Corporate Power and Expansive U.S. Military Policy

Military defense is generally treated in economics texts as a “public good” because the benefits are presumed to be shared by all citizens. However, defense spending by the United States cannot legitimately be classified as a public good, since the primary purpose of those expenditures has been to project power in support of private business interests. Throughout the course of the 20^th century, U.S. military spending has been largely devoted to protecting the overseas assets of multinational corporations that are based in the United States or allied nations. Companies extracting oil, mineral ores, timber, and other raw materials are the primary beneficiaries. The U.S. military provides its services by supporting compliant political leaders in developing countries and by punishing or deposing regimes that threaten the interests of U.S.‐based corporations. The companies involved in this process generally have invested only a small amount of their own capital. Instead, the value of their overseas assets largely derives from the appreciation of oil and other raw materials in situ. Companies bought resource‐rich lands cheaply, as early as the 1930s or 1940s, and then waited for decades to develop them. In order to make a profit on this long‐range strategy, they formed cartels to limit global supply and relied on the U.S. military to help them maintain secure title over a period of decades. Those operations have required suppressing democratic impulses in dozens of nations. The global “sprawl” of extractive companies has been the catalyst of U.S. foreign policy for the past century. The U.S. Department of Defense provides a giant subsidy to companies operating overseas, and the cost is borne by the taxpayers of the United States, not by the corporate beneficiaries. Defining military spending as a “public good” has been a mistake with global ramifications, leading to patriotic support for imperialist behavior.     

The Industrial Statistics Divide: Are Statisticians Really Relevant to Business and Industry?

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American Indians and Natural Resource Development: Indigenous Peoples'Land, Now Sought After, Has Produced New Indian-White Problems

Abstract . In the colonial period of U.S. history, American Indian tribes enjoyed the status of political sovereigns, and dealt as equals with the English Crown and colonial authorities. In the years following U.S. independence, legal, administrative, and military actions were used to redefine the meaning of tribal sovereignty. Conceptualizing these developments, “captive nations” refers to the limited sovereignty of tribes and their isolation and detachment from mainstream American society. Recently, natural resource development on their land and especially the discovery of energy resources has had a major impact on the structure of Federal-Indian relations and the political status of Indian tribes in American society. Willingly or unwillingly, many tribes are in the process of renegotiating their status with the Federal Government as a consequence of the resource development. As a result, these former captive nations are now more aptly described as “internal colonies.”     

U.S. Strategic Trade Policy and the Competitiveness of the U.S. Construction Industry in Developing Country Markets

SUMMARY

U.S. government trade policy increasingly reflects “strategic trade” beliefs that, because competition in markets is imperfect, governments can act strategically to affect trade flows and enhance national welfare. The U.S. National Export Strategy targets the infrastructure sector in twelve developing countries as a strategic opportunity for U.S. construction firms. This paper examines whether U.S. government export promotion initiatives effectively implement strategic trade policy by providing appropriate support to these firms in that target market. It concludes that, within limits, they do.     

Transforming Transformers into Militainment: Interrogating the DoD‐Hollywood Complex

This article examines how the U.S. Department of Defense (DoD) and Hollywood collaborated to manufacture the blockbuster films Transformers (T) and Transformers: Revenge of the Fallen (TRF) to sell in global markets and to sell a positive image of DoD personnel, policy, technology, and practice to the world. T and TRF are global militainment films made by the “DoD‐Hollywood complex” to make money in markets and put the U.S. military before the world in a positive light. To show how, the article's first section defines the “DoD‐Hollywood complex,” presents a brief 20^th‐century history of its formation, and describes the current DoD institutions, policies, and practices that fuse DoD publicity agencies to Hollywood filmmakers. The second section highlights how DoD assisted T and TRF's production and contemplates why Hollywood solicited DoD support. The third section shows how T and TRF put DoD in a positive light. The conclusion addresses some of the consequences of T and TRF with regard to democratic theory. By showing T and TRF to be global militainment commodities, this article interrogates the nexus of “reel” and “real” U.S. military power and sheds light on how DoD interacts with Hollywood studios to influence how it gets screened by entertainment media and seen by global spectators.     

Constitutional Confusion: Slavery,Abortion, and Substantive Constitutional Analysis

A comparison of two U.S. Supreme Court cases about fundamental rights, one on slavery, the other on abortion, sheds light on constitutional law and the principles undergirding liberal constitutional democracy. The Dred Scott case in 1857 denied constitutional rights to enslaved Africans and their descendants living in the United States. The Roe v. Wade decision in 1973 created a constitutional right to abortion that denied constitutional personhood to human beings prior to birth. Both cases involved applications of what legal scholars call “substantive due process”—that is, a substantive interpretation of the constitutional requirement that governments provide persons with “due process of law” that moves beyond procedural formalism. Although many constitutional scholars deny the legitimacy of substantive due process as a legal doctrine, this article proposes that the judicial system cannot ultimately avoid substantive moral questions in constitutional interpretation. In both cases examined here, the crucial question was about who counts as part of the people whom the Constitution protects, and that question could not be answered in purely formal terms. Both Dred Scott and Roe v. Wade erred not by engaging substantive moral questions but rather by denying, in different ways, the natural rights of human persons.     

Export Agriculture and the Expansion of Urban Slum Areas

Abstract . Many of the richest people have all or a large part of their accumulated wealth in land, yet the men and women who work the land are usually their country's most poverty-stricken. The landowning elite is very powerful because land has been concentrated in few hands. In the Third World' of less developed countries (LDCs) and in the United States this situation in the last four decades has led to an emphasis on export crops and a restructuring of agriculture to produce them. Brazilis an example of this change, which has led to deforestation and multiplication of the hungry, homeless and alienated, the new “barbarians within the gates.” Comparable developments are seen in the U.S., threatening fiscal and political stability in many countries.     

The NCAA: A Socio-economic Analysis: The Development of the College Sports Cartel from Social Movement to Formal Organization.

Abstract . Economic cartel theory and Sociological social movement theory are used to achieve a socio-economic analysis of the problems and behaviour of the National Collegiate Athletic Association (NCAA). It is demonstrated that both cartel theory and social movement theory predict substantially similar behavior on the part of the NCAA and its 800-plus member institutions. Specific issues such as “need”scholarships, the possibility that the” big-time”football powers, may leave the NCAA, and the NCAA's relation with women's athletics, are considered. It is concluded that the NCAA is not likely to persist is an organization in its current form.

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Offshoring and reshoring: U.S. insights and research challenges

The phenomenon of reshoring to the U.S. has received wide attention ever since it became a political platform for U.S. politicians during the last presidential election. The economic downturn, a heightened emphasis on sustainability, and increasing customer expectations for flexibility and improved cost performance drove firms to re-consider the appropriate “shoring” decision. The intent of this research note is to add a U.S.-centric perspective to the “shoring” debate.     

HR's role in corporate governance: Present and prospective

Corporate wrongdoing is damaging investor confidence and tarnishing the credibility of the U.S. business community, guilty and innocent alike. Some misdeeds are clearly criminal, others simply unethical or damaging to reputations. They range from “massaging” numbers (“managed earnings”), which tests the limits of financial prudence, to outright fraud. Caught in the limelight are U.S. corporate giants representing some of the world's best‐known brands and most famous CEOs, many only yesterday lionized in the business press. We have explored this issue from the perspective of the HR function through a survey of the senior HR professionals who attended the Human Resources Forum. The survey was augmented with focus groups. Our purpose was to understand current practices, attitudes, and behaviors with respect to legal standards and professional and ethical codes. We also explored the roles of the CEO, HR leadership, and the HR function in minimizing ethical breaches that have diminished investor and public trust. We hope to shed light on the responsibilities, actions, and risks of the HR function and its leadership now and in the future. © 2004 Wiley Periodicals, Inc.     

C. E. Ayres's Reliance on T. H. Huxley: Did Darwin's Bulldog Bite?

In David Seckler's Thorstein Veblen and the Institutionalists, the proposition is advanced that “Ayres out-Veblens Veblen and out Deweys Dewey”. This commonly held view of the intellectual orientation of the prominent American institutional economist, Clarence Edwin Ayres, places him as an intellectual descendent of philosopher John Dewey's pragmatism, and economist Thorstein B, Veblen's institutionalist economics. Certainly such an outlook is not incorrect, but it is also not adequate if one is to achieve an understanding of Ayres. A careful check of the indexes of Ayres's major works shows that his references preponderantly go not to Dewey and to Veblen, but to Adam Smith and Charles Darwin, Moreover, it is to the latter that Ayres turned in his effort to overturn the former. However, Ayres in interpreting Darwin relied not upon Dewey and Veblen, but rather upon Thomas Henry Huxley, the British physician turned scientist, who because of his outspoken advocacy of Darwin's evolutionary biology became known as “Darwin's bulldog.”     

Sustainable entrepreneurship,innovation, and business models: Integrative framework and propositions for future research

This article introduces the business models for sustainability innovation (BMfSI) framework to study how business models mediate between sustainability innovations and business cases for sustainability. The BMfSI framework integrates two major perspectives (implicitly) found in the sustainable business model literature. The first is the agency perspective. It takes into consideration that some form of agency is needed, that is, “someone” who takes decisions and acts. Sustainable entrepreneurs are discussed as those agents who align their new or existing business models with sustainability innovations in order to be successful in business and to create value with and for stakeholders. The second perspective is the systems perspective, which acknowledges that business models are always embedded within sociotechnical contexts through which, for example, public policies, private financing, or stakeholder interests influence whether and how business models can be developed. The agency and systems perspectives are integrated in the so‐called business model mediation space. This theoretical notion embraces the decisions and activities pursued by sustainable entrepreneurs as they align their business models with sustainability innovations on the one hand and the influence of environmental contingencies, barriers, and stakeholders from the sociotechnical context on the other hand. The paper concludes with propositions for future research derived from the BMfSI framework.     

Matching managers to strategies: Point and counterpoint

In recent years, an emerging and increasingly popular theme in the strategic management literature has been that the selection of general managers should be tied directly to the strategies of business units they will oversee. Because different strategies imply different priorities and the need for different skills, such a proposition has obvious intuitive appeal. Beyond intuitive appeal and supporting conceptual arguments, recent empirical research on whether matching general managers to strategies “pays off” in terms of more effective strategy implementation has also yielded positive results. Despite this evidence, several arguments exist for why it may not always be feasible, necessary, or desirable to match general managers to strategies. Thus, there is need for a point-counterpoint “debate” on the subject of matching general managers to strategies. Based on a review of the relvant literature, logical reasoning, as well as some case evidence, this paper is intended to be such a debate undertaken by the author with himself. It is hoped that such a dialectical analysis will open up new avenues for productive research and also enable corporate executives to make better “managerial selection” decisions.     

Determinants of the Size of the Small Business Sector: They Are Labor Productivity, Wage Rates and Capital Intensity

Abstract . Statistical analysis of a hitherto unpublished tabulation of the 1976 Annual Survey of Manufactures provides new evidence of the small business/ large business relationship in the U.S. economy. Small business (measured by employees) seems to have an advantage over large in that it has relatively lower wage costs. But the data prove it has a higher ratio of labor inputto unit output. Higher productivity in large firms make its wage/output relationship an advantage over small firms. Large firms pay appreciably higher wages than small where most production is by large firms. Highly skilled and hence higher paid workers may be a correlate of higher mechanization. Similarly, the role of capital intensity as an indicator of technology differences explains why capital productivity is no adequate explicator of firm industry share. These variables are closely related to profit margin. Relatively high book values in large firms are associated with low small business industry shares. Nor do large businesses have an advantage in lower prices for raw materials and parts. In the U.S. large business is centered in the capital intensive industries.     

Peddling in the Antebellum Economy: Precursor of Mass-Marketing or a Start in Life?

Abstract . This article examines the effect of peddling upon industrialization and economic development and the evolution of institutional arrangements in marketing in the Antebellum period. After 1840 peddling in America was undertaken, to an increasing extent, by newly arrived immigrants from Germany who displaced the traditional “Yankees” from the trade. The relationship between peddling and the development of entrepreneurship is explored, along with the special opportunities that peddling provided for economic and occupational mobility in the American milieu. The frequency with which individuals who started careers as peddlers rose to prominence in the fields of merchandising and finance points to the importance of the “schooling” function of this institution for newly arrived immigrants in American folkways, business practices, and commercial possibilities.     

Benefits of Environmental Stewardship

Abstract

Environmental sensitivity has gained much attention in business organizations; however, there is little empirical evidence on the business benefits from environment oriented measures. Some of the many promised benefits from environmental sensitivity are categorized and rated. The framework proposed by the Management Institute for Environment and Business (MEB) is used to assess company environment stewardship. A pretested questionnaire was used to collect data from 66 business organizations in the United States and from 31 organizations in Pacific Rim nations. These organizations were known to have undertaken at least some “green business” activities. The results suggest that companies showing higher degrees of environment stewardship will derive greater business benefits than organizations which aim at minimum compliance with government regulations in this area. While, compared with American organizations, on the average the Pacific Rim companies show significantly less environmental stewardship and derive significantly less benefits from it, “their efforts in the area have also been rewarded.”     

Verifying the state of financing constraints: Evidence from U.S. business credit contracts

Many policymakers are concerned that tight financing constraints for small businesses are stalling the recovery from the Great Recession. This paper empirically assesses two agency problems that induce such financing constraints—one resulting in a “firm balance sheet channel” and one resulting in a “bank balance sheet channel”. Evaluating specific models of these two agency problems against a comprehensive data set of U.S. small business credit contracts, I find strong support for the firm balance sheet channel but only weak support for the bank balance sheet channel. A complementary regression analysis confirms this result. Hence, policies seeking to improve firms’ balance sheets may be desirable to support small business lending in the recovery from the Great Recession.     

Interfirm Channel Relationships,Influence Strategies and Performance in China

Abstract

This paper empirically examines the relationship between inter-firm channel relationships, influence strategies and suppliers' performance. A survey of 103 foreign partners from Sino-foreign joint ventures in the food industry in China shows that channel relationships have a major positive effect on supplier's channel performance. While the influence strategy of “threats” is negatively related to supplier's channel performance and channel relationships, “suggestive litigation” has a positive influence on performance, on the contrary to findings in Western countries. Although a business relationship with an emphasis on “legal effect” is not desired on the part of distributors, it enhances channel relationships. The influence strategy of “request” as a Western phenomenon does not work well in China, and has an inverse effect on channel relationships. Implications for practitioners and researchers are discussed.     

Outsourcing of Services and the Productivity Recovery in U.S. Manufacturing in the 1980s and 1990s

Manufacturing productivity growth recovered during the 1980s and 1990s, while other sectors, particularly services, did not. In the same period U.S. manufacturing has engaged in the “outsourcing” or “contracting-out” of service functions. Has the recovery of manufacturing been accomplished by industrial reorganization--sloughing off sluggish services--rather than technical progress? We analyze this question by reducing service inputs to their consituent elements of material inputs. Service productivity growth is thus imputed to the goods sectors, reducing the recovery of manufacturing productivity growth in the 1980s by one fifth. The recovery lasted through the 1990s, when high productivity performers in manufacturing have been relatively successful at outsourcing sluggishservices.

     

Henry George and Europe

Abstract . Michael Flürscheim, an industrialist, sought in 1885 to organize in Germany a society of land reformers. Only 20 responded to his call. Soon afterwards two journalists, did respond and organized a group called the Land League. It disbanded in 1887. A. T. Stamm, who had previously tried to start an organization he called “The Society for Humanism,” then sought to form a society, “The All-Weal Union.” These efforts came to naught until Flürscheim launched in Frankfort the “German Union for Land Ownership Reform.” It gained 600 members. It was called by a government official, Wilhelm Schrameier, himself a land reformer, “a small sect.” But these educational efforts convinced officials of the imperial government and navy of the usefulness of the land value tax for ending land speculation and provided for 16 years a practical demonstration of that in a large colonial territory, Kiaochow, China.