REVIEWS

Free Trade and Protection in the Netherlands
The Analysis of Family Budgets . By S. J. P rais and H. S. H outhakkfr .
Two Postwar Recoveries of the German Economy . By H orst M endershausen .
The Economics of European Air Transport . By S tephen W heatcroft .
De Ontwikkcling van de Moderne Prijsteorie . Deur J. E. A ndriessen .
Oxford Regional Atlas: U.S.S.R. and Eastern Europe.
Britain and she Tide of World Affairs .     

Rezensionen

Ohne Zusammenfassung     

The impact of family control on the use of performance measures in strategic target setting and incentive compensation: A research note

This paper deals with the impact of a firm's governance structure on its management control system (MCS). We argue that the involvement of founding family members in the top management team (TMT) as a corporate governance characteristic has an impact on how the TMT exercises control over subordinates. Based on a sample of 304 mainly small and medium-sized firms, our paper provides empirical evidence that founding family involvement in the TMT is associated with the latter making less use of performance measures in its strategic target setting and incentive practices, and that this impact of family involvement is moderated by firm size.     

Local clusters in global value chains: exploring dynamic linkages between Germany and Pakistan

Recent research has underlined the importance of external linkages for industrial clusters. Suppliers and buyers within a global value chain offer important external ties for cluster-based producers not only in terms of the distribution of physical goods, but also for knowledge flows and innovation. Globalization has intensified such value chain links, connecting geographically dispersed producers to global markets. Yet, there is limited research on how local clusters enter global chains or on ties between clusters in the developed and developing world. This study addresses this gap. It uses the case of the global surgical instrument industry to analyse connections and differences between the industry's leading production clusters in Germany and Pakistan. Global standards, low-cost competition, and advances in medical technology raise challenges for both clusters. The paper explores the responses to these challenges. It distinguishes between knowledge and production links to illustrate differentiation in each cluster, diverging trajectories and continuing ties.