Showing papers by "Stockholm School of Economics published in 1986"

The hypermodern MNC—A heterarchy?

Abstract: The hypermodern multinational corporation (MNC) is meant to convey the suspicion that some crucial aspects of developments of and in MNCs cannot be grasped by notions in the merely 'modern' schools of thought. The heterarchical MNC covers a particular brand of geocentric company, which differs significantly from a version that is likely to develop more rapidly in immediate future. Ethnocentric, companies are managed by home country people, and with time there is a lot of rotations between headquarter (HQ) and subsidiaries. The control style will vary in accordance with practice in the parent company and parent country. This chapter examines 'hierarchy' as one governance mode in geocentric firms. The heterarchical MNC differs from standard geocentric one both in terms of strategy and in terms of structure. Strategically, the main dividing line is between exploiting competitive advantages derived from a home country base on the one hand, and actively seeking advantages originating in the global spread of the firm on other.

The management of meaning in the polish crisis[1]

Abstract: The concept of ‘organizational culture’ proves to be fruitless when applied to organizations in socialist economies. Instead, this paper focuses on a more general relationship between organizational life and the cultural context of organizing. Three examples illustrate the proposed approach. In the first, the Polish ‘propaganda of success’, used in the years 1970–80 by the ruling elite, is analyzed as a case of the use of ideology to manage the meaning shared by participants in economic life. In the second, the battle between the government and the Solidarity movement is interpreted as a battle over meanings. In both examples, the successful management of meaning demands the fit between ideology and national culture. The third example, contrasting Polish and American myths about the origins of organizational effectiveness, shows how everyday organizational life is embedded in the historical and cultural context of a given country. The paper ends with a proposal to concentrate further research efforts on the complex relationships between organizational control and culture.

Firm Size and Foreign Direct Investment

Abstract: This paper examines the importance of firm size in explaining foreign direct investment with data from American and Swedish firms. The results suggest that firm size only has a threshold effect on foreign investment, an effect on the decision to invest abroad. Once, however, a firm has jumped the initial barriers to foreign production, size has no effect on the fraction of the firm's resources devoted to foreign activity. Among firms that invest in foreign production large firms do not appear to have any particular advantage over small investing firms.

The Change Process of Innovative Work Designs: New Design and Redesign in Sweden, Canada, and the U.S.:

Abstract: Following their study of change efforts in Sweden, Canada, and the U.S. based on sociotechnical systems concepts, the authors present a model of the change process that takes place in both newly designed and redesigned organizations. This model identifies three key subsystems-legitimization, design, and work-and illustrates feedback loops from one subsystem to another related to performance, commitment, and viability. The authors also describe the effects of values on philosophy, of technology on social aspects of tasks, and the applicability of various forms of education, and consider differences between structure and process and between situations of design vs. redesign.

The Export Performance of Swedish and U.S. Multinationals

Abstract: While the U.S. and Sweden both lost more than 20 per cent of their shares of world and developed countries' exports of manufactures over the 15 years or so after the mid-1960's, the export shares of their multinational firms stayed fairly stable or even increased. The multinationals, while first increasing and then holding fairly constant their shares of exports by their home countries, raised the proportion of their worldwide exports that they supplied from their overseas affiliates. These developments suggest that the declining trade shares of the U.S. and Sweden were not due mainly to deterioration in the innovativeness or inventiveness of American and Swedish firms or declines in their management ability or in their technological capabilities, but rather to economic developments in the firms' home countries. The finding that firms have done better as exporters than their home countries 4s strengthened when we look at different industry groups. In both the U.S. and Sweden, and in all industry groups, with one exception, the multinationals' export shares increased relative to those of their home countries. The margins were often wide, and were mostly larger for Swedish firms than for U.S. firms. In general, though the basic story was quite similar for the U.S. and Sweden, there were some notable differences. One was that the share of exports originating in affiliates was lower for Sweden than for the U.S. To a large extent, this difference in the siting of export production reflected the much greater export orientation of Swedish parents relative to U.S. parents, presumably a consequence of the relatively small size of the Swedish domestic market. Another difference between U.S. and Swedish multinationals was that while the U.S. firms' share in world manufacturing exports remained stable over the studied period, the Swedish firms' share rose by 14 per cent. We are so far not in a position to say whether this was because Swedish firms increased their competitiveness more than U.S. firms or because there was a higher conversion of Swedish firms into multinational status.

A model for relating technology, organization and employment level: A study of the impact of computerization in the Swedish insurance industry

Abstract: This article investigates effects of computerization in the Swedish insurance industry from 1960–1980. While the technological imperative dictates that many jobs would disappear, it was found that employment actually increased. The authors produce a model relating technology to employment levels and suggest that a range of moderating factors must be considered.

The Economic Impact of Acidification

Abstract: The economic impact of acidification can be looked upon in two perspectives. the first is to focus on the economic losses caused by acid depositions. the second is to focus on the economic impact of policy responses to the acidification problem. Recent estimates of the economic losses caused by acid deposition are uncertain, but suggest that these losses can turn out to be significant. Due to international positive external effects of emission reductions in individual countries, coordination of emission control policies in Europe can lead to significant cost savings.