Who are the world's most successful companies?

It seems that everybody wants to know which companies are the most successful. To help throw light on the issue, and to do so more reliably than the plethora of league tables and charts produced by most business magazines, the London Business School have teamed up with The Economist to compile an assessment of the top performers of the 1980's.     

A strategic human resource perspective of firm competitive behavior

Embedded within firms are unique stores of intangible human assets that likely influence the way firms compete. We argue that the human and social capital of a firm, particularly at the upper echelon and board of director (BOD) levels, contribute to the firm's awareness of the competitive environment and its motivation and ability to undertake numerous, complex, and forceful competitive actions. We also suggest that the firm's executive compensation systems moderate the effects of these intangible human assets on firm competitive behavior. By examining how human capital, intra-firm social capital, and executive compensation influence firm competitive behavior, we advance a strategic HRM perspective of firm competitive behavior and outline several implications for future research.     

An Insiders' View of FCC Spectrum Auctions

After a long period of awarding spectrum licenses inefficiently, changes in the budget and budgetary process coupled with increases in the value of the spectrum for non-broadcast use led Congress to allow the Federal Communications Commission to award licenses through competitive bidding. Contrary to the perceived view of government bureaucracies as excessively cautious, the FCC used the newfound authority to adopt a novel approach to auction design—simultaneous multiple round auctions. The innovative auction design would not have been adopted without the successful collaboration between government economists and academic economists, who helped to formulate and refine the design so that decision makers at the FCC could be convinced that the novel technique was both superior and practical. The FCCs implementation of competitive bidding was not only rapid as mandated by Congress, but also much less costly than outside alternatives and allowed the integration of spectrum policy decisions and auction design. Experience from several auctions has led to a number of open questions and refinements. The FCC is trying to replicate the success with the original auction design by facilitating dialog between the agency and outside auction experts in order to address these issues.     

Book Reviews

Yujiro Hayami and Toshihiko Kawagoe, The Agrarian Origins of Commerce and Industry: A Study of Peasant Marketing in Indonesia (with a foreword by Peter Timmer), St Martins Press, New York, 1993, pp. 208.

J. Thomas Lindblad, Between Dayak and Dutch: The Economic History of Southeast Kalimantan 1880–1942, Verhandelingen van het Koninklijk Instituut voor Taal-, Land- en Volkenkunde No. 134, Foris Publications, Dordrecht, 1988, pp. x + 282. Dfl. 30.-.

Mark Cleary and Peter Eaton, Borneo: Change and Development, Oxford University Press, Singapore, 1992, pp. ix + 271. A$44.95

James Spillane, Komoditi Kopi: Peranannya dalam Perekonomian Indonesia [Coffee: Its Role in the Indonesian Economy], Kanisius, Jakarta, 1990, pp. 259.

United Nations Industrial Development Organization, Indonesia: Growth and Diversification, Industrial Development Review Series, Economist Intelligence Unit (EIU), London, 1993, pp. xxiii + 255. £95.     

Middle Ground: Uniting City,Farm, and Nature with Diverse Agroecosystems

Farming, including family farming, is now dominated by vertically controlled operations that deplete the soil, pollute water, and produce food designed more to satisfy marketing requirements than human nutritional needs. Agricultural practices today are a result of abdicating control over our lives to a thoroughly industrialized culture, in which institutions are governed by the single criterion of efficiency‐‐finding least‐cost solutions. Standardization is a major part of that process. But living systems cannot be standardized. They require diversity and some degree of redundancy to adapt to changing environmental conditions. In the cultural contest between the machine and the garden, the machine has definitely won, but if we do not make room for the garden again, our victory will be our own funeral. New Agrarianism seeks to encourage diversity of species on each farm and across farms within entire landscapes. But farmers cannot carry out the restoration of ecologically‐oriented agriculture on their own. They need support from cities: 1) in the form of markets to sell locally‐grown produce at prices that will support their work, 2) in a new understanding of ecosystems that focuses on inhabited spaces and not just wilderness, and 3) in an orientation that questions whether efficiency should be the paramount value of our culture. Finally, the transition to more biologically‐diverse human settlements can come about only if economic incentives are modified to remove the unrelenting pressure on farmers to expand their operations or go out of business.     

Interaction between feasibility and desirability in the formation of entrepreneurial intentions

The literature argues that entrepreneurial intentions depend on perceptions of desirability and perceptions of feasibility. Research in other fields suggests that there will be an interaction effect between these two main antecedents of intentions, but such interaction has not been investigated in the context of entrepreneurial intentions. In this paper we explore this interaction effect in an expectancy framework, hypothesizing a negative interaction effect between perceived desirability and perceived feasibility based on regulatory focus theory. A large multi-country sample confirms this negative interaction, and suggests a novel typology of nascent entrepreneurs as natural entrepreneurs, accidental entrepreneurs, and inevitable entrepreneurs.     

Intrapreneurial intentions versus entrepreneurial intentions: distinct constructs with different antecedents

We posit that entrepreneurship and intrapreneurship are distinct entrepreneurial behaviors that differ in terms of their salient outcomes for the individual. Since individuals are likely to differ in their attitudes to these salient outcomes, and in their entrepreneurial self-efficacy, we hypothesize that a different strength of intention for entrepreneurship versus intrapreneurship will be due to individual differences in self-efficacy and in their attitudes to the outcomes from entrepreneurial, as compared to intrapreneurial, behavior. We find that while self-efficacy is significantly related to both entrepreneurial and intrapreneurial intentions, attitudes to income, ownership, and autonomy relate only to entrepreneurial intentions, while attitude to risk relates only to intrapreneurial intentions.     

Indonesian Agricultural Development: The Awkward Case of Smallholder Tree Crops 1

The problems of transforming smallholder tree crops from traditional low-yielding to modern high-yielding technology are examined, using a meta production function approach to analyse the changes. The role of government in transformation is considered, and various ‘individual’ and ‘black’ improvement schemes implemented since the 1950s are analysed. Many of these schemes have not teen successful owing to poor planning and inadequate managerial and financial support, and their coverage has been small in relation to the huge areas needing improvement. The paper suggests a more modest ‘dispasal’ approach to transformation, concerned with setting up nurseries to provide better quality planting material and advice to individual fanners. But even this revised approach should be carefully planned and executed light of previous mistakes if it is to have widespread impact.