Energy and machines. Energy capital ratios in Europe and Latin America. 1875–1970

The relationship between energy and capital is one of the most important aspects of modern economic growth. Machines need energy to produce all the goods we enjoy; energy would be far less useful for humankind in absence of machines. However, the great majority of the economic models do not take into account the elasticities of substitution (or complementaries) between these two main variables. Actually, energy is absent in many growth models and discussions on diverging economic development paths. We approach this relevant issue from a new perspective: energy and capital relations during 100 years. We use the latest estimations of capital stock (machinery and equipment) and energy consumption for Latin America and compare them with those of Western Europe. The energy–capital ratio (how much energy is used per unit of capital) could be a predictor of economic growth, thus providing stylised facts about the timing and causes of the different modernisation patterns of these regions and showing us some answers on the long-run relationship between energy consumption and capital accumulation.     

MNE practice transfer as a process of institutional change

We build upon current theory on strategic organizational practice transfer in multinational firms by incorporating the agency of actors and applying an institutional lens to the transfer process. Our theoretical analysis suggests that practice transfer is a process of institutional change that leads not only to practice adoption, adaptation, or nonadoption, but also to reconstruction. We argue that when contradictions exist within and across institutional environments, misaligned interests motivate actors to engage in praxis. As a parent‐subsidiary coalition, these actors reconstruct the practice by transcending the multitude of institutional environments that comprise the institutional system. Our process theory provides insight into how less powerful subsidiary actors engage in praxis to extend knowledge and build new capabilities within the firm. Copyright © 2014 ASAC. Published by John Wiley & Sons, Ltd.     

Welcome to the anthropocene

The paper argues that humanity's impacts upon the world have ushered in a new era that has been called ‘the Anthropocene.’ The paper argues for a number of shifts in focus in individual and social efforts to understand and deal with change. These include: becoming more aware of current contradictions; embracing insights into the state of the global system; acknowledging, valuing and applying signals of change; cultivating scepticism about the assumed importance of science and technology; exploring the potential of human, cultural and institutional innovation; and designing and implementing a range of high quality responses – especially in education. The critical role of the modern university is stressed as it is considered the one social entity that could make the greatest contribution in the shortest time.     

The Squam Lake Report: Fixing the Financial System*

In these excerpts from The Squam Lake Report, fifteen distinguished economists analyze where the global financial system failed, and how such failures might be prevented (or at least their damage better contained) in the future. Although there were many contributing factors to the crisis—including “agency” problems throughout the financial system and a bankruptcy code poorly suited for reorganizing financial firms—at the core of the problem is a potential conflict between the risk-taking proclivity of financial institutions and the interests of the economy at large that must be managed at least in part through more effective regulation. The Squam Lake Report provides a nonpartisan plan to transform the regulation of financial markets in ways designed to limit systemic risk while preserving—to the extent possible and prudent—the economies of scale and scope that justify the existence of today's large financial institutions. To reduce the risks that large banks will fail, the authors call for higher capital requirements based on more effective assessments of the risks of bank assets and liabilities, as well as a new systemic regulator that should be part of the central bank. To reduce the costs of failure when it occurs, the authors propose that banks be required to create “living wills” laying out their plan to sell assets or shut down operations in the event of financial trouble. As part of that plan, regulators are urged to “aggressively encourage” banks to issue “contingent” debt capital securities that convert into equity.     

Should You Spin Off Your Internet Business?

The purpose of most corporate spin-offs is to unlock the shareholder value of a business unit that is not critical to the parent company's success. Internet spin-offs raise additional problems, partly because they are so new. This article sets out a multi-dimensional framework to help managers decide how to structure their internet businesses: whether to keep them integrated into the parent company, to establish them as wholly-owned subsidiaries or to spin them off 'wholly or partially'. The authors argue that companies must weigh the trade-offs between what they call the 'three Cs': control, currency and culture. The collapse of internet stock prices in April/May 2000 reduced but did not eliminate then 'currency' attraction of the spin-off option. But issues of control and culture were always just as important. Above all, the decision must be made in the context of a company's total 'digital agenda': that is, as part of a company's overall strategy for creating and sustaining value in the new economy.     

Local authorities, tourism and competition

Tourism development has become a popular pursuit for local authorities seeking to generate new economic horizons. This requires the existence of some special attraction or package, something to distinguish an area from the basic diet of potentials that everywhere else can offer, or a strong competitive edge in what might be labelled as conventional markets. Unfortunately, new ways of nurturing tourism activity are increasingly hard to find and the tourism development scene is an increasingly competitive arena. Yet, competition is an unspoken word within the realms of tourism professionals, and a matter that is rarely confronted in any overt way by researchers.     

Modeling and Assessing Sustainable Enterprise Excellence

The enterprise excellence and modern sustainability movements have developed along near parallel timelines. Skilled use of enterprise excellence systems has been documented to significantly boost performance across an array of key domains, including financial, human capital, operations and supply chain, and other areas. Notably absent are social and environmental performance, with their absence attributable to the inadequate emphasis on enterprise excellence of these domains. Similarly, although the triple bottom line is core to the sustainability movement, many adherents of sustainability approach its people and planet domains with ardor, yet virtually neglect its profit domain. A simple model of sustainable enterprise excellence and accompanying maturity assessment regimen are introduced and advanced as a means of merging these movements to drive an equity, ecology and economy triple top line strategy to produce triple bottom line people, planet and profit performance with innovation and organizational design playing pivotal roles in both the model and its assessment. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment