The fable of the birth of the Japanese automobile industry: A reconsideration of the Toyoda–Platt agreement of 1929

In discussing the birth of the Japanese automobile industry, most researchers and journalists put the Toyota Motor Corporation and the Toyoda–Platt Agreement at centre-stage. It has been widely asserted that the one million yen (¥100,000) that was received as a result of the Agreement provided Kiichiro Toyoda with the means to begin his research on the automobile. But the historical evidence does not support this legendary story, and in many ways contradicts it. This article aims to set the historical record straight.     

The dynamics of the Chinese film industry: factors affecting Chinese audiences’ intentions to see movies

This study attempts to understand the dynamics of the rapidly growing Chinese film industry by relying on a revised reason action model that uses a data-mining approach with aggregated data to examine the determinants of people’s intentions to see movies. The results show that attitude towards seeing movies indicated by online film ratings, collective norms represented by box-office performance and Academy Award win(s) significantly predict intentions to see movies. In addition, a movie’s year of release, star power, country of origin, adaptation from a novel and status as a sequel were significant predictors of aggregated intentions.     

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.     

The managing of competition: Government and industry relationships in the jute industry 1957–63

This paper examines the development of the 1963 court case brought by the Board of Trade's Restrictive Trading Agreements Office against jute manufacturers, in order to examine the impact of the newly introduced competition policy for government–business relationships. Government's active enforcement of competition marked an important change in the direction of industrial policy in the UK and the jute industry was one of the cases to be examined.     

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 British corporate network, 1904–1976: Revisiting the finance–industry relationship

The relationship between finance and industry in Britain has received substantial attention, largely focusing on the role played by clearing banks as lenders to industry. This article, through the use of a unique dataset detailing the composition of the British corporate network, aims to investigate the corporate connectivity of industry to banks but also, importantly, highlight the increasing presence of financial institutions other than banks in British business. Additionally, the position of these financial institutions within the network reflects the changes in patterns of ownership of British business through this period as institutional investors’ share of British companies increased. This changing position is further articulated by an analysis of network density over the period, providing critical insights into wider patterns in British business between 1904 and 1976.     

The English cotton spinning industry, 1780–1840, as revealed in the columns of the London Gazette

We investigate the early development of English cotton spinning by analysing about 700 bankruptcies and 1300 dissolutions of partnership reported in the London Gazette, 1770–1840. The data show three temporal cycles, peaking in the early to mid-1800s, in the later 1820s and again in the later 1830s, near the ends of investment booms. Both earlier peaks were absolutely higher than the later ones, despite industry expansion. Over time both bankruptcies and dissolutions show rising concentration of spinning in greater Lancashire, and within greater Lancashire in the surrounding towns rather than in Manchester. The industry was throughout dominated by single proprietors or firms with only two partners. Integration with weaving was increasing steadily. The paper demonstrates the potential of the Gazette, now searchable online, as a source for business and industrial history.     

British corporate networks, 1976–2010: Extending the study of finance–industry relationships

Abstract

Using an extensive and unique data set that has been created to record the composition of the boards of directors of the top 250 British firms between 1904 and 2010, this article builds upon a previous study by the authors on the corporate network to 1976 by extending the study to 2010. The analysis revolves around three key observations: the nature and depth of the corporate network; the distinct stages in corporate connectivity between 1976 and 2010; and the 1980s watershed in the relationship between financial and other sectors, following which financial institutions withdrew from the corporate network. The article concludes with an analysis of how the data set has changed our perceptions of British corporate networks, wider changes in British business, and a discussion of implications for future research.     

Strategic policy revisited: The origins of mass production in the motor industry of Argentina,Korea and Spain, 1945–87

During the postwar ‘golden age’ of economic growth, Argentina, Korea and Spain promoted the development of their motor industries by restricting imports, licensing investment, imposing a high level of local sourcing for parts, and supporting their own national champions. These strategic policies took advantage of economies of scale, achieving significant increases in output, and creating dynamic competitive advantage. Sudden liberalisation or the high volatility of the macroeconomic environment could jeopardise the process of structural change. Gradual evolution of policy-making and the cumulative learning of capabilities by the national champions were crucial for long-term success. The present research supports both List's classical defence of protection for infant industries in medium–large economies and more recent claims in favour of strategic policy.     

The adaptive strategies of Spanish cotton industry companies, 1939–1970

This article explores the strategies carried out by the Spanish cotton industry, drawing the distinction between dynastic and non-dynastic companies, and the business strategies to preserve the family firm, to keep the control of management in the hands of the founder's family, and to maintain long-term living standards. To achieve this, companies showed a remarkable capacity to adapt to the changing institutional, political and economic context in Spain during the second half of the twentieth century. Finally, we measure the degree of success by looking at profits, profitability and ability of dynastic and non-dynastic companies to survive.     

The effects of film trailers on shaping consumer expectations in the entertainment industry—A qualitative analysis

One can assume that there is most likely not a single person in the western world who has not been to a cinema, nor seen a trailer for a film to be released. This paper discusses consumer expectation influencers of film content and quality based on exploratory qualitative research using the screening of film trailers in New Zealand. The results show that the actors are the greatest influencers on film quality expectations, whilst genre has the greatest influence on film content expectations. This research underlines that whilst film marketers unlike film makers usually have no input in choosing actors, director or genre, they have the power to mediate how these are exposed to consumers in film trailers.     

Constructing an ‘industry’: the case of industrial gases, 1886–2006

Historically minded social scientists who analyse business and industrial development over time – including business historians – often deploy the term ‘industry’ as if its meaning were both self-evident and unchanging through time. This article uses the case of the international industrial gases industry over the course of 12 decades to demonstrate some ways in which a more critical and dynamic view of ‘industry’ – in combination with recognition of the imperfect overlap between firms on the one hand and industries on the other – enables better understanding and analysis of both.     

Opaque Networks: Business and community in the Isle of Man, 1840–1900

The role of ‘opaque’ networks are analysed within the context of an infant economy with low levels of corporate governance. A period of economic expansion is studied, documenting the effects of credit liberalisation. This article outlines the significance of networks, emerging business cliques, particularly around financial institutions and the interlocking directorates these affiliations allow. Their effects upon financial reporting, business credibility and its effects upon the network life cycle are considered. Market manipulation, the importance of monitoring in instances of unsophisticated governance structures and the agents used (but particularly local/national press) are all analysed.     

The European response to the challenge of the Japanese steel industry (1950–1980)

Between 1950 and 1980, the European delay with respect to Japan and the relative loss of competitiveness in the integrated steel industry was due to an institutional, geographical and economic logic based largely on historical factors. Europe had a long steel-making history that was closely related to its sources of raw materials. The new technological paradigm turned this former advantage into a clear disadvantage, while the large investments made in the Thomas and open hearth processes and the affordable price of scrap delayed the adoption of the Basic Oxygen Furnace (BOF) until its superiority had been clearly demonstrated. The European steel industry was not at the forefront of the transformation, but merely adapting to the changes, pushed by the threat of a new uncomfortable competitor.     

Business and State in the development of the steel industry in Spain and Italy (c.1880–1929)

In the mid-nineteenth century, the Spanish and Italian steel industries were significantly less developed than those of the more advanced countries in Europe. From the mid-1880s, heavy industry in these two countries experienced considerable growth, particularly the steel sector, due to two very different strategies. In the case of Italy, state intervention was so frequent and significant that it has even been referred to as an early state capitalism. In Spain, on the other hand, the sector’s development was based principally on the private initiative. This article seeks to shed light on the interaction between government institutions and business organisations in the implementation of the development strategies of the two countries.     

“All Business is Glocal”: The future of the automotive industry

Daimler AG is a globally leading producer of premium passenger cars and heavy- and medium-duty trucks. Dr. Dieter Zetsche, Chairman of Daimler AG and Head of Mercedes-Benz Cars, was interviewed by Dr. Christian Schmitz, Head of Business-to-Business Marketing at the University of St. Gallen.     

Varieties of entrepreneurship: exploring the institutional foundations of different entrepreneurship types through ‘Varieties-of-Capitalism’ arguments

While entrepreneurship researchers agree that institutions ‘matter’ for entrepreneurship, they also have a rather encompassing understanding of institutions as almost any external factor that influences entrepreneurship. Ultimately, this literature thus comes up with a long list of institutional factors that may explain entrepreneurial differences between countries. But which institutions are most influential? How do these institutions relate to different types of entrepreneurship? And to what extent are institutions complementary to each other in the way they sustain different entrepreneurship types? The literature on ‘Varieties-of-Capitalism’ (VoC) offers a parsimonious theoretical framework to address these questions. Based on the VoC literature, we theoretically derive a consistent set of institutional indicators that can explain differences in entrepreneurship types between countries. Based on principal component and cluster analyses, we illustrate how 21 Western developed economies cluster around four distinct institutional settings. Furthermore, we use simple OLS regressions to show how these institutional constellations are related to different types of entrepreneurship. We conclude that four different ‘Varieties of Entrepreneurship’ can be identified across the Western world. The main implication of our findings is that a ‘perfect’ institutional constellation, equally facilitating different types of entrepreneurship, does not exist. Policy-makers seeking to stimulate entrepreneurship are thus faced with the trade-off of targeting policy reforms to that entrepreneurship type they intend to promote—at the expense of other types of entrepreneurship and the broader societal consequences such reforms will have.