The drivers of firm longevity: Age,size, profitability and survivorship of Australian corporations, 1901–1930

Why do some firms last longer than others? This question has attracted considerable interest among scholars from business history, management and economics. Our article combines the business historian’s macro view of the relationship between size, longevity, and economic development with quantitative modelling. We apply survival analysis to data relating to size, age and profitability, three first-order explanations of longevity, for Australian stock exchange (ASX) listed corporations from 1901 to 1930. The novelty of the article is twofold: we find that firm size is a poor predictor of longevity for the full sample but its age and profitability are highly significant; our data covers a longer time frame and relates to a rich mid-sized and non-industrialised country.     

Technological networks and industrial research in Britain: The London,Midland & Scottish Railway, 1926–47

Large and complex firms combining service and manufacturing functions such as the railways offer an interesting test of the claim that between the world wars British industry sometimes successfully prosecuted industrial research in ways that do not fit the Chandlerian paradigm. In particular, the largest of the inter-war railway companies relied on networks of external technological experts as well as developing its own in-house capability, thereby reducing uncertainties and transaction costs at minimal risk to itself. The chief disadvantage to this approach was the tension generated between the technological community of ‘scientific’ researchers and the engineers who were traditionally responsible for technological innovation.     

Majorca's tourism cluster: The creation of an industrial district, 1919–36

The Balearic Islands today form the largest tourism cluster in the Mediterranean, an extensive industrial district whose origins date back more than a century. This article explores the key period during which the hotels and travel firms built up their relations of cooperation and competition which explain the subsequent dynamism of the island's tourist trade and its remarkable expansion in the second half of the twentieth century.     

The entrepreneur–environment nexus: Uncertainty,innovation, and allocation

We build upon a recent stream of research that has proposed entrepreneurship as a solution to, rather than a cause of, environmental degradation. Our proposition is that under certain conditions entrepreneurs are likely to supplement, or surpass, the efforts of governments, NGOs and existing firms to achieve environmental sustainability. Entrepreneurs can contribute to solving environmental problems through helping extant institutions in achieving their goals and by creating new, more environmentally sustainable products, services and institutions. Our model illustrates how entrepreneurs 1) address environmental uncertainty, 2) provide innovation and 3) engage in resource allocation to address environmental degradation.     

Work–Family Effects of Servant Leadership: The Roles of Emotional Exhaustion and Personal Learning

This study examined how servant leadership influences employees in terms of work-to-family conflict (WFC) and work-to-family positive spillover (WFPS). These effects were explored through a focus on the mediating roles of emotional exhaustion and personal learning. The results, which were based on time-lagged data collection in China, indicated that employee perceptions of servant leadership related negatively to WFC and positively to WFPS. Moreover, reduced emotional exhaustion and enhanced personal learning mediated the relationship between servant leadership and WFPS. Furthermore, reduced emotional exhaustion (but not enhanced personal learning) mediated the relationship between servant leadership and WFC. Our study’s results provide insightful theoretical and managerial implications and offer new directions for research on leadership and work–family relations.     

CEOs’ regulatory focus and firm internationalization: The moderating effects of CEO overconfidence,narcissism and career horizon

While the international business literature has mainly focused on the firm- or industry-level antecedents of internationalization strategies, scholars have recently advocated a greater focus on the microfoundations of firms’ strategic decisions. Building on the regulatory focus theory, this study focuses on how CEO promotion and prevention foci impact firm internationalization. Looking into dispositional and situational attributions, this study also theorizes how these factors moderate the relationship between a CEO’s psychological motivations and firm internationalization. Using data from publicly traded US firms listed in the Fortune 500, the findings of this study show that a CEO’s promotion focus is positively associated with the extent of a firm’s internationalization, whereas a CEO’s strong prevention focus limits the extent of a firm’s internationalization. The findings also reveal that the relationship between a CEO’s regulatory focus and the extent of a firm’s internationalization is moderated by a CEO’s overconfidence, narcissism, and career horizon. These findings have important research and managerial implications for firms engaged in international business.     

Initial submarket positioning and firm survival: evidence from the British automobile industry, 1895–1970

A firm’s initial choice of its submarket may have a long-lasting influence on its subsequent performance. By examining the duration of firm survival in the British automobile industry between 1895 and 1970, we find that a firm’s initial submarket positioning (defined by the quality level of its first-launched model) influenced its subsequent survival. Additionally, we find that the initial positioning also helped firms to survive a major shakeout, and argue that innovation and path-dependence were two possible channels through which the benefits of initial positioning were felt.     

The World Market for Light Sources: Lamps and LEDs, 2006–21

The global light source sector is experiencing fast growth in the current decade; market size is expected to reach the $78 billion mark in 2016 compared with $44 billion in 2011; but growth is likely to slow after that. Key factors in this field are energy conservation, affordability of more efficient lights, the quest for better light quality, and standards by agencies and associations. Regionally, Asia-Pacific is expected to assume a commanding lead with 53 percent of the global total by 2016 compared with North America at 17 percent and Western Europe at 14 percent. Fluorescent and incandescent lamps combined dominated with 71 percent as a share of world sales in 2011; they and light-emitting diodes (LEDs) are expected to each be at 42 percent of the total by 2016. Technological advances created less costly LEDs that now offer longer life, better light quality, and more flexibility. In terms of markets or end-uses, buildings are expected to capture about 75 percent of the total in 2016, with the remainder taken by outdoor applications, motor vehicles, and other manufactured goods. Three firms account for about 25 percent of market share globally: Philips Lighting, Osram, and General Electric. All of them pursue an aggressive research and management agenda; the first two are reorganizing. Battle for market share is bound to continue by companies around the globe. The standardized nature of sockets allows for flexibility by users and often leads to commodity type marketing. (This paper and the monograph on which it is based exclude both lighting fixtures and lighting control systems. For information on lighting fixtures, see The Freedonia Group [2012].)     

Economic and Social Power in Spain: corporate networks of banks,utilities and other large companies (1917–2009)

The evolution trend of the Spanish network has not differed essentially from the path of other Western European corporate networks, but the configuration and factors that explain it have a specific pattern in accordance with their economic and social characteristics. The exchange of directors among the largest banks and utilities in Spain was one of the instruments used to consolidate its hegemonic position and to limit competition in other sectors. Network analysis confirms the existence of a crony capitalism, created in a context of institutional weakness and dominance of undemocratic political systems. The extractive elite used the network boards to restrict competition in key economic sectors, at the expense of the economic development of the country, until the liberalisation of the domestic market and its integration into the global economy.     

A twentieth-century triangle trade: selling black beauty at home and abroad, 1945–1965

This study examines the careers of African American beauty culturists as they worked in the United States, Europe, and Africa between 1945 and 1965. Facing push back at home, African American beauty entrepreneurs frequently sought out international venues that were hospitable and receptive to black Americans in the years following World War II. By strategically using European sites that white Americans regarded as the birthplace of Western fashion and beauty, African American entrepreneurs in the fields of modeling, fashion design, and hair care were able to win accolades and advance their careers. In gaining support abroad, particularly in Europe, these beauty culturists capitalized on their international success to establish, legitimize, and promote their business ventures in the United States. After importing a positive reputation for themselves from Europe to the United States, African American beauty entrepreneurs then exported an image of themselves as the world's premier authorities on black beauty to people of color around the globe as they sold their products and marketed their expertise on the African continent itself. This essay demonstrates the important role that these black female beauty culturists played, both as businesspeople and as race leaders, in their generation's struggle to gain greater respect and opportunity for African Americans both at home and abroad. In doing so it places African American beauty culturists within the framework of transatlantic trade networks, the Black Freedom Movement, Pan-Africanism, and America's Cold War struggle.     

Trade openness,income levels,and economic growth: The case of developing countries, 1970–2009

This paper attempts to investigate the extent to which trade openness has had an impact on the levels of income and rates of growth in a sample of 115 developing countries for the period 1970–2009. Additionally, to assess whether there is an income level threshold for a country to benefit from international trade, the sample is broken down into three mutually exclusive groups of countries: low-income, lower middle-income, and upper middle-income countries. The main novelty of the paper lies on the use, on the one hand, of a new and better trade openness measure and, on the other hand, of non-stationary heterogeneous panel cointegration techniques to cope with the problem of cross-sectional dependence. The results show a positive bi-directional relationship between trade openness and income level in the long run, thus suggesting that trade openness is both a cause and a consequence of the level of income. The results for the short run, that is, the link between openness growth and economic growth, go in the same direction.     

The state,small shops and hypermarkets: A public policy for retail,France, 1945–1973

Abstract

This article examines contemporary French retail history, studying both transformations in retail structures and evolutions in government retail policies from 1945 to 1973. It notably questions the existence of a defined public policy for the retail sector. Based on extensive archival research, it is designed to offer an overview of the topic in order to familiarise international scholars with French retail history, while stimulating discussion and providing case material to enable comparisons with other national cases.     

Ethical Culture,Ethical Intent,and Organizational Citizenship Behavior: The Moderating and Mediating Role of Person–Organization Fit

A multidimensional measure of ethical culture (EC) was examined for its relationship to person–organization (P–O) fit, ethical intent and organizational citizenship behavior (OCB), using a sample of 525 employees from the financial industry in Spain. As hypothesized, relative to studies using unidimensional assessments, our measure of EC was more strongly related to ethical intent and organizational citizenship. Also, significant differences were found in the degree to which each the EC dimensions related to both ethical intent and OCB. Finally, in a first for the literature, we demonstrated the important role of overall P–O fit in connection with EC, ethical intent, and organizational citizenship. Specifically, as hypothesized, P–O fit moderated positively the association between EC and ethical intent, but mediated the EC–OCB relationship.     

Survival of full versus partial acquisitions: The moderating role of firm’s internationalization experience,cultural distance,and host country context characteristics

The high divestment rates of acquired foreign units indicate challenges connected to planning and management of foreign acquisitions. In this paper we analyze the moderating effect of internal and external variables on the relationship between acquirers’ ownership strategy and survival of acquired foreign units. We test our hypotheses on a sample of 1275 acquisitions conducted by Finnish firms in various countries during the period 1980–2005. The results indicate that the probability of survival does not differ significantly between full and partial acquisitions. We further find that the likelihood of survival in full, relative to partial acquisitions, is positively associated with the acquisition-specific experience, but inversely related to general international and target country experience. The results also reveal that the positive impact of full acquisitions is stronger if the acquisitions are made in culturally similar countries, in less developed economies, and in markets where the country risk has increased after entry.     

Strategic inertia,financial fragility and organisational failure: The case of the Birkbeck Bank, 1870–1911

This article looks at the key factors behind the failure of the Birkbeck Bank in 1911. Using a wide range of primary source material, it charts how the Bank emerged from its philanthropic roots as a mutual building society in the 1870s to go on and enjoy spectacular growth during the late nineteenth century before eventually faltering and failing in the early twentieth century. Throughout the analysis, particular attention is given to the investment decisions taken by the Bank's management and the impact that these had on the Bank's fortunes. In addition, the article also looks at the extent to which the Birkbeck Bank's overall business model differed from those of other banks in this period. Ultimately, what it shows is that the Bank's failure to modify its investment strategy quickly enough in response to changing market conditions – most notably the fall in the value of Consols and other gilt-edged securities – proved to be the decisive factor in its eventual collapse. For this reason, the article contends, it is appropriate to categorise the 1911 Birkbeck Bank failure as one caused by strategic inertia rather than excessive risk-taking.     

The parochial realm,social enterprise and gender: the work of Catharine Cappe and Faith Gray and others in York, 1780–1820

Catharine Cappe and Faith Gray, and a wider group of women to whom they had strong network ties, founded a number of philanthropic enterprises in York, England, in the 1780s. Their activities were largely focused on the provision of sickness benefits to single and married women and the management of schools for girls that had a substantial occupational training element. The social enterprises they formed or operated were long-lasting – in the case of the York Female Friendly Society (YFFS) operating well into the twentieth century. The article considers the role of parochial networks in creating and sustaining social enterprises in the late Georgian period and the ways in which the women’s activities were both shaped by gender, and in turn, shaped gender relations.     

The marketing–finance interface: A new integrative review of metrics,methods, and findings and an agenda for future research

The marketing–finance interface is an important research field in marketing, helping demonstrate the accountability of marketing within companies and building a necessary interdisciplinary bridge to finance and accounting research. Since the first comprehensive review article by Srinivasan and Hanssens (2009), the marketing–finance field has broadened considerably, as has research in finance and accounting. This updated systematic review of extant and new research integrates research in marketing, finance, and accounting into an overarching marketing–finance research framework. We discuss new methodological developments and offer solutions to recent technical debates on the event-study method and Tobin's q. Motivated in part by a survey of marketing–finance researchers, the article identifies and synthesizes four key emerging research areas: digital marketing and firm value, tradeoffs between “doing good” and “doing well,” the mechanisms of firm-value effects, and feedback effects. The article closes with a future research agenda for this dynamic research field and offers key conclusions.     

Restructuring of the Danish pork industry: The role of mergers and takeovers, 1960–2010

This article examines the origins and effects of the evolution of the Danish pork industry characterised by three main merger waves resulting in 43 realised mergers and takeovers. The findings illuminate – in contrast to the traditional strategically motivated rationale – that the majority of the mergers were realised by cooperatives due to the inability to give the pig farmers competitive yearly refunds vis-à-vis local competitors, to financial difficulties or to the lack of investment capability of one of the merging parties. Despite a high-risky strategy, mergers and takeovers became the preferred consolidation mean due to capital constrains and the ‘close’ ownership structure of the cooperatives. Moreover, the study demonstrates that the outcomes of the M&A activities were generally positive.