Enterprise and Society - current issue

How Reciprocal was the Business-Government Relationship? The Wedge of Competition in Early Industrializing Japan

von Staden, P. — 2009-05-11

The literature on early industrializing Japan characterizes the business–government relationship in antithetical terms of "cooperation" or "independence." The first position advances that interaction between these actors is largely covert and mutually beneficial and the second characterizes business as ever chary of government interference. These positions have been brought under the framework of "Reciprocal Consent" where government accords business control of industry while retaining its jurisdictional remit. It is argued that this arrangement observed in Japan's energy industry emerged because government was not a financial stakeholder. By contrast, in the iron and steel industry under study here, government was the primary stakeholder. The Shingikai or Councils of Deliberation records show that in the early development of this industry, economics played a central role in shaping the business–government relationship and setting the limits of "reciprocity".

Pensions and Providence: Dutch Employers and the Creation of Funded Pension Schemes

Nijhof, E. — 2009-05-11

From an international perspective, the Dutch system of old age provisions stands out for its wide coverage, fixed benefits, and an overall actuarial soundness that seem to make this system more shock proof to demographic shifts and economic adversities than those in other "Western" countries. Its actual foundation is a compulsory old age insurance for all citizens, enforced by law and implemented by the state; this insurance is supplemented by fully funded pension schemes for workers and employees, operating under legal control; and finally there is a variety of additional and noncompulsory pension benefits and individual insurance arrangements. The main impetus to the genesis of this system came from employers who, with different agendas, created various pension funds; eventually it was the state, which set a decisive example with a funded pension fund for its civil servants. This became the standard to all corporate pension schemes and provoked innovations like branch funds. These initiatives were supported and regulated by legislation that made these arrangements compulsory and guaranteed their juridical independence and actuarial soundness. Only after this legally promoted maturation of private funds, the state set out to create public arrangements on a "pay-as-you-go" basis for all citizens. This delicate interplay between private and public pension arrangements is highly characteristic of the Dutch variety of capitalism in a broader context. In the polarity between liberal and coordinated market economies, as developed by Soskice and Hall, the Dutch system of old age provisions has played a prominent role in ranking this country more firmly into the latter category. However, within this range of countries the Dutch system of old age provisions is also a bit atypical: private corporate and branch arrangements were encouraged and at the same time embedded in a legal framework. The role of the state was also remarkable: a supervisor of the private funds, a collector and distributor in a universal insurance system, and an employer with an exemplary pension scheme.

Looking for "Industrial Confraternity" Small-Scale Industries and Institutions in Nineteenth-Century Paris

Lemercier, C. — 2009-05-11

This research focuses on luxury and fashion industries, especially artificial flower making. This sector of small businesses was often described as totally unregulated but efficient. A very successful union (in terms of membership), nevertheless, was created in 1858. I investigate the motives of its founders and the reality of its economic influence. It acted as a service firm, allowing small businesses to lower transaction costs, and as a conciliation board. However, to understand its creation, success, and limits, other factors must be taken into account, such as political opportunities and the founders’ organizational repertoire.

Between Agnelli and Mussolini: Ford's Unsuccessful Attempt to Penetrate the Italian Automobile Market in the Interwar Period

Toninelli, P. A. — 2009-05-11

This article discusses a chapter of the interwar history of the Ford Motor Company in Europe rather neglected by historians, namely its unsuccessful attempt to erect a solid base of operations in Italy. Expansion onto the Italian market had been part of the post-WWI Ford's strategy of internationalization. It seemed to go well beyond the exploitation of an additional demand as its most interesting and promising aspect was the utilization of the Italian branch as a bridgehead into the Balkans, the East Mediterranean region, the Middle East, and North-East Africa. At the beginning this strategy turned out successful. But when in the late 1920s the Company tried to strenghten its position in the country—either setting up its own assembly plant or establishing a joint venture with an Italian firm—its attempt was blocked. To date scholars have focused exclusively on the political and economic barriers to entry erected by the fascist regime, urged by the powerful Fiat lobby. This was certainly the main cause. Yet, this study shows that on several occasions Ford hesitated and even hung back from acting. Therefor a few chances were missed: the most glamorous being an agreement with Fiat itself, so far ignored by historiography.

Hinterland Dreams and Midwestern Rails: Public Power and Railroading in Nineteenth-Century La Crosse, Wisconsin

Morser, E. J. — 2009-05-11

Historians of the nineteenth-century American Middle West typically pay scant attention to the financial and regulatory role that smaller cities played in forging a regional railroad network. This article, however, explores railroading in La Crosse, Wisconsin, to demonstrate that politicians and boosters in such cities often took advantage of municipal power to shape the course of railroads in unexpected ways. In 1853, 1864, and 1876, for example, local boosters convinced city aldermen to fund railways and help forge commercial links to Milwaukee, Minneapolis, Chicago, and other markets in the East and West. The city's influence over railroading did not start and stop with public investment. Beginning in 1883, after state lawmakers had amended the city's charter and given municipal officials new police powers, aldermen forced railroad executives to clear city streets, prevent damage to private property, and guarantee the personal safety of local residents. Moreover, even when La Crossers lost a fight with railroads, as they did when they waged a holy war over the location of a Mississippi River bridge in the 1860s and 1870s, they forced railroad men to pay attention to their concerns. In the end, the case of La Crosse suggests that historians need to pay much greater mind to people and governments in small, hinterland cities before they can fully grasp the rich history of railroading, and of capitalism more generally, in the nineteenth-century Middle West.

Jeffrey Haydu. Citizen Employers: Business Communities and Labor in Cincinnati and San Francisco, 1870-1916

Pearson, C. — 2009-05-11

Kristin L. Hoganson. Consumers' Imperium: The Global Production of American Domesticity, 1865-1920

Sheumaker, H. — 2009-05-11

Andrew M. Schocket. Founding Corporate Power in Early National Philadelphia

Gajewski, P. K. — 2009-05-11

Edward J. Renehan, Jr. Commodore: The Life of Cornelius Vanderbilt

Salmon, M. S. — 2009-05-11

Deirdre N. McCloskey. The Bourgeois Virtues: Ethics for an Age of Commerce

Lasch-Quinn, E. — 2009-05-11