Showing papers on "Embeddedness published in 2000"

Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor industries

Abstract: Network researchers have argued that both relational embeddedness—characteristics of relationships—and structural embeddedness—characteristics of the relational structure—influence firm behavior and performance. Using strategic alliance networks in the semiconductor and steel industries, we build on past embeddedness research by examining the interaction of these factors. We argue that the roles relational and structural embeddedness play in firm performance can only be understood with reference to the other. Moreover, we argue that the influence of these factors on firm performance is contingent on industry context. More specifically, our empirical analysis suggests that strong ties in a highly interconnected strategic alliance network negatively impact firm performance. This network configuration is especially suboptimal for firms in the semiconductor industry. Furthermore, strong and weak ties are positively related to firm performance in the steel and semiconductor industries, respectively. Copyright © 2000 John Wiley & Sons, Ltd.

Quality, Nature, and Embeddedness: Some Theoretical Considerations in the Context of the Food Sector

Abstract: In this paper we analyze a turn to “quality” in both food production and consumption. We argue that quality in the food sector, as it is being asserted at the present time, is closely linked to nature and the local embeddedness of supply chains. We thus outline the broad contours of this shift and discuss the most appropriate theoretical approaches. We consider political economy, actor-network theory, and conventions theory and argue that, whereas political economy has proved useful in the analysis of globalization, it may prove less so in the examination of quality. We concentrate, therefore, upon actor-network theory and conventions theory and show that the former allows nature to be brought to the center of analytical attention but provides few tools for the analysis of quality, especially in the context of the food sector. Conventions theory, on the other hand, links together a range of aspects found in food supply chains and allows us to consider the establishment of quality as a system of ne...

The Determinants of Trust in Supplier-Automaker Relationships in the U.S., Japan and Korea

Abstract: We examine the determinants of trust in 453 supplier–automaker relationships in the US, Japan, and Korea. We define trust and derive a model of its determinants drawing upon (1) an embeddedness (relationship-based) perspective, (2) a process-based perspective, and (3) an economic (hostage-based) perspective. Our findings indicate strong support for the process-based perspective in all countries; embeddedness was only important in Japan, and the economic hostage-based variable (stock ownership) was not important in any country.

In Search of Centre of Excellence: Network Embeddedness and Subsidiary Roles in Multinational Corporations

Abstract: * In this paper the authors explore the role of a subsidiary as a centre of excellence within the multinational corporation (MNC). It is argued that such a role can be based on the characteristics of a subsidiary's internal resources, its relationships with the rest of the MNC and the business context of which the subsidiary is a part. Based on the perspective of an MNC as a Network the latter aspect is especially focused. Through an analysis of 98 subsidiaries the importance of the subsidiary's embeddedness, in terms of business relationships with specific customers and suppliers for its role as a centre of excellence, is investigated. Key Results * A conceptual result from this paper is that it offers a framework for analysing the role of the business context for the subsidiary's role as a centre of excellence. Productive relationships with external counterparts in the business environment can be used by the subsidiary to enhance its role as a centre of excellence. An empirical result is that the external embeddedness of the subsidiary is an important and significant explanatory variable of the subsidiary's possibilities to be considered important to the MNC as well as a prerequisite to influence the future behaviour of the MNC. Introduction In traditional foreign direct investment theory it is assumed that firms base their internationalisation on specific advantages created and located at home. These firm-specific advantages make it possible to overcome the disadvantages associated with carrying out the business activities in foreign markets (Hymer 1976, Kindleberger 1969, Vernon 1966, Buckley/Casson 1976, Johanson/Vahlne 1977, Caves 1982, Hennart 1982, Dunning 1988). But in some of the recent literature about internationalisation, it has been argued that the firm-specific advantage can be located at different places in the organisation, not only in the parent-country (Kogut 1983, Hedlund 1986, Bartlett/Ghoshal 1989, Forsgren 1989). Having different assets in different industrial and commercial contexts is an important driving force for internationalisation as such (Cantwell 1991, 1995, Dunning 1996, Zander/Zander 1997). This new approach to foreign direct investment and the internationalisation process also gives rise to a reformulation of how we look at the structure of the multinational enterprise. Within the former "centre-periphery" view, the firm specific advantages of the multinational corporation (MNC) are developed and controlled by the parent company, while the foreign subsidiaries exploit these advantages in the local markets. According to the new perspective, MNCs are considered "multi-centre" structures, where firm-specific advantages also can be located in different subsidiaries (Forsgren et al. 1992). Sometimes the concept "centre of excellence" has been used to describe this new subsidiary role (Surlemont 1996). However, even if the received theory today recognises the existence of "centres of excellence" within the MNC, it tells us very little about why and how they emerge. It has been argued elsewhere that it is difficult to give the concept "centre of excellence" in relation to MNCs a precise definition (Forsgren/Pedersen 1998). For instance, in the literature about product mandates, the possibility for a subsidiary to operate as a full-fledged unit with its own export and R&D is focused (Dhavan et al. 1981, Eteman/Dulude 1986, D'Cruz 1986). Although there is no undisputed definition of what characterises a subsidiary with a product mandate (Fratocchi 1994), most of the literature on product mandate seems to emphasise autonomy rather than interdependence vis-a-vis the rest of the MNC as the crucial factor (Roth/Morrison 1992, Birkinshaw/Morrison 1995). A subsidiary which can function as a quasi-firm in the MNC, because of the independence and completeness of its resources, can also, according to this view, be called a centre of excellence within the corporate family. …

No place like home? The embeddedness of innovation in a regional economy

Abstract: Two views have come to dominate the debate on the globalization of innovation in the emerging knowledge-based economy. The first contends that globalization reduces the significance of the home base as the primary site for innovation, as firms increasingly source and apply their innovations on a global basis. The second view as articulated in the innovation systems approach contends that the institutionally embedded nature of the innovation process, which is a central feature of the new economy, demands a continued, and even accentuated, role for the local context. In this article, we seek to contribute to the debate by evaluating the extent to which the institutional context and local setting play an important role in determining the innovative behaviour of manufacturing firms in Ontario, Canada. Specifically, we compare the practices of 242 indigenous and multinational establishments with respect to in-house technological capabilities, innovative processes, external sources of innovative ideas, and the ...

Strategic payoff from EDI as a function of EDI embeddedness

Abstract: A key issue facing IT researchers and practitioners has been the difficulty in realizing strategic payoff from IT investment. This study, drawn on sociological theories of embeddedness, addresses this key issue, with particular attention to the perspective of EDI network initiator. Cross-case analysis is conducted comparing three initiators of sophisticated EDI networks, who realized different levels of strategic payoffs. Results reveal that the achievement of strategic payoffs is a function of EDI embeddedness, which is defined as how central or peripheral a specific EDI network is to managing interfirm interdependence. In a model of EDI initiator strategic payoff, we argue that EDI embeddedness, which is influenced by existing inter-firm relationship, moderates the impact of adopter EDI use on initiator strategic payoff derived from the EDI investment. Specifically, while high embeddedness motivates adopter strategic use, low embeddedness deters such use. The model is validated against three reported cases in the literature.

Prelude to Political Economy: A Study of the Social and Political Foundations of Economics

Abstract: Mainstream economics was founded on many strong assumptions. Institutions and politics were treated as irrelevant, government as exogenous, social norms as epiphenomena. As an initial gambit this was fine. But as the horizons of economic inquiry have broadened, these assumptions have become hindrances rather than aids. If we want to understand why some economies succeed and some fail, why some governments are effective and others not, why some communities prosper while others stagnate, it is essential to view economics as embedded in politics and society. Prelude to Political Economy is a study of this embeddedness; it argues for an 'inclusive' approach to institutions and the state. Modern economics recognizes that individuals' pursuit of their own selfish ends can result in socially suboptimal outcomes - the Prisoner's Dilemma being the stark example. It has been suggested that what we need in such an eventuality is 'third-party' intervention, which can take the form of imposing punishment on players. Kaushik Basu objects to this method of wishing third parties out of thin air. He argues that if a third party that could impose its will on others were available, then it should have been modeled as a player to start with. The adoption of such an inclusive approach has implications for our conception of the state and the law. It means that the law cannot be construed as a factor that changes the game that citizens play. It is instead simply a set of beliefs of citizens; and, as such, it is similar to social norms. What the law does for an economy, so can social norms. The book discusses how the nature of policy advice and our conception of state power are affected by this altered view of the state and the law. As corollaries, the book addresses a variety of important social and philosophical questions, such as whether the state should guarantee freedom of speech, whether determinism is compatible with free will, and whether the free market can lead to coercion. Available in OSO: http://www.oxfordscholarship.com/oso/public/content/economicsfinance/0198296711/toc.html

How Inter-firm Co-operation Depends on Social Embeddedness: A Vignette Study

Abstract: This paper examines the effects of the social context of economic exchange on the governance of transactions in buyer-supplier relations between firms. We distinguish three dimensions of social embeddedness of transactions, namely, repeated exchange between the partners (temporal embeddedness), relations with third parties such as other firms (network embeddedness) and social institutions that allow for credible agreements and commitments (institutional embeddedness). Together with transaction characteristics, social embeddedness shapes trust problems in economic exchange and how firms mitigate such trust problems through contractual planning. More precisely, we analyse how transaction characteristics and social embeddedness affect effort invested in contractual planning. We argue that social embeddedness provides alternatives for costly contractual planning, such as reciprocity and conditional co-operation. Forty purchase managers participated in a factorial survey. Virtual transactions were presented. E...

Managerial Behaviour Research in Private and Public Sectors: Distinctiveness, Disputes and Directions

Abstract: A managerial behaviour approach is identified that has sought to understand managerial work by analysing the day-to-day behaviour of individual managers: what do managers do? It is argued that this approach is distinctive and that its distinctiveness is valuable and has not received adequate attention. The distinctiveness is defined by its research background, object, focus and methodology. The managerial behaviour approach has developed from research over nearly fifty years: long enough for there to have been a variety of disputes about what has, or ought to have been, achieved. The relevance of these criticisms and what later research has done to meet them is assessed. Recent research directions are identified and suggestions are made for building on the distinctiveness. It is concluded that the institutional embeddedness of managerial work should attract further scholarly attention, and that the contribution of researchers in the public sector, who come from a differentdisciplinary background, needs to be integrated with that of researchers from organizational behaviour as they can contribute new conceptual approaches, which could help to revivify this field of research.

Economy/Society: Markets, Meanings, and Social Structure

Abstract: Chapter 1: The Embeddedness of Markets Markets and Their Alternatives Markets and Their Preconditions The Embeddedness of Markets The Consequences of Markets The Variety of Capitalisms Globalization Outline of the Book Chapter 2: Marketing and the Meaning of Things Things and Meaning Commodities as Gifts Consumerism Consumers and Debt Advertising Diversity and Consumerism Consumerism and Globalization Conclusion Chapter 3: Organizations and the Economy The Power of the Boss Organizations around the Globe Organizations and Internal Labor Markets The Organizational Context for Conflict Workplace and Personal Life The Formation of an Organizational Economy Conclusion Chapter 4: Networks in the Economy What Is a Network? Why Networks Matter Individual Networks The Importance of Networks in Markets Conclusion Chapter 5: Banking and Finance What Does a Financial System Do? Finance and Development Regulation and Deregulation Disintermediation Innovation and Status Household Finance Globalization and Finance Conclusion Chapter 6: Economic Inequality Inequality in Perspective Inequality and Efficiency Explaining Recent Trends in Income Inequality Globalization Race, Gender, and Inequality Gender in the Labor Market Race in the Labor Market Race, Mortgage Discrimination, and Wealth Inequality Race, Gender, and Price Conclusion Chapter 7: Economic Development Economic Development Defined From The Wealth of Nations to the Washington Consensus Sociological Perspectives on Development Conclusion Chapter 8: Conclusion

Globalization and the German model of capitalism--erosion or survival?

Abstract: The German business system has been regarded as a particularly tightly coupled system, with embeddedness of even multinational companies (MNCs) in their home base as particularly deep. A study of the impact of companies' changing internationalization, if not globalization, strategies is therefore especially suited to test competing claims about their effects on the German business system. Are we experiencing an erosion of this system, an adaptation in a largely path-dependent way, or even a greater specialization and stronger crystallization of the German business system? To investigate these questions, the paper examines a small number of German MNCs in their domestic and international context. More particularly, the work focuses on whether and how their emergent globalization activities affect the reproduction or erosion of the three institutional complexes which shape the factors of production: the financial system; the innovation system; and the industrial relations system. The paper concludes that a new type of transformation – hybridization – is emerging. It is regarded as a consequence of German companies' growing integration into a global economic system.

The "End of Geography" in Financial Services? Local Embeddedness and Territorialization in the Interest Rate Swaps Industry*

Abstract: This paper provides evidence that the globalization of financial services has not undermined the importance of local embeddedness in world financial cen- ters, among global banks. Using qualitative data from interviews with senior bankers in the interest rate swaps (derivatives) industry in Australia, in this paper I demonstrate the importance of spatial relationships and processes of local embed- dedness in the production of swaps. Local embeddedness is attributable to the rapid exchange of financial information in formal dealing networks that serve as central information sources, enabling dealers to formulate a "market feel" that influences their dealing strategies. Information interpretation and decision making in dealing processes and specialist financial labor provide the foundations for the product-based learning orientation of swaps dealing. Dealing networks are under- pinned by social relationships, requiring face-to-face interaction that is facilitated by spatial proximity. Although the global swaps industry is dominated by multina- tional banks, the centrality of these embedded networks impedes globalization in interest rate swaps dealing. The global swaps industry comprises an international network of highly localized but interconnected operations based in world financial centers.

The dynamics of Asian business systems in a globalizing era

Abstract: Globalization tendencies are transforming the nature and organization of business systems. This is particularly the case in the Asia-Pacific region where business systems are socially and institutionally embedded. In this article, I argue that the dialectical tendencies of globalization towards homogenization and differentiation have differential impacts on the configurations and dynamics of Asian business systems and their constituents. While these business systems tend to be relatively enduring over time because of their historical legacies and institutional embeddedness, major business firms emerging from these national business systems may be much more susceptible to changes brought about by globalization tendencies. This is because actors and elites in Asian economies are increasingly enrolled into global actor networks which in turn reshape how these Asian actors conceive and operate their business firms and/or political-economic networks. It is possible that globalization has only limited effects o...

An experiment on the effects of embeddedness in trust situations: buying a used car

Abstract: This article describes a vignette experiment on the effects of temporal embeddedness and network embeddedness in trust situations. The experiment uses a setting in which a buyer wants to buy a used car from a car dealer. We distinguish between effects on trust of the past relation and the effects of the expected future relation between the buyer and the dealer. A buyer can learn about the trustworthiness of the dealer from past transactions of the dealer. Moreover, the buyer can control the dealer if the buyer and the dealer expect more transactions in the future, because the buyer may sanction the dealer if the dealer would act untrustworthy in the present transaction, for example, by refraining from future transactions. Temporal embeddedness facilitates learning and control through the bilateral relation of the buyer and the dealer, while network embeddedness facilitates learning and control through third parties. In the experiment, subjects are asked to compare different settings for buying a used car,...

The Future of Organizational Sociology: Forging Ties among Paradigms

Abstract: HEATHER A. HAVEMAN Graduate School of Business Columbia University hahl5@Ocolumbia.edu cultural turn, skirting the edge of seductive solipsism, by the indifference to historical processes, and by the economy of theory production and research in this areaall those journal articles on narrow topics of corporate efficiency and competitiveness. The most conservative prediction is that because of our embeddedness

Prisoners and escapees: improving the institutional responsibility square in Bangladesh

Abstract: The article argues that explanations of problematic governance are institutional rather than organizational and have their roots in the deep structures of society. Bangladesh is used as an exemplar for such analysis, deploying the notion of the institutional responsibility square comprising four institutional domains of state, market, community and household. A prior or ‘total institution’ metaphor is used to describe the ways in which different classes are obliged to pursue their livelihoods, entrapped within the problematic social embeddedness of these four institutional domains. The article develops this argument via three themes: permeability between these domains (i.e., blurred moral boundaries between public and private behaviour); problem of legitimation of public institutions, given this permeability; and the incorporated rather than independent characteristics of civil society, thus limiting optimism about its potential to create reform. Nevertheless the article offers a strategic agenda of institutional improvement (i.e., escape from the prison) based on the principles of shifting people's rights from the problematic, uncertain informal sphere towards the formal realm. Copyright © 2000 John Wiley & Sons, Ltd.

Economic crime in Russia

Abstract: Preface Notes on the Contributors 1 Introduction: Economic Crime in the New Russian Economy A Ledeneva 2 Crime in the Context of Transition to a Market Economy L Fituni 3 The Russian Mafia: Economic Penetration at Home and Abroad M Galeotti 4 Organized Violence, Market Building, and State Formation in Post-Communist Russia V Volkov 5 Corruption and Violence in Russian Business in Late 1990s V Radaev 6 The Transformation of the Second Economy into the Informal Economy M Kurkchiyan 7 Pervasive Corruption F Varese 8 Victims or Accomplices? Extortion and Bribery in Eastern Europe W Miller, et al 9 The Embeddedness of Tax Evasion in Russia E Busse 10 `Everyday Crime' at the Workplace: Covert Earning Schemes in Russia's New Commercial Sector K Birdsall 11 Russian Hackers and Virtual Crime A Ledeneva 12 Dirty Business, `Normal Life' and the Dream of Law C Humphrey 13 Large-scale Corruption and Rent-seeking in the Russian Banking Sector H Pleines 14 Illegal Aspects of Transborder Capital Flows from the Former Soviet Union L Fituni 15 Russia: Multiple Financial System and Implications for Economic Crime V Chorniy 16 Money Laundering Control and the Rule of Law in Russia F Dahan 17 The Hyperbola of Russian Crime and the Police Culture J Backmann 18 The Development of Appropriate Responses to Organized Crime in Post-Communist Societies, W Tupman Index

The Class Embeddedness of Corporate Political Action: Leadership in Defense of the NAFTA

Abstract: This paper examines the sources and significance of inter-corporate unity in political defense of the North American Free Trade Agreement (NAFTA). Using a wide range of firm-level and inter-corporate network data, the author analyzes sources of leadership in the USA*NAFTA coalition among a sample of 200 corporations. Business Roundtable affiliation and higher degrees of centrality within U.S. Trade Advisory Committees significantly increased the odds of a corporation assuming leadership in the USA*NAFTA coalition. Board of director network centrality also influenced leadership outcomes. The number of subsidiary operations in Mexico, ranked sales, labor intensity of firm operations, and ideological propensities of political action committee contributions had significant bivariate associations, though did not significantly improve the fit of the logistic model. The very strong effects of Business Roundtable membership and centrality in the Trade Advisory network confirm the importance of inter-corporate cohesion in the policy formation process and the propitious functions of inter-firm networks in mobilizing a collective defense of the policy outcome; that is, the NAFTA. Consistent with a class embeddedness account, the analysis provides support for political theories of trade policy and globalization that are attentive to the relationship between class organization and state structure.

Enterprise restructuring and embeddedness: a policy and systems perspective

Abstract: This paper presents a dynamic analysis of technological (and industrial) policies directed to business sector restructuring in increasingly knowledge-based economies. It simultaneously considers policies which are aimed at promoting restructuring directly and policies aimed at influencing the facilitating structure of (largely) non-business institutions and organizations. This paper also offers an explicit analysis of the changing portfolio of policies, recognizing the complementarity of both incentives and institutional development, and the likelihood of having to adopt, under a broad set of circumstances, a changing portfolio of horizontal and target "incentives" policies/programs. Copyright 2000 by Oxford University Press.

Embedding Foreign Affiliates in Transnational Business Networks: The Case of Hong Kong Firms in Southeast Asia:

Abstract: The author aims to examine the nature and organisation of transnational business networks. From an empirical study of some 111 parent Hong Kong transnational corporations (TNCs) and 63 of their foreign affiliates in Southeast Asia, he argues that the role and functions of TNC affiliates are critically dependent on their embeddedness in transnational business networks. These transnational business networks can be organised either within TNCs (intrafirm) or with local firms (interfirm). This network embeddedness of TNC affiliates is socially organised and can be strategically deployed to facilitate the extension of network associations through time and space. Two detailed case studies of business networks of Hong Kong TNCs (HKTNCs) in Southeast Asia present several interesting illustrations. First, the strategic strength and spatial reach of intrafirm networks determine the competitive advantage of Hong Kong TNCs in the regional economy. Better integration and regional coverage are the winning strategies of...

Solidarity - Based Third Sector Organizations in the "Proximity Services" Field : a European Francophone Perspective

Abstract: This article reviews the role of third sector organizations in the field of ldquoproximity servicesrdquo from a francophone perspective. We analyze how the new wave of initiatives inside the third sector in France and francophone Belgium can be seen as providing institutional responses to state and market failures that arise from trust-dependent and quasi-collective attributes of these services. These initiatives are often called ldquosolidarity based third sector organizations,rdquo a concept defined in this paper. A central assumption of this analysis is that the political context in which these services are delivered is especially important, particularly as reflected in the changing regulatory role of the state. This analysis takes, therefore, an economic sociology perspective.

Social Capital and Entrepreneurial Performance in Russia: A Panel Study

Abstract: Drawing on the social embeddedness perspective, this paper examines the impact of entrepreneurs' social capital on their firm performance in post-Soviet Russia. Based on face-to-face interviews with 75 Russian entrepreneurs in 1995, and the follow-up study in 1999, the study contrasts the effects of structural embeddedness, relational embeddedness and resource embeddedness on firm performance. The main finding is that relational embeddedness and resource embeddedness have direct positive impacts on sales growth, profit margin and return on assets in contrast to structural embeddedness that has no impact on performance. The research implies that further research should focus on finding out what dimensions of social capital affect what performance indicators and how they affect. The practical implication is that entrepreneurs should recruit more resource-rich weak ties into their personal networks.

Transnational Corporations and Local Embeddedness: Company Case Studies from Shanghai, China

Abstract: Many factors impinge on local involvement in transnational corporation (TNC) networks. Two factors have not been explored, the previous economic strength of local partners and the large domestic market. This study employs site interviews and survey data in Shanghai to demonstrate that these two factors do affect the local involvement in management, industrial linkages, and technology transfer. The paper discusses China's cultural and political background, TNC's market-capture motive, and equity joint ventures as the most common entry modes. The influence appears more evident when the two factors come together in joint ventures. Evidence also suggests that the overall localization level in Shanghai is lower than in some other developing countries because of the novelty of TNC investment in the city. On this account, as joint ventures constitute the main mode of TNC investment, increasing localization is anticipated in the years ahead.

Social Embeddedness, Overt and Covert Power, and Their Effects on CEO Pay: An Empirical Examination Among Family Businesses in India

Abstract: The literature on CEO compensation reflects two common biases: (a) the dominant use of the agency theory perspective and (b) the almost exclusive use of U.S. and U.K samples. Agency theory views compensation as a consequence of the incentive contracts and the processes of corporate governance. However, little is known about the determinants of CEO compensation in developing countries. Considering that foreign direct investment of U.S. multinational enterprises increased 10fold over the past decade, mostly in developing economies, there is a great need to understand the dynamics of pay setting in these foreign contexts. Overall, there is an imperative need to explore alternative theoretical perspectives as well as investigate nontraditional contexts to broaden existing theoretical premises. In an attempt to address this need, this study investigates the CEO’s social embeddedness and overt and covert power as determinants of CEO pay in a sample of Indian family-controlled firms. Using a time-series, cross-sectional regression analysis, we find family shareholding and the percentage of inside directors on the board (identified as bases of overt power for the CEO) to be the predominant influences on CEO pay. By contrast, some of the identified bases of covert power, such as the CEO’s tenure, age, education, and firm diversification, are not significant. Surprisingly, controls for firm size and performance also exhibit no influence on CEO pay. These findings offer a useful point of reference against which results from western studies can be compared to formulate more holistic theories of CEO pay.

Embeddedness, Milieu, and Innovation among High-Technology Firms: A Richardson, Texas, Case Study

Abstract: The author seeks to contribute to the debate on embeddedness, milieu, and innovation in industrial districts through a case study of high-technology firms in Richardson, an inner-ring suburban city of the Dallas–Fort Worth Metropolitan area. Richardson is important because it can be clearly defined as an industrial district, with over 600 high-technology firms and 70 000 employees. The results suggest that the district is robust and highly innovative with considerable capacity for self-sustaining growth. The firms are well integrated, locally and nationally. Despite extensive formal connections, firms' relationships are not very embedded locally. The link between embeddedness and innovation is subtle at best, and is confined to a small set of the most highly innovative firms. Similarly, evidence of a well-established industrial milieu was not forthcoming, although it may be emerging. The relationship between milieu and innovation was vague and was confined to the most innovative firms. The long-term viabi...

Moving Targets: Institutional Embeddedness and Domestic Politics in the Liberalization of EU Electricity Markets

Abstract: After ten years of controversial negotiations, the European Union finally took action to liberalize the electricity supply industry in 1996. Given that the longstanding debate on the organization of electricity supply was brought to an end through bilateral negotiations between France and Germany, the reform has been often presented as a straightforward French-German deal. This paper, however, argues that the French-German intergovernmental deal was only the tip of the iceberg. Perceptions of national interests evolved considerably in both countries. While France turned from initial support of the market opening to a much more defensive posture, Germany moved from skepticism to fervent support of the liberalization. The most important cause for these changes was at the EU, not at the national level. The substance and progress of the negotiations were fundamentally shaped by their embeddedness in the EU institutional context. The institutional context of EU negotiations induced several key domestic political realignments on the part of sectoral and state actors.

What is Chinese about Chinese Family Business? And How Much is Family and How Much is Business?

Abstract: The questions posed in the title are a way of identifying the main contending models of cause and effect that may be used to explain the phenomenon labelled ‘Chinese family business’. Simply put, these are (i) the culturalist position which would argue for the primary determinants being Chineseness and the associated transfer of values into stable patterns of action; (ii) theories which begin with the premise that the family stage of organizational emergence is consistent across cultures and that Chinese family business is the same as other family business; and (iii) more complex theories of the emergence of business systems which bring into play a much wider set of determinants, principally those of surrounding institutions, but also allowing for societal embeddedness, borrowing and constant adaptation. The considerations are then used to reflect on the issue of the globalization of the Chinese family enterprise. Another model exists based on the universalist and ‘under-socialized’ assumptions of economic theory; but as this tends to be based on selected and isolated ‘facts’ and is weak in dealing with complex interactions, reciprocal determinacy and multiple patterns of causation, it will be left out of this account. Instead, the focus will be on work that has dealt with the Chinese family organization as the unit of analysis and attempted to explain why it is so.