Questioning ‘law and finance’: US stock market development, 1930–70

An important tenet of a burgeoning ‘law and finance’ literature is that stock market development is contingent upon corporate law offering ample protection to shareholders. This paper addresses this claim, using as its departure point developments occurring in the United States between 1930 and 1970. It shows that, contrary to what the law and finance literature would predict, during this period and throughout the twentieth century generally the US lacked corporate law that provided extensive protection to shareholders. It also points out that while federal securities legislation introduced in the mid-1930s bolstered investor protection, this reform effort did not energise the stock market in the manner implied by law and finance analysis.     

Foreign Multinationals in British Manufacturing, 1850–1962

This essay draws on a new database to describe the dimensions and characteristics of 685 foreign companies which established British manufacturing subsidiaries between 1850 and 1962. The numbers of foreign companies grew from the 1890s, expanded rapidly in the inter-war years, and even more rapidly from the 1950s. The majority were American, and were clustered in chemicals, mechanical and electrical engineering, metal goods, motor vehicles and food products. The majority of foreign firms established greenfield plants in Britain, but there were a significant number of acquisitions from 1900, and this became an important mode of entry from 1950. Many foreign investors were of modest size, and a considerable number of investors were short lived. The majority of factories were always in the south-east of England, but there was a surge of investment in Scotland and Wales after 1945. Foreign-owned companies began to undertake R & D activity in Britain from the inter-war years, and had a notable propensity to engage in foreign trade.     

Networks and business development: Convict businesspeople in Australia, 1817–24

This article uses social network analysis to examine accounting records in order to establish and analyse business relationships. It applies this methodology to accounting transactions recorded at Australia's first bank, the Bank of New South Wales (BNSW) in order to establish whether a business network existed among ex-convict businesspeople in Sydney during 1817–24. Uncertainty regarding distance from suppliers and credit facilities, lack of markets and business connections plus the social stigma of ‘convictism’ meant that it was difficult but not impossible for ex-convicts to establish businesses. The network among BNSW shareholders and depositors served the purpose of pooling of resources and information and alleviating uncertainty.     

Antecedents and performance outcomes of flexibility in industrial customer–supplier relationships

This paper deals with the impact of suppliers' flexibility in the industrial markets and presents empirical results from the market research sector including outcome variables (market-uncertainty, relationship-specific investments, mutuality, opportunism, long-term orientation, planning, conflict management). We examined the antecedents of supplier flexibility. Buyers need to know whether supplier will modify existing agreements in cases where environmental factors change. Insufficient flexibility can lead to problems, such as having to accept services which no longer meet the buyer's needs. Accordingly, identifying indicators of supplier flexibility is an important objective for managers involved in the purchasing process of services.     

The Unsatisfied Fringe in Britain, 1930s–80s

This article considers the longevity of the criticism that the financial system in Britain has failed to provide adequate funding to small or fast-growing companies. It considers, first, some of the advantages which an economy might gain from having a vibrant and healthy small firms sector. It then discusses the financing difficulties faced by small firms and some of the attempts which have been undertaken to ‘solve’ these problems. The paper suggests that the size of the unsatisfied fringe of creditworthy borrowers in Britain has been consistently over-estimated, since none of the ameliorative measures have displayed significant success. Small firms may require additional financial provision, but this has to be justified by recourse to social welfare and externalities, rather than financial efficiency, arguments.     

Disney in Spain (1930–1935)

Abstract

This article looks at the ways in which the global brand par excellence – Mickey Mouse – spread throughout Spain in the early 1930s. In tracing the creative and commercial interplay with the Mickey character we show how the Disney Company failed to obtain any significant intellectual property rights in its own name or obtain a sympathetic hearing by Spanish patent and trademark officials. Yet this was undoubtedly a period of significant global development of the Disney brand. With the attempt to explain such an apparent contradictory situation, this article highlights the importance of the management of particular struggles in the flux of desires, appropriation and investments that contributed to the emergence of the elusive ‘merchandising right’.     

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.     

Cottage and Small Firm "Presence" in Indonesian Manufacturing between 1975–1996

The article reviews the development of business incubators in a developing country, namely Nigeria.The current operational status of the seven existing incubators are highlighted as well as the successes and shortcomings associated with the implementation of the programme. This is followed with an assessment of the needs to be addressed before incubators can make the desired impact in stimulating entrepreneurship development and technological innovation. Finally, policy recommendations are made to guide the future development of business incubators in Nigeria so that they can make effective contribution to the goal of promoting small and medium scale enterprises.     

Lufthansa Alliances in China and Asia-PacificAlliance strategies in China and Asia

One of the pillars of Lufthansa's corporate strategy is to build on its leadership position in the rapidly growing aviation market between Europe and Asia-Pacific in cooperation with its strong partners.Lufthansa is proud to be a founding member of Star Alliance, the leading global airline alliance, which is also by far the leading airline alliance in Asia.By joining forces with local Star Alliance members Air New Zealand, All Nippon Airways, Asiana Airlines, Singapore Airlines and Thai Airways,     

Global strategies,differing experiences. Electricity companies in two late-industrialising countries: Spain and Argentina, 1890–1950

The article compares the performance and profitability rates of electric utility firms in Spain and Argentina from the early period of global electrification to the period following World War 2. It aims to analyse the relationship between the investment strategies of international electricity companies and local conditions in two late-industrialising countries, and evaluate its impact on the structure and development of both electric utility systems. The study finds similar long-term trends in profitability as a result of the global strategies of multinational holding companies; nonetheless profitability rates varied greatly from one country to another. Rates were higher in Argentina as foreign firms controlled large systems in most dynamic urban areas. In contrast, the increasing investment of local firms in electric utilities paved the way to a less profitable but more equitable electricity system in Spain.     

Mad women: gendered divisions in the Swedish advertising industry, 1930–2012

This article constitutes a first attempt to systematically map the presence of women in the greatly changing Swedish advertising industry since 1930. The overarching aim of the study is to analyse how the gendered divisions of labour and business changed in relation to both business structure and the overall labour market in Sweden. While we conclude that women constituted around 40–50% of the workforce over time, we see an increase in the shares of women in higher positions and in women who were self-employed and managers. This upturn, however, stabilised during the 1990s. We argue that the changes in gendered divisions of labour and business coincided with a fast-changing business structure. First, the old cartel broke down in the mid-1960s. Then, the number of firms increased quickly during the 1970s and 1980s, and the market share for the largest firms declined. This, in turn, meant new business opportunities for women at the same time as their overall labour market participation increased. The article stresses the importance of both acknowledging women’s presence in the industry development as well as the structures constituting gender divisions.     

Financial Elites in Three European Centres: London,Paris, Berlin, 1880s–1930s

Bankers and financiers have rarely been included in the discussions on entrepreneurs, or on the relationship between banking and economic development. This article compares London, Paris and Berlin as financial centres between the 1880s and the 1930s. It then considers the socio-professional position of bankers and financiers in these three centres, and shows that London offered greater opportunities than Berlin for the operations of individual financiers, as well as for the survival of a banking aristocracy, Paris being somewhat in between. On the other hand, German professional bankers were integrated earlier into the financial elite than their English and French counterparts. However, these differences appear to have had a limited impact on the shaping of the banking systems of the three countries.     

Unlocking the padlock: Retail and public policy in Belgium (1930–1961)

Abstract

During the inter-war and post-war decades, until the dawn of the 1960s, the Belgian retail sector remained very traditional and overcrowded. In that context literature usually points to the Belgian law of 1936/1937 restricting the expansion of department stores. This article outlines the history of this so-called Padlock Law (Loi de Cadenas/Grendelwet), and evaluates its effectiveness and impact. It tries to answer the question as to why the public debate on retailing in Belgium was caught in a deadlock and, specifically, why prohibitive measures against big distribution remained intact for such a long period. It demonstrates how the political dossier of the Padlock was interlinked with a much broader societal debate, that of the survival of the independent classes moyennes/middenstand. The Padlock became a highly symbolic issue, pitting small, family enterprises against big, capitalistic businesses, with all this linked to powerful social perceptions and powered by the dichotomy of modernity versus tradition. In the highly segmented and pillarised Belgian society, reaching a consensus on the modernisation of retailing was only possible after clearly incorporating small independent enterprises into the post-war neo-corporatist welfare state and into its structures of collective bargaining.     

Different evolutionary paths: Technological development of laser diodes in the US and Japan, 1960–2000

Exploring the technological development of laser diodes from 1960 to 2000, this study examines how US and Japanese firms diverged from the same technological target to take separate evolutionary paths over time and came to be competitive in the different areas. Scrutinising the level of vertical integration, entrepreneurial start-ups, scientists' mobility and research networks, it shows that R&D efforts were scattered over different technological domains, giving US firms the chance to obtain technological advantages in customised and small markets. R&D efforts were concentrated in the same targeted markets in Japan, giving Japanese companies the opportunity to capture the markets offering the highest sales volumes.     

Risk management and reinsurance strategies in the Spanish insurance market (1880–1940)

Reinsurance allows insurance companies to diversify their risks. However, from this original role, insurance companies have developed various reinsurance strategies in order to expand their market share. From the last decades of the nineteenth century to the 1940s, Spanish insurance companies used reinsurance in a largely unregulated context. This article analyses the reinsurance practices and their adaptation to the singularities of the Spanish market, namely: the difficulties for the consolidation of a core of pure reinsurers; the management of reinsurance in the internationalisation process; and the use of reinsurance by mutual societies to overcome their lack of equity capital.     

Location strategies of multiunit service businesses: spatial differentiation and agglomeration among hamburger restaurants in Paris, 1984–2004

In this article, we study how multiunit service businesses locate their units, choosing between two opposite spatial strategies. Whereas, locating one’s units close to competitors’ brings positive agglomeration externalities, locating one’s units far away from others’ allows local monopolies through spatial differentiation. We examine location strategies of the two biggest hamburger restaurant chains—namely McDonald’s and Quick—in Paris between 1984 and 2004. Results show that competitive standings impact locational strategy choices. The market leader favors spatial differentiation, thus preempting premium locations. Conversely, the challenger favors locations close to the leader, thus aiming at agglomeration externalities.

Beyond industrial policy. State intervention in the Swedish electricity supply industry, 1936–1946

As in other Western European countries, the emergence of a national network for electricity transmission in Sweden was accompanied by a greater degree of State intervention in the electricity supply sector. The aim of this article is to elucidate the institutional background to the decision in 1946 by the Social Democratic government to transfer control of the national grid to the Swedish National Power Board. It is demonstrated that this decision not only was linked to a general industrial policy to promote energy supply. It was also linked to the agricultural and cohesion policies which emerged during the 1940s.