 61

final stage of 356 ideas, local and craft knowledge eliminated under 363 scientific principles 608 scientist-entrepreneurs 348, 352 scientization 96. 99-101

Scotland 508 expatriate Scots 402, 514 Scott, AlIen J. 225 n. Scott, Bruce 99 Scott, James 606 Scott, W. R. 111, 490 n. Scott Paper 403 Scott's shipbuilding 251, 252 Scranton, Philip 51, 106, 121 n.• 200, 221 n., 223. 229,457

"screening" 155 seafood 274, 286 Sears. M. 74 n. Sears 155-6, 409 Sears Roebuck 39, 98, 403, 461 SEC (US Securities and Exchange Commission) 451, 452 Second Industrial Revolution 17,176-80, 185, 198,202,428-9

entrepreneurial spirit 584 major figures of 618 mass-production industries 506 need for better qualified managers and administrative staff 583 Second World War 148, 311,430. 453, 461 aircraft manufacturers 389 boost to high-tech industries 181 damage inflicted on Europe and Japan 408 enhanced ability to fight 284 expropriation of Iewish business property 14 leading Swedish firms collaborating with Nazi Germany before and during 154-5 secrecy 132. 357

sections homogenes

460

securities 337 abolished separation of banking and 338 bank lending outweighed by 476 quoted on stock exchanges 326 underwriting 475 securities markets 89. 334, 338. 451 n., 474, 4 82-5

active and deep 475, 486 decayof 486 destruction of 478 dispersal of ownership 479. 480, 487 efficient 475 increasingly liquid 472 liquid 472, 476, 488 more robust 472 reduced significance for 475 robust 477, 489 significant but often little utilized 473 strong 471, 481

INDEX

weak 471, 481 well-developed 472 security 546 obsession with 339 telegraph and telephone no longer regarded as key sources of concern 547 Sedlak, M. W. 582 segmentation 328 functional 84, 335 gender 24 hierarchical 79 learning-based 81 salaried managers and hourly workers 83 Segreto. Luciano 14 Seibu Railway 412 Seibu-Seiyu 414 selection process 71 self-defense 352 self-financing 324-6,340 dominant everywhere 321 self-help manuals 609 self-identity 611 self-interest 123, 604, 605, 618 self-obsolescence 352 self-organization 257, 263 self-regulation 269,273,279.286,287,3°3, 45 0

need for 304 n. self-reliant companies 352 self-service 403 self-sufficiency drive for 533 importance of 531 self-taught people 18 self-understanding 128 Selfridges 400 sellers and buyers 297 Sematech 359. 364 semiotic systems 605 n. semi-luxuries 411 semi-skilled labor 25.81. 158,410, 428 Sengenberger, Werner 220 n. seniority 80, 81, 160, 304, 431, 439 Seravalli, Gilberto 227 Servan-Schreiber, Jean- Jacques 185 service providers 159 service sector 104, 151,188 emergence of 398 labor-intensive industries 152 labor management 434-6 rise of 434 settlers 538 Seubert, Rolf 567 n. Seward, T. 276, 280-1

701

Sewell, William 605 n. sewing machines 146,157.403 sex ratio 24 sexual success 410 SGV (Swiss Employers' Association) 301 shaft vibrations 384 shampoo 24 Shane, Scott 520 Shane (film) 263 Shanghai 537,596 sharecropping 51, 207, 208, 224 shareholders/shareholdings 74, 77-8, 87, 89. 246, 249

diffusion of 327 dilution of 86 dispersed 481 dividends 86 fragmentation of ownership 75 gradual dispersal of 475 increased level of payouts 325 inter-corporate 477 legal rules governing protection 322-3 limited liability for 341 minority protections 474 pre-eminence of management over 189 quality oflegal protection provided to 335 self-financing 325 Sharp 413 Shaw, E. S. 324 Sheffield 25, 132. 133, 219 Shell 182,185,543,544 Sherman Antitrust Act (US 1890) 178, 262, 263, 54°

Sherwin-Williams 403 Shields, M. D. 464 Shiomi, H. 106 shipbuilding 183, 210, 251, 391 central government subsidies to 538 central importance of 533 importance of 530 new industry 549 support for 537 shipowners 276 shipping 252, 276. 490, 537-8 central government subsidies to 538 central importance of 533, 537 depots 158 development of indigenous lines 530 financial and information networks in 50 international cartels reasserted strongly in 280 international companies 145, 147 lucrative business 285

702

INDEX

shipping (cant.) major restrictions on foreign ownership in 147 negotiations with companies for freight-rate rebates 274 shipping cartels 279, 281 shipping conferences 276, 281 Shiro 414 Shiseido Cosmetics 412 shocks 142, 270 response to 150 shakokai 230 shop stewards 430 shopping 614 as intrinsic pleasure 403 malls 410 shukko 84 Shuldiner, Alec T. 515 sibling rivalry 210 Sicilia, David 52 n., 53 sick care 427 Sidelor 182 "sideshadowing" 128 Siemens, Werner von 377, 379, 504 Siemens 19, 179,180,181, 202, 283, 202, 283, 414 Siemens & Halske 377. 378 Signorini, L. Federico 233 n. Silicon Valley 76, 82, 208, 223, 224, 249,256, 263 clusters linked to software end users 250 companies compelled to meet motivational problems 358 entrepreneurial prominence 360 growth of 504 interfirm networks 255 most successful company formed in 358 origins of 225 n. successes of 501 uniqueness as a hotbed of innovation 360 vital stimulus to development of 229 silk 87, 133, 226, 230, 406 silver 143 Simmel, Georg 485 Simon, H. A. 463 simulations 387 simultaneous engineering 125 n., 234, 384, 385 Singapore 205, 513. 596, 597 Singer 146,157,178,4°3 Single European Act (1987) 548 Sino-Japanese War: (1894-5) 537 (1937-41) 258

size distribution 223 differentiation in 232

size of firm 129-30, 246, 247 confusions about the role of 132 Sjogren, Hans 50 sketches 378,380,387 SKF 460 skill formation and training 4, 558-80 skill-intensive industries 570 skill shortages 566 intense 569 recurring 571 severe 572 skilled labor 14, 25, 89, 360, 410, 428 competition for 562 family 207 industrial 570 interfirm mobility of 81 manual, plentiful supply of 568 shortages 422, 566, 572 significant control over work 421 supply of 222 wages compressed 566 Skunkworks 358 skyscraper construction 384 Slater, Don 127 n. Slaven, Tony 50 slavery 508, 607, 609 slide rules 386 Sloan, Alfred P. 104, 612, 618 slogans 402, 414 Slovakian breweries 281 small business cartels 274 small firms 104, 146 argument about inherent superiority of 129 brought into contact with modern methods 461 credits granted to 340 "entrepreneurial intuition" replaced 408 growth potential 88 innovative 359 protection of 329 purchased for their quotas 283 trade in human beings 143 venture capital market for 50 young 88 seealso SMEs smelting 145 SMEs (small- and medium-sized enterprises) 280, 309, 491 adapted to fulfilling customer demands 389 authorized cartels 279 banks' crucial role in financing development of 518 collective services to localized clusters of 230

INDEX

concentration of large numbers of engaged in single industrial sector 222 cooperative forms immensely attractive to 274 dynamic local clusters of 227 extended division oflabor between 223 family firms 200 financing 342 high-risk, low-yield loans to 89 ideological radicalism mainly involving 311 informational advantages derived from intimate knowledge of customers 228 labor management 424 linked to larger firms in production and distribution chains 250 n. low-cost lending to 519 networks geographically localized 129 provision of collective services beyond the capacity of 226 skilled labor in 25 specialized agglomerations of 219, 222 Smith,J\dam 121,268,269,422,605 Smith (w. H.) 400 SNCF (Societe nationale des chemins de fer francais) 536 Snowden, Kenneth 51 Snower, Dennis J. 559, 561 n. soap 400, 402, 409, 411,433 soap opera 409 social capital 363 social class 423, 480, 573 tendency to promote managers based on 586

social contracts 26 social control 245 n. social costs 27 social democracy 542, 574 social forces 349 social history 17,25-7, 287 social inclusion 231 social indicators 509 social insurance schemes 299 social interests 133 social mobility: entrepreneur's 509 high 204 social norms: changing 209 informal 232 significant variations in 204 social order 604 social policy 287, 295. 299 divergent regimes 560 major 307 n.

703

social policy cartels 2730 274 social pressures 453 social prestige 204 social problems 618 social protection 566 social psychology 99 social relations 24, 502, 607 embeddedness within closely knit community 225 social security 26 social stalemate 133 social structure 604 social theory 101. 123 n. social transformation 399 incomplete 407 major 535 socialists! socialism 224, 530 conventional distinctions between fascism, capitalism and 532 differing ideologies about performance under 532 managerial decision-making and 481 Marxist 25 municipal 542 parties 542 state-imposed ban on 481 utopian 360 socialization 152, 153, 287 consumer 399 informal 222 Societe Generale 189 Societe Generale de Belgique 331 society: enterprise and 4,25 politics and 18-21 Society of Friends 402 sociocultural notion 222 distinctive characteristics 224 sociology 16, 31, 40. 41, 99, 127 n., 195 economic 101, 103, 106. 109, 125, 365 historical 13, 107, 509, 559 industrial district 207 organizational 101, 103. 105, 106, 109 Parsonian 505 science 366 soda ash 278 SOEs (state-owned enterprises) 476,477> 536, 538, 543, 544

authoritarian regimes promoted 14 development of 325 establishment of training programs in 57 2

growth of 534

704 INDEX ---------------------- --------------software 130 n., 188, 189 bugs caught early 261 Chinese and Irish firms 507 clusters linked to end users 250 development and maintenance 387 interfirm network of users 261 proprietary 260 universal application and appeal 261 software developers 261 sogoshosha 149, 413 Sokoloff, Kenneth 512 Solaris 261-2 sole dealers 414 Solingen 25, 133 Solomons, D. 454 Solow, Robert 69 Sombart, Werner 405, 603 Sonnemann, R. 384 Sony 186, 359 Soskice, David 472 n., 560, 561, 563, 565, 566, 571 source code 261 South Africa 156, 278, 329 higher business education 588 MBA programs 596 South America: higher business education 588 servicing colonies 545 seealso Latin America South Asia 147 family and business culturally inseparable 201 see also India South Improvement Company 54 South Korea 151,538 late development used to explain efficacy of coordinated market development 257 n. rapidly adapting firms 257 shipping lines from Japan to 533 see also chaebols South Wales tinplate 219 Southeast Asia Chinese 513, 514 Southern Hemisphere 145 sovereignty 25 airspace 545 Soviet Union/Russia 14, 148, 452 soy sauce 253, 254, 406, 455 space 141,615 spaceflight programs 385 Spain 14, 50, 533 business history and economic history 29 business schools 590, 591 capital guarantees 536 cartels 276, 277, 278, 281 central government support for shipping 537

coal 543 company law 202 explorers to New World and Asia 142-3 family business 205 guilds 303 ideological radicalism mainly involving SMEs 311 interest groups 543 manufacturing sector 530-1 public enterprise supported by army 20 reliance on British coal exports 541 shipping 538 telecoms 546 wholesale shift to private enterprise 548 Spar, Debora 270 specialist outlets 406 specialists 76 auxiliary 223 mining, engineering, and agricultural 246 trained 68 specialization 20, 222, 260, 322, 335 banks moving towards 332 extended family members 208 functional 84, 301 n. manufacturing base emphasizing 415 product 200 universality versus 334, 342 seealso flexible specialization specialization cartels 228, 273 specialized banks 320, 322, 339, 472, 473 arm's-length, short-term lending 476 large 335 specialties 235 family firms 20.0 functional 81, 87 manufacturing 122, 457 specialty production 121 n., 229 highly creative 200 persistence and success of 106 specific skills 562 speculative borrowers 89 Sperry, Elmer 348 spillovers 158, 159 spin -offs 210, 248 official and unofficial 358 spin-outs 248,259 spinning 87, 276, 425, 532 integrated businesses engaged in weaving and 531 spinning-in 248 Spitalfields silks 133 sponsored programs 355, 409, 410 Springfield Armory 455, 456

INDEX

Staatsrnijnen 544 stability 16, 19, 210 family 197 financial 338 large corporation 17 moderate 288 political 149 source of 341 stabilization 330 stable shareholding 77. 78, 87, 89 stagnation 283 stakeholderism relationality 489 stakeholders 473, 474 broader attention to 475 growth of employees as 478 important role in corporate governance 475 legal protections for 482 political forces favoring 480 role of 488 stockholders versus 472 Stalk, G. 77 n. Stanciu, Laura 50 Standard and Poor's 86 standard costing 449 and budgeting 460-2 Standard Oil 39, 53-4, 54-5, 98, 178, 273, 284, 540 successors to 543 standard operating procedures 131 standard-setting bodies 226 standardization 25, 99, 122, 255,382, 384, 390. 401,451

British emphasis on 616 pushed to the extreme 391 scientific thinking about 452 standardized equipment 56 standards: academic 592 cost accounting 235, 453 disclosure 471 financial reporting 450. 451 interchangeable product 284 international product 257 market transparency 471 national 257, 382 nutritional 143 proprietary 261 quality 126. ISO, 542 raised over time 389 technology, industry-wide 82 uniform national 560 voluntary 273 standards and conditions cartels 281 Stanford University 360

705

start-ups 350 biotech 360 earnings for enterprise growth 86 finance for 230 high-tech 76,5°1,520 internet 360 New Economy 82 small 434 state 227 BIAs negotiate with 299 business and 5, 529-57 crucial role in fostering the birth and consolidation of BIAs 298 crucially dependent on workers to achieve production 429 multiform role played by 336 regulatory role 4 relationships 206 strong role of 474 state intervention 155. 182. 228, 297. 308 guilds abolished because of 304 labor matters 423 strong 335. 544 stateless firms 147 station terminal shops 412 statistics 408,411 Statoil 544 status: connection between religion. values and 603 immigrant 424 loss of 609 masters and journeymen 570 middle-class, road to 608 outsider minority 159 social 409 Staubus, G. J. 463 Staveley ironworks 455 steady states 256 n. steamships 144, 251, 518 shares sold on stock exchanges 246 Steedman. Hilary 561 steel 130, 180, 183, 529 chemicals systems of internal contracting 428 crude production 282 firms extended horizontally then vertically 283 mass production of 176-7 scrap 235 thin slab/strip casting in 122 steel cartels 277. 279 quotas 286 Steel Works Association (Germany) 283 Stephenson, George and Robert 378

706

INDEX

sterling area 184 STET (telephones) 532 Stevens.11argaret 562 Stigler. George 270 stock markets 210, 211 atrophied 474 battles 189 booms 8,87 companies providing cash to 87 development of 450 ebullient 86 fundamental role of 86 law discouraging gambling in 485 size and role of 474 true role played by 327 stock options 86 broad-based plans 76, 82 profit-sharing plans based on 358 stock ownership dispersal 473,479 stock repurchase programs 87 stockholders 45-6, 473 stakeholders versus 472 Stockholm 587 Stocking. George 277 Stockton 175 Stollwerck 404, 414 Storper, Michael 122 n.• 222, 225 n. strategic action 131-2 strategic advice 336 strategic alliances 244, 263 n.• 273 cross-class 299 global tendency to develop 596 strategic calculations 128 strategic choices 124, 128-9 erroneous 13 strategic concerns 533 strategic continuity 253 strategic control 73-4. 78, 90, 208 change in conditions under which top executives exercise 75 regained by transforming divisions into independent enterprises 76 strategic decision-making 73-4 allocation of funds 85 bankers participate in 479 control of 75. 86 expertise in 76 younger generation in control of 77 strategic planning 183 strategic reflection 123, 124, 131 strategy 12-13, 73-8, 79. 101, 122, 211 advertising 402 crafted to appeal 156

family firm 203 financial 187 innovative 72, 91, 92 investment 73 knowledge 351 locally appropriate 124 major effects on 287 managerial identity crucial to 611 marketing 160 mechanistic 110-11 military 530, 533 network-based 257 novelty as 354 processual approach to 98 significance as a contingency factor 99 structure and 70 seealso geopolitical strategies Stratmann, Karlwilhelm 567 n. Streeck, W. 295 n., 296, 303 n., 306, 559-60, 565 n., 567

Streider, Jakob 490 n. strikes 26. 132, 295, 297, 431 strong ties 245 n. structural cohesion funds 231 structural-functionalism 70,505, 603 structural variables 270 structuralism 11 stylized facts 4, 574 subcontracting 151, 439, 461 subcultures 611 subscribers 261 subsidiaries 104,179,182,235,415, 433, 532, 544

adapted to local conditions 160 cooperation and cross-fertilization of knowledge among 233 development finance to large numbers of 88

equipment-supplying 546 financial and oilier general support to 533 foreign production 148 holding companies with 263 importance of considering as quasi-independent actors 151 local adaptation of 105 local nature and autonomy 153 holding companies 251 overseas, extensive networks of 257 temporary and permanent transfers of older employees to 84 welcomed by authoritarian regimes 14 world trade between 150 "subsidiary" industries 222

INDEX

subsidies 531, 546 extensive use of 536 guaranteed 285 international trade in commodities distorted by 152 massive 537 re-equipment 531 reliance on 538 shipping, modest 537 state 533 success or failure of 91 substitute goods 397 subsystems 250 n. succession 205 Suddeutsche Zucker 414, 415 Suez Company 158 sugar 51. 617 Sumitomo 88. 184, 249 Sun Microsystems 256, 257, 260-2, 263 n. sunset industries 284, 287 SUNY Buffalo Management School 596 supermarkets 409, 411-12, 414, 416 management systems 435 supervision 426 supervisors 81, 83 supervisory agencies 278 supervisory board positions 332 Supple. B. 199 suppliers 157,186, 256, 352 affiliated 258 asset-specific investments put in place by 259 auto parts 250, 259. 261 autonomous 260 dominant 416 drawings for communication with 391 drawings often necessary for communicating with 390 long-term contracts with 273 network of 259-60. 262 nurturing and encouraging 260 pragmatic collaborations between customers and 125 n. quasi-independent firms 123 supply: determined by demand 24 efficiency assessed relative to particular patterns of demand and 126 how to balance demand and 125 labor 422 supply chains 406 global 233 major implications for 410 producers forced to invest in management 411

707

supply-side challenges 398, 413 supply-side thesis 320 Supreme Commander for the Allied Powers 77 Supreme Court (US) 229, 540 surveys 408 survival 258 survival of the fittest 262 Suslow, Valerie Y. 270 sustainable development 18 Sweden n, 146, 211, 463. 543, 546 BLAs 299.301,302 business schools 583. 587 cartels 278 Denmark telephone enterprises 550 largest industrials 159 leading firms' collaboration with Nazi Germany 154-5 multinational manufacturing firms 300-1 promotion of social and political unification 533 railroads 536 scattered communities and fragile political structures 536 school-based training systems 574 state and business 529 telecom firms, joint ventures 548 uniform principles of full costing 453, 460 venture capital market for small firms 50 vocational education and training 564 seealso SAF Swift 178 Swire (John & Sons) 179. 250, 251-2, 254 Swire Pacific 252 switching costs 249 Switzerland 281. 376,384 apprenticeship combined with part-time classroom-based vocational training 563 BIAs 301 business education 586 business historians 14, 17 cartels 275, 278, 279 cotton textile firms 146 financial intermediaries 326 organizational centralization 306 universal banks 331 vocational education and training 562 watchmaking 133 symbolism/symbols 255, 352, 604, 618 ambiguous 605 n. changing 618 national 617 Symeonidis, George 284 synchronic approach 325

708

INDEX

syndicates 271, 273, 277, 278, 283, 285, 485 financial 174 synergies 17 synthetic products: development of 533 dye industry in, 177 systematic management 428, 435, 488 systematization 68 systems engineering 385 systems technologies 350 systems thinking 385 tabulating machines 448 tacit knowledge 232 making explicit 234 Taiwan 151,365, 513 late development used to explain efficacy of coordinated market development 257 n. rapidly adapting firms 257 takeovers 178 defense against 477 foreign 78 idle factories, by industrial unions 83 state 531 strong incentives for 546 seealso hostile takeovers Tanabe family 455 Target 435 "tarif vert" 541 tariff barriers 146 tariff protection 91, 513, 531, 532 tariffs 126, 226 growth of 145 international trade in commodities distorted by 152 standard 546 sufficient bargaining power to manipulate 206 seealso GATT tastes 22, 25 consumer 234 national 616 Tata 151, 201, 285 Tawney, R. H. 508,603 taxes 126, 337 impact on firms spreads 530 inheritance 203 rising level of 325 war profits 13 Taylor, Frederick W. 12, 429, 606, 610, 618 Taylorism 97, 380, 383, 610, 6u Tep/IP protocol 260 TdB (Tableau de Bord) 463

tea growers 276 teamwork 462 management-directed 433 Technical Assistance program 589 technical efficiencies 283 technical organizations 20 technical schools 230 Technische Hochschulen 381, 382, 389, 391 Technische Mittelschulen 381 Technit 151 technological bureaux 378 technological change 347, 350, 535 ambition to control long-term rate and direction of 352 great 544,548 lead story of 356 office and accounting procedures 449 radical uo shaping the rate and direction of 348 skill-displacing 81 telecommunications and electricity 532 technological conditions 91 technological development 364, 388, 5u rejecting the idea of an underlying logic of 133 technological districts 222, 224 technological innovation 235, 295,347-73 capacity for generating and diffusing 220 centrality of "paths of learning" to 3 economies of scale less important in promoting 51 how cartels positively contributed to 284 linchpin between business structures and 25 technological progress 68, 122 technological transitions 366 technology 13, 46 absorption 364 advanced 122 autonomization of history of 27 capital-intensive 335 changes in 40 contemporary upheavals in 220 contrasts in values and attitudes to 204 diffusion of 230 external shifts in 132-3 flexible 122 geographical distance reduced by 144, 148 highly specialized start-up companies in 273 history of 11,18, 108 industrial, spread of 512 inherited 303 innovation and 347-73 interconnecting science, business, politics and 28

INDEX

labor-intensive 151 malleability of organization and 123 outcome of struggles over the evolution of 133 plasticity of 122-3 shared 352, 357 social construction of 27 specific, proprietary 262 technology transfer 107, 143,154,159,184, 226, 268, 287, 587

cooperative institutions 226 promoted 284 whether international cartels promoted 284 TeDIS Group 232 n. Tedlow, R. 397, 400 Teichova, Alice 274 Telecom Denmark 547 telecommunications 147, 151,160, 188, 189, 350, 529, 545, 611

airlines, privatization and 544-9 deregulation 544 market liberalization of 548 rarely allowed to develop in autonomous state enterprises 546 strong monopoly power 546 technological changes in 532 telecommunications companies 530 new 547 Telegrafslyret 546 telegraph system 145, 352, 377, 44 8, 533, 535 building 401 companies 456 development often financed by armed forces 545 flag-waving 545 undertakings 535 teleology 121-2, 128 telephone companies 533 divestiture of 547 incentives for takeover of 546 part ownership of 532-3 telephone networks: local 545 long-distance 546, 547 national 545 overseas 546 trunk 546 telephones 148, 256 n., 350, 352, 448 density and automation 284 Televerket 546 television 83, 283, 352 networked 410 possession of 413 television cartels 274, 285

709

television tubes 516 Temin, Peter 44, 48 temporary workers 433 Tengelmann 416

tenseki 84 terms of trade 280 territorial cartels 273 terrorism 150 tertiary sector 174, 307 Tesco 411, 435 Texaco 185 textiles 44,146,159,173,183, 200, 280,363,425-6, 455,45 6

banks lend to best-connected firms 511 cartels 279 machinery manufacture 258 printed 133 woolen 222 seealso cotton; silk Thailand 205 Thatcher government (UK) 187, 423, 506 Thelen, Kathleen 4, 421, 558 n., 566, 570, 571 n. theory oflate development 122 n. theory of the firm 71, 90 innovating 72 optimizing 72 thermal calculation 384 thermodynamics 386 "thick'; "dosed" model 223 think tanks 28 "thin', "open" model 223 Third Industrial Revolution 188,434-6 Third Italy 342 diffused industrialization 220, 224 Third World 529 Thompson (J. Walter) 408,415 Thomson 182 Thorell, P. 450 Thrift, Nigel 223 n. throughput rates 78, 81, 177, 246 Thyssen, August 504 Thyssen In 181, 456, 611 Tietz (Kaufhof) 405 Tignor, R. 1. 5 Tilly, Richard 43 Tilton, Mark 284 time-and-work-studyexperts 429 time-to-market pressures 263 Time Warner 188 Timmons, J. 86 n. tires 405 titanium 280 tobacco 151,178, 182, 404

710

INDEX

toji 253 Tokugawa era 229 Tokyo 149,455,538 Ota Ward 230 Tsukiji Market 274, 286 Tokyo Commercial Training School 587 Tokyo Electric 412 Tokyo Higher Commercial School 587, 588 Tokyo Stock Exchange 77, 78, 328 Tokyo University of Commerce 587 Tokyo-Yokohama Electric Railway 412 Tolliday, Steven 221 n.• 298, 421 Tollkuhn, Gertrud 567 n. tolls 535 Tomioka spinning factory 456 Toms, S. 103 Tonkiss, Fran 127 n. top executives 75,210,254 control exerted through selection, promotion, and compensation of 255 ex ante strategizing by 256 remuneration of 80 Toshiba 186, 250, 412, 413 company as enterprise community 431 total quality management 16 tourism 616 business history of 23 Toyoda, Kiichiro 258, 504 Toyoda Automatic Loom Works 258 Toyoda Machine Works (Toyota Engineering) 258 Toyoda Spinning and Weaving 258 Toyoda Steel 258 Toyoda Trading 258 Toyota Auto Body 258 Toyota Group 260 Toyota Motor 82, 84, 88, 186, 248, 250, 256, 257-60, 262, 263

auto parts suppliers 259, 261 car dealerships 412 company as enterprise community 431 franchised dealers 413 lIT management system 459 lean production system 432 foyota Motor Sales 258 foyota Production System 262 foyota Supplier Association 260 tracers 380 trade associations 21, 226, 230, 294-5, 306, 307, 453

abolished 229 American 235 birth and development of 298

developmental 229 pivotal role in founding EAs 297 trade barriers 153 world 148 trade conferences 229 trade-offs 299 trade schools 229, 230 trade societies 426 trade unions 25, 75, 244, 296, 297, 311,420, 566 attempts to control training 571 BIAs and 294, 299 challenge of 297 Communist-dominated 431 compulsory membership 308 craft 81 dealings with 423. 426 decline of 81, 295 n., 307 emerging, relations of firms with 572 enterprise-based 83,431 extensive 427 growth and organization of 422 intransigent 531 less commitment to 432 limited presence 435 militant 83, 431 national, strength of 299 non-recognition of 427,433 recognition of 429, 430 resisted 82 skilled 571 state-imposed ban on 481 strength of 437 strong movement at transnational level 309 UK Labour governments supported 473 underpinned position of 422 workers more likely to belong to 427 seealso bargaining power; collective bargaining trade wars 278 trading companies 145. 149, 153, 246, 251-2, 405 cartels 276 early 50, 51, 56 general 413 state-sponsored 143 see also zaibatsu Tradition (journal) 31 traditional industries 17 training 4, 421 apprenticeship 229, 425 craftsmen 303 design 391, 392 executive management 590, 594

INDEX

in-house 439,590 internal management 588 little scope for 435 local employees 158 reliance on self-investment in 435 skill formation and 4, 558-80 skills 230, 434 technical 18, 229 also vocational training transaction banking 341, 342 transaction costs 26, 47-8, 51, 53, 56, 102-3, 109, 244 n., 257, 507, 542

effect of different organizational arrangements on 52 high 324 inevitable, absorbing 259 low 400 minimized 364 reducing 254, 320, 510 trans-Atlantic cable connection 145 transfers 22 significant and positive 156 trans formative innovation 358 transistors 353, 360 transmission lines 541 transnational firms 257 transnationalization 308-9 transparency 211,234, 471, 481, 486 accounting 477 transparent paper 380 transportation 398, 529 advanced 246,400 cheap and fast 464 innovations in 40-1 maritime/coastal 251 network industries in 27 regional-based 251 state and 535-40 surface 535 transportation technologies 255 new 254 Travelers 188 treasury stock 76 Trempe, Rolande 26 trial-and-error learning 260 Trigilia, Carlo 225 n., 228 n. Tripathi, D. 5 Tripsas, M. 111 troubleshooting 352 Troy. Nancy 618 Trubek, David M. 231 n. trucking 252 freezer 251

711

trust 208, 225, 245, 607 business groups appear to foster 254 cooperation and 226, 254 enhancing 509 lack of 226 mutual 15 networks of 209 oases of 211 social 514 trust banks 322 Tsang, Denise 507 Tschierschky, Siegfried 270 Tschoegl, A. 87 n. Tupperware 616 Turbin, Carol 617 turbine control 384 turbulent environments 256 Turin 206, 225 n. automotive and industrial automation complex 224 Turkey 582, 587, 591 Turkish Petroleum Company 543 Turner, Ted 611 turnkey systems 387 turnover 25, 173, 185, 565 high rates of 81 turnpike roads 539 turnpike trusts 535 Tuscany 207, 232, 234 typewriters 24, 211, 403, 415, 448 Tyson, T. 455, 463 VAl (Adolfo Ibanes University) 596 UBS (Union Bank of Switzerland) 188 UCS (uniform costing systems) 453 uncertainty 85, 89, 91, 124, 131,304 competitive 73 cultural forces reduce 206 employers are exposed to different levels of 299 execution and outcome 349 history of 27 importance of 17 innovative investments 86 interfirm networks and 256 market 73, 311 predictable response to 197 property rights and enforcement of contracts 152 reaction to 197 rules to clarify and try to stabilize 26 strategic decision-makers must have incentive to confront 73-4

'12

INDEX

JCS (cont.)

technological 73 trust may be ascendant in global economy racked by 254 incompensated seizure 145 JNCTAD (United Nations Conference on Trade and Development) 280 indergraduate business studies 591 mderinvestrnent 353 indiversified investment 485 mernployment: fluctuating level of 422 structural, large-scale 531 young workers 560 INICE (Union ofIndustrial and Employers' Confederations of Europe) 309 nification 537 demands of 536 national 530 social and political 533, 536, 546, 548, 550 niformity 122, 160 nilateral force 145

Inilever 150,154,155,182,185,359,4°5,414,415 branding, packaging, and research capabilities 160 flexible and decentralized strategies 433 intensive advertising approaches 411 large business in emerging markets 156 penetration of personal care products into Africa 613 nionization, see trade unions Iniprix 414 niqueness 618 nit banks 331 nit costs 72,73,90,91, 126, 410 driving down 79 nitary functional organizations 282 Inited Auto Workers 430 Inited Fruit (Chiquita) 158 Jnited Kingdom, see Britain Jnited States 48, 51, 147, 533-4 accounting 451, 454, 455, 456, 457-8, 460, 461, 462, 463, 464

alliance of unions and independent artisans 572 apprenticeship 569 armament firms 13 arm's-length regulation 531 Asian immigration restriction 147 automobile industry 160 aviation industry 544--5 banking and finance 86-7, 179, 229, 325, 326, 328, 330, 331, 332, 334, 337,338, 339, 518, 519

beauty industry 161

BIAs 297, 301 n., 304-5 big business 171,172, 177,180, 181,185, 186, 187, 188, 189, 200, 540 bond market 328 book superstores 111 British Ph.Ds emigrated to 359 business educationlschools 581, 582, 583, 584. 587,588-91

business groups evolved into conglomerate forms 263 business history 27. 30-1, 38, 39, 44, 56 business patronage 615 capital-intensive business transformed 198 cartels 274, 276, 278, 279, 281, 282, 284, 285 coal deposits 541 comparison between Britain, Germanyand

2,

44

competition between Japan and 364 concentration 229 Constitution 534 contribution of foreign firms 156-7 corporate governance 109, 471, 473, 478, 479, 480, 481, 483, 484, 485, 487, 488, 489

corporate research laboratory decline 358 craft tradition of musical instrument making to 609 debt-equity ratio 321 deregulation 544 design 374, 376. 378, 380, 381, 382, 383, 386, 387, 388-9,390-1

development of mass production 126 distributing and/or purchasing capabilities 177 diversification and divisionalization 99, 247 economic growth 538 education and training 569-70, 586 emergence and transformation of large-scale managerial enterprise 102 entrepreneurship 180, 506, 507, 508-9, 511,512, 513-14.518

family business 199, 200, 204, 211, 473 FOI 146, 148, 149 fear of concentration of power 539 flexible labor markets 560 foreign investment in 144 foreman role 83 full-costing 459 GDP per capita 407, 408 giant managerial enterprises 50 GNP (1890) 41 growth of 2 harnessing of science by industry 356 hegemony 107 hierarchies and rules 153

INDEX

high quality general education 564 historical overview of women in business 5 industrial districts 221. 225 industrial research thoroughly institutionalized 354 industrialization 570 innovation 359, 361 inspired wave of scholarship 40 institutional practices in radio broadcasting 112 integrated bureaucracy 353 integration of regional and interregional capital markets 51 interstate issues 539-40. 542. 546 Jewish immigrants 509, 518 labor management 421. 422. 423, 424, 425. 426, 427, 428. 429, 430. 432

largest companies 149, 159. 173, 185, 435 leading business schools 152 legal framework 530 low-cost. low-quality producers 84 machine tool industry 357 mainstream economic history 103 manufacturing companies investment in UK 150

market capitalization 333, 480 marketing and distribution 397, 398. 399, 400-4, 405, 406. 407. 408-10. 411. 414, 415. 416 mass consumption 148 mergers 177,178, 188, 229 modern firms 247 motor cars produced 181 multidivisional structure 183 multinationals 104, 142 municipal ownership 542 national institutions and public policy 228 nationalization 155

New Economic Historians 44 "new global history" 28 oil deposits 543 organization 79-82 pioneering research-performing companies 355 primary and secondary education 80 privatization deregulation 548 publications 44 race relations 508 railroad network 175, 176, 229 ratio of financial activity to GDP 326 regulation 155.323 scholars' resistance to economics 38 scientific independence 352 semi-autonomous bureaucracies 540

713

sequestration of affiliates 147 skill formation 559. 561, 568 specialty firms 17 specialty production 223 standardized. assemble-to-order, and customized pump manufacturing 130 n. state formation 535 steel and auto industries 364 stock ownership 327 strategy 74-6 survey oflargest industrial firms 98 technology and innovation 354 union membership 429, 430. 432, 439 universities 19 vertical integration 106 vocational certification 563 seealsoAmericanization; Banking Acts; CAB; Clayton; Cost Accounting Standards Board; Deregulation Act; Energy Policy Act; FCC; Federal Trade Commissioners; Financial Accounting Standards Board; FPC; GlassSteagall Act; Gramm-Leach-Bliley; Granger; Hepburn; Homestead Act; Interstate Commerce Act; Justice Department; National Bureau of Economic Research; National City Bank; National Industrial Recovery Act; Public Utility Commissions; Public Utility Holding Company Act; PUC; SEC; Sherman; Supreme Court; Wickenden United States Business History Conference 29 unity 306 universal banks 179. 206, 320. 329, 331, 332, 475 absence of 473 active 339 continental 473 distinction between specialized and 472 n. efforts to construct arrangements 472 growing tendency to concentrate business on lending 322 image revised downward 340 legislation designed to prohibit 337 restricted ability to operate as 337 revival of 337,343 right conditions for development of 336 role of 336 seealso large universal banks universities 208. 351, 358, 362 attempt to transform into mass education system 593 business administration programs closed down for political reasons 596 contract science provided by 355 corporate 594

'14

INDEX

miversities (cont.) high quality 569 hybrid system that combined colleges and 569 Nazi regime attacks on 359 "new" 590 programs in line with American concept of management 591 research 361 technical 583, 595. 598 undergraduates studying business 584 miversity degrees 183 iniversiry graduates 75. 82 Jniversity of Pennsylvania 584 miversity scientists 355 mlimited liability 202 mlisted companies 203 .nproductive activities 510 .nrestricted incorporation 472 .nskilled labor 25, 158, 428 immigrant 81 manufacture of standardized goods in high volumes by 121 product strategies based on 561 wages compressed 566 IPS 130 n . .pstream trading relationships 286 pward mobility 24 ranium 280 urban centered mercantilism" 539 urban industrial subsystem" 222 rbanization 303. 399, 406, 413 IS Rubber 178, 461 IS Steel 178, 282, 428 Isinor 182 tilities 145 foreign control over resources and 155 government-owned 103 multinational ownership of 104 stocks issued by 327 using as cash cows 550 tility systems 427 topian socialist ideas 360 acuum cleaners 409

ahlne, I.-E. 105 alue added 158. 255, 261, 283. 560 alue chains 153 alues 149, 608 academic 355 acquisitive 610 aesthetic 615 "artifacts" of 605 Asian 605 changing 610

connection between status, religion and 603 culture and 366,505-9,615 desirable 401 differences in 611 family 409 locally determined system of 207 positive 208 religious 507, 508, 603 scientific communities 359 shared 206, 208, 222 social 205, 209 striking contrasts in 204 Van den Bergh and Jurgens 405 Van der Wee, H. 42 Van Driel, Hugo 50 Vandelli, Luciano 231 n. variability accounting approach 463 variable costing 449, 457. 459-60 low 540,546 variable morphology 227 Varian 358. 360 variance analysis 461 varieties of capitalism 16, 565, 574. 606 variety 22 seealso economies of variety Varkaus 233 VDI (Verein DeutscherIngenieure) 391 Veblen, T. B. 401, 603 Veneto 207, 232 Venkataraman, Sankaran 520 Venlo 223 venture capital 76. 86. 208. 249, 351 banks role in 88 entrepreneurial finance practically synonymous with study of firms 516-17 expansion of financing 501 foundations for emergence of modern industry 519 market for small firms 50 Verdier, Daniel 231 n., 336. 472 n. Vereinigte Stahlwerke 181, 282 vertical cartels 273 vertical integration 47, 98. 130, 177.186, 250, 352, 399,4° 0,401,546 alternative to 106 alternatives to or substitutes for 259 canonical example of transactional imperatives of 123 n. established models of industrial progress challenged by 220 high degree of 178, 283 horizontal cartelization encouraged 283 logic of 106

INDEX

lower level of 123 several objectives 403 unitary functional organizations 282 vertical integration weakened or eliminated in most commodities 148 vertical keiretsu 88-9 vested interests 211 state and business 535 VET (vocational education and training) 564 Veyrassat, Beatrice 133 n. via svizzera strategy 228 Vickers 13. 180 Vietor Talking Machine 403 Victorian era 506, 607 video-recorders 359 Vienna 175 Viesti, Gianfranco 233 n. Vietor, R. H. K. 545 Ville, Simon 50 virtues 609 visas 145.147 "visible hand" 353 vision 260 European 593 long-term 12 VLSIproject 364 VNF (Dutch Employers' Association) 301 vocational schools 570 vocational training 18, 24, 559, 560, 564 collective systems 226 countries whose education systems favor academic over 562 cross-national differences 570 institutions supporting 570 interactions with political-economic institutions 565, 566 international comparisons focusing on 561 interplay between development oflabor relations and 567 private sector 565 school-based 563 successful 561 Vodafone 189 Voith, Friedrich 378 volatility 131 attempt to limit 287 stop-go, boom-and-bust 288 Volkswagen 156, 362 volume 283 volume discounts 540 voluntarism 263, 423, 569 voluntary associations 279, 618 Volvo 460

715

Vorort 301 vortex of bad infinity 131 VOTEC (vocational education and training) 562

voting rights 196.488 Voyages of Discovery 142-3 Wada, K. 106 Wadhwani, R. D. 2. 4, 110 wage-effort relationship 425 wages 84.406,427 below marginal product 562 bonus systems related to performance 429 compressed 565, 566

fixing 429, 439 hierarchical grading systems 431 increased 399 joint regulation of 573 positive relationship between education and 559 seniority 431, 566 sharp increase in 325 Wagner, Karin 130 n. Walker. Juliet 508-9, 609 Wall Street 75. 179 (1929) 75, 184.406

era of the great raiders 187 main corporate-finance role of investment houses 86 Wallenberg. Marcus 504 Wallenberg group 200, 201, 211 Wal-Mart 200,204,410,435 Walras, M. E. L. 68 Walton, Whitney 121 n.• 616 Wanamaker (John) 403 wars 14 wartime mobilization 3°7, 311 washing machines 409. 413 WASPs (White, Anglo-Saxon, Protestants) 74, 80

water systems 158 power sources 425 run by private enterprise under concession systems 534 water turbines 378 Waterman, Robert 604 Watkins, Myron 277 Watson, Thomas 618 Watt steam engines 517 wayward firms 273 weak ties model 245 n. wealth 122, 405 accumulation of 509 extreme inequality in distribution of 512

716

INDEX

vealth (cont.) financial 320 household 253 lifetime rates of accumulation 509 national 409. 516 persistent patterns of 507 personal 408 pursuit of 604 seealso family wealth vealthy countries 275, 280 Webb-Pomerene export cartels 276 Weber, Max 507, 508, 603, 604. 608, 609, 610. 613

veddings 271 Wedgwood 455 Weimar Republic 227, 476 Weiss, Andrew 559 Weiss, Linda 228 n.

velfare 51, 427, 428 economic 205 employer-provided 26 gendered programs 26 global 156-61 material 408 work inside large American corporations 611 velfare capitalism 51. 423 Nelfare policy 303 Nelfare state 338 development of 293 n., 300 Nell-being 415 Wells, M. C. 458 Welskopp. Thomas 16. 567 Wertheim 405 vVest Africa 155 vVest German Constitution 475 vVest Jutland 224 vVest Point Military Academy 456 vVestenholz, A. 112 vVestern Electric 546 vVestern Europe 3 business education 597 development of mass production 126 "great divergence" between East Asia and 143 holding companies with operating subsidiaries 263 larger markets 159 local and regional production systems 220 major economies 171 M-form firms 247 multinational investment 149 noted features of 415 regulation and nationalization 155 retailing 415 Second World War damage 408

US manufacturing companies investment in 150

seealsounder various country names Western Hemisphere 330 Westinghouse, George 348 Westinghouse 178. 355, 384, 386 Westminster Bank 184 Wharton, Joseph 584 Wharton School of Finance and Economy 584 Whiggism 38, 40. 55 Whirlwind computer 387 white-collar employees 24. 25, 410, 437 American large corporations 26 changing symbol of masculinity 618 design 379 employment security 83 enterprise unions of 83 hierarchies 427 militant labor movement of 83 permanent employment 85 Whitford, Josh 125 n. Whitley, R. 101, 126 n., 200, 472 n. Whittington, G. 450 Whittington, R. 98, 99, 101. 102 wholesaling/wholesalers 401, 403, 406, 412 exclusive 412

keiretsu 413 specialist 400 Whyte, W. 79 n. Wickenden Report (US 1929) 389 Wiebes, C. 154-5 Wiener, Martin 605 Wiesenthal, Helmut 296, 297 Wilkins. A. 1. 100, 104. 105 Wilkins, Mira 14,49,142,144,156-7 Williams, Raymond 604 Williams, Rosalind 614 Williamson. Harold F. 39 n .• 582 Williamson. Oliver 47-8. 52-3. 54 n., 103, 244 n. Wills (w. D. & H. 0.) 177,400 Wilson, Joe 504 Wilson, John F. 221 n., 223, 582 wine industry 617 Winter, Sidney 38, 53 n., 71 Wisconsin 360 Wise, Brownie 616 Wolsing, Theo 567 n. women: business 609 crucial role in family business 203 factory 426 freedom and adventure in the city 614 greater participation in higher education 560 heart of family and business 213

INDEX

historical overview of 5 large numbers employed 425 middle-class 24 pivotal and changing role of 213 relegated to sales roles 608-9 working 423 working-class 24 wooden models 378 wool mills 235 Wooleo 410 Wooldridge, A. 98 Woolworth (F. W.) 403,409,410 work injuries 19 work relations 420, 425 externalization of 439 internalization of 439 work teams 160 workaholics 210 worker resistance 429 workers 11, 13 antagonism of capitalists and 297 collective interests 296 craft 82 differences between capitalists and 296 distinctions between professionals and 20 gas 26 hourly 80, 81, 83, 424 interactions between employers and 299 migrant 19 production 80, 81 shop-floor 81, 83 temporary 84, 85 transformation of peasants into full-time 26 workers women, in traditional industries 24 seealso blue-collar employees; skilled labor; unskilled labor; white-collar employees working-capital requirements 341 working classes 306, 311 affluent 406 ambitious members of 608 conservative craft values 507 education of 568 history of formation 559 structuring systems of representation 311 technical skills of 568 working practices 507 working time 27 works councils 420, 430-1, 432 World Bank 211 World Development 233 n. world history 28 world markets: cartel-controlled 279 competitive conditions across 543

717

disfigured by rising nationalism 288 divided up into shares 543 historic success in 233 world-spanning cartels 277 WoridCom 452 worldwide web 261 Wray, William 285 Wren, D. A. 106 Wright, C. 107 Wright, Gavin 44 Wright, M. 103 Wubs, B. 155 Wurrn, Clemens 269, 278 Wtirttemberg 378 Wtistenhagen, [ana 155 Xerox 353, 358 yakuza 77 Yamamura, Kozo 42 Yamazaki, H.293 n. Yamey,B. S. 450 Yangtze delta region 233 Yasuda 184 Yeager, Mary 5 Yokohama 412, 538 Yokosuka shipyard 456 Yonekawa, S. 82 n. Yonemitsu, Yasushi 221 n. Yoshikawa, T. 453,454,458,464 young female workers 435 Yugoslavia 278 Yui, Tsunehiko 42, 43 Yuzawa,T. 106 zaibatsu 87, 174, 201, 205, 250, 47 6 assets confiscated 249 countervailing power to 274 dissolution of 77, 184 laws disbanding 477 widespread 258 Zald, M. N. 108 Zarnagni, V. 590 Zanzibar 513 Zeitlin, Jonathan 2, 4, 12, 17, 51, 55 n., 105, 106, 107,121 n., 122 n., 123 n., 124 n., 125 n., 127 n., 128, 129, 131,132, 133,134 n., 151,220, 222 n., 223,226,227,228 n., 228 n., 231 n., 284, 29 8, 390, 502, 532, 567

ZeitschriftfUrUnternehmensgeschichte 3 Zingales, Luigi 322, 333, 472 n., 486, 487

Zola, Emile 405 Zunz, Olivier 26, 608