Editor's Introduction

From May 19 to May 21, 2005, the Business History Conferenceheld its annual meeting in Minneapolis, Minnesota. The programcommittee of Steven W. Usselman (chair), Tracey Deutsch, HelenShapiro, Steven Tolliday, and JoAnne Yates put together a marvelousprogram. The local arrangements     

Raising Rivals' Costs Through Political Strategy: An Extension of Resource-based Theory

In this paper, we extend the resource-based theory of the firm to show that it can be used to analyse the effectiveness of competitive strategies. Specifically, we demonstrate that political strategies aimed at raising rivals' costs by blocking the use of substitute resources may create the opportunity for a firm to capitalize on resources that are valuable, rare, and costly to imitate. The uses of political activity to block the availability of substitute resources are discussed in detail and examples are provided to demonstrate how such strategies are used and to illustrate how successful they may be. This is an important extension of the resource-based theory because it demonstrates how the theory can be applied by researchers and practitioners.     

Does underwriter reputation matter in the municipal bond market?

We examine the role of underwriter reputation in the tax-exempt municipal bond market. Using a large sample of 10,239 tax-exempt municipal bonds, we show that generally, reputation matters. Municipal bond issues lead managed by larger and more prestigious underwriters have significantly lower borrowing costs, lower yields, and lower underwriting gross spreads. Our results are consistent with the view that reputation facilitates underwriter activities that leads to reducing information asymmetries between borrowers and issuers in the municipal bond market. Our results are also consistent with larger and more reputable underwriters providing a certificatory role for issues underwritten by them.     

Domestic Implications of a Global Labor Market

Conventional thinking about labor markets has been slow to adjust to the reality of labor in a context of a global rather than a closed, national economy. Liberalization of international trade and capital flows has made substitution of foreign for domestic labor increasingly feasible. This has put downward pressure on reservation wages of unemployed workers. Also, the relatively easy substitution of foreign and domestic manufactured products relative to services has led to a dual economy in which manufacturing employment has been severely impacted by foreign competition while service employment has not. This has been amplified by the U.S.’ comparative advantage in high education and skills, which tends to be more characteristic of services than of manufacturing. This implies that low-skilled workers will be increasingly left behind unless they upgrade their skills in an increasingly competitive global economy. JEL Classification J400,F410     

Windows and Doors Around the World—The Global Market for Fenestration Products

A look at the global market for fenestration products JEL Classification L700     

Gender differences in job search among young workers: A study using displaced workers in the United States

This article investigates gender differences in job search, job tenure, and wages, whether these differences vary over the early part of the life‐cycle, and whether they are associated with fertility decisions. Using data from the National Longitudinal Survey of Youths on highly attached displaced workers aged 20 to 45, we find that 20‐ to 29‐year‐old women and women older than 40 experience longer spells of displacement than comparable men, but that time to a new job is similar by gender for those between 30 and 39 years of age. The age pattern in male–female wage differences in the post‐displacement job is similar, with the largest differences occurring at ages 20 to 29 and over 40. We find no gender differences in tenure in the post‐displacement job. We interpret the differences for the younger ages to be related to fertility and we provide evidence that supports this view.     

Fear Becomes the Unintended Consequence of Creativity/Innovation

Creativity and innovation are essential elements for growth in organizations to achieve a competitive advantage. Transformational leaders often exhibit traits reflective of being creative and innovative, thus creating a cultural climate that fosters, embraces, and produces effective change. That productive organizational atmosphere can become toxic and initiate unintended behavioral consequences. People are psychologically and physiologically attracted to stability. The continual burden to develop effective creativity and innovation outcomes creates organizational and individual stress. Stress, which unconsciously produces fear, develops from the initial pressure to create ideas and subsequent effective innovations. Next, anxiety is heightened relative to performance expectations. Finally, a successful innovation becomes an expectancy barometer, adding supplemental stress and anxiety about future ideas and initiatives. The unintended consequence of fear can manifest into resistance and an unconscious inhibitor in producing creativity and innovation.