In Cooperation with the Gesellschaft für Unternehmensgeschichte e. V.

Abstracts and Papers

Michael Aldous
Avoiding "Negligence and Profusion": The Failure of the Joint-stock Form in Anglo-Indian Trade, 1813-1870

In the nineteenth century, firms operating in the Anglo-India trade were organized using a variety of ownership forms including the partnership, joint-stock company, and a hybrid form known as the managing agency. Faced with both an increasing need for fixed capital to undertake investments into manufacturing facilities and high principal/agent costs due to the distance between owners and managers, the firms adapted and increasingly adopted the hybrid managing agency model to overcome these problems. Organized as partnerships, these firms promoted joint-stock ventures in both the British and Indian capital markets, while providing managerial capabilities to manage activities on the ground. Using new data from Calcutta and Bengal Commercial Registers and detailed case studies of the Assam Company and Gillanders, Arbuthnot and Co., this paper demonstrates that British entrepreneurs did not see the choice of ownership as a dichotomy between the partnership or joint-stock form or firm boundaries as fixed, but instead innovatively drew on the strengths of different forms of ownership to successfully compete and grow.

Adoración Álvaro-Moya and Núria Puig
Did Inward FDI Promote Spanish Managerial Talent? A Study of Two Companies, Bayer and ITT, 1880-1975

This paper deals with inward FDI spillovers on host economies. In particular, it explores how multinationals promote talent within and around their subsidiaries, and how local talent might shape the multinational's operations in the country. In order to do so, we first propose our literature-grounded definition of local talent to examine afterward the operations of two prominent MNEs, Bayer and ITT, in Spain during the second industrial revolution. We pay particular attention to these companies' mode of entry, how they got in contact with their future local partners, how management positions were distributed within their subsidiaries, and which in-company training activities were carried out and how they were organized. Our ongoing research shows, first, that local partners played a key role in MNEs' operations in the country, enabling foreigners to obtain information about the local market and to deal effectively with economic nationalism and other adverse situations. And, second, subsidiaries' local managers contributed to the process of knowledge transfer promoted by MNEs' headquarters at least through their educational background and contacts. We argue, to conclude, that this interplay between MNEs' operations and local managerial talent is a key element to understand FDI spillovers in the long term.

Dan Bäcklund and Kristina Lilja
Changing Savings Behavior in Relation to Market Changes, Sweden c. 1900

Studies on British workers up to World War II show that they slowly adapted to new saving methods. Precautionary saving dominated, while saving for old age was unusual and grew first when old age pensions were introduced. This has been explained by workers having small and precarious surpluses. This paper concerns Swedish urban workers' saving habits. Data from probate inventories in 1900-1905 and the Cost of Living Investigation in 1913-1914 show two great changes between 1870 and 1914. Sickness and burial funds became common at the end of the nineteenth century, and there was a breakthrough for saving in life and endowment assurances in the beginning of the twentieth century. The first meant that precautionary saving was made easier, while the second indicates that saving for old age became more widespread even before the introduction of old-age pensions in Sweden in 1913. Still, savings were not enough for retirement in old age. Briefly, Swedish workers seem to have changed their saving habits at a quicker pace than did British workers. The results indicate that the development of working-class saving behavior could differ between countries and that it may be inappropriate to use the British example as the only benchmark.

Gerben Bakker
Public Goods or Business Opportunities? Ideas, Intellectual Property Rights, and Business History

This paper aims to offer, in essay style, a brief comparative, case-based reflection on the history of intellectual property rights and the implications for the development of business and the economy. It focuses on how a series of intellectual property rights transformed public 'knowledge goods' into partially private goods, often toll goods, which are nonrivalrous but excludable. This paper takes a broad view in that it discusses many different property rights over several centuries in Britain, the United States, and several other countries. It is able to do so by discussing a series of relevant cases. Having a broad exploratory character, and drawing informally and implicitly on institutional economics, it discusses cases from the history of various intellectual property rights such as the copyright, the trademark, the patent, image and design rights, and assesses their benefits and costs.

Ralf Banken
The Room for Maneuver for Firms in the Third Reich

Since the mid-1990s, the question of the role private firms played during the "Third Reich," why they supported armament, exploitation, and crimes by the Nazis until 1945, is a central focus of German economic and business history. Numerous case studies have demonstrated that, despite the increasing impact of political and ideological factors, private firms never ceased to pursue their economic self-interest. Even under the extreme ideological circumstances of the Third Reich, their strategic decisions remained geared to economic criteria. A broad consensus has evolved that the state control of firms took place more by changes of framework requirements than by using direct coercion. Actually, the regime was especially able to establish a successful control of the economy when it operated with economic incentives and left some room for maneuver, even if the latter became increasingly smaller toward the end of the war as a result of increasing state intervention and government control. This scope may explain the considerable differences in the behavior of firms, especially in respect to their involvement in Nazi crimes. The contribution will present a general overview on the current state of discussion, strengthening the view that, although case studies will never allow us to identify the exact extent of entrepreneurial freedom of action during the Third Reich, they comprise the only methodological way that enables sound conclusions about the general evaluation of state-business- relations during the Nazi period.

Victoria Barnes and Lucy Newton
The Virtues and Vices of Branch Banking: Joint-Stock Banks and the Spread of Banking in England and Wales, 1826-1844

Following the crisis of 1825/6, the 1826 Bank Act allowed the creation of joint-stock banks in England and Wales. A plethora of mainly small-scale joint-stock banks were formed between 1826 and 1870. The amalgamation movement of the 1870s-1890s then saw a concentration in banking whereby 1900 saw a few large-scale, joint-stock banks, with extensive branch networks, dominating the UK retail banking sector. This paper examines these joint-stock banks, their propensity to branch, and the part that branching played in their successful progress, at the expense of private banks, during the nineteenth century. These new joint-stock institutions took to branching vigorously. This paper will examine the patterns of branching over the nineteenth century by mapping banks and their branches and analyzing the motivations for branching. Were banks driven by a virtuous desire to serve their customers, shareholders, and local communities? What were the vices involved in branching, such as over-extending and consequent bank failure, with disastrous consequences for customers, shareholders, and local economies? The research aims to add to the debate on UK banking, primarily concerning the virtue of its stability but also the vice of its conservatism.

Ross Bassett
Foreign Computers in 1960s India: Job Eaters, Consumers of Foreign Exchange, or Export Creators?

The Indian information technology (IT) business, today generating $100 billion in revenue annually and employing nearly 3 million people, had its origins in the 1960s, a time when the foreign computer was highly controversial in India. Trade unions, using information from the United States and Europe, argued that the computer was a job-eater that would destroy the Indian economy. They organized protests, called for anti-computer legislation, and blocked the installation of computers. The Indian government, trying to minimize imports, imposed heavy duties on computers and required purchasers of computers to guarantee that they would generate foreign exchange. In this environment, managers of the Tata business group, which long prided itself on acting in the interests of India, developed an IT firm, Tata Consultancy Services. TCS developed a business that wrote software for foreign companies, most notably the American computer manufacturer Burroughs. Tata managers argued for loosening of government restrictions, asserting that its computer business brought concrete benefits to India.

Patrice Baubeau
The Banque de France's Privilege as a Balancing Tool between Private Vices and Public Virtues, and Vice Versa

The French Revolution did not revolutionize everything, but it did reverse the hierarchy of legal norms. While customs (common law) tended to be the most eminent source of law before 1789, once codification was completed, around 1810, written law became the the fundamental basis upon which a judge's decision had to rest. Nevertheless, the market's failure to provide the economy with an adequate amount of currency at a reasonable cost led to the same solution before and after 1789—a privileged body, even thoug privileges had been ruled out by the Revolution. The role of the privilege was to allow for a balance between private vices—lust, speculation and monopolization—and public virtues—wider access to cheap credit, currency, and state funding. The negotiations over the different aspects of the privilege, between 1776 and 1897, show that this delicate balance was never permanent, even though it retained overwhelming elements of continuity. It had to be adjusted from time to time—most notably when the Banque's charter was renewed—in order to adapt to the changing conditions within the banking sector, state finances and monetary practices. One of the most striking features of the negotiations concerned the distribution of the Banque's profits. On the one hand, the Banque's general aim was to lower the rate of discount and promote cheap credit, which had a depressing impact on its profits. On the other hand, currency management by the Banque led it to raise its discount rate when a crisis occurred. This raised profits to a maximum when the economy was in distress, a contradiction that fueled public outcry and menaced the Banque's position and its monopoly. The way out of the contradiction was designed within the framework of the privilege, and led to ever more complex fiscal rules related to the Banque's profit. These rules aimed at two main objectives: to limit the incentive to raise rates, and to channel "excessive" profits toward the state or toward "socially useful" investments. The Banque de France's prestige on the eve of the First World War bears witness that, through privilege, a healthy compromise between private vices and publics virtues could be achieved.

William H. Becker
Theory and Empiricism: Economics and Business History

A theoretical preference for free markets shapes professional economics in the United States. Public discourse about free markets privileges deregulation because it promotes competition. Business historians are often familiar with economic, political, sociological, and literary theory. Nevertheless, the field has produced substantial knowledge about business through empirical research, which should be relevant to public discourse about free markets. Legal historian William J. Novak, well known for controversial scholarship on a long-lived robust American state, has recently challenged neoliberal theory. Because regulation was part of a durable state, he faults free market economists for assuming that the New Deal marked a turning point between laissez-faire and stronger government. He also argues that regulation was often used to limit private capture of government, which posed a challenge to democracy. Likewise, business historians' empirical research has produced substantial evidence that firms did not favor competition. Margaret Levenstein discussed the lack of enthusiasm for competition in her 2012 BHC presidential address "Escaping Equilibrium." Indeed, the evidence is strong that businesses avoided competition by seeking new markets, technologies, and innovative manufacturing techniques, while engaging in cartels and mergers, and flaunting the antitrust laws.

Jens Beckmann
The Case of LIP in Besançon, France: From industrial Work-In to a Set of Worker Cooperatives

When the workers of the watchmaking factory LIP in Besançon, France, went on strike to save their jobs in 1973, they took to unusual means: They occupied their plant and they "illegally" produced and sold watches on their own accord. In the end, they successfully forced shareholders and the state to rescue the business. In 1976, following another bankruptcy, the workers almost naturally took recourse to their previous experiences. Several industrial co-operatives were founded from 1977 onward, which pursued various—in part contradictory—goals: they situated the economic task of earning a living in a wider political and cultural context of social politics in the Besançon neighborhood of Palente. Did these cooperatives form a part, however fragile, of a new business culture that had grown out of the workers' contesting of the conventional management practices over the years of struggle? What were its characteristics and how was it influenced by the wider context of political discussions about "autogestion"—worker self-management—in France during the post-1968 years? Is the story of LIP to be interpreted as a success story or a failure in terms of the original motives of the workers?

Gabriel Galvez-Béhar
Knowledge Sharing in War and Peace: Patents, Inventors, and the Arms Industry in France, 1816-1914

The development and circulation of military technology is based on conflicting needs and requirements. In times of war, patriotic interests seem to command the immediate sharing of relevant inventions, even when these would normally be kept secret in order to secure a business advantage. In peacetime, private economic interests may take precedence over the interests of the nation. Therefore, as regards military technology, degrees of openness in the exploitation of innovative knowledge strongly depend on the context. The purpose of this contribution is to analyze this kind of variation by studying the relationship between inventors, the military, and the defense industry in late nineteenth and early twentieth century France. First, we will consider the specificity of the French arms industry in the nineteenth century. Then, we will consider the Franco-German War of 1870-71, when committees for invention were created in response to a patriotic fervor. Then we will focus on the practice of knowledge sharing by describing the case of Eugène Turpin, the inventor of mélinite, an explosive of major importance to the French artillery. Particular attention will be paid to how Turpin was wedged between the interests of the French army and those of the armament industry.

Matthew J. Bellamy
The Public Relations Committee of the Ontario Brewers and the Defence of Brewing and Beer-Drinking during the Second World War

In the summer of 1941, Matthew H. Halton, a war correspondent, arrived in Solum, an Egyptian village near the Mediterranean Sea, just east of the border with Libya. The British army there was under heavy attack by General Erwin Rommel—the fabled "Desert Fox." As the shells of the German AfrikaKorps rained down on Solum, Halton fearlessly recorded the fighting and dying in the searing sands of North Africa. The fact that "one brigade with a few guns" ultimately held off the German assault left Halton "shaking with pride." When the fighting was done, a charming young British lieutenant approached Halton and offered him a drink. But Halton knew that it was an unforgivable sin in the desert to accept water or other drinks from people, and as a result he declined. The lieutenant, however, insisted. "Save your protest and drink the beer," he commanded. "It's Canadian." Versions of the story appeared in various Canadian newspapers during the Second World War. There was nothing factually wrong with the reporting. Nevertheless, the facts were presented in such a way as to portray the brewing industry in the most positive light. At a time when the industry was under renewed attack from temperance advocates, Halton's article and others like it were designed to highlight the brewers' contribution to the war effort, by demonstrating that beer was necessary for maintaining the health and morale of Canadians. These "news items" were a part of the brewers' public relations campaign to keep Canada wet during the war. This paper examines the unfolding of the brewers' campaign in Canada's most populated province, Ontario. By casting light on the cultural basis, organizational structure and rationale, and day-to-day practices of the Public Relations Committee of the Ontario Brewers (PRCOB), it aims to add to our understanding of what Robert Jackell and Janice Hirota term "the ethos of advocacy."

Justin Bengry
A Tale of Two Markets: Accessing the Queer Consumer in Pre-Decriminalization Britain

Long before homosexual activity between consenting men was decriminalized in Britain in 1967, the international film magazine Films and Filming subtly established its queer leanings. From its initial issues in 1954, it sought what we would today call the Pink Pound, or Britain's queer market segment. This included commercial advertisements for queer-friendly businesses as well as articles on censorship, profiles and images of sexually ambiguous male actors, and homoerotic photo spreads. The magazine's contact ads further helped foster a network of queer men across Britain and internationally. Despite its respectable credentials, international success, and mainstream accessibility, Films and Filming was, in fact, queer. But this duality was key to both the magazine's mainstream financial success and its appeal to many gay men who would not buy more explicit publications. Interviews with editors and contributors, and reminiscences from readers further reinforce the magazine's role in pre-decriminalization British queer history. Films and Filming was in fact the longest-running pre-decriminalization magazine to gain success and respect in the mainstream while actively courting a queer market segment. Surrounded by the victimization of queer men by the state and press in the early 1950s, publisher Philip Dosse recognized both a thriving subculture and a potential market.

Ann-Kristin Bergquist and Kristina Söderholm
Strategies for Energy Transition: The Swedish Pulp and Paper Industry, 1973-1990

This paper explores strategies to accomplish energy transition in the Swedish pulp and paper industry during the 1970s and the 1980s. In the wake of the first oil crisis in 1973 until the late 1980s, the use of fossil fuels within the sector was reduced by 70 percent. The lion's share of this reduction was achieved by the substitution of biofuels for oil, which, besides cutting the costs of energy also resulted in significant environmental improvements. Substituting biofuels for oil proved to be the overall most reasonable way to decrease the use of oil, even though alternatives such as coal were considered. Initially, oil reductions and energy conservation were accomplished by relatively small measures, but there was a great need for long-term R&D to push the technology development further. Inter-firm and state-firm collaborations therefore became strategically important. The strategies for substitution interacted, however, strongly with institutional changes in the energy area, the ongoing greening of the industry as well as an urgent need to enhance international competitiveness. Our study concludes that the oil crises enforced a more sustainable production in a dynamic way, which, according to our knowledge, has been overlooked in the business history literature so far.

Kenneth Bertrams
The Circulation of Corporate-Based "Scientific" Philanthropy in Europe and the United States, 1880-1940

By the end of the nineteenth century, Belgian industrialist and philanthropist Ernst Solvay and his family deemed it necessary to "pay back to the advancement of Science a part of the prosperity [they] owe to it." To American observers, the examples of Carnegie, Rockefeller, and Ford first come to mind when it comes to the creation of science-oriented philanthropic foundations or institutes. Yet, such practices, deeply rooted in the progressive credo and the gospel for industrial capitalism, have their counterparts in Europe. This paper seeks to examine some core aspects of the diversity of philanthropic cultures on both sides of the Atlantic Ocean. National models (American, German, French) often prevail and are generally accepted prima facie without questioning the practices these "models" are supposed to encompass. It is the ambition of this paper to provide the first ingredients as a means to bring out a synthetic view on the divergences and convergences of such models.

Mark Billings
Managing Risk or Appeasing the Nazis? British Banks and Standstill Debt in the 1930s

In July 1931 financial crisis led Germany to declare a de facto moratorium on its international debts, including normal commercial debts. These became subject to a Standstill agreement, which provided for limited payments to creditors; it was renegotiated and renewed regularly until the outbreak of World War II. British creditors, including the banks, were heavily exposed to German debt, which had suddenly become subject to sovereign and, with the abandonment of the gold standard, currency risk. The British banks appeared less aggressive than most Standstill creditors in reducing their exposures, in what is regarded variously as enlightened pragmatism or economic or financial appeasement. Under pressure from government and the Bank of England, both of which wanted to keep Germany integrated with the international financial and trading system and defuse economic tensions, the banks were obliged to balance patience against their desire for repayment. This paper argues that the major British commercial banks dealt with Standstill debt, notwithstanding its unusual character, in a manner broadly consistent with their management of risk arising from other types of lending. I reinforce those interpretations of economic appeasement which assert that the outward appearance of a common approach by "City interests" oversimplifies a more complex picture.

Carolyn Biltoft
The Risk of Noise: "Talkies," Market Speculation, and Dangerous Animal Spirits

In 1928 the League of Nations created an International Educational Cinematographic Institute to support the widest possible circulation of films that promoted the "Spirit of Geneva." The institute endeavored to negotiate a reduction in tariffs for qualifying films, accomplishing in one sweep the League's dual mandate of facilitating international cooperation and supporting freer trade. And yet, the League's efforts played out not only in the context of global depression, but also in a moment of rapid changes in the film industry. This paper uses the records of the League to explore critiques of "noise" as a dangerous feature of modern cultures and economies between 1929 and 1933. Linking the role of the spectator to that of the speculator, noise emerged in multilateral conversations as something that both produced (in the case of talking films) and was produced by (in the case of market speculation) unruly crowds. Furthermore, fears emerged about the extent to which noise in both films and markets could create globally contagious strains of political or economic disorder. These discussions led to debates about the extent to which populations, markets, and borders should be regulated. The League of Nations engaged with and influenced these trends until the time of the Cinematographic Institute's closure in 1937.

Fahad Ahmad Bishara
A Sea of Debt: Histories of Commerce and Obligation in the Western Indian Ocean, c. 1850-1940 [Krooss Session]

A Sea of Debt is a legal history of economic life in the Western Indian Ocean during the nineteenth and early twentieth century. The project unpacks the ontologies, practices, and shifting juridical landscapes that shaped how Arab, Swahili, and Gujarati commercial actors fashioned exchange, and how they transformed commercial and legal categories and instruments to adapt to the emergence of modern capitalism in the region. As the world of Indian Ocean commerce confronted a burgeoning British Indian empire, its participants had to cope with the growing presence of British judges, Parsi lawyers, and Indian court personnel, all of whom brought their own notions of contract and economic order. The encounter between the two legal cultures set into motion a long process in which merchants and plantation owners clashed over the legal and epistemological foundations of economic life, inside and outside of the courtroom. Through this history, A Sea of Debt argues for a rethinking of the place of Islamic law in the history of modern capitalism. It highlights how Indian Ocean actors mobilized legal concepts to facilitate expanding commercial activity, and how they constructed and negotiated these concepts within a changing juridical, political, and economic world.

Alexia Blin
Cooperation: A Virtuous Business Model? The Case of Wisconsin Cooperators, 1870s-1930s

The paper studies how Wisconsin cooperators—who played an important role in the American movement—consistently sought to define cooperation as a virtuous business model between the 1870s and the 1930s. During those decades, they used different, and sometimes contradictory, lines of argument in order to link their way of doing business to the wider society and to the common good. This definition enabled cooperators to distance their organizations from other kinds of businesses, especially traditional corporations. It was also instrumental in determining cooperators' relations with the state at different levels. From the late nineteenth century to the New Deal era, Wisconsin cooperators maintained an ambiguous relationship with the state and federal governments. Their claim to represent a form of business that benefited the general interest carried a "public" dimension, which led cooperators to both seek and refuse state protection. Defining cooperation as a virtuous business model allowed cooperators to combine private and public elements, and to define their organizations as a beneficial middle ground.

Marten Boon
Property, Control, and Room for Maneuver: Royal Dutch Shell and Nazi Germany, 1933-1945

Nationalistic Nazi politics created problems for foreign multinational firms in Germany. Although currency restrictions and the Nazi economic boom caused Royal Dutch Shell's subsidiary Rhenania-Ossag to grow luxuriantly during the 1930s, the question was to what extent the major allocation decisions were taken in Royal Dutch's headquarters in The Hague or London or in Hamburg. Under Nazi dictatorship and occupation, in particular, the management of foreign multinationals was limited by regulations and increasingly controlled by the regime. Although the room for maneuver had decreased in the course of time, it was not always clear who had been in control. A complicating factor was Rhenania's relationship with IG Farben. Royal Dutch Shell became involved with IG Farben to gain access to its technology. Under the Nazi regime, however, IG Farben became the favored instrument of autarky, undermining the position of foreign oil companies in Nazi Germany. The entanglement with IG Farben thus complicated Rhenania's position in Nazi Germany. The paper examines to what extent the parent company and the German subsidiary were able to control their businesses in Nazi Germany and what their room for maneuver was.

Elizabeth Brake
Historical Methods and the Study of Innovation in Action: A Collaborative Research Project on Innovation Management

The Innovation Working Group at Duke University's Fuqua School of Business is engaged in a study of innovation management by leading U.S. corporations. This study employs the methodologies of historical research and analysis, particularly oral history. Research of this nature offers exciting opportunities for the historian, such as substantial access to company managers and to internal documents. But it also imposes real limits, enshrined in confidentiality agreements, which historians do not often encounter. This paper describes our methodology in action and offers some reflection on what historians can learn from participating in multidisciplinary management studies that, due to the nature of the evidence, will not allow for typical historical studies and publication. It concludes that historians have a particular interest in and a unique perspective on innovation. Collaborative research that reaches atypical audiences and that inflects our teaching and research agendas is essential if we are to ensure that our perspectives reach today's business and social innovators.

Claire Brennecke
Strategies of Information Acquisition: Evidence from Nineteenth-Century U.S. Credit Reports

Until now, scholarship on nineteenth-century American mercantile credit reporting agencies has implicitly assumed that agency subscribers primarily used credit reports to screen all potential trading partners. However, the study of how and why subscribers used the reports remains to be undertaken. I argue that the R. G. Dun Credit Report Collection at the Harvard Business School, the primary source for the study of mercantile credit reports, allows scholars not only to read the credit reports that subscribers may have used, but also to determine which subscribers accessed each report. In this paper, I study the credit reports that the Mercantile Agency wrote between 1850 and 1860 on mercantile concerns in New Orleans. I conclude that it is unlikely that subscribers obtained reports for all potential trading partners. Further, while subscribers may have used reports to screen some potential partners, they also used reports to monitor existing trading partners. I argue this lack of screening implies that mercantile concerns in the mid-nineteenth century had broader access to credit than has been previously acknowledged.

Marcelo Bucheli and Xavier Durán
The Colony Strikes Back: Colombia, Jersey Standard, and the American Payment of Reparations for the Loss of Panama

Scholarship on economic imperialism has analyzed this phenomenon as a unidirectional one in which the 'colonized' country is affected (negatively or positively) by the actions of the empire. However, the literature has overlooked the strategies developed by the colonized countries to exploit internal imperial conflicts in order to reduce the net transfers of wealth to the empire. We examine a paradigmatic case of economic imperialism: the U.S. support for the separation of the Colombian province of Panama in 1903. Despite its relative weakness, Colombia eventually received $25 million reparation from the United States. Contrary to previous interpretations, we show that this payment was not a product of a new vision within the United States on how it should relate to its southern neighbors. Rather, this was possible because Colombia developed strategies to induce the U.S. oil multinational Standard Oil Company of New Jersey (SONJ) to lobby for Colombia in the United States for the payment of reparations. Our calculations show that, although SONJ gained oil concessions as a result of this operation, the average U.S. taxpayer lost. The main winners in the United States were the oil refiners, while Colombia reduced its losses from the separation of Panama.

Karen Cannell
Fashion Copying as Virtue or Vice: An Examination of André Studios as a Case Study

This paper and presentation tells the story of André Studios and puts the company in the larger context of fashion copying, considered as either virtue or vice (or both) depending on which side of the transaction one happens to be on. It also introduces a remarkable primary source collection of sketches (and their digital surrogates) that is representative of a most critical step in successful fashion copying. André Studios was a sketch subscription service for garment industry professionals. The sketches created for subscription distribution are important artifacts for technical analysis regarding a design's creation. The company was founded by designer Pearl Levy and her business partner, salesman Leonard Schwartzbach, in 1930. While it is impossible to say exactly how Levy and Schwartzbach conducted their daily business, the historical record indicates that André Studios was one of the many design services that relied heavily on copying and adapting existing clothing models to supply a sufficient up-to-date product for customer satisfaction. The industry has from time to time attempted to self-regulate outright fashion piracy; nevertheless, it is one of the industry's open secrets that for generations the appropriation of designs has been de rigueur for any fashion company that wishes to flourish and survive. The commodification of copying as a singular industry did not occur until the rise of the haute couture in Paris and the concurrent growth of the garment industry in New York City. The André Studios sketches offer a tangible window into the workings, both virtuous and otherwise, of a great American industry at its twentieth-century zenith.

Marie Carpenter, Bob Bell, Henrik Glimstedt, and William Lazonick
Cisco Systems and the Virtues and Cices of the New Economy Business Model

A leading supplier of networking equipment since 1986, Cisco Systems is emblematic of the form of business organization that develops new innovative capabilities largely through acquisition and development (A&D) rather than R&D. As the company seeks to transform itself from being a hardware to a software vendor, however, organic revenue growth has proven elusive, suggesting that over-reliance on the A&D framework is not without long-term risks for firms whose long-term prosperity depends on their ability to develop innovative capabilities. Addressing the hypothetical question of whether a company would have been more successful if it had followed a different strategic path requires detailed analysis of the technologies, customers, and competitors in the segments where the company sought new business in order to compare those where it succeeded and those where it failed. A three-decade-long study of Cisco's development allows us to evaluate key sectors where potential success proved elusive—notably, optical networking and mobile backhaul—as well as those sectors such as data centers where the company continues to build its presence, albeit from a very low base. As part of our forensic research into Cisco's strategic decisions, we examine in parallel top management's focus on the company's share price, a central component of this new economy business model. Since 2002 and the bursting of the dot com and telecom bubbles, Cisco has engaged in massive stock repurchase programs and sequestered billions of unpaid taxes outside of the United States while calling on the government to increase education spending in the areas of science and technology. In both 2011 and 2013, Cisco announced significant lay-off programs at the same time as it returned huge amounts of cash to shareholders and granted millions in stock options to top executives. In addition to the potential harm that such financialization by high-tech firms may inflict on U.S. employment and the corporate tax base, we argue that by over-focusing on its stock price, Cisco has failed to build on its accumulated capabilities to establish itself as a leader in the most sophisticated segments of communication technology.

Henderson Carter
Business Practices and the 1937 Revolt in Barbados

Historians have argued that the workers' revolt in Barbados in 1937 was primarily a result of external factors such as the Great Depression and the closure of migration outlets. While these factors placed pressure on the black majority, it is necessary to examine closely the local factors which also irritated the workers. Using the evidence of the commissions that investigated this revolt, I argue in this paper that business practices represent a significant causal factor, because they led to considerable hardship and generated resentment among the population. Such practices, existing long before the depression, were characterized by a strong business/political nexus, the persistence of a low-wage regime, the formation merchant combines, price-fixing, and the undercutting of small rural shopkeepers by provision dealers. Moreover, the pattern of attack during the revolt, manifesting itself in the assault on Broad Street businesses, plantations, and rural shops, suggests that unfair business practices constituted a major grievance of the workers in 1937.

Christy Ford Chapin
Virtue and Vice? Non-Profit and For-Profit Healthcare Companies

The health care field hosts numerous nonprofit organizations, ranging from hospitals to insurance companies. This paper examines the history of nonprofit Blue Cross plans, which traditionally supplied subscribers with hospital insurance, and Blue Shield plans, which provided insurance for physician bills. Initially, during the 1930s and 1940s, nonprofit insurers behaved quite differently than commercial firms in their pursuit of the "public interest." In exchange for their socially responsible behavior, states awarded nonprofit plans tax-exempt status and relief from numerous insurance regulations. Moreover, when federal policymakers passed Medicare in 1965 and created administrative positions for insurance companies, they granted Blue Cross and Blue Shield plans the vast majority of these lucrative intermediary positions. However, by the 1960s, nonprofit plans closely resembled and operated like their for-profit competitors. This analysis has current public policy implications for nonprofit insurance companies and hospitals.

William R. Childs
Bringing Economics Back In: Business History, Political History, and the Natural Gas Industry

Since the mid-1980s, some business historians have utilized ideas, culture, and politics to analyze business-related topics, but have ignored (ironically) the role of economics. Here, I resurrect and extend an approach developed by the late Thomas K. McCraw, who in a seminal article and a Pulitzer Prize-winning book offered this insight: More than any other factor the economic structure of an industry shapes the context in which regulatory policy is discussed and implemented. Focusing on the history of natural gas in the United States, I retell a politicized story from 1949, contrast it to the electric power story of the 1930s, and outline the disastrous natural gas policies from the 1950s to the 1970s. Only in the 1970s did policy makers begin to make more effective choices for natural gas, in large measure because the deregulation and environmental movements forced them to understand the economic structure of that industry, how it related to other energy industries, and how all of them fit into the broader economy. In the conclusion, I suggest how my approach might be applied to other business-government topics. Business historians need to put the "economy" back into "political economy."

Sabine Chretien-Ichikawa
The Chinese Fashion Industry, an Industry under Control: How to Develop a Creative Industry in a Planned Economy

This paper considers the influence of a centralized state on the emergence of a creative industry, as illustrated by the issues faced by the Chinese clothing industry as it strives to become a creative fashion industry. Under the economic reforms of the 1980s, the clothing industry was strategic in creating wealth and employment. Within two decades, China became world leader in the production and export of textiles and clothing. Early in the twenty-first century, the development of a creative economy became a new objective for the government, following a global awareness that originated in the United Kingdom in the late 1990s. Innovation, scientific research, and the promotion of cultural heritage have been key assets for developed countries to acquire competitive leading roles, which is now also the goal of China, as mentioned in the 2006 Five-Year Plan. Shanghai, as the center of trade and internationalization for China, has recently joined UNESCO's network of creative cities, and has implemented policies toward creativity. However, this paper highlights that under a strong state intervention, a unique historical and cultural context, and a fast-moving, but mass-oriented market, the feasibility of developing a creative fashion industry raises more challenges than in liberal economies.

Howard Cox and Simon Mowatt
Monopoly, Power, and Politics in Fleet Street: The Controversial Birth of IPC Magazines, 1958-1963

Britain's newspaper and magazine publishing business did not fare well during the 1950s. With leading newspaper proprietors placing their desire for political influence above that of financial performance, and with working practices in Fleet Street becoming ungovernable, many leading periodical publishers were on the verge of bankruptcy by the decade's end. The chain of enterprises controlled by Roy Thomson provided a notable exception. Having established a base in Scotland in 1953 through the acquisition of the Scotsman newspaper publishing group, the Canadian entrepreneur brought a new commercial attitude and business strategy to bear on Britain's periodical publishing industry. In 1959 Thomson bought a place in Fleet Street through the acquisition of Lord Kemsley's chain of newspapers, which included the prestigious Sunday Times. Early in 1961 Thomson came to an agreement with Christopher Chancellor, the recently appointed chief executive of Odhams Press, to merge their two publishing groups and thereby create a major new force in the industry. The deal was never consummated, however. Within days of publicly announcing the merger, Odhams faced an improved offer from Cecil King, chairman of Daily Mirror Newspapers, Ltd., which the shareholders duly accepted. The Mirror's acquisition of Odhams was deeply controversial, mainly because it brought under common ownership the two left-leaning British popular newspapers, the Mirror and the Herald. Our paper utilizes archive sources from the Cabinet Office to explore the political dialogue that enabled the controversial takeover to proceed unopposed by the regulatory authority of the Monopolies Commission. It analyzes the implication of the successful prosecution of the King-led deal for magazine publishing in Britain: namely, the creation of a virtual monopoly through the formation of the Mirror-controlled IPC Magazines.

Malin Dahlström
Why Did the Swedish State Regard the Cement Monopoly as Beneficial?

This paper deals with the question of monopoly and the Swedish state. In 1974 the two Swedish cement producers Cementa (subsidiary to Euroc) and Gullhögen merged. Thereby a monopoly was created. The common attitude in Sweden was negative toward monopoly, and there was competition legislation that did not support monopoly. Nonetheless, the state did not interfere in the process around the merger. The question asked in the paper is: Why was the cement monopoly not a problem? Why was the monopoly regarded as beneficial? The process around the creation of the monopoly is discussed. It is found that the state and the minister of building had a central role in the creation of the monopoly; the idea of the monopoly actually came from the minister. The argument for allowing the monopoly was that the industry was of great interest for the state and that it was not desirable to have foreign ownership in the industry. The state demanded insight into the monopolist and kept control over prices. The state tried to neutralize the negative aspects of the monopoly.

Stephanie Decker
The Impact of Colonial Development Debates on the HR Policies of Imperial Business in Ghana and Nigeria, 1940-1960

Colonial practices of managing labor were becoming the target of critical scrutiny by the Colonial Office and the wider public in the middle of the twentieth century. Even though the Human Relations School had yet not become as widely influential as it would be in later decades, the way conceptions of managing labor were shifting in North America and Western Europe was influential in the debates on colonial development. This was linked to the fear of greater mobilization of workers through trade unions and Communist groups. In the British colonial empire, caught between a brief resurgence of an imperial sense of mission and its eventual decline, this led to a politicization of labor relations in public and private businesses, which shaped the emerging employment relationships in these emerging states in a variety of ways. Finally, it served to de-politicize difficult issues of social development in favor of allocating entitlements that could not feasibly be extended to the working population at large. This paper presents evidence from the corporate archives of five British companies active in West Africa: two banks, two trading companies, and the largest mining firm in Ghana. It also draws on reports published by the Colonial Office on the issues of labor and social development. Over twenty years, a clear shift from disinterest to paternalism and further toward a more limited conception of advancing Africans within the economy is evident, and the way this developed in different sectors of the economy had a long-term effect on how employment practices developed in West Africa, which encapsulated the shift from ethnocentric toward polycentric staffing policies described by Howard Perlmutter.

Robrecht Declercq
he Risks and Benefits of Local Business Entrenchment: The Fur Industry as a Local Production System in Leipzig, 1918-1933

This paper views the restructuring of the international fur industry in the 1920s and its bearings on the Leipzig fur cluster. According to handbook literature, macroeconomic restructuring entails more continuous and formalized collaboration among economic actors in a regional cluster. The paper has attention for new business practices and formation of firm groupings that enabled commerce with the Soviet Trade Agencies. In particular, attention is paid to the networks between local finance and industry in the readmission to the Russian market. The Soviet preference for larger-sized contracts and deals stimulated cooperation between bank divisions in Leipzig and fur industrialists. The new arrangements in the cluster and increased collaboration between economic actors and firms allowed for a boom in the fur industry in the second half of the 1920s. It will be shown, however, that the growing entanglement and amalgamation of interests of local finance and business was a risky regional business model. The paper casts attention to growing asymmetries produced by the strengthened networks, in particular how the recovery of the fur industry went along with an externalization of risks upon local banks and how this reinforced the effects of the economic depression of the 1930s on the fur industry.

Ferry de Goey
Consul General Ferguson and the Ethics of the Chinese Coolie Trade, 1850s-1890s

The British Anti-Slavery Campaign led to a growing demand for contract laborers from India and China. This paper focuses on the Chinese coolies and attempts of the Dutch authorities to enable the free emigration of Chinese laborers to tobacco plantations and mines in the Dutch East Indies. These efforts were frustrated by Chinese authorities who at first outlawed the emigration of Chinese and next tried to regulate it. Chinese middlemen (known as coolie brokers) and their main partners, the British traders and shipping companies, also prevented the Dutch from establishing a direct migration of free Chinese laborers to Sumatra. The Dutch planters successfully lobbied their government to appoint a consul general to protect their interests in China. The selected consul, J. H. Ferguson, despised the coolie trade as a new kind of slavery. This led to confrontation between, on the one hand, the planters and the Dutch government and on the other hand, Ferguson. Using mainly archival sources from the Dutch National Archive in The Hague, I will argue, in contrast to other authors, that Ferguson did not oppose the coolie trade as such, but only the (many) negative features of the trade. Ferguson wanted to modernize and civilize the coolie trade; he pleaded for active government involvement in the trade.

Nathan D. Delaney
Transnational Liberalism: Two German Mining Firms in Nineteenth-Century Mexico

My presentation will examine two German mining firms in Mexico—one during the early years of the republic, the other during the Porfiriato&—in an effort to help answer the questions: when is foreign business beneficial to domestic communities and when is it merely extractive and disruptive? I argue that the answer to this question depends less on the mentalité of the foreign business migrants and more on the technology and legal structures of nineteenth-century Mexico. Mining groups such as the Deutsch-Amerikanischer Bergwerksverein (1824-1838) lacked the technological and institutional support to succeed over the long term and thus contributed very little to the well-being of local communities through taxes, infrastructure investment, and steady wages. Conversely, during the dictatorship of Porfirio Diaz (1876-1910), mines owned by the Frankfurt firm Metallgesellschaft (MG) reaped tremendous profits and raised revenues for local and national governments in Mexico. While MG contributed to local infrastructure development, imported new mining technologies, and provided work for thousands of people, it also benefited (largely at the expense of the working poor) from strict anti-union laws and generous land subsidies.

Pablo del Hierro
"The Bank Job": La Banca Nazionale del Lavoro and Its Activities in Spain, 1941-1946

The aim of this paper will be to analyze the activities of the Banca Nazionale del Lavoro (BNL) in Spain from 1941 until 1946, in an attempt to understand not only the Spanish economy during the first years of the dictatorship, but also the economic expansionism abroad of fascist Italy. Furthermore, this work will attempt to shed light on how companies like the BNL were able exploit the opportunities that arose when different national cultures for business-government relations collided. It will also be important to analyze the role of the BNL firm as a mediator between various actors from different national cultures with different value sets, and the extent to which this could facilitate participation in a number of enterprises—sometimes even criminal.

Sebastian Demel
In Good Company? How to Introduce Morals into Business: A Case Study of the Carl Zeiss Foundation

How can morals be implemented into business? The paper investigates this issue by having a closer look at the German physicist and entrepreneur Ernst Abbe. He instituted his own personal values into a new corporate governance structure, when he transferred one of the leading companies in the optical industries, the workshops of Carl Zeiss and its partner company Schott, an innovator in glass chemistry, into the ownership of a foundation with legal capacities in 1889. Abbe was able to convince his business partners that a successful company can operate best when without personal ownership. The two pillars of the Carl Zeiss Foundation were to manage the businesses in its possession and to promote science and support the social needs of the local workforce in the small town of Jena. With its distinct approach, the Zeiss Foundation therefore contributes to recent debates about the role and possibilities of corporate governance and social responsibility.

Nadia Fernández de Pinedo, Rafael Castro, and David Pretel
An Earlier Experience of Knowledge and Technology Transfer: The Case of Derosne & Cail in Cuba in the Nineteenth Century

This paper explores the relationship between foreign MNEs and the transfer of knowledge and technology in emerging markets. This crucial yet under-researched aspect of FDI is approached in two ways: first, through a review of the concepts proposed by the literature of international business; and second, through a long-term, empirical analysis of the operations of a prominent MNE in Cuba in the nineteenth century. We examine the transnational operations of the French firm "Derosne & Cail," one the most innovative engineering firms in the mid-nineteenth century as well as one of the first European companies supplying advanced technology to sugar industry and railway equipment through an extensive network of factories, representatives, agents, and branches across four continents. We will focus especially on one of these branches, sugar machinery, taking into account that this firm was one of the world's main developers, producers, and sellers of sugar technology in the nineteenth century. The transfer of technical innovations in the Caribbean was probably its main goal. Derosne and Cail followed a global strategy from its beginning in 1812 using foreign agents and offices, the management of intellectual property rights, and encouraging the relationship of the firm with local "agents." Our case study will demonstrate an early experience (much earlier than the proliferation of MNEs) of an astute, successfully global strategy of diversification and internationalization, effectively harnessing an extensive international network of intermediaries that turned this company in one of the first European multinationals.

Sarah Dietz
The Temptation to Advance Private Interests at the Expense of Public Duty: The Role of the British Consul in Facilitating FDI in the Nineteenth Century

In December 1882 Edward Briggs, a British textile manufacturer, wrote to the British consul at Warsaw, announcing his intention to build a factory in Russian Poland. This paper will explore the pivotal role played by British consular offices to facilitate British FDI in the late-nineteenth century, despite domestic condemnation of increasing capital export and general disgruntlement among British industrialists at the perceived unfair advantages to manufacturers abroad. It will show how the consul's official duties placed him in a unique position to take an unofficial consultative role, or even share, in private business ventures which contributed nothing to the British economy. He used the cachet of his connection to the British government to engender the trust of foreign traders and authorities alike to assist venture capitalists and increase his own income. But although the lucrative personal possibilities of the posting are strongly implied and despite contemporary accusations of corruption, this paper will consider whether consuls were forced to nurture close associations with commerce in order to fulfil their official mandate and to gain the assistance of informants and the respect of their home and host states.

Pierre-Yves Donzé
Multinational Enterprises and the Globalization of Medicine: Siemens and the Construction of Hospitals in Emerging Markets in the 1950s and 1960s

This paper tackles the role of multinational enterprises (MNEs) marketing medical equipment in the globalization of medicine and healthcare systems during the 1950s and 1960s, using the example of the German company Siemens-Reiniger-Werke (SRW). Specializing in X-ray instruments, this firm held a large share of various world markets—especially in emerging countries—until 1939, but war put an end to its leadership. At the end of the 1940s, because of the tough competition it faced in Latin America, SRW adopted a new strategy that centered on supplying fully equipped hospitals rather than exporting machines and instruments. Thus, in 1949, SRW founded an association comprising some thirty German companies (Deutsche Hospitalia) to take charge of this activity and built about one hundred hospitals in emerging countries by 1964, when a formal firm (Hospitalia International GmbH) was created for this business purpose. This paper argues that, through this activity, SRW contributed strongly to the diffusion of a standardized hospital model in developing countries and later of a Western hospital-based healthcare system.

Simone Drake
Hip Hop Genealogies and Black Entrepreneurship in the Worlds that Marcus Garvey and Jay-Z Made

Focusing on Marcus Garvey and Jay Z (aka Shawn Carter), this paper analyzes how these men fashioned businesses through various forms of nationalism that enabled them to reimagine blackness in socially empowering and financially lucrative ways. Garvey and Jay Z both registered the bleak opportunities offered to them to become businessmen, so instead, they made themselves the business. They branded themselves as businesses that were raced and gendered, blending it with a propaganda that over the course of time manifested as the "swagger" of contemporary hip hop. This paper analyzes the nuances of how what I refer to as a "hip hop genealogy" infuses how these men imagine black entrepreneurship as a nationalist site of redemption that would literally position them at the helm of empires. A distinctive difference between the advocating by Garvey for black economic empowerment and that of his most prominent contemporaries, Booker T. Washington and W. E. B. DuBois, was Garvey's separatist stance and his establishment of a business conglomerate that included the masses and instilled in them a nationalist business ideology: any redemption from the past or true citizenship was linked to their ability to produce their own goods and services and own property. The self-help business model that Garvey designed and employed through the Universal Negro Improvement Association serves as a compelling lens for thinking about how black entrepreneurship could become a new space for black empire building over fifty years later through the birth of hip hop in the Bronx. There are two connections then that create a genealogical link between Garvey and Jay Z. The first is a nationalist framework that critiques racial inequalities and supports a subculture within which resistance can take place; Jay Z does this through his lyrical aptitude. The second is Jay Z's capitalist enterprises that Garvey heralded. The nationalist-oriented art coupled with the capitalist pursuits situate Jay Z as uniquely modern, because he takes an indigenously black art and culture and uses it to literally turn himself into a product that can be marketed and consumed. Like Garvey, then, Jay Z amasses a global black empire, but unlike Garvey, Jay Z is successful at rooting his empire in both ideology and commerce—something he is able to accomplish due in large part to the crossover appeal of hip hop (Garveyism was adamantly opposed to such pursuits) and due to the buying power of African Americans in the late twentieth and twenty-first century.

Andrew Edwards
Money and Crisis: Rethinking the Transition to Capitalism with the Stamp Act Crisis

Most American historians agree for good or ill that the American Revolution itself was a watershed moment in the development of American capitalism, an "explosion of economic and popular energy" that wiped away not only British sovereignty but also the mercantilist structures of value and exchange that had come with it. The dynamics associated with this "explosion," however, remain inadequately understood. This essay will suggest one way that the American Revolution and the transition to capitalism it initiated could be tied together in a more satisfactory account. The debates surrounding the Stamp Act Crisis of 1765 offer an overlooked insight into the interplay among sovereignty, money, and power in the minds of the Revolutionaries and the structural forces at work around them. A new reading of these debates suggests that the Crisis itself was about making money, quite literally: The debate, in essence, is about which governing body, Parliament or the colonial assemblies, defined value in the colonies, about the sovereign relationship between money and power. Debates around the Currency Act of 1764 are well known, but historians have overlooked how the Stamp Taxes themselves threatened to disrupt colonial definitions of value in real and revolutionary ways. The latter debate suggests that when Americans seized control of their political destiny they were also struggling for the right to constitute their own regime of value and exchange, a regime, once constituted, that they would then extend across the North American continent and beyond. Freedom, these debates suggest, was about more than political self-determination; it was, to a surprising degree, about making money: about defining value in society. Likewise, the Stamp Act Crisis shows how money, "the palladium of liberty, the band of gentle dependence among freemen," could easily become about power. The conflict around the Stamp Act suggests, then, that the American transition to capitalism in the Revolution was, at least in part, about creating an American capitalism defined by Americans for their own ends, and that freedom was as much about value as it was about values.

Allison Elias
A Cooperative Approach to Employee Relations: Office Automation, Worker Alienation, and Human Resources in the 1970s and 1980s

New management strategies in the 1970s and 1980s challenged the adversarial model of employee relations that had driven the success of traditional trade unions. As women office workers in banks and insurance companies expressed dissatisfaction with their increasingly automated jobs, managers aimed to improve clericals' quality of work life, using new and rediscovered approaches to worker productivity. These theories promised employees greater influence over daily tasks, and they encouraged greater communication between employees and employers. However, shifting management strategies also undermined clerical workers by undercutting unionism; clerical unions struggled to take hold. Thus, a cooperative approach to employee relations represented virtue and vice for clerical workers, who constituted one-third of all women in the paid labor force in these decades. In model firms, human resources (HR) would provide individuals with access to a variety of positions based on their skills and interests. Yet the evolving field of HR management, which made development of human capital central to a firm's core strategy, weakened clericals' economic claims. Workplace fairness came to mean providing employees with opportunities to find their best fit within an organization. While emerging HR standards functioned well for professionals in higher-salary and higher-status positions, they did not help clerical workers in their efforts to reappraise the economic and cultural value of clerical work itself. Movement out of sex-segregated jobs became the solution to low pay. Without strong equal employment opportunity mandates, labor-management cooperation meant that women who remained clericals had no recourse for pay inequity or dead-end jobs in the modern corporation.

Liselotte Eriksson and Lars Fredrik Andersson
Exploring the Mechanisms of Gender Discrimination: Swedish Mutual Health Insurance, 1901-1910

In this paper we explore the underlying factors behind gender discrimination in Swedish health insurance societies during the period 1901 and 1910, a period where health insurance was voluntary and organized along mutual principles. In previous research, mutual societies have been recognized for their ability to mitigate informational asymmetries. Although efficient, many societies excluded women as a rule, and the exclusion practices of mutual societies involved a remarkably unequal access to health insurance. To trace the mechanisms of gender discrimination, we employ a panel of Swedish health insurance societies across the country. The study shows that mechanisms applied to exclude women did not provide higher efficiency in underwriting risks, although the supposedly high sickness frequency of women often was put forward by societies to justify discrimination. Additionally, efforts to mitigate moral hazard, the monitoring of members through social ties and social pressure, could also be generated successfully in gendered-mixed societies. The results show that the excluding mechanisms were rather a result of power relations between men and women and socially constructed perceptions regarding the role of women and men in society.

Mirko Ernkvist
The Discontinuous Shift to Digital Exchanges in Sweden, 1985-1992

Based on a historical innovation process study of a Swedish entrant firm that introduced the world's first commercially successful digital option exchange and the first privately owned exchange, we study the entrepreneurial and institutional conditions for the introduction of a discontinuous innovation and business model in finance. Previous research has argued that there are prohibitive barriers for de novo entrant discontinuous innovation in finance due to extensive regulatory barriers and elite power interest in retaining status quo. We argue that a key to understanding the pioneering discontinuous technological shift was an adaptive techno-social system that was open for both technological and business model experimentation in the first phase of the era of ferment, coupled with a deliberate regulatory process that enabled the entrant to influence the policy process in the second phase. Within this process, the entrant had a key role in changing the status quo by acting as a dual technological and corporate political entrepreneur. As a proactive corporate political entrepreneur, entrants had a key role in the initial phase to gain supervisors' approval and mobilize partners for temporary experimentation with the new business models, and in the second phase to influence the regulatory policy toward change in favor of its business model.

Francesca Fauri
The "Mussolini Hometown Effect" on Local Industrial Development: The Case of Forlì

This paper will trace Forlì's long-term economic development, its transformation from an agricultural to an industrial community, and the alteration of its industrial development path due to its being the birthplace of "il Duce." Forlì's aircraft industry, which could be described as having been "artificially" created at Mussolini's behest, did not survive the war, while its chemical industry, established and developed by Orsi Mangelli, managed to survive until the end of the 1960s. No trace of state-backed firms remains today except for the airport (albeit currently under compulsory liquidation), which, according to Mussolini's vision, was to form part of the Forlì aviation hub. The history of fascist intervention and rescue of banks and firms (either through nationalization or direct aid) throughout Italy in the interwar years is well known. Yet, I think the case of Forlì offers an original perspective: entrepreneurs who chose Mussolini's hometown to obtain special concessions, a novel element in the crowded panorama of special relationships between government and industry in Italy.

Torsten Feys
The Battle for the Migrants: The Introduction of Steamshipping on the North Atlantic and Its Impact on the European Exodus

The presentation will summarize two chapters of my recent book, which looks at how steamshipping transformed the transatlantic migrant transport market into big business. Based on shipping company archives, the organization of the market is discussed on three different levels based on the company's relations with: 1) the independent migrant-agent network in Europe and the United States which sold transport tickets and constituted the direct link to the migrant; 2) other shipping companies, with the rise and functioning of shipping cartels; 3) the state, and its role as middlemen between authorities and the individual migrant. I will argue that the shipping conferences originated on the North Atlantic and not on the Calcutta route. Besides mitigating cut-throat competition by concluding price agreements, sailing routes, advertising, and so forth, cartelization was spurred by the need to get control over the independent migrant agents. This gave rise to the establishment of three sub-cartels regulating the North Atlantic passenger market according to three geographic areas: the Mediterranean, Continental, and British-Scandinavian. I show how continental lines took over the dominance of the third-class passenger market from British lines by introducing pool agreements. The paper underlines that conversely to the findings on the unsuccessful pre–World War I freight shipping cartels, the North Atlantic passenger conference managed to create relative market and price stability.

Alex Gertschen
Mexico and the "Multinational Dilemma" in the 1970s: Views from the Global Periphery

The paper deals with the international debate about multinational enterprises in the 1970s that was marked by a conflict line running between First World and Third World countries. More specifically, by means of the Third World country Mexico, the paper analyzes Mexican businessmen's and scholars' views on the conflictive issue, and compares them with views expressed by scholars from North America and Western Europe. One conclusion is that one should investigate the debate about multinational enterprises also considering the credibility attributed to government regulation in Western capitalism. In the 1970s, from a Mexican perspective, not only the First World countries and private business, but also the government severely lacked legitimacy. Another conclusion is that the debate has to be studied in the light of earlier debates about foreign capital, especially in Latin American countries that had been confronted with the conflicting interests of preserving political sovereignty and achieving economic development since the nineteenth century.

Ingrid Giertz-Mårtenson
From Fast Fashion to Luxury in the Fashion Business: The History of the H&M Designer Collections, 2004-2013

The Swedish retail chain H&M, today present in fifty-three countries worldwide, is one of the key players in the creation of an accessible fashion for an international clientele, and is thus also one of the largest players in the global market. In 2004, when H&M, after nearly sixty years of operation, began its first design collaboration with world-renowned fashion designer Karl Lagerfeld in Paris, this immediately attracted major interest. Lagerfeld created the first "Luxury Designer Collection" for H&M. This was followed by a dozen other designer collaborations with top names in the international fashion scene in France, Italy, the United Kingdom, the United States, and Japan. This paper examines how and why a world-renowned clothing brand, well-known for its fashion status, but also for its low price point and "Fast Fashion" reputation, decided to cooperate with top international designers of a different category and in a completely different price range. What was the goal and purpose behind these collaborations? What was the background to the decision and what was it hoped to achieve? How were the designer names who collaborated with H&M chosen? The paper also explores how connections between "High" and "Low" fashion are creating new constellations and at the same time allowing companies with very different business models to take advantage of new collaborations.

Rémi Gilardin
A Policy (Still) in Search of a Rationale? Accounting for British Telecom's Privatisation

In 1986, the Economic Journal published an article entitled "Privatisation, a policy in search of a rationale"; since then many have sought to identify such a rationale. However, the multidisciplinary literature that resulted has overall failed to provide a satisfactory framework accounting for the historical origins of the phenomenon. By focusing on a case study, the selling of British Telecom (BT), I argue that historical research is best equipped to conduct such an inquiry. The case study reveals that the most common explanations accounting for the emergence of privatization in Thatcher's Britain—like the ailing performances of public enterprises, for instance—were actually not as decisive as is usually thought. Rather, I demonstrate how a "crisis of capitalization," born from the unique agency of technological change and monetarist policies, was the key determinant to BT's privatization. The paper also explores the importance of ideas in the design of the British privatization program and notably highlights the influence of neoliberal and Conservative ideologies.

Judge Glock
The Long-Term Interest Rate, John Maynard Keynes, and the Creation of U.S. Housing Policy

Most researchers who have looked at housing policy in the early New Deal have focused on the influence of real estate interest groups in urging federal support for incipient suburban development. This paper will argue, first, that New Deal housing policy emerged mainly out of a change in economic thinking among a subset of American institutionalist economists who had close contacts to the Roosevelt administration; second, that this intellectual change had an important influence on the thought of John Maynard Keynes; and third, that Keynes himself had a direct impact on developing this strand of thought and then lobbying directly for a change in U.S. housing policy. The tie between all of these economists and policymakers was a concern with how the government and central bank could control the long-term rate of interest. While ideas about long-term debts have received relatively little attention from historians of monetary thought, this paper hopes to show that attempts to manipulate them were crucial in the development of both the discipline of economics and U.S. policy.

Eric Godelier
Innovation and Research in the Steel Industry: A Collaborative Project? (1950-1990s)

From a Schumpeterian point of view, innovation comes when an invention is transformed by an entrepreneur into a new type of product or production process. This linear march toward change and progress relies on a rational and linear set of steps from a concept to its realization, implying collaboration among different categories of actors, either individual or collective. But what about when a network of corporations is in charge of designing and implementing new ideas, either for the entire network or some of its members? Are they "innovating" in a Shumpeterian sense? Do we have to rethink the classical concept of innovation and its linear approach to the process? The French steel industry after World War II represents a good example of this in-between collective organization. In April 1944, the steel industry decided to organize its research on a shared basis; at the same time, the French state was establishing a series of new research institutions like the Institut National d'hygiène (Public Health Institute). Nevertheless, the new research unit, the IRSID (Institut de la Recherche Sidérurgique) was a private initiative designed by the French steel companies. This initiative could be seen as real progress toward a better research organization in the steel industry—or as a clever tactic developed by the companies to avoid a possible nationalization and increasing control by the French state. This paper will discuss how IRSID has influenced the innovation and research strategy of steel corporations and the industry from the point of view of a single company, Usinor. At the time the IRSID was created, Usinor has launched a new continuous rolling mill for the first time in France. From 1944 until 1968, Usinor used IRSID facilities for fundamental research, data processing, and for chemical, mechanical, and physical processes. In the 1970s, Usinor decided to develop its own research unit. This changed the equilibrium among IRSID partners. The IRSID history is a good example of the diffusion of engineering models and knowledge from the private sector to public administration and to some schools as well. IRSID could be seen as an opposite model to Schumpeter's innovation process. Can one conclude that innovation is stimulated by the market and practical needs?

Manuel Alejandro Bautista González
Making Monies in the Global South: Foreign and Domestic Currency Circuits in Antebellum New Orleans

Before the Civil War, New Orleans was the central entrepôt of the Cotton Kingdom, uniting and reuniting the interests of wealthy Yankee and English merchants with Southern planters and slave traders. However, a rendering of this Atlantic network is incomplete without considering that New Orleans was also the main antebellum U.S. port of trade with Latin America, especially Mexico. Latin American traders bought American and British goods and paid with them in silver dollars, even more so after the Mexican-American War, when considerable amounts of foreign metallic currency were injected into New Orleans and its hinterland. This paper is a first approach to explore the importance and linkages of foreign traders in this prime entrepôt of the antebellum era. The paper will be guided by Akinobu Kuroda's theoretical framework to explain the diversity of means of payment as an optimal solution for the demand of monies by different monetary circuits—that is, economic actors who required monies in different localities and temporalities due to a) their geographic dispersion, b) the temporality of their money usage, c) the seasonality of their activities, d) the varying degree of state intervention in the money, and e) the preferred denomination to conduct transactions within their short- or long-distance trade. This paper adopts the Kurodian concept of currency circuits to illuminate the functioning of a multilayered market demanding several differentiated monies. Particular attention will be paid to the behavior of the Mexican silver dollar and its exchange rates vis-à-vis notes from New Orleans and Northern banks. The paper will also assess the impact of the influx of foreign metallic currency into the region, with consideration of the actors benefiting from its intermediation and final usage.

Margaret Graham
German Scientific Connections in Early U.S. Materials R&D

American scientists trained in Germany shaped the emerging institution of U.S. industrial R&D from 1900 to World War II. Inside early corporate laboratories the way R&D was conducted reflected the critical role of German science, especially physical chemistry, in the electro-chemical revolution. U.S. scientists educated in Germany were essential to mounting an industrial research effort before World War I. They formed networks that transcended institutional boundaries. During the war some produced substitutes for unobtainable German products. After the war, in new materials such as specialty glasses and strengthened aluminum, the German connection became even more valuable to U.S. industry. Following the lead of the "Pioneering Laboratories," American companies snatched up German-trained scientists in a race to establish corporate laboratories. Though emphasis has been placed on their scientific approach, in all materials-related research it was the ability to transcend the boundary between science and practice that made these men successful. Their familiarity with German industry and their shared philosophy of how to run productive research programs influenced the problems they chose to pursue, and provided channels for knowledge and know-how to spread among U.S. corporate laboratories, even across related industries.

Oscar Granados
Bankers, Entrepreneurs and Bolivian Tin in the International Economy, 1900-1932

After the silver expansion, Bolivia was involved again in the global economy with the discovery of tin in the early twentieth century. Beyond the tin exploitation, the determining factor was the involvement of the entrepreneurs with the support of the international banks in the construction of a global tin network. This network was a breakthrough for entrepreneurs and also in the construction of a global governance structure of the tin industry. This paper examines the Bolivian tin industry and the establishment of a global network, which became one of the most prosperous businesses in the first third of the twentieth century.

Thomas Haigh
IBM as the Very Model of a Modern Major Corporation

From its foundation in 1911 (as CTR) through the late 1970s IBM has made vigorous efforts to define itself as a virtuous company. In the 1920s and 1930s it was a leading proponent of welfare capitalism and world trade, building its corporate culture around a personality cult and a song book. It built a strong relationship with the federal government from the New Deal onward, growing during the Second World War. In the 1950s it remade itself around electronics and government contracts in the early Cold War, building American strength in high technology. It embraced sleek design, enlightened management, and modern architecture. From the late 1960s it committed to boosting the position of women and minorities. IBM provides a window onto changing constructions of corporate vice and virtue. As time went by, some virtues, such as its 1930s focus on employee rallies with company flags and songs, no longer seemed quite so wholesomely American. More fundamentally, I argue that IBM's cultural prominence and political influence gave it an outsized role in shaping accepted notions of corporate virtue, and so in reshaping the aspirations of managers and workers in other firms.

Thomas Hajduk
"An Instrument of Moral Persuasion"? Multinational Enterprises and International Codes of Conduct in the 1970s

By the late 1960s, a seemingly new phenomenon called the multinational enterprise (MNE) grasped the attention and imagination first of economists and technocrats and later of politicians, diplomats, journalists, and activists. Although agreed facts on MNEs as well as basic statistics had yet to be generated, it was obvious to many observers that the rise of the postwar MNEs in the United States and Western Europe marked a new era in international business. Given the initial paucity of agreed MNE concepts, the nature and effects on society of MNEs were contested and at best seen as ambiguous. On the one hand, they were considered the harbingers of wealth and development, as champions of the efficient management of capital, innovations, and people. On the other, they were deemed a threat to organized labor and even to sovereign governments, particularly in the developing world. This ambiguity, what I call the "multinational dilemma," was at the center of a political debate about MNEs in the early and mid-1970s. Given their global reach, a large portion of the MNE debate took place in international organizations, where governments reacted to the MNE dilemma by arguing over rules for multinationals. In the course of this political and ideological confrontation, the first norms of behavior for business or so-called codes of conduct were adopted by governments, and thereby the idea of "corporate responsibility" (CR) was institutionalized, at least on the international level. In this paper, I trace the global origin of CR in three steps. I first explain the "MNE dilemma" through two central UN reports on the nature and role of MNEs. The reaction to these reports took the form of international codes of conduct. I analyze the development and conceptual substance of the two most eminent and antagonistic codes, drafted at the United Nation Economic and Social Council (ECOSOC) and at the Organisation of Economic Co-operation and Development (OECD). Finally, I conclude with a few observations on the legacy of the codes and link my historical insights with today's debate on global norms for business.

Elizabeth Harmon
The Commercialization of Charity: Progressive Era Debates about Philanthropic Foundations

In the midst of Progressive Era market reforms that reshaped the way for-profit corporations, like Standard Oil, utilized trusts and combinations, corporate leaders attempted to use and describe the market as a powerful resource for social reform. John D. Rockefeller, Sr., and Andrew Carnegie, for example, used corporate profits to fuel philanthropic foundations with state and federal charters. They applied some of the most controversial organizational technologies used in their for-profit corporations to create charitable foundations. However, just as monopolies and trusts among for-profit corporations inspired policy debates, these nonprofit corporations, which proposed to use the corporate form for social good, inspired intense popular and regulatory responses. In this paper, I examine the relationship between social regimes of reform and the corporate form in the Progressive Era in order to consider what these historically contingent debates about welfare practices and policies might tell us about the formation of modern American philanthropic foundations and their influence on the greater nonprofit sector. In the midst of contemporary debates about neoliberalism, markets, and social policy today, I wish to suggest that one might find a longer history of social enterprise outside contemporary narratives of neoliberal corporatization and marketization in the nonprofit sector.

William J. Hausman
Howard Hopson's Billion-Dollar Fraud: The Rise and Fall of Associated Gas & Electric, 1921-1940

In the summer of 1940 Howard Colwell Hopson, already in a feeble state of mind, was indicted on federal mail fraud and conspiracy charges. He was accused of defrauding investors in the (by then bankrupt) utility holding company he had engineered to prominence in the late 1920s, the Associated Gas & Electric Company (AG&E). Specifically, he was accused of receiving $20 million in unlawful profits (roughly $1.3 billion in 2012 dollars, hence the title of the paper). He was convicted on December 31, 1940, and sentenced to five years in prison. He gradually went completely mad and died in a sanitarium in 1949. Examining how Hopson got into this predicament, and exploring the implications (particularly regarding holding company legislation passed in the 1930s), is the purpose of this paper.

Michael Heller
"For who can bear to feel himself forgotten?" The General Post Office and the Birth of a British Brand Icon, 1930-1939

This paper examines the development of an iconic corporate brand by the General Post Office (GPO) in Britain in the 1930s. It does this by adapting the work of Douglas Holt (2004) who has developed much of the work on iconic branding. It argues that the GPO was able to construct an iconic brand by responding to anxieties in British society generated by social tension and global and imperial decline. It did this by the establishment of a public relations department, which created and broadcasted stories or 'myths' of national identity and imperial unity through communication and of national strength through technology. These myths assuaged social anxieties and enabled the GPO to construct an iconic corporate brand, which reinforced the organization by improving its organizational image, strengthening its relationship with stakeholders, and improving its position in the marketplace. Furthermore, the paper argues that these myths were created not by advertising, but by an original and pioneering use of public relations. It provides an important insight into iconic branding, which examines corporate branding rather than product branding, where research has predominantly focused.

Tiina Hemminki
Saving without Banks? Rural Creditors on Both Sides of the Gulf of Bothnia, 1796-1830

In the early nineteenth century the whole concept of saving was understood differently on both sides of the Gulf of Bothnia. Rural communities in these areas got their first official banking institutions in the late nineteenth century. Those freeholder peasants with surplus funds had few ways to conserve their capital: by storing in chests, by investing, or by lending. The latter option required trust between partners and formal means of lending made the creditors really see their savings as more secure. In the early nineteenth century, credit markets were more informal than formal, part of everyday life and intertwined relationships. Formal lending can be seen as one of the first signs of official banking institutions, but there were more. Parishes, granaries, and so-called "parish bankers" made the credit markets more formal, thereby creating the prerequisites for the official banks of the future.

Justene G. Hill
Slave Economies and the Paternalist Ideal in Antebellum South Carolina

Over the past several decades, historians of slavery in the antebellum United States have challenged and reframed the scholarly conversation about slaveholders' visions of themselves as benevolent masters. This is a controversial ideology known as planter paternalism. In a related, but separate, literature, historians have illuminated enslaved African Americans participation in local market economies. This paper unites these scholarly discourses by posing two questions. Assuming that southern planters lived by paternalism as a philosophy, how did they apply this philosophy in their daily interactions with enslaved people? Specifically, how did slaveholders' practical application of paternalism influence enslaved peoples' participation in networks of trade and commerce? This paper offers a new perspective on the paternalism debate. First, it considers slaveholders' practical application of the paternalist ideal. Second, it examines the ways in which paternalism influenced the slaves economy in antebellum South Carolina. Using plantation account books and ledgers, in this paper I interrogate trade arrangements between slaveholders and slaves. I argue that slaves' interest in trade and slaveholders' ideals of mastery supported the growth of internal plantation economies in South Carolina between the 1830s and the late 1850s.

David Hochfelder
Microfinance: A Transatlantic Progressive Reform

Before the late nineteenth century, many anti-poverty reformers blamed working-class poverty on personal character flaws like intemperance and improvidence. With the discovery of structural unemployment as an economic concept in the last quarter of the nineteenth century, Progressive reformers abandoned the shrill moralizing that characterized earlier efforts to alleviate poverty. Instead, during the Progressive Era, American reformers sought ways to build working-class wealth. They regarded thrift as a major component of this search for economic security among wage earners. However, few financial institutions catered to small savers and borrowers. Savings banks, formed in the 1820s, served mainly the northeastern United States and had little presence in other regions like the South. Savings banks, moreover, did not make personal loans. As a result, two institutions arose during the Progressive Era to reach the unbanked—the postal savings system and credit unions. This paper uses the records of the Post Office Department, Russell Sage Foundation, National Civic Federation, and the Credit Union National Association to examine the history of these microfinance institutions from an international perspective. Both institutions were European in origin and were elements of a broad transatlantic Progressive movement. In the American context, however, the postal savings system was largely a failure, while credit unions succeeded. This difference indicates an aversion to state action in preference to private efforts, a preference that explains a great deal about the history of anti-poverty efforts in the United States.

Md Khalid Hossain
From GCC's Scepticism to WBCSD's Advocacy: The History of Corporate Response to Climate Change

Corporations formed the Global Climate Coalition (GCC) in the late 1980s to counter their liabilities behind climate catastrophe. GCC intensively funded climate skeptics in its attempt to oppose the call for action to reduce greenhouse gas emissions. Nevertheless, subsequent success of environment-friendly but profit-oriented business models have resulted in the emergence of the concept of "new environmentalism" in the business activities of corporations. While climate change impacts are becoming increasingly prominent, a transformation toward environmental pragmatism providing importance to sustainability, profitability, and environmental responsibility has also been viewed within corporations. Because of this transformation, although the GCC was deactivated in 2002 after losing its large corporate members, the World Business Council for Sustainable Development (WBCSD), formed in 1995, has been increasingly attracting as members large corporations committed to sustainable development. In this paper, the historical shift from GCC's scepticism to WBCSD's advocacy regarding corporate response to climate change is presented through the example of a multinational corporation, British Petroleum (BP), while arguing that this historical shift is somewhat attributable to transaction cost analysis applied by the corporations.

Mats Ingulstad
Banging the Tin Drum: The United States and the Quest for Strategic Self-Sufficiency in Tin, 1840-1945

Ever since the arrival of the Mayflower North America has been considered a continent blessed by Divine Providence with all kinds of natural resources. Yet tin was found only in meagre quantities, even as the United States grew into the world's largest consumer of tin for civilian and military purposes. This paper discusses the various American strategies for coping with its import dependence and for diminishing the British control over the international tin industry. The methods ranged from support for domestic exploration, the use of tariff barriers to protect the infant industry, subsidies for mining and smelting, to the wooing of foreign ore suppliers from the British fold. Yet not even the U.S. Congress could decree the existence of natural resources in the bedrock, and it took the global conflagration of the Second World War to break the British stranglehold on tin smelting.

Caroline Jack
Sponsored Film and Subtle Salesmanship: John Sutherland Productions' Cartoon Films for Economic Education

In the quarter century following the end of World War II, thousands of educational, promotional, and persuasive short films were made with funding from large American corporations and allied industrial trade groups. These films live on in pop culture as stock footage and as fodder for humorous commentaries, but are often ultimately dismissed as curiosities of Cold War propaganda. Recent scholarship reflects burgeoning interest in non-theatrical films from the midcentury period, but sponsored economic education films have yet to receive scholarly attention. This essay recounts the case of John Sutherland Productions' economic education cartoons: a collection of films viewed by millions of midcentury Americans in cinemas, in classrooms, in workplaces, and on television. Discarding the frame of propaganda in favor of questions about the rationale for and response to the films, this essay argues that a managerial narrative of promotional subtlety, conventional cultural wisdom about the persuasive power of film, and structural conditions of midcentury media distribution all informed the industrial sponsorship and professional production of American economic education cartoons in the 1940s and 1950s.

Kristoffer Jensen
Conflicting Interests? Danish Manufacturing in China Today and the Challenge to Be Both Competitive and True to Company Tradition

Danish manufacturing companies have, like their Western competitors, invested heavily in China during the recent wave of globalization in order to establish Chinese production-oriented subsidiaries. Based on Joanne Martin's "three perspectives" theory on organizational culture, and through interviews with executive and middle-level managers at Grundfos and Maersk Container Industry at their Danish headquarters and their affiliates in China, this paper explores how Danish companies today navigate in the tension between a proud Danish heritage and an increasing need to compete head-on with fast-growing Chinese competitors.

Ann Johnson
Subversion or Cooperation? The Exchange of Proprietary and Patentable Knowledge among Corporate Engineers

Historian of science Derek DeSolla Price once wrote that one dimension of the distinction between science and technology was that while scientists produced texts, engineers did not. One reason Price saw for this difference was the fact that so many engineers in the twentieth century either worked for corporations or gained competitive advantage from their knowledge, which produced a disincentive for sharing knowledge in a verbal form—that is, knowledge was viewed as proprietary. Contra Price, engineers do write and in some cases they write prolifically in multiple media: patents, articles in the engineering press, and technoscientific articles. In this talk I will discuss the way that engineers use patents as both a mode of communication with their communities and as a means to allow open discussion of technological ideas and devices. Drawing from the development of automobile exhaust and emissions control devices in the 1970s, this paper looks at patent exchange and use among automotive engineers in the United States and West Germany. Because the case study is transnational, it also provides a window on international business practices in a highly globalized commodity.

David K. Johnson
DSI: The 1960s Gay Consumer Culture Revolution

Founded in 1963 in Minneapolis, Directory Services, Inc. (DSI) had a simple business model: market directories of physique photography studios, book services, and bars to gay men throughout the country to help them navigate an increasingly dense web of gay commercial enterprises. Soon DSI owners Conrad Germain and Lloyd Spinar expanded their mail order business to market a host of items, including physique magazines, books, toiletries, and clothing. By 1967 they employed fourteen full-time employees, making them arguably the largest gay-owned and gay-oriented enterprise in the world. DSI represented a major shift away from small, independent outfits such as Bob Mizer's Athletic Model Guild toward corporate conglomerates that controlled numerous gay businesses and had the income to fight and win legal cases against the forces of censorship. In 1967 DSI won a crucial, but virtually forgotten, legal victory against the U.S. Post Office that allowed male full frontal nudity in American magazines, ushering in an era of open homoeroticism. Looking at the history of DSI and its relationship to its customers, federal censorship authorities, and homophile organizations, this paper explores the important, overlooked role that such gay enterprises played in the history of gay community formation and resistance.

Laird Jones
White Privilege or Transactions Costs? Early Colonial Attempts to Regulate the Lake Victoria Rice Trade

This paper examines the ambitious commercial schemes and lobbying efforts of Carl Jungblut, a settler in the Mwanza district of German East Africa from 1906 until 1916. It aims to analyze Jungblut's career as an introduction to turn-of-the-century colonial business politics, and as a case study of the economic motives behind the heightened nationalist rhetoric and more virulent racist political agendas of struggling European planters or would-be businessmen. The sources for this paper offer seemingly contradictory testimony. At the end of his career Jungblut produced a memoir, VerzigJahreAfrika, 1902-1940 (1941), in which he championed his pioneering investments in steam transport, improved rice seed, and industrial milling. The records of Jungblut's distribution agent, the Mwanza branch of William O'Swald & Co., however, undercut his claims, and instead indicate that his transport and milling enterprises were rarely profitable. In fact, Jungblut was heavily indebted to German investors, utterly dependent on metropolitan shippers, and repeatedly resisted by local African and Asian rice traders. Therefore, Jungblut lobbied the colonial administration for protections and concessions, extolling the virtues of his own "patriotic" enterprise while railing against the "uneconomic" practices of his Asian rivals.

Thilo Jungkind
Becoming Evil: The Seveso Chemical Incident and Hoffmann-La Roche, 1976-1996

At 12.40 p.m. on July 10, 1976, there was a disturbance at the Icmesa chemical plant located in the Seveso area, a little town near Milan, Italy. Dioxin was emitted into the environment. Seveso was not the first environmental disaster in central Europe, but it was the first one gaining huge public attention. In the eyes of the environmental movement of the mid-1970s, it furnished evidence that the chemical industry as a whole was extremely dangerous. From now on, this critical sentiment determined public attitudes. Therefore, the Seveso incident marks a turning point in European industrial history. This is especially true for Hoffmann-La Roche, the parent company of Icmesa, which was afflicted by a whole slew of crises until the mid-1990s. Before Seveso, the pubic perceived Roche as a shy and untouchable corporation. Now, Roche became the most evil company of the chemical-pharmaceutical industry. The company had to learn to communicate and—more important—to deal with business crisis. Using neo-institutional organization theory, the paper analyzes how the change in public perception and therefore the changing social expectations influenced Roche. In a second step, it will ask why this event became such a disaster for Roche and the entire industry as well, although the company undertook all (financial) efforts to parry negative effects for health and the environment. Research is based on a first exclusive access to the so-called Seveso inventory of the Roche Historical Collection and Archives. The documents, which are currently registered by the author and the archive, allow for new insights into one of the most complex events of contemporary business history.

B. Zorina Khan
Related Investing: Corporate Ownership and the Dynamics of Capital Mobilization during Early Industrialization

Scholars engage in extensive debate about the role of families and corporations in economic growth. Some propose that personal ties provide a mechanism for overcoming such transactions costs as asymmetrical information, while others regard familial connections as inefficient with the potential for corruption and exploitation of minority shareholders. This empirical study is based on a unique panel data set comprising all the shareholders in manufacturing corporations in Maine during the period of market expansion. Related investing was widespread among both elite and small shareholders, and seems to have been pervasive throughout the firm and the corporate economy during the critical period of early industrialization. Such ties were especially evident among ordinary investors in emerging industries and in the newer, more risky investments. "Outsiders" were able to overcome a lack of experience and information by taking advantage of their own networks. The link between related investing and the concentration of ownership in the corporations suggests that this phenomenon was likely associated with a reduction in perceptions of risk, especially beneficial for capital mobilization in manufacturing and transportation. These patterns are consistent with a more productive interpretation of related investing and its function in newly developing societies.

Lauren Klaffke
The Changing Nature of Corporate Philanthropy in Response to Growth and Conflict: A Case Study of Alcon Laboratories

The decade after World War II ushered in immense praise and public support for the pharmaceutical industry because of innovations in antibiotics and corticosteroids. In the late 1950s, however, firms faced accusations of price fixing and misleading marketing practices, which were compounded by discontent over the high cost of prescription medications. Further, concern over the tragic prescription of Thalidomide to pregnant women, which led to birth defects in the form of shortened or malformed limbs, shifted public support to the Food and Drug Administration (FDA) for regulating the industry. This environment prompted pharmaceutical companies to change their approach to public relations. This case study follows the philanthropic work of Alcon Laboratories, Inc., in response to this regulatory environment and criticisms of the pharmaceutical industry. Alcon began as a specialty pharmaceutical manufacturing firm, specifically serving the needs of ophthalmologists through both over-the-counter and prescription treatments. I argue that changes in Alcon's philanthropy represent larger changes within the pharmaceutical industry. These changes reveal the mounting political economy of pharmaceuticals in the second half of the twentieth century.

David Koistinen
Business and Regional Economic Decline: The Political Economy of Deindustrial-
ization in Twentieth-Century New England

The paper summarizes the content of the presenter's recently published book, Confronting Decline: The Political Economy of Deindustrialization in Twentieth-Century New England (2013). The volume examines the responses of business organizations and other groups to the dramatic downsizing in textiles and other industries that began in the New England region during the 1920s and continued for much of the twentieth century. Three responses to industrial decline in New England were pursued. Manufacturers in the declining sectors lobbied for cutbacks in social legislation and taxes, arguing that such steps were necessary to restore the competitiveness of regional industry. Labor unions and their liberal political allies pressed for large-scale federal government assistance to downsizing industries and areas. Service-sector companies that were tied to New England and had a vested interest in renewed prosperity endeavored to develop new regional industries to replace those in decline. The study describes the outcome of each of these initiatives and considers the implications of New England events for broader questions of economic development and political economy.

Elisabeth Koll
The Scarcest Resource: Strategic Competition among Foreign and Multinational Companies for Managerial Talent in China, 1890s to 1930s

In the late nineteenth and early twentieth centuries, the majority of foreign businesses active in China consisted of European, North American, and Japanese trade and manufacturing firms trying to gain access to an economy on the eve of industrialization. This paper analyzes the human resource strategies of companies such as BAT, Siemens, and MAN in their attempt to deal with changing industry structures, economic frameworks, and political scenarios dominating prewar China and the global economy. I argue that the early period of foreign business development in China elucidates the challenges of cross-national and cross-cultural knowledge transfer and professional managerial communication within the firms and outside with business partners and consumers. However, even more important, the intense competition for managerial talent able to operate successfully in a structurally and spatially complex Chinese business environment reflected the political and economic competition between foreign powers backing private foreign and certain domestic companies in their negotiations with the Chinese government.

Anitra Komulainen and Sakari Siltala
Business, Politics, and Ideology in the Age of Extremes: A Case Study of the Finnish Consumer Co-op HOK-Elanto 1905-2014

The paper studies the close links and interaction among consumer cooperatives, ideologies, and politics in Finnish society. The aim is to examine how business developments intertwined with the ideological and political main currents of the twentieth century, capitalism and socialism. The closeness of Russia, from which Finland declared independence in 1917, accentuated the ideological struggles. The Finnish cooperation rose at the beginning of the twentieth century as a third path between capitalism and socialism. However, strong ideological disagreements quickly reached a critical point. The civil war of 1918 broke connecting ties, and the cooperative movement split into two separate political lines. After the war in 1919 the bourgeois residents of Helsinki established their own consumer co-op, HOK, to compete with workers' Elanto, founded in 1905. The competition between the two political constitutions and consumer co-ops continued through the Age of Extremes and the Cold War. In the 1960s consumer cooperation was faced with troubled times, which lasted almost unbroken for forty years. Ultimately, the severe recession of the 1990s wrecked most of the "red capital" of the labor movement and forced the competing groups back together. The merger of HOK-Elanto occurred in 2004.

Roman Köster
Sewing for Hitler? The Clothing Business during the Third Reich

The history of the consumer industries during the "Third Reich" was for a long time a neglected topic in business history. However, there seems to be a growing insight into that the sole focus on big business merely conveys an incomplete image of the German economy during the Third Reich. The presentation gives a short overview on the development of the clothing industry, which was an economically important branch but of little importance for the German war effort. During World War II, the industry suffered from a growing lack of raw materials and workers. On the basis of three case studies, the presentation deals with the questions of how the economic policy of the Nazi regime affected the clothing industry, which possibilities existed for entrepreneurs to escape the latter's decline, and how the freedom of action of entrepreneurs was affected by the Nazis' economic policy. The argument is that the latter forced companies into a thorough specialization; firms relied on orders from the state, the party, or the military, to survive. While this greatly restricted the entrepreneurial freedom of action, it led, on the other hand, to a massive rationalization that contributed to the industry's initial postwar success.

Arun Kumar
Building the Modern Nation? Tata's Philanthropy and Development in India

In this paper, I discuss critically the dominant and underlying conception of modernity and nation-building that informs modern business philanthropy in postcolonial India. In so doing, I discuss the philanthropy of the Tata group, which is one of the leading Indian corporate groups with wide-ranging business interests, and which was responsible for the institution of some of the leading research and teaching institutions of science and technology, social science, and performing artsm as well as, more recently, extensive funding to address the problem of poverty and under-development. For more than a century, their philanthropy has largely been animated by the desire to contribute toward the development of India into a "modern nation." However, I argue that the underlying imagination of a nation, and also what it means to be or become modern, have not remained constant or stable, unlike what the received accounts suggest. It is this shifting conception of what a modern Indian nation might be that the paper, as well as my on-going research, is invested in.

Pamela Walker Laird
Where the Legislative Model Failed: Civil Rights Enforcement and the Glass Ceiling

For decades following the 1964 United States Civil Rights Act, activists sought to eliminate workplace discrimination by advocating for additional legislation and enforcement. Initial successes reinforced expectations that law-based actions could best serve discrimination's victims. However, integration's early successes obscured corporations' complex social and organizational dynamics and overestimated what legal approaches could achieve. Law-based reforms that had brought millions into entry-level and middle management jobs failed to move them farther up corporate ladders. The term "glass ceiling" entered the language in 1984 and expressed rising frustrations among African Americans and white women whose career paths stopped before their ambitions did. The federal Glass Ceiling Commission (1991-1996) and the U.S. Senate's 1991 "Glass Ceiling Hearings" revealed deep divisions and uncertainties about how to advance equal opportunity employment at that stage of civil rights history. Witnesses in both venues cited countless cases of "blatant discrimination" but rarely distinguished between reform strategies that worked below the glass ceiling and those that could move people through and beyond it. Resulting legislation yielded nothing enforceable to conquer the glass ceiling. Instead, non-litigious strategies based on different narratives have challenged the glass ceiling by broadening and changing business and national cultures.

Erik Lakomaa
The Advertising Industry and the State: The Case of Sweden

In the 1960s the Swedish government though its various agencies became an important customer to the advertising industry. The development was a result not only of the expansion of the public sector but also of a new attitude toward advertising. Advertising now emerged as an important tool for public information. During the 1960s and in following decades a number of large and well publicized public advertising campaigns were run. The campaigns covered topics such as traffic safety, the need for energy savings (after the 1973 oil crisis), and HIV/AIDS. The emergence of the government as a customer also changed the advertising industry. Advertising companies that saw this opportunity and understood how to get government contracts could reap significant profits. The business logic in this segment was however not the same as for commercial advertising, and the companies that succeeded in the government advertising segment were not necessarily the most successful elsewhere. In this paper the history of the Swedish government as a buyer of advertising services is explored. Also covered are the methods used by advertising companies to position themselves as eligible for government contracts and the role of political connections for getting contracts.

Kristoffer Lund Langlie
Pushing the Boundaries of Integrity? Det Norske Veritas and South Korean Shipbuilding, 1976-1986

For classification societies, the concept of integrity is of paramount importance. Such societies establish and maintain technical standards for ships and mobile offshore units, and are central to the regulative scheme within the maritime industries. To keep being central, they need to maintain a reputation for being honest, technologically capable, and an independent and impartial third-party actor. This paper will look at how this concept of integrity was challenged for the Norwegian classification society Det Norske Veritas (DNV) during the 1980s, seen through the context of the South Korean shipbuilding industry. The society gradually began doing work as a technological consultant to inexperienced Korean shipyards, thus stepping out of its traditional role as a neutral third-party actor. This proved successful as a way for DNV to enter the rapidly growing Korean market. However, it also led to a loss of trust from DNV's established client-base. Ultimately, DNV's perceived loss of integrity meant that the classification society had to readdress its role as a consultant.

Mariangela Lavanga
The Changing Role of International Fashion Fairs: The Case of Pitti Immagine in Florence

The fashion industry has grown considerably into one of the world's most important creative industries. The growth and success of fashion firms largely depend on the dynamic network of old and new intermediaries that aim at putting the designers' activities within a business context, acting as connection between the local and the global. However, the role of intermediaries in the fashion industry, and in general in the cultural industries, is largely understudied. The paper will try to address this gap by focusing on one specific intermediary: the international fashion fair. It will give a glimpse on the changing role of this intermediary in the fashion industry through the lens of the fashion designers. The relations between designers and fairs will be analyzed via the historical evolution of Pitti Immagine in Florence and interviews with fashion designers in Italy and the Netherlands. We argue that there is a complex intertwinement of roles among intermediaries, designers, and consumers, reflecting the complexity, fragmentation, and segmentation of the fashion industry. The changes in the fashion system have strongly affected the role of the fashion fairs.

Fabio Lavista
Public Relations, National Development, and Foreign Policy: Italian State-Owned Enterprises in the 1950s

The vast majority of Italian large-sized enterprises did not establish a public relations department until after World War II. The first adoption of well thought out public relations campaigns was related to the Italian "economic miracle" at the end of the 1950s. But there is another important reason that can explain the timing. Before World War II, the number of giant enterprises in Italy was very small, and the majority of them had strict relationships both with the fascist regime and with major national newspapers. With the advent of a democratic regime after the war, major economic actors needed to search for consensus. This institutional change influenced the behavior of both private and public enterprises, but the public sector reacted more quickly. During postwar reconstruction, state-owned enterprises found themselves in the middle of a fierce debate about their role in the market and, more generally, their own existence. The paper, focusing in particular on Eni, the main Italian oil public holding company, shows that the imitation and adaptation of the American model of public relations was, in fact, a consequence of the U.S. productivity campaign developed along with the European Recovery Program. But it was also a result of the new needs of Italian large-sized industrial groups.

William Lazonick
Innovative Enterprise and Shareholder Value

This paper invokes the theory of innovative enterprise to analyze the relation between value creation and value extraction in the evolution of the U.S. economy. Beginning with a managerial, as distinct from a financial, explanation for the separation of ownership and control in the U.S. corporation a century ago, I focus on why and how a "retain-and-reinvest" corporate resource location regime has been a necessary condition for innovative enterprise in the U.S. economy. On that basis, I demonstrate that the ideology that the economy will achieve superior performance if business enterprises "maximize shareholder value" (MSV) is a theory of value extraction that promotes a "downsize-and-distribute" allocation regime that results in employment instability and income inequity. Like the neoclassical theory of the market economy in which it is rooted, MSV lacks a theory of innovative enterprise, and hence cannot explain how, through the investment strategies and organizational structures of its major business enterprises, a national economy might achieve stable and equitable economic growth.

Changkeun Lee
The Evolution of Cotton Textile Industry and Elite Family Business in Early Twentieth Century North Carolina

In the cotton textile industry of early twentieth century North Carolina, family businesses played an important role in the state's rise to the largest producer state. They were unique in that they expanded their production capacity by opening new mills continuously. This was a good strategy because newer mills could use newer and better technology. Moreover, economies of scale were not an important factor in the cotton textile industry. They promptly adopted new technology, electrifying cotton mills, and actively managed sales channels because demand was one of the most important factors for performance in this industry. Doing so, they maintained competitiveness. They were more productive than other single-unit mills and as productive as new generation mills until 1926.

Joyman Lee
Chinese Debates on Industrial Policy and the Influence of Japan, 1900-1940

This paper examines debates concerning Chinese industrial policy in the first four decades of the twentieth century. Although industrial policy is largely associated with state-led economic strategies in postwar Japan and the Tiger Economies, recent historical works have identified the importance to late nineteenth century Japan's success as an exporting power to Asia of a set of rural and bottom-up government institutions aimed at providing overseas market and technological information to traditional industries. As a result of China's defeat by Japan in 1894-95, Chinese policymakers and local elites paid acute attention to developments in Japan, and attempted to implement the program in Zhili province in North China. Despite the "Japanese" origins of these policies, their lack of explicit ideological or political character and the relevance of the program to labor-intensive activities meant that they continued to inform Chinese thinking in the interwar period, even in the absence of a strong Chinese state and the deterioration of Sino-Japanese relations after the mid-1910s.

Joyman Lee
Where Imperialism Could Not Reach: Chinese Industrial Policy and Japan, 1900-1940 [Krooss Session]

Where Imperialism Could Not Reach explores the impact of the Japanese model of industrialization on China. In the aftermath of China's defeat in the First Sino-Japanese War (1894-95), Chinese visitors to Japan learned a Japanese-style industrial policy that focused on the government's use of exhibitions and schools to disseminate technological information and stimulate rural innovation. Under the leadership of the regional viceroy Yuan Shikai, the Chinese set up a pilot agency in the treaty port of Tianjin and attempted to implement the system in Zhili province in North China. In focusing on the treaty ports and the impact of Europe and the United States, most historians have not emphasized the policies and practices of rural-based labor-intensive industrialization that underlined the vital intra-Asian dimensions of China's economic development. Despite the deterioration of Sino-Japanese relations in the aftermath of the Twenty-One Demands of 1915, commercial competition with Japan ensured that the policies of the Zhili Industrial Crafts Bureau continued to inform Chinese industrialization strategies. Throughout this intensely turbulent period, Chinese thinkers remained deeply committed to the idea of the Chinese state, as well as to a strategy that emphasized bringing industries to rural areas and preserving the customs and morals of the Chinese.

David Leslie-Hughes and Andrew Godley
E. Merck of Darmstadt and the Origins of Industrial Research Capabilities in U.S. Pharmaceuticals at Merck & Co.

The U.S. pharmaceuticals industry dominated global output and new drug creation from the 1940s to the 1970s. The development of the industry's research capabilities that led to such success has previously been explained as the outcome of deliberate investments by the leading U.S. firms in in-house research. This paper challenges this interpretation of the emergence of the U.S. pharmaceuticals industry by highlighting first how German firms' research efforts continued to lead in global pharmaceuticals innovation through to 1940; U.S. pharmaceuticals R&D remained relatively underdeveloped. The undisputed research leader in the U.S. industry by 1940 was Merck & Co. The paper then analyzes this critical case study, showing how Merck & Co. actually acquired its research capabilities only in the late 1930s. The paper shows that much of this was actually as a result of a transfer of knowhow and technology from its former parent, E. Merck of Darmstadt, rather than from its own internal investments. Given Merck & Co.'s prominence as the sector's research leader, the paper concludes that the U.S. pharmaceuticals industry's research capabilities were developed significantly later than is reflected in the current literature, and that these new capabilities were in fact far more dependent on a transfer of technology from one of the leading German producers to its former U.S. subsidiary.

Marc Levinson
1973 and the Roots of Deregulation

Deregulation was one of the most important economic developments of the late twentieth century. In country after country, industries that had long been subject to government control of pricing, entry, and service quality were thrown open to market forces. The deregulatory wave began in the United States, but it quickly spread internationally. The question I explore in this paper is why the deregulatory moment arrived when it did. The answer, I suggest, has to do with a precipitating factor that has received little attention in the deregulation literature: the first OPEC oil crisis of 1973. When the crisis struck, regulation kept oil and natural gas markets in the United States from adjusting to the new conditions. In a matter of months, public anger at higher gasoline prices and cut-offs of natural gas shipments turned deregulation from an intellectual crusade into a front-burner political issue. Ironically, because of idiosyncracies that made the oil and gas industries difficult to deregulate, deregulation ended up affecting other sectors of the economy long before it affected the energy sector.

Yin Li and Matt Hopkins
The Rise of the Chinese Solar Photovoltaic Industry: Firm, Government, and Global Industry

The days of the United States, Germany, or even Japan acting as leading manufacturers of solar PV technology are seemingly long gone. The last decade has become a story of the rise of China as the new center of solar PV manufacture. We explore the conditions that have enabled China's rapid expansion into solar PV manufacture and assess its impact on global competition. Key factors have included: export-led growth, particularly to Europe; process innovation focused on crystalline-silicon rather than more advanced solar technologies; development of upstream production capabilities to facilitate vertical structures; the success of company founders and Chinese cities in appropriating massive financial returns for themselves; and substantial quantities of public finance acting as patient capital for firms during their early-stage growth and later when embattled by changing global market conditions. In addition Chinese firms, like their foreign competitors, benefit from deployed policy frameworks. They also benefit from the financial commitments of countries making investments in clean technology as a matter of environmental and economic imperative. Financial commitments take the form of R&D, manufacturing, and diffusion subsidies used to catalyze national markets that are all ultimately part of a global landscape—that is, their benefits are not exclusive to a nation's indigenous firms or captured by them alone. Questions remain as to whether China can transition from a role as a leading producer to a major innovator of Solar PV technology.

Josef Lilljegren
Head-on Harmful Cooperation—Why Firms Cooperate When It's Bad for Them: The Case of Swedish Property Insurance, 1855-1949

This paper explores the Swedish non–life insurance sector's ownership and boardroom ties in order to explain the increase in within-sector collaboration that also is correlated with worsened performance by the individual insurance companies. Insuring the assets of large family-owned export businesses that led the Swedish industrialization in the late nineteenth century, the insurance companies were also directly part of the ownership and control structures that made up the Swedish business groups. Some stock companies had owner ties to powerful industrial families, while some mutual insurers were created to cover more homogenous needs of industrial sub-groups. At the turn of the century national insurance companies, regardless of organizational form, cooperated increasingly, and the first half of the twentieth century is characterized by a growing web of both external and within-sector boardroom ties. In this investigation, links to external industrial groups, or economic performance prior to entry into cooperation, do not provide clear proof as to whether bad performance by collaborating insurance companies was an expression of insurance having become integrated into the profit planning of industrial groups, or if collaboration was indeed a last resort for struggling insurers. The character of within-sector and external interlocking directories of the Swedish insurers does, however, show the extent to which multiple directorships occurred within the industry, and that mutual and stock companies were similarly connected to each other, whereas stock companies had more external ties.

Andrew Linden
Can Democratising the Firm Strengthen Democracy? How History Can Help the Anglosphere Better Understand What Has Happened on the Other Side of the Participation Rubicon in Germany and Why It Is Important to Us Now

In 1951-52 West Germany decisively crossed the participation Rubicon by enacting its system of codetermination giving employees and unions a role in firm governance. In the ensuing decades codetermination has been mostly of fleeting and peripheral interest to Anglophone scholars and has been critiqued using narrow economic criteria. However, in The Rise and Fall of Democracy, John Keane nominates codetermination as a form of monitory democracy designed to check the arbitrary use of corporate power. This paper finds support for Keane's reconceptualization in three highly influential books: State of the Masses (Emil Lederer, 1940), Germany: Jekyll and Hyde (Sebastian Haffner, 1940), and Fear of Freedom (Erich Fromm, 1941/42). As historical artefacts they provide a fascinating insight into the thinking of exiled German dissidents about how democracy could be rebuilt in Germany following the defeat of the Nazi dictatorship. All three emphasize the importance of expanding democratic institutions to firms as a bulwark against totalitarianism. Reconceptualizing codetermination as a democratic institution has several implications. Not only will it allow scholars to use alternative theories to better explain the longevity of this institution, but it has revealed the deep normative biases that have impoverished the public policy debate in the Anglosphere about corporate governance. Understanding codetermination's historical rationale underscores the central role corporate governance plays in either weakening or strengthening democracies.

Teresa da Silva Lopes
British Responsibility and the First Forms of Fair Trade

Existing literature considers fair trade to be a movement that developed from the 1960s, aiming to build a world in which producers in developing countries could enjoy secure, sustainable livelihoods and fulfill their potential. Although it is recognized that fair trade has its roots as far back as the 1870s with the anti-abolitionist movement against slavery, there are no accounts of the evolution and the significance of fair trade in the years from the 1870s until the 1960s. This paper aims to show that this period should not be neglected, as it provides important evidence about "proto-fair trade"—the first forms of fair trade. During this period the international business strategies of some multinationals with strong work ethics, and their interactions with home and host governments, had important economic, environmental, and social impact both in developing countries (through the procurement of raw materials and other related activities), and also in developed countries (through the mobilization of consumers to make purchase decisions based on trust and charity). In developing countries the co-operation between the state and multinationals led to important developments such as the introduction of new types of plantations and new farming techniques, the development of new industries, and the creation of fairer relations in commodities' value chains. They also influenced levels of competition, and the power relations between producers in developing countries and consumers in the developed world. This paper draws in particular on evidence from the United Kingdom, historically the most important fair trade market in volume, and the home of leading multinationals in consumer goods with strong religious and work ethics such as Cadbury and Rowntree. It also suggests that the association of their entrepreneurs with Quakerism and the British Society of Friends worked as indirect forms of certification of the products and brands sold by these businesses in the eyes of consumers.

Christina Lubinski
Politics, Race, and Nationalism: German Multinationals' HR Policy in India, 1920s-1940s

This paper deals with Human Resource Management (HRM) in German multinationals in India from the 1920s to the 1940s. It identifies the most important HR challenges and how they changed over time, responding to recent calls for a stronger contextualization of HR research. Drawing on theoretical concepts of institutionalism, the paper shows that HR was heavily influenced by different stakeholders in the host country, India, but also by home country politics and the local perceptions of the MNE's origin country. Not institutional distance or foreignness, but the concrete, and sometimes misleading, ideas about Germany shaped HR practices as well as their evaluation by local stakeholders.

Corinna Ludwig
"Confiscation is always a dirty business": Wartime Expropriations of German Companies in the United States

War creates the highest political risk for multinational companies. From the twentieth century, military wars mostly co-occurred with economic warfare in which governments intervened heavily in the economic sector. This paper deals with the expropriation of German companies in the United States in World War II and its aftermath. It asks the question of how governments deal with alien property at wartime and, more interestingly, what happens to the seized assets when political dynamics change, the war is over, and the former enemy becomes a new ally. After the United States entered World War II, the Office of Alien Property Custodian, which originated from the "Trading with the Enemy Act" of 1917, began seizing enemy property in the American market. Soon the freezing policy turned into the confiscation and liquidation of those assets. Vesting German property continued until April 1953. In fact, most of those orders were decreed after Germany's defeat in 1945. The "War Claims Act" of 1948 linked alien property assets with the compensation of American war claims. A pressure group of German industrialists, politicians, and various American cold warriors aimed to urge the U.S. Congress to change the law in favor of a return of German property. Although legislation did not change in the end, the debate on whether confiscating private companies and using the liquidation proceeds for the compensation of war claims was not an uncontested matter, as it violated private ownership rights. This case study will lead to the more general question of how governments and foreign companies interact in times of conflict. Are we able to locate the different interest groups that act in changing political environments within a spectrum between ethical idealism, opportunism, and pragmatism?

Thierry Maillet and Ben Wubs
Building Competing Textile Fashion Fairs in Europe, 1970-2010: Première Vision (Lyon/Paris) vs. Interstoff (Frankfurt)

Our presentation explores the counter trajectories and strategies of two major fabric fairs in Europe. Première Vision was launched in 1972 in Lyon by a leading group of silk merchants. It became a true success, moved to Paris, ceased to be managed as an association, went private, and eventually expanded geographically and into sub-sectors to become the leading group worldwide for avant-garde trade shows dedicated to the textile industry. Messe Frankfurt, owned by the city and the Land Hesse, managed the leading worldwide textile fair Interstoff since 1959. It was widely recognized as the number one until the 1990s. However, as a result of rapidly changing manufacturing locations, Messe Frankfurt pursued an expanding global strategy and successfully set up textile fairs around the world, including Hong Kong and China, and discontinued Interstoff in Frankfurt in 1999. The article analyzes the origins and the results of these two diametrically opposed group strategies.

Christian Marx
Environmental Responsibility and Industrial Production: German Chemical Enterprises and the Discovery of the Ozone Depletion, 1974-1995

In 1966, Kenneth Boulding took up position against the idea of the world as an open system. Some years later, the German magazine Der Spiegel used Boulding's metaphor to criticize the international agreement of Montreal (1987) about the reduction of chlorofluorocarbons (CFC). The ozone layer was an accessible good, from which all humans benefited due to the shelter from ultraviolet light. In the discussion about the influence of CFC, the tragedy of the commons became apparent. The end of the economic miracle established a climate of eco-political sensibility in Western societies at the beginning of the 1970s. In the case of CFC, economic interests and public interests of health were opposing each other. The state and supranational institutions became key players in this dispute. In the end, public, scientific, and media pressure prevailed over the initiatives of the chemical corporations, and an international agreement regulated CFC emissions from 1987 onward. The presentation will highlight the process from the perspective of Hoechst, a huge German chemical corporation and the largest German producer of CFC, and will connect contemporary environmental and business history.

Michael McCarthy
Neoliberalism from Below: Evidence from the Rise of 401(k)s

This article considers the rise of defined-contribution (DC) pensions (such as 401(k) plans) for the debate about neoliberal policy change in America. In contrast to the widespread notion that neoliberal policies develop from the "top-down," being both enacted and managed by state agencies, it argues that the development of the employer-based pension system between 1970 and 1995 is an instance of "neoliberalism from below." Unions supported a torrent of regulations that were passed between 1974 and the late 1980s, which were intended to make the traditional system of defined-benefit (DB) pensioning more secure for workers. However, this legislation had the unintended consequence of triggering a business shift to much riskier DC plans. The legislation worked in such a counterintuitive way because of three nested factors related to changes in "the balance of class forces" in American society: 1) new laws increased costs for businesses, especially small businesses; 2) employment in the manufacturing sector, labor's traditional stronghold, declined as a share of total employment; and 3) because unions were unable or unwilling to unionize emergent sectors of the economy, new businesses in them were not compelled to negotiate DB plans. In such a context, growing regulatory costs pushed many firms to adopt DC pensions for their employees. The outcome was a major policy shift, considered by some to be a defining feature of the neoliberal era.

Andrew Meade McGee
Combating the Urban Crisis, One Computer Technician at a Time: IBM, the Urban League, and the Business of Social Responsibility through Job Training

In an example of corporate social responsibility now largely forgotten, from the mid-1960s through the mid-1980s IBM and other major computer technology firms partnered with social advocacy groups like the National Urban League to sponsor computer job training programs and technology institutes for low income city-dwellers. This ambitious plan provided complementary but disparate benefits the corporations and the social advocacy groups. The former burnished their credentials as corporations with a social conscience while building up a pool of trained workers suitable to place at client firms previously unable to afford computer expansion due to lack of qualified manpower. The latter saw the partnership as a step to placing minority and urban poor constituencies on a fast track to full partnership in the growing information economy without sacrificing political capital by seeking assistance through channels of elected officials or government agencies. In the paper I examine the political context of the partnership, traces the mid-1960s origins of the program from its initial blueprinting by IBM officials and Urban League president Whitney Young, examine the program's actual operations through a close examination of a representative Chicago chapter in the late 1970s, and discuss why the ambitious, nationwide proposal never quite lived up to its expectations. The partnerships frequently underperformed on an institutional level, becoming enmeshed in political infighting, mission uncertainty, and overly zealous expectations. The paper's argument engages with several intellectual discussions, including the broad literature of corporate social responsibility, discussion of government/activist group/corporate collaboration on ambitious social goals during the 1960s and 1970s, and a corpus of works on the relationship between under-represented minority groups and the information technology sector from the 1960s to the 1980s.

Christiane Mende
More Than a Phenomenon of Economic Crisis? Impact, Practice, and Meaning of "Workers' Control" in the Glass Factory Süßmuth, West Germany

The medium-sized glass factory Süßmuth in the North Hessian town of Immenhausen was the first enterprise under full workers' control in the history of the Federal Republic of Germany. In 1970 it was taken over by its workers to avert the impending bankruptcy of the enterprise; the firm subsequently flourished until its sale in 1989. This paper examines to what extent the experiences of collective management and collective ownership changed the working practices in the Süßmuth enterprise: How did the concept of workers' control lead to a different perception of work and of doing business in general? How did it modify the power relations within the firm and what impact did the practice of self-management have on production and on the products?

Joris Mercelis
Stages of Openness in the Development of Photographic Technology in Nineteenth-Century America

"Open innovation" is widely seen as a business and policy strategy whose potential ought to be more fully explored, but opinions differ as to what sorts of openness are preferable. For instance, should public accessibility be the ultimate criterion, or is it sufficient to stimulate knowledge-sharing activities between a limited number of actors? Through a case study on photographic technology, this paper will suggest that besides contextual factors, an industry's stage of development largely determines which type of openness is the most pertinent. I will first demonstrate that in the early 1860s, photographers regarded open knowledge sharing as a way to erase certain fraudulent sales practices and to counter information asymmetries between sellers and buyers of photographic technology. Then, from the mid-1860s until the late 1870s, openness was primarily understood in opposition to access restrictions imposed by the assignees of a number of highly controversial patents. Finally, from the mid-1880s onward, the growing importance of industrial research and development and the creation of a regime of corporate intellectual property made corporate secrecy the major cause for concern.

Stephen Mihm
The Nuts and Bolts of Modernity: Standard Screw Threads and the Industrial Economy of the United States

In the late nineteenth century United States, the drive to establish technical standards became an all-consuming obsession for many industrialists and reformers. This was particularly the case with screw threads, which varied wildly from place to place and firm to firm. As industrial corporations grew larger, and their markets ever more expansive, the fact that the literal nuts and bolts of the American system failed to fit together became an increasingly pressing problem. Limitless competition between firms seemed to stand in the way of standardization. This paper examines how standardization of screw threads proceeded in this environment, beginning with early efforts from the Franklin Institute and the engineer William Sellers. It then examines the remarkable roadblocks that the Sellers standard encountered, and the ways that this was ultimately resolved: via an elaborate coalition of interest groups whose efforts literally set the standard for future attempts to set technical and industrial standards.

Christopher Mitchell
The Greater Gotham Business Council and "The Gay Market": Entrepreneurial Strategies and the Political Economy of Queer Life in New York City, 1976-1980

My paper explores the Greater Gotham Business Council (GGBC), the first gay business organization established in New York City and the largest membership of any pre-AIDS LGBT organization in New York City. This paper explores the activities of the GGBC in promoting local LGBT businesses, establishing relationships with local politicians, and advocating on behalf of gay freelancers, entrepreneurs, and workers.

Kevin Moos
Is Good Health "Good Business"? Perspectives from the History of Medicine on the Virtues of Business, Profits, and Public Health

This paper analyzes the "Good Health is Good Business" narrative over the course of the twentieth century. The long-term history of this narrative framework in diverse historical and global contexts, I will argue, creates a compelling nexus to explore where business, government, virtue, and profit have met in modern society. Looking at the history of malaria from the early twentieth century until 1972 and then the globalization of blood banking and blood products in the 1970s, I will analyze the troubled reciprocity that was perceived to exist between good health and good business in two case studies. The history of malaria and attempts at its eradication brought into the question the relationship between health and the improving productivity of key industries, the role of these enterprises in economic growth, and ultimately the role of health in the modern economy in general. Controversies surrounding blood banking and blood products in the 1970s questioned the role of business in domestic health institutions, who should profit from health services, and the United States as the 'OPEC' of blood products.

Crystal M. Moten
"Jobs to Fit My People:" Saint Charles Lockett, Ethnic Enterprises, and the Meaning of Economic Justice in 1970s Milwaukee

In 1970, Saint Charles Lockett, an African-American and self proclaimed "liberated woman," opened a subcontracting company, Ethnic Enterprizes, in Milwaukee, Wisconsin. Lockett's company specialized in employing women who received public assistance and who were the heads of their households. Lockett hoped that Ethnic Enterprizes would provide her workers with the skills they needed to climb the labor ladder and remove themselves from public assistance. Operating a business of this kind was not without its challenges. While Lockett received praise from state officials, community organizations, and local and national news media outlets, leading welfare rights activists criticized and condemned Lockett's business practices. Using archival research, legal research, and newspaper articles, I examine both the "virtues and vices" of Saint Charles Lockett's business endeavor. The paper illuminates Lockett's feminist and mother-friendly business practices and illustrates the ways in which she carved out spaces for mothers of color in an industry that historically excluded them from its ranks. Ethnic Enterprizes challenged the meaning of economic justice and forced activists in Milwaukee to seriously consider solutions to the joblessness that haunted poor people, particularly women, in the city. While Lockett's business eventually closed, the conversations it engendered about the connections between business, social responsibility, and economic justice remain as relevant as ever.

Pierre Mounier-Kuhn
Staying with IBM, Shunning National Champions: Users' Choice in Major French Organizations

From the mid-1960s to the mid-1980s, the French government enforced a national champion policy, first with CII, then with Bull. Yet IBM remained strongly established and sometimes increased its dominance, not only in the private sector, but also in large parts of the government-controlled sector. The paper will examine the relationship between IBM and several types of clients labeled "strategic." In military air defense, senior officers stressed that altering the signal handling system would put national security at risk, and thus were allowed to remain with IBM, while civilian air control authorities were compelled to shift from IBM to CII's incompatible systems. The three largest commercial banks never acquired CII computers, but entrusted the major part of their data-processing to IBM, while using Bull's incompatible machines for specific applications. In scientific computing, the atomic energy authority (CEA) and the CNRS national computer facility (Circe) made it clear that they required the most powerful and efficient number-crunchers, whoever their vendor was, to ensure the competitiveness of French research, while regional university computer facilities were content to receive less powerful mainframes from the national champion. In this politically hostile environment, IBM France endeavored to assert its image as a virtuous, "citizen-company." Its cause was supported even within the administration, where preferential procurement policies were criticized, and in large parts of the French business world, which traditionally favored free markets over government intervention.

Shawn Moura
Try It at Home: Avon and Gender in Brazil, 1958-1975

Most historians who have examined gendered business practices in early to mid-twentieth century Latin America have highlighted practices that reinforced prevailing patriarchal gender norms. However, Avon's experience in the Brazilian market from 1958 to 1975 indicates that the company could not defer to local norms on feminine labor and respectability. Traditional Brazilian gender norms and a middle-class sexual morality that frowned on women working in the streets conflicted with Avon's business organization and required an adaptive response. This paper draws from company records and former employee interviews to demonstrate that Avon's dependence on saleswomen initially presented the company with challenges in recruitment and marketing but also assisted Avon's adaptation to the Brazilian market. Avon adapted its business practices to Brazil by portraying sales as a morally virtuous and suitably feminine occupation. The company's gendered business organization resulted in male managers with limited sales experience who relied on local saleswomen for their expertise. This reliance encouraged managers to adapt the company's marketing strategy to its female agents' innovative sales practices, which expanded distribution far beyond Avon's original target markets.

Laurence B. Mussio
Canada's "Reputational Capitalists": Virtue, Vice, and Reputation at Bank of Montreal, 1817-1840

This conference paper examines the role of reputation through the lens of three key experiences in the first generation of Canada's first bank, the Bank of Montreal, between 1817 and 1840. (This study is part of a much larger multi-year study of the Bank's history.) Three "reputational battlegrounds" shaped the destiny and future of the Bank in this period: 1) the nature and character of the banking enterprise; 2) the battleground of politics in a tumultuous period; and 3) economic performance in the context of wild economic swings that produced crashes, booms, busts, and panics. The outcomes of those three key experiences later established the foundation for how the Bank put a premium on the strict maintenance of its reputation in its operations and relationships. It was in this formative period—between 1817 and roughly the end of the 1830s—that provided the conditions for the Bank of Montreal's long-term reputation as the most important and consequential financial institution in nineteenth-century Canada. The paper argues that the Bank of Montreal in this period became not only Canada's premier bank, but also Canada's reputational capitalists. While the paper takes a classic business history approach to its subject, it also explores a new, more interdisciplinary approach to the question of reputation by linking the historical evidence to some of the most relevant theoretical perspectives available in the study of reputation.

Devin McGeehan Muchmore
"I object to the term smut": "Adult-Type" Businessmen and the Commission on Obscenity and Pornography, 1969-1970

In 1967, the United States Congress authorized the creation of a Commission on Obscenity and Pornography amidst widespread anxiety over the perceived social and moral harmfulness of the expanding market in sexual representations. Two of the Commission's key charges were to investigate the traffic and distribution of sexual commodities and to make recommendations for industry regulation. Yet investigating the trade in sexual representations required industry cooperation. In this paper, I examine adult industry entrepreneurs' engagement with the Commission on Obscenity and Pornography between 1969 and 1970, using the Commission as a window into the concerns and strategies of these businessmen during a period of industry growth and increased public scrutiny. Through an analysis of interviews, testimony, and correspondence, I find that businessmen were careful to supplement sales figures with assertions that they were family men, their customers were discerning adults, and they had no interest in selling to children. Adult industry entrepreneurs deployed a strategy of respectability in order to undermine the cultural assumptions legitimating the legal regulation of their industry. Shifting focus away from the courtroom, this analysis suggests that altering public perceptions of the sexual commerce was also a key business strategy of 1960s and 1970s adult industry entrepreneurs.

Matthias Mutz
The Ecological Basis of the Industrial Enterprise: Resource Management in the German Pulp and Paper Industry, 1850-1930

hroughout the age of industrialization, business enterprises and their rationales shaped the social use of the natural environment. Their (dirty) output, but also their raw material input and the necessary supply structures made them the crucial interface between exploiting and consuming natural resources. At the same time, co-evolution with the environment is an essential factor in the development of modern enterprises. Looking at the case of Saxon pulp and paper mills, the paper does not only give an account of the business-environment connection during the period of industrialization, but also highlights the ecological basis of modern industrial enterprises. Here, the paper aims at a history of conflicts and organizational development. Overcoming space by transport of goods, optimizing material flows or investing in sewage treatment plants tied material and immaterial resources of every paper-producing company, thus, affecting its chances of success significantly. The logic of industrial mass production, transformed the natural environment into the object of standardization and regulation, which led to its increasing vertical integration in the enterprise. In the end, industrialization never meant that business could overcome and ignore its environmental relations, but that they became one of its central objectives.

Frank Oberholzner
Insurance as a Successful Adaption Strategy against Natural Hazards: The Development of German Crop Insurance, 1800-1914

The paper deals with a new business field, which was established as a consequence of natural hazards. It will be shown that German crop insurance was both a successful adaption strategy against natural hazards (and therefore an example for the production of human security via insurances) and a part of the institutional revolution during the nineteenth century. Methodically, the paper will show that crop insurance is an innovation from a Schumpeterian view. In detail, we will use a four-phase model of service innovation in order to analyze different primary and secondary product innovations as well as process innovations during the nineteenth century. In our opinion, all these innovations induce a new chapter in the history of German crop insurance. Analyzing the concrete branch development since 1800, different economic concepts like the principal-agent or transaction-cost theory will be used in order to show typical aspects of insurance market failure like an inadequate risk diversification or inexperience with this new kind of insurance. Furthermore, we are able to show that apart from various meteorological conditions, particular economic problems—such as the lack of capital, the absence of statistical records, and also the absence of trust in this new institution—were responsible for the divergent development of crop insurance in the northern and southern parts of Germany. If and when these difficulties could be overcome will be highlighted in the paper as well.

Andrés Cárdenas O'Farrill
State and Innovative Enterprises: The Case of the Cuban Biopharmaceutical Industry

Innovative business enterprises are part of complex and interrelated sets of heterogeneous elements deeply rooted in specific historic contexts. This is particularly true when we analyze the peculiar case of the Cuban biopharmaceutical industry. Although the pervasive lack of data makes it difficult to establish an accurate picture of the innovative outcomes of Cuba's biopharmaceutical industry, the available evidence of its achievements seems to be unequivocal. For instance, nearly 80 percent of finished pharmaceutical products used in the country are locally made, and several of the products manufactured and exported by the industry are not just generics, but include a significant number of innovative drugs and vaccines, some of them recipients of international awards. The first question that arises is: how did a country like Cuba managed to achieve these results? By "country like Cuba" it is meant an essentially non-market, almost absurdly state-controlled (and mostly inefficient) economy, virtually detached from world technology networks by the U.S. embargo. A close examination shows, however, that many of these handicaps might have become the very strength of the Cuban biopharmaceutical industry. In this contribution we will trace a causal chain showing how various variables interacted over time to produce this historical outcome. It will be argued that the long-term government efforts to finance and integrate all these institutions around a common organizational culture have been critical to the innovative outcomes achieved by the industry. Far from being an exceptional tropical rarity, this case might be the confirmation of a—hitherto ignored—robust body of cross-country historicsl evidence, which shows that to assume the government away is not part of the solution but actually part of the problem that most of the world faces today.

Rowena Olegario
In Credit We Trust: Lending, Borrowing, and the Building of America

Americans and their political leaders have always been willing to rely on credit to achieve their economic and political goals. Because of this, credit has long served as a focal point for larger moral, social, and political questions. From Alexander Hamilton's first Report on Public Credit (1790) to the federal government's unprecedented intervention in the banking system in 2008, Americans have confronted a perennial set of questions about credit. Some of these debates were similar to those occurring in other countries; others were distinctively American. I trace four key problems faced by lenders, businesses, regulators, political leaders, and households across the course of U.S. history: 1) how and whether to control people's access to credit, 2) how to reconcile people's differing attitudes about credit's social and political consequences, 3) how to accommodate to the risks inherent in a credit-reliant economy, and 4) how to assess creditworthiness.

Jo Ann Oravec
"A Cesspool of Crime" and "Robbery by Appointment": Craigslist and the Ethics of Internet Advertisements

Many individuals utilize the Internet in the pursuit of activities that are morally questionable and possibly illegal as well. The activities may be as innocuous as exchanging nude photos with a loved one or as treacherous as sex trafficking or even murder. This presentation focuses on how Craigslist and related Internet platforms are construed in their roles in facilitation of such activities, providing a compendium of cases along with legal decisions. It addresses some of the decisions and pronouncements of Craig Newmark, the founder of Craigslist, concerning the role of that website in such activities. Newmark has been battered with an assortment of questions and taunts about Craigslist, including one that stated that Craigslist was in danger of becoming the "Walmart of sex trafficking." Newmark's responses to the criticisms of and legal attacks on Craigslist have provided a template for other Internet figures who encountered subsequent confrontations. The presentation discusses how the social responsibilities of online service providers in relation to the various activities of their participants have been framed, describing how these obligations are constructed by some of the service providers themselves as well as in public discourse. It contrasts the approach of providing a transparent public marketplace for the advertisement of legally and ethically problematic services with strategies that potentially could drive such solicitations underground or place them even more firmly in the hands of exploiters and opportunists.

Petri Paju
The Virtue of Flexibility: IBM World Trade's Multifaceted Identity

This paper focuses on IBM's international subsidiary for overseas operations, IBM World Trade Corporation, and how it strove to promote international cooperation and simultaneously adapt to national concerns in more than a dozen European countries. Examining the cases of national IBM companies in Sweden and Finland, from the prewar years to the 1970s, I argue that IBM management constructed multilevel organizational models and used these to selectively emphasize whatever aspect of its identity seemed most virtuous to a particular audience at a particular time. Local IBM management took part in debates about the national computer industry, and if possible, together with the IBM community sought to increase IBM's local investments or subcontracting. Still, the stories of national IBM subsidiaries could be very different. I further argue for taking a regional and comparative approach to several national IBM subsidiaries to better understand these possibilities, interactions, and differences in outcomes inside IBM. The paper is based on archival sources from the IBM Corporation in the United States and from IBM Finland, as well as IBM publications and interviews.

Thomas Paster
Business and the Welfare State: Bringing Power Back In—A Literature Review

For many years, comparative and historical research on the welfare state relied on the assumption that business interests oppose public social policy. In recent years, a novel strand of research developed that stresses the positive contributions of business interests toward the adoption and expansion of public social policy. Yet, the extent and the sources of business support for public social policy remain disputed. This paper provides an overview of major theoretical perspectives dealing with business and the welfare state and evaluates their validity based on studies of historical as well as current welfare state politics. The paper shows that the factors expected to shape business attitudes toward social policy are diverse and often contingent on specific political and economic conditions. The paper suggests that an analysis of preferences needs to be complemented by an analysis of variation in business influence to understand the impact of business on welfare politics.

Juanjuan Peng
A Big Business in China: The Wartime Expansion of the Yudahua Business Group

As an important form of business institution that dominates today's Chinese economy, the business group is sometimes misidentified by social scientists as a post-1978 creation. Historians, in occasionally applying terms such as "business group," "group," and "conglomerate" in the studies of some pre-1949 business empires, seem to believe these "groups" were too embryonic to be comparable with today's Chinese business groups. While acknowledging that many early "groups" in China were mere loose alliances, I present a counterexample and suggest that some fairly integrated groups with a relatively clear hierarchical structure did exist in early twentieth century China. During the War of Resistance, Yudahua expanded from a small textile company with two cotton mills to a big business group that included six cotton mills, one national bank, one coal mine, one trading company, and a few other related businesses. The rapid business expansion was an unplanned response to the military and political crises; and it soon created a new managerial crisis that required further institutional changes. Eventually, a Central Office was established to coordinate among the member units, which defines a high level of "groupness" and a fairly clear managerial hierarchy.

Linda Perriton and Josephine Maltby
Working-Class Households and Savings in England, 1850-1920

Working-class employment and earnings in this period have attracted substantial debate, but knowledge of workers' use of financial institutions and mechanisms in the nineteenth century draws on a limited number of contemporary studies of household structure and budgets. Modern writing is heavily skewed toward exploring debt and credit in working-class communities rather than saving. The British trustee savings banks that operated throughout the nineteenth century were designed expressly for working-class use, and solely to promote long-term saving. Despite their substantial numbers and national spread—576 banks and 1.2 million savers by 1852 and total deposits of £225 million by 1913—there have been few studies of their use by savers. Their neglect as a data source is puzzling given the extent of the surviving depositor records, which provide long-run empirical data that includes savers' identity, marital status, and occupation as well as account balances and transactions. Our preliminary work on four banks—in Limehouse (East London), Newcastle, South Shields, and Bury—shows results of significant interest in understanding working-class financial behavior, including: a substantial number of accounts opened and maintained by working-class married women before the 1870 reform of their property rights; accounts opened and run by minors from earnings; varied patterns of account usage, with only a minority operated for the long term, others used for regular expenses or for targeted saving. We discuss our findings and evaluate their importance for an understanding of working-class financial behavior in a period of significant social and economic change.

Francesco Petrini
Public Interest, Private Profits: Multinationals, Governments, and the Coming of the First Oil Crisis

The oil industry offers a unique take on the relations between public powers and private enterprise. For almost thirty years after the end of the Second World War, the big oil multinationals were delegated by the advanced capitalist countries the management of an increasingly relevant part of their energy supply. The companies not only took care of the production and commercial aspects of the industry, but had also a major part in dealing with producer governments, as quasi-sovereign entities. This paper focuses on the companies–consuming governments relation in a moment of change. After the Libyan revolution in 1969, the OPEC countries opened a cycle of negotiations with companies on oil prices that culminated in the Tehran and Tripoli agreements of spring 1971. The companies were in direct charge of these negotiations. The relations with consuming governments came under a severe strain. Suspicious of being sold off for the sake of companies' profits, public opinion in the consuming countries became increasingly wary of companies' tutelage of their interests and many voices were raised to demand that governments step forward to defend public interests. How much and in which sense did the crisis of the early 1970s change consumers-companies relations?

Jeffrey Pilcher
The Brewery as Laboratory: Asians in the Beer Brewing Profession, Early Twentieth Century

The European brewing industry has been one of the driving forces in the rise of consumer cultures around the world in the past two centuries. A bottle of lager beer is simultaneously exotic enough to evoke desire in non-western societies yet affordable enough for regular consumption, at least by the middle classes. This paper uses actor-network theory to examine the brewery as a "laboratory" of science, commerce, and modernity in early twentieth-century Asia. Harald Fuess has demonstrated the importance of German professionals in shaping the development of the Japanese brewing industry, which in turn exerted a colonial influence over beer production in neighboring countries, including China, Korea, Taiwan, and the Philippines. The influence of lager beer and German technology is indisputable, yet Japanese and Filipino brewers also made considerable strides in acquiring brewing skills and science and even in making independent contributions to the transnational brewing profession. By examining the networks of migration and technical communication among brewing professionals and plant breeders connecting Asia with Europe and North America, this paper looks for evidence of the localization of European beer in Asia.

Monica Poettinger
Business Forms, Capital Democratization and Innovation: Milan in the 1850s

Lombardy's economy in the 1850s was characterized by extensive networks of personal relations, credit by trust, and family businesses. Milan's wealth was maximized by maintaining the mercantile identity of the city, while manufacturing innovation was pursued only when economically profitable or strategic to further growth. Thanks to a sample including extensive data on almost two hundred firms in existence in Milan from 1852 to 1861, it is possible to reconstruct the mechanisms governing this economy: how liquidity was collected and distributed, how partnerships were formed, inside which social circles partners were found, how much kinship ties determined business decisions, what criteria proved relevant in the investment decision-making processes, how innovation and entrepreneurship were rewarded. The picture emerging from the sample will vindicate the capacity of Milan's mercantile elite to foster innovation through the efficient allocation of capital and the creation of entrepreneurial capital, averting at the same time disastrous financial crises: the solid base of the successive development of the region.

Richard K. Popp
Telephone Exchange: WATS, Direct-Response Selling, and the Marketization of the American Telephone, 1960-1973

In 1967, the Chicago mail-order house Alden's took out a sprawling fifteen-page advertisement in the Saturday Evening Post to promote its newly unveiled "jet phone system," a novel service that allowed shoppers to call in orders free of charge. Also that year, the Campaign Communications Institute set up shop in New York City to sell campaign services to political candidates. Among the firm's most popular products were its computerized calling programs, and before long CCI was marketing these services to more traditional merchandisers. Both ventures were outgrowths of an ambitious initiative launched by AT&T in 1961: Wide Area Telephone Service (WATS). Designed to stimulate greater use of the telephone in sales and marketing, the program initially allowed subscribers to place an unlimited number of long-distance calls for a flat fee. In 1967, In-WATS was added to reverse the flow, allowing callers to dial a subscriber's line toll free. WATS was wildly popular with businesses and by 1973 amounted to a more than $750 million trade for the Bell System. By that point "junk calls" and "800" numbers were highly familiar—in the case of the former, perhaps all too familiar—features of the consumer landscape. In short, WATS gave rise to modern telemarketing and phone-based shopping, in the process imbuing the nation's telecommunication infrastructure with the topsy-turvy dynamics of marketplace exchange. Drawing on industry reports, trade news, and archival records, this paper will explore the rise of WATS-based selling initiatives in the 1960s and early 1970s. In doing so, we can see how the lines between state and market were increasingly blurred as U.S. communication infrastructure was recast from pseudo-public utility to "postindustrial" entrepreneurial resource. Moreover, we can better understand the place of direct-response systems within the information infrastructures, logistical networks, and business cultures remaking consumer capitalism at the time.

Natacha Postel-Vinay
Debt Dilution in 1920s America: Lighting the Fuse of a Mortgage Crisis

An explanation of the Great Depression based on mortgage debt via the banking channel has been downplayed due to the conservatism of mortgage contracts at the time. Indeed, maturities were particularly short compared to today's average terms, and loan-to-value ratios often did not exceed 50 percent. Using newly discovered archival documents and a newly compiled dataset from 1934, I uncover the darker side of 1920s U.S. mortgage lending: the so-called second mortgage system. As borrowers often could not make a 50 percent down payment, a majority of them took second mortgages at usurious rates. As theory predicts, debt dilution, even in the presence of seniority rules, can be highly detrimental to both junior and senior lenders. The probability of default on first mortgages was likely to increase, and commercial banks were more likely to foreclose. Through foreclosure they would still be able to retrieve 50 percent of the property value, but after a protracted foreclosure process—a great impediment to bank survival in case of a liquidity crisis. This paper is thus a timely reminder that second mortgages, or "piggybacks" as they are called today, can be hazardous to first lenders. It provides further empirical evidence that debt dilution is detrimental to credit.

Véronique Pouillard-Maliks
Innovation and the Role of the State in French Postwar Fashion Industries, 1946-1960

This paper bears upon the fashion industry and the protection of innovation in the postwar era. The research developed in this paper is conceived as a part of the Enterprise of Culture project on the history of the fashion business that is a part of the HERA II Cultural Encounters research program. In the immediate postwar era, a major question in the fashion industry was whether the Paris hub would survive the advent of New York and London as new fashion capitals. The postwar era was nevertheless a time of re-birth of Paris haute couture, symbolized by the beginnings of the House of Dior, financially supported by textile entrepreneur Marcel Boussac. It was also the birth of the French prêt-à-porter, under American influence, but also capitalizing on the interwar French experiences of the confectionneurs and the couture édition lines. The French state supported both initiatives: the haute couture by granting direct subventions to a selection of enterprises, and the prêt-à-porter by launching the productivity missions to the United States, both investigated in this paper through archival records. From the nineteenth century, the Paris fashion industries had been plagued by piracy. The French law provided protection to fashion designs under three regimes: the copyright law, the patent law, and the trademark law. The two first could be used to protect design, the latter for the brand. But in practice, patents were too slow and expensive to be thoroughly used by the fashion industry. With the signing of the Universal Copyright Convention of Geneva in 1952, the protection of fashion design became easier in Europe, and several countries, notably Belgium and Italy, collaborated directly with France in order to curb piracy. But the United States, again, did not include fashions within the scope of copyright. This paper explores the strategies developed by French fashion designers to protect their innovations and make them profitable, using in particular the records of the Chambre Syndicale de la Couture Parisienne and of the House of Dior. Both parts of the paper expose the changing landscape of postwar fashion, but also the resilience of the French industry, questioning the role of the state and of the protection of innovation in the preservation of a complex ecosystem in challenging times.

Malcolm Purinton
A Golden Flood: The Spread of the Pilsner in the Late Nineteenth Century

"Nothing more strikingly exemplifies the wide influence of England all over the world than the way in which our national beverage, beer, finds its way to all quarters of the globe." This boast by the British Brewers' Journal in 1885 proved short-lived: within fifteen years consumers worldwide had turned overwhelmingly to drinking German-made Pilsner beer. How and why did this change in consumptive practices occur so rapidly and so thoroughly across the world? Pilsner-style beer today constitutes around three-quarters of all beer consumed and produced in the world, with the top four Pilsner-style brewers—Anheuser-Bush InBev, SABMiller, Heineken, and Carlsberg—accounting for over half the global market for beer. Yet no one has explained why this is the case. This paper begins to answer this question through examining the business practices of the brewers of the United Kingdom and the Continent. I argue that the British choice of competition negatively influenced their control of foreign markets. In contrast, a crucial reason for the success of the Continental brewers was their choice to collaborate in producing quality products for many different consumers across the globe.

Daniel Raff
What Became of Borders?

Economists have suggested at least since Mandeville and Smith that the virtues of capitalism lie in giving consumers what they want, and cheaply, through the vehicle of incentives to businesses and, in particular, their owners. It was the central task of economic theory in the twentieth century to show the precise sense in which, and conditions under which, this might be true. Keynesian issues entirely aside, it is by now well known that fixed costs and product variety pose problems for the virtues claim. This paper makes these points emerge in business historical terms and shows that adding a little more of the institutional features of twentieth-century firms (governance and incentive structures in particular) makes the situation worse. It also emphasizes the centrality of cash, a preoccupying aspect of the day-to-day life of executives and firm owners entirely excluded from the canonical economic models and much business history, and the (related) importance to business history of the mechanics of bankruptcy. The paper explores the business history of Borders, a book retailing firm. This company's establishments were large, unusually broadly merchandised, modern, and conspicuous. The company first made the Fortune 500 six years after its 1995 IPO. Its stores were a familiar sight across the United States (and indeed, for a time, in a number of major cities abroad). But the collapse, when it came in 2011, was complete. It is popularly thought that the firm was fatally weakened by Internet competition, with the coup-de-grace coming from electronic reading devices. This is Whiggery of the first order. The paper argues—with detailed financial analysis, extensive interviewing over a decade and a half with principals and many other actors, and a careful reconstruction of decision making in a forward-looking fashion in the background—that the problems lay in vices that were precisely the underside of capitalism's classic virtues.

Nancy Marie Robertson
Capitalism with a Woman's Face: Women's Departments in American Banks at the Turn of the Twentieth Century

At the turn of the twentieth century, many American banks had special departments to serve female customers. They were one of the few bank divisions to hire women as professionals (as managers of the departments). At a time when customers (male and female) routinely complained about service (that is, the lack of it) from banks, these departments emphasized the services they provided their customers—including what to do with their money and how to balance a checkbook as well as providing tickets for social events or locating lost purses. The female managers of these departments often entered the business world by way of voluntary associations and brought with them (or developed) a range of service-oriented skills useful during the expansion of white-collar occupations in increasingly bureaucratic and impersonal large-scale organizations. This paper explores the process by which banks (and the women themselves) developed and promoted these departments. The departments were a means to gain access to the financial assets of women who, increasingly, were coming into financial resources (whether through their own earnings or from being widowed). At a time when men were using their activities outside work to define "service" as manly through sex-segregated service groups like Rotary clubs, women emphasized that they were adept at service as they worked to teach women financial literacy. On one hand, female bankers, promoted the "domestication of American business" to define a distinct place for themselves in the world of business (à la Paula Baker). On the other hand, then (as now), it appears that financial institutions favored a female face when they encountered criticism in times of economic crisis. Their presentation of women—as managers and as customers—may have served to ameliorate such criticism.

Duncan Ross
Electronics in Scotland: Savior or Villain?

There are two dominant stories told about the electronics industry in Scotland. In the first, it can be seen as the jewel in the crown of Scottish manufacturing by the 1980s: dominated by American and Japanese companies, it provided substantial employment benefits in a post-industrial economy struggling to cope with the secular decline of the traditional staple industries. It was also held out as an example of a successful and active policy of Foreign Direct Investment attraction. The second story, however, is dominated by the discourse of "branch plants." This story sees Scotland as merely a staging post in the shifting and highly mobile global production patterns of the last eighty years. Electronics manufacturers came to Scotland in search of relatively cheap, highly skilled labor. From the late 1980s onward, many were quick to uproot and move in search of the kinds of short-term replicable benefits that had brought them to Scotland in the first place. This paper provides an examination of the electronics industry in Scotland as a specific case of FDI in a developed economy. It explores these two stories and suggests that the lack of embeddedness is key to understanding the paradox. Local economic development organizations tried to develop cluster strategies to promote continued investment in the sector, but this was, on the whole, too late and met with very limited success.

Andrew L. Russell
Accreditation and the Boundaries of Computer Science, 1984-1999

Business historians have studied the economic and technological aspects of standardization in great detail, but we have not devoted the same level of attention to the social and cultural consequences of standardization. Educational standards—specifically, the accreditation of university curricula and degree programs—provide fresh opportunities to consider the tradeoffs that standardization entails: who benefits, and at what cost? In this paper I consider a case study, the movement to evaluate and establish model curricula and quality standards for computing degree programs in the United States. Beginning in the 1960s, computer experts in leading professional societies supported academic standards in the hope they would align the variety of computer-oriented academic programs with the demand for programming labor in the commercial and industrial sectors. My focus in this paper is the Computer Sciences Accreditation Board (CSAB), created in 1984, which established its legitimacy by persuading academic institutions that accreditation was a meaningful and valuable process. This paper considers the CSAB's strategy, structure, and process for accreditation; the ways that it managed the tension between standardization and diversity; and the institutions that resisted or ignored CSAB's accreditation programs.

Janette Rutterford, David Green, Carrie van Lieshout, and Dimitris Sotiropoulos
Spreading the Net: Distance, Shareholding, and the Geography of Risk in England and Wales, 1870-1935

It was in the latter decades of the nineteenth century that Britain became what Robb has termed a "nation of shareholders"—in the process of which a 'possessive' instinct expanded from a regional and provincial to a national if not international arena. The kinds of shares held by British investors, the kinds of companies in which they invested, and the kinds of individuals involved in such investments are the key elements in understanding the constituent elements of the rise of Britain as a shareholder nation. In this paper we explore these issues through the lens of geography, focusing on the relationships among distance, shareholding, and concepts of risk. We first explore the significance of shareholding in the population at large, concentrating on its relative importance compared to other forms of wealth. Next, we turn our attention to different geographical scales of analysis. Finally, we explore some of the implications that the geography of shareholding raises for understanding the role of trust as a substitute for legal protection for British investors.

Patricio Sáiz and Rubén Amengual
Invention, Imitation, Patent Practices, and the Four-Stroke Engine Business

When the German Nicolaus August Otto built the first four-stroke engine in Cologne, opening the technological trajectory of the internal combustion motor, several firms were created to commercialize the new invention. In doing so, patents were perceived as a key tool to secure such intangible assets just at the dawn of the second industrial revolution, when international IPR agreements were also being developed. In this article, we analyze patent activity driven by Otto and his partners and firms in order to find out how domestic and international IPRs were managed and what patent strategies, institutional constraints, and business results were respectively followed, faced, and obtained. For that purpose, we carefully scrutinize Otto's petrol engine patents and their ups and downs in certain pioneer, first follower, and lagging countries such as the United Kingdom, France, Germany, the United States, and Spain. Our findings demonstrate that legal and institutional differences—such as the existence of previous patent exams, compulsory working clauses, or patents of introduction—influenced, first, disclosed technological information level and scope; second, firms' patent management strategies and learning; and third, technological diffusion patterns and, thus, pioneer firm returns.

Mustafa Erdem Sakinç
The Discord between Strong Government Presence and Contrasting Business Practices in the Commercial Aircraft Industry

In the light of a renewed discussion of the role of governments for an industrial "renaissance" on both sides of the Atlantic, this study discusses the historical role of government in supporting the commercial aircraft industry in the United States and Europe from a developmental state perspective, which extends the role of governments beyond R&D incentives and product demand to a complex set of actions that invest in a knowledge base and mobilize and channel public resources to business enterprises and thus allow knowledge and innovations to diffuse across the economy. The study shows that the U.S. and European commercial aircraft industries, which are currently clustered around two leading firms, Boeing and Airbus, utilized substantial amounts of government finance and other forms of state support. However, especially in the last twenty years, these two firms have both shown contrasting and congruent corporate business practices that distort the balance of public and private interests in new aircraft development through their choices of utilizing these resources, either to create more value and evenly distribute it among stakeholders or to extract it only for shareholders. While Boeing, a characteristically financialized firm, exhibits a clear example of a value-extracting company, Airbus presents so far a more balanced set of actions trying to satisfy both public and private interests.

M. Stephen Salmon
"... she cannot earn anything in Europe": Insider Networks, Marine Investments, and the Failure of the Home Bank of Canada, 1916-1923

Students of the Canadian banking system have correctly seen that the failure of the Home Bank of Canada in 1923 led to increased government regulation of financial institutions. However, commentators have given no more than a passing reference to the factors responsible for the demise of the Home Bank. This paper will focus on the Bank's marine investments, which provide a Canadian example of an international maritime network that was successful in the short run but which was incapable of surviving the difficult global shipping environment of the early 1920s. This network had its origins in the syndicate that formed and ran Canada Steamship Lines (CSL) from 1913 to 1922. Three prominent members of the CSL network—M. J. Haney, J. F. M. Stewart, and C. A. Barnard—were executives and directors of the Home Bank. During his term as president of the Bank (1916-1919), Haney used his knowledge of world shipping markets to the Bank's advantage. The centerpiece of his strategy was the Bank's profitable participation in the leveraged buyout of the Montreal Transportation Co. But disaster struck when Haney's resignation in December 1919 coincided with Barnard's dumping of his failed marine speculations on the Bank. In the end, the non-CSL network members of the Bank's executive had learned the wrong lesson about shipping markets, and Barnard's vessels became one of the prime reasons for the Bank's failure.

Pål Thonstad Sandvik and Jonas Scherner
Why Germany Did Not Fully Exploit the Nickel Industry in Occupied Norway: IG Farben and the Political Economy of Nickel in the Third Reich

The economic history of the German occupation of European countries was a history of massive exploitation. This paper reviews a case in which Germany abstained from utilizing the industrial potential of an occupied country, namely the Norwegian nickel industry. The nickel refinery in Kristiansand in Norway was one of the world's largest nickel refineries, and nickel was a metal of high military importance. The country also had two (small) nickel mines, as well as several promising undeveloped ore bodies. Surprisingly, the German occupying powers did little to exploit the potential of the Norwegian nickel industry. We will examine the German political economy of nickel from the early 1930s onward and especially IG Farben's endeavors to become one of the world's leading nickel producers. As Germany in 1940 gained indirect control over the large (previously) Canadian-owned nickel mine and smelter in Petsamo in the Arctic parts of Finland, IG Farben's goal came within reach. The question was now where to refine the Petsamo nickel. Interestingly, IG Farben decided not to refine the Petsamo nickel at the underutilized Kristiansand plant in Norway, but transported it to its own factory complex in Oppau near Mannheim in Germany. Our aim is to examine the political economy of nickel in the Third Reich, the interplay between companies and Nazi authorities, and the implications for the Norwegian nickel industry during the war years.

Timo Särkkä
The Birth of the Copper-Mining Economy in Northern Rhodesia and Katanga, 1899-1914

The impetus and much of the capital for the exploitation of the copper deposits on the Congo-Zambezi watershed in colonial Zambia and Katanga originated from British mining interests operating in Southern Africa since the late 1860s. The first successful effort to set up a colonial copper-mining economy in Northern Rhodesia and Katanga was made by Tanganyika Concessions Limited, a London-based free-standing company formed in 1899 to exploit the mineral resources of the country. The nature of colonialism in Africa was such that the interests of various groups were intertwined. There was a mutual interest to exploit the minerals and to benefit from the very rich copper deposits right down from the top to the bottom, starting from colonial governments and ending with petty prospectors on the spot. The study builds on company records as well as personal records of some of the early company prospectors in Africa. The history of the copper-mining economy in Northern Rhodesia and Katanga illustrates how the mining companies increased production capacities, transformed social relations, and molded new aspirations.

Laura Phillips Sawyer
Institutionalist Economics and Managed Competition: The U.S. Experiment with a Coordinated Market Economy, 1920-1940

Our assessment of business practices as good or bad, benevolent or predatory, is often derived from the larger frameworks that inform how we see the world. Arguably, today many policymakers, regulators, and businesspeople are captured by neo-classical or neo-liberal frameworks that legitimate free market economics; however, this has not always been the case. During the interwar period in the United States, economics departments and law schools were heavily influenced by institutionalist economics, which supported a different view of the relationship between the state and the market. Our conventional history of modern American capitalism has neglected the variety of organizational forms and governance strategies employed by business and government because we have not taken seriously the influence of this heterodox strand of economic thinking. Indeed, intuitionalist economics was a dominant strand of economic scholarship between 1920 and 1940, and its influence was clearly visible in many New Deal programs. Additionally, institutionalists shared a close relationship with the legal realist tradition—both intended to reform the American state and market. Institutionalists rejected the classical economics assumptions of competition, pioneered studies on managed competition, and collaborated with business associations and government regulators. Many institutionalists entered government service throughout the period under consideration. Their prescription for mitigating business cycles hinged on the information-sharing practices that many trade associations in specialty manufacturing and retailing already employed. Running afoul of antitrust law encouraged collaboration between these business leaders, progressive economists, and regulators who were interested in pursuing an alternative vision for modern American capitalism. I argue that institutional economics helped unite disparate business interests and lent professional authority to business associations' claims to promote competition through associational management and government oversight. Together they composed a transformative movement to liberalize U.S. antitrust law and expand the role of the state in policing the boundaries of fair competition.

Lindsey Schakenbach
The Origins of the Military-Industrial Complex: The Federal Government, Diplomacy, and the Origins of American Industry, 1790-1840

This paper seeks to answer the question, "is government intervention in business a good or bad thing?" by analyzing the development of the New England arms and textile industries in the early republican United States. While much work on industrialization has focused on the social implications wrought by economic transformations, changing labor systems, individual entrepreneurship, the rise of the modern business firm, and freedom from government regulation, a strong federal government was in fact essential for generating economic growth in the decades following the nation's founding. When we examine the development of industry in the context of federal patronage and expanding U.S. geopolitical dominance in the Americas, we see the ways in which government intervention in manufacturing was intricately connected to U.S. war-making capacity and economic independence. This paper draws on consular and congressional papers, federal armory records, and textile accounts to connect the large themes of political economy—war, trade, state power—with the small scale sites of technological innovation and entrepreneurship in the machine shops and mills along New England waterways. These connections shed new light on state-sponsored industrial development in the United States and in the process diminish notions of American exceptionalism as a free-enterprise nation.

Tim Schanetzky
Big Steel and World War II: German-American Perspectives

Research on the steel industry in Nazi Germany saw an unprecedented boom in the 2000s, covering key players like Krupp, Paul Reusch, and Friedrich Flick. However, the scope of corporate freedom of action still remains controversial today. On the one hand, numerous constraints existed in the Nazi dictatorship, so that especially during the war and particularly in occupied Europe any room to maneuver significantly and continuously decreased. On the other hand, a variety of recent studies have demonstrated that the Nazi regime did not launch a widespread attack on property rights or freedom of contract and imposed less coercion and force upon business than often assumed. My paper makes two points: First, using the example of the German and American steel industries, it explores significant similarities in government regulation and the growth model of big business. Second, it demonstrates that such a comparison needs to determine the fundamental difference between a democracy and a dictatorship at war and advocates a view that incorporates an economic logic of action and its historical context.

Corinna Schlombs
"World Peace through World Trade": IBM's Corporate Diplomacy before and after World War II

This paper analyzes IBM's corporate diplomacy in the decades surrounding World War II. It investigates the activities of the company's leadership in international governmental and non-governmental organizations such as the League of Nations, the United Nations, and the International Chamber of Commerce. Examining the changing meaning of the slogan "World Peace through World Trade," it argues that World War II marked a shift in IBM's relations with international organizations. Before World War II, the work of IBMs charismatic chairman Thomas J. Watson, Sr., for the International Chamber of Commerce suggested that free trade and reduction of tariff barriers would create a peaceful global order independent of intergovernmental organizations. After the war, Watson sought the support of intergovernmental organizations such as the United Nations for regulatory frameworks that enabled the pursuit of international corporate operations. Thus, the meaning of the slogan "World Peace through World Trade" subtly shifted to "World Peace for World Trade." This paper is based on the analysis of IBM employee magazines as well as secondary literature on IBM. Building on Michael Porter's analysis of local and national government interventions to promote national competitiveness, it provides insights into the growing role of inter-governmental organizations for international competition.

Michael C. Schneider
Systems of Values in Conflict? Scientific Research in a Pharmaceutical Firm

Scientific research rests, in the view of the sociologist Robert K. Merton, on a set of moral values which, in a condensed form, present themselves as a coherent "scientific ethos." Among those very idealized values are virtues such as "communism"—the notion that the outcomes of research belong to the scientific community as a whole, with reputation for the researcher in exchange—and "disinterestedness," which are necessary preconditions of scientific work. Although a bit outdated, this concept nevertheless seems relevant to address the question whether this set of scientific norms, understood as "virtues," can be reconciled with the virtues of an entrepreneurial environment: striving after yields, carefully watching over scientific results, and judging them as the property of the firm—virtues which in a scientific environment clearly would count as "vices." After addressing some of the consequences of those presupposed irreconcilabilities, the paper turns to the case of the pharmaceutical firm E. Merck in Darmstadt, Hesse, in the decades after 1900. Here I discuss to what extent the surrounding of business virtues did compensate for the partial absence of scientific virtues in order to ensure the scientific foundation of research that led to new products.

Korinna Schönhärl
The Lake Copais Company: Risky Foreign Investment in Greek Agriculture in the Nineteenth Century

Investment decisions in the nineteenth century are not always easy to understand: In 1887, the English engineer and financer John Cockburn Francis Lee founded the Lake Copais Company with a capital of £1Mio. The aim of this company was the drainage and cultivation of the Lake Copais Sea in Boeotia, Greece. To understand this investment decision, the project must be considered within the development of agriculture in the 1880s, especially concerning drainage projects and their financial output. On the other hand, Lee himself and his investment behavior—for example for railway construction in Spain—must be considered, as well as his attempts to divide the risk and ensure himself against unforeseeable events in the Copais business. The questions remain of how Lee got the idea to invest in Greece and what made him interested in this country. Where there any personal networks or ties, ideologies, or special interests? Focusing on the Lake Copais Company's solicitor Charles Cheston, author of a book on Greek society and economy in 1887, throws some light on the background of this risky business decision.

Yda Schreuder
Enron and the Kyoto Protocol: U.S. Climate Change Policy in the Making in the 1990s

More than two decades before President Barack Obama made "cap-and-trade" of carbon dioxide emissions a household term, Enron had become a big-time trader in energy commodities and had made millions in a cap-and-trade program of sulphur dioxide emissions. Enron Chairman Kenneth Lay saw another profit-making opportunity when Bill Clinton and Al Gore were inaugurated, as he capitalized on Gore's push to combat global warming. Enron immediately embarked on a massive lobbying effort to develop a trading system for carbon dioxide. In the summer of 1997, prior to the signing of the Kyoto Protocol, Lay became a member of President Clinton's Council on Sustainable Development. Enron had been propelled to a leadership position at Kyoto almost overnight, but the groundwork had been laid carefully by entering into relationships with scientists like James Hansen, who, Lay expected, would further Enron's cause and share price. Enron was making billions of dollars in profit from sales of natural gas and distribution and realized that, as the main international and domestic trader in the new world of carbon credits, the company could realize unimagined wealth. Coal-burning utilities would have to pay billions for permits because they emit more CO2 than do natural gas facilities. This would encourage closing coal plants in favor of natural gas plants, driving up their profit margins. Of course, the Kyoto Protocol was never ratified, and we can only speculate about Enron's future earnings as the company went bankrupt in 2001.

Benjamin Schwantes
Selling E-Mail to America: MCI Mail and the Commercialization of Computer-Based Electronic Communication

In 1983, MCI Communications rolled out a commercial electronic messaging service that offered business users the ability to send written messages instantly to other users on the MCI data network. While primitive email applications had been pioneered as early as the 1960s and more sophisticated electronic mail protocols for computer networks were introduced to ARPANET by 1973, electronic, computer-based communications were largely the domain of computer scientists. MCI Mail offered something very different than these early email systems, a turn-key electronic mail network specifically tailored to both private and business users. The paper offers a new perspective on a communication technology that we have come to perceive as merely a commodity. It highlights the contingent nature of emails' technical and commercial development and popularization. If commercial services such as MCI Mail had proven successful in the long run, we might have ended up with metered email or even balkanized email networks that allowed only limited interactivity. The paper draws important parallels between the commercialization of email and the development of other forms of commercial communication in the nineteenth century. By examining the commercialization of MCI Mail, the paper will explore an alternate development path within the broader history of commercial communication and computing in the twentieth century.

Simone Selva
Money Market, Industrial Credit, Foreign Trade: American Assistance Policies and the Shaping of West European Consumer Societies from Bretton Woods through the 1970s Recession

The aim is to reconstruct the role of the U.S. government and the U.S.-backed international economic institutions—namely, the IMF, IBRD, U.S. Treasury, and the Fed—in supporting the recovery of the advanced industrial economies of Western Europe in the light of the 1970s oil crises. This research specifically focuses on the time frame from the first to the second energy crisis. We aim to demonstrate that American international economic policy did endorse a twin growth pattern based on steady domestic real wages and European competitiveness on foreign markets. Accordingly, the talk will bring into focus a set of financial and investment assistance programs carried over during the time frame considered in connection with the financial recycling on the international capital markets of the oil revenues accruing to the oil-producing countries. The specific purpose of the paper is to tackle three main lines of investigation. First, it aims to pinpoint the U.S. financial aid to the European partners' external equilibrium and the domestic European money market. Second, it focuses on the economic aid to nurture industrial investments across the two case studies considered. Third, it investigates the American support to the trade balance of West European partners. In so doing, we maintain that during the floating 1970s Washington consistently supported a specific European mass consumer growth that combined high real wages at home and high trade integration on foreign markets. Accordingly, this research pinpoints American economic assistance to keep the European foreign exchange rates stable, to support the domestic investment markets, and to redress the trade balance of the European economies.

Elizabeth Ann Semler
Public Health or Industry Health? U.S. Government Responses to the 1970s Dietary Cholesterol–Heart Disease Controversy

The dramatic rise of cardiovascular disease in the post–World War II United States spurred research into the causes of and treatments for the disease. Early evidence in the 1960s indicated diet's role in coronary risk, and prompted the American Heart Association to recommend lower fat and cholesterol diets. The U.S. egg industry grew concerned that these recommendations would affect sales, and in 1973 they released a series of advertisements that attempted to undermine the dietary cholesterol–heart disease link through distortions of scientific evidence and knowledge. Shortly thereafter the U.S. Federal Trade Commission, focused on the potential public health ramifications of the ads, pursued the industry for false and misleading advertising. Concurrent with the FTC's trial, the U.S. Department of Agriculture sponsored a market research program that sought to support and expand the egg industry. This paper thus explores the multiple, and often conflicting, roles that the American government has to play. In this case, it was both a protector of public health and a protector of the health and vitality of industry and economy. This paper argues that the USDA's oversight of a program that worked to expand the consumer base of a potentially hazardous food put business needs before those of the American people. Ultimately, the federal government prioritized industry welfare over that of public health.

Irina V. Shilnikova
Labor Conflicts in Russian Industries at the End of the Nineteenth and Beginning of the Twentieth Century: Entrepreneurs' Strategies

One of the specific features of labor relations in Russian industries in the late nineteenth and early twentieth century was the absence of trade unions. They appeared only after the revolution of 1905, but did not play a significant role. At the same time, the influence of leftist parties' agitators, who urged the workers to use the most radical forms of struggle, was growing. Under these conditions, labor conflicts at enterprises occurred quite often. Some conflicts were "extinguished" in their beginning, as a result of a compromise between workers and entrepreneurs. Other conflicts evolved in an active way and ended after the intervention of the government troops and police. The result of labor conflict depended on the decisions and behavior of the entrepreneur. This paper answers the following questions: What actions were used by owners of enterprises in the course of conflicts that had already started? Which of these actions were most efficient? To what extent did the actions of entrepreneurs depend on the particular industry and region? What methods were used by entrepreneurs for the prevention of conflicts? The research is based on: 1) the author's database on "Labor conflicts in the Russian Empire (1895-1904)," which includes about 8,000 records (one record for each conflict) about different types of conflicts and entrepreneurs' strategies for dealing with them; and 2) sources from archival records of Russian enterprises to analyze entrepreneurs' strategies using a case studies approach.

Hiroshi Shimizu and Yusuke Hoshino
Exploration Needs Stable Shareholders? Ownership Structure and R&D Strategy: The Case of the Electronics, Steel and Iron, and Pharmaceutical Industries in Japan

Does exploration need stable shareholders? This study aims to explore how the unbundling of interlocking cross-shareholdings has influenced resource allocation in R&D. During the interwar periods, Japanese firms developed interlocking business relations and cross-shareholdings. These became one of the bases of the informal business groups called keiretsu. It has been argued that this enabled firms to survive with a lower level of profitability and to develop long-term and long-range planning, compared with that of U.S. firms, by helping to insulate individual firms from stock market fluctuations and takeover attempts. However, Japanese firms have begun to unwind the level of cross-shareholdings since the 1990s in response to external conditions, such as a severe decline in share prices and long-term recessions. How did this change in ownership structure influence the R&D of the firms? R&D is inherently highly uncertain and costly. Thus, it certainly requires long-range planning. Therefore, the changes in ownership structure must have influenced R&D strategy. By exploring three industries, the electronics, steel and iron, and pharmaceutical industries, this study aims to scrutinize how the change in ownership structure changed firms' R&D strategy.

David B. Sicilia
Public Relations Revolution after World War II: Counter-Organization and Transnationalism

This paper explores two major transformations in the public relations industry following the Second World War: dramatic expansion in response to new challenges to corporate legitimacy; and the global diffusion of firms, knowhow, and practices from nations with leading PR firms to those with few capabilities. Scholars of PR history have chronicled the early development of public relations in the United State and Europe, but very few have examined the post–World War II decades. By the 1950s, leading firms in the most developed economies, especially the United States and United Kingdom, had regularized their management of corporate image. But in the 1960s and beyond, they sustained colossal new challenges to their legitimacy. Their existing public relations capabilities proved inadequate in a new setting, which increasingly privileged consumer rights, corporate social responsibility, environmental protection, and corporate transparency. In response, leading firms counter-organized massively, led by firms in industries that were sustaining the sharpest attacks. At the same time—and as part of the general rapid postwar spread of multinational enterprise—leading PR firms in the United States and Western Europe opened foreign offices at a rapid clip. The result was the swift dissemination of modern public relations organizations and practices throughout the developing world.

Andrew Smith
The 1946 Outlook and the Reconstruction of the Hongkong and Shanghai Banking Corporation

Since its creation in 1865, Hongkong and Shanghai Banking Corporation (HSBC) had been closely associated with British colonialism. Indeed, it was dependent on the naval, military, and political power of the British imperial state. The Second World War was a disaster for HSBC, as most of the bank's branches were in territories overrun by the Japanese. The war unleashed anti-Western nationalist forces, such as the movement that successfully blocked the efforts of the Dutch to re-establish control over present-day Indonesia. An observer might have predicted in 1945 that HSBC would not survive. However, the firm recovered and prospered in the postwar era, notwithstanding the problems caused by the Communist takeover of mainland China. This paper will argue that the bank's prosperity in the postwar period was due, in part, to the adoption of what contemporaries called the "1946 outlook." The mentality as well as the balance sheet and physical assets of the bank were reconstructed. When the British regained control over Hong Kong and their other possessions in East Asia in 1945, they recognized that it would be impossible to restore all aspects of the prewar social and economic colonial order. China was now a British ally and member of the security council of the new United Nations, which meant that ethnic Chinese individuals living in British colonies could no longer be treated in the prewar fashion. Moreover, the new Labour government in Britain had somewhat more progressive ideas about colonial governance than its predecessors. The authorities in Hong Kong eliminated some of the most blatant forms of racial discrimination, such as the notorious regulation that had prohibited Chinese people from living in the most desirable area of the Crown Colony. HSBC adjusted its organizational culture in recognition of this changing environment. By the early 1950s, these changes were reflected in the lending practices of the bank, though its personnel practices changed at a slower rate.

Uwe Sonnenberg
Radical Politics versus a "Mindset of Economic Survival": The Left Book Trade Association in West Germany

The 1968 revolts in West Germany resulted in the creation of many small left-wing publishing houses and book shops. In order to escape isolation and following their shared goals of supporting "revolutionary" movements of the Left by supplying them with classical socialist texts that had long been out of print, they founded the "left book trade association" (Verband des linken Buchhandels [VLB]). The founders also aimed at not allowing private business to make a commercial profit on this "market for Marx." To co-operate in collectively owned and managed organizational structures was at that time considered a necessary part of social emancipation processes. However, the actors involved soon came to realize that within a capitalist business environment left bookshops also had to follow the rules of economic efficiency if they wanted to survive. Thus when the initial thrust of political action wore off, the VLB faced a discussion that oscillated between the poles of radical politics and a managerial "mindset of economic survival." This presentation seeks to reconstruct those discussions and the intermingling of political and economic practices in the development of this book trade business.

Anna Soulsby
The Construction of Management History in Post-Communist Organizations

The purpose of this paper is to explore the tensions between memory and history in organizations—in particular, how historical actions and events within organizations (and the communities they are located within) can be utilized or manipulated by managers to justify their behavior and decisions. The process of the re-legitimization of management is an especially important and complex moral issue for the managers and owners of organizations in post-communist societies. The empirical basis for the paper is a longitudinal study of organizations conducted by the author since 1991 in Czech former state-owned enterprises. The focus of the research project has been to examine processes of change and the utilization of symbolic resources such as narratives by actors to legitimate actions and understand (and navigate) the challenges of the post-communist transition environment. This paper explores the experience of managers of a Czech company that entered into a joint venture with a German multinational company. In particular, the paper will consider the impact of the Czech-German historical relationship as it affected the development of the joint venture and process of organizational learning for the Czechs.

Johannes Steffens
The Virtue of Corporate Citizenship: Equal Employment Opportunity Activism of American Business Elites in the 1960s

The Plans for Progress (PfP) program of the President's Committee on Equal Employment Opportunity (PCEEO) represented an important milestone in the establishment and dissemination of EEO standards in the private sector. Between 1961 and 1969, 450 large corporations signed PfP agreements with the federal government, pledging to voluntarily implement or enhance their EEO practices. Civil rights groups, liberal politicians, and newspapers derided PfP as ineffective and tokenism. Scholars have either ignored PfP or reiterated the contemporary criticisms. Based on extensive archival research, this paper will critically examine the tangible and intangible achievements of PfP, its limitations and failures, and the multifaceted interrelations between business and government in the area of civil rights in the 1960s. I argue that PfP systematized voluntary EEO practices, led to significant progress in minority employment, facilitated the acceptance of EEO laws by the private sector, and established corporate EEO standards for decades to come.

Philip Stern
Corporate Responsibilities: Company, City, and Colony in the Early Modern British Empire

This paper rethinks the nature of the corporation by considering it in the wider context of its various forms—company, city, and colony—in shaping the British imperial constitution. Beginning with a consideration of the theoretical debates over corporations in the early modern period, it examines various parallel and often simultaneous attempts of the British state to regulate and control those different corporations, through various legal instruments, political pressure, and commercial policy. Reflecting on the origins of the corporation as a form of government and public society, it then traces the mechanisms in which all of these forms of corporation came under simultaneous assault in the 'long' eighteenth century, as various agents of a growing colonial state sought to reconceive the nature of public authority overseas. It concludes by considering the role of empire in shaping our ideas about the corporation, as well as by reevaluating the nature of modern forms of corporate fiduciary responsibility in light of the corporation's long history as a quite public form of governance.

Espen Storli
The Cold War as a Business Opportunity: Metal Traders and PL480

In 1954 the U.S. Congress enacted the Agricultural Trade Development and Assistance Act, popularly known as Public Law (PL) 480. The aims of the act were wide-ranging and directed at both internal and external political issues. Not only was this legislation meant to increase the consumption of U.S. agricultural surplus commodities in the world (and thereby aid U.S. farmers); the American food was also to be used as an instrument to improve U.S. foreign relations with other countries by selling it in local currencies and not in scarce dollars, or by giving it away as aid. In addition, PL480 opened up the possibility of selling U.S. agricultural products for foreign strategic raw materials to be stockpiled. Though the law was meant as an instrument of state policy, private business interests soon realized the opportunities inherent in the new legislation. Section 309 and 310 of the law made it possible to barter agricultural commodities for strategic materials for the stockpile, and a handful of U.S. trading companies started to exchange, for example, U.S. grain, tobacco, and cotton for Turkish chrome, Indian manganese, or Bolivian tin. Significant sums were involved, and the business on the American side was financed through the U.S. government. Very little has been known about these PL480 barter deals, but this paper will argue that in their heyday between 1954 and 1961 they were significant in shaping U.S. relations with foreign powers in this important period of the Cold War. In addition, these deals were essential for the business development of a string of U.S. metal-trading companies, foremost among them Philipp Brothers of New York, which in this period developed as the world's dominant metal trader.

Anne Sudrow
"To fit industry to human needs": The Scott Bader Commonwealth and the Creation of an "Industrial Common Ownership Movement" in Britain

In 1951, the British entrepreneur and chemical manufacturer Ernest Bader "collectivized" the ownership of his private enterprise by transferring the property and control of his company to his employees via a registered charity. His aim was "to organise ... a maximum sense of freedom, happiness and human dignity in our firm"—yet "without loss of profitability." With a written constitution and later a "code of practice," he and his new partners set high ethical standards for the future collective management of the business. They strongly reflected Bader's religious beliefs as a Quaker, a democrat, and a radical pacifist. This paper asks how the balancing of economic tasks with the social and political aims of the enterprise took place in practice, in the daily routines of economic and social activity. What problems did the workers and managers encounter? And how did Scott Bader as a model for worker ownership influence the creation of an "industrial common ownership movement" in Britain?

Alessandra Tessari and Giambattista Rossi
From Calciomercato to Calciopoli: Illegal Practices in the Italian Football Industry, 1950-2006

The football industry is among the top twenty in Italy with its estimated total turnover of around €4,200m in 2006. Renowned for the outstanding performances of its clubs at the international level, Italian football has progressively become unprofitable and has been embroiled in a number of major scandals in recent decades. Using a variety of secondary literature as well as extensive interviews with some key actors in the football sector, we claim that the emergence of illegal practices stemmed from poor and inefficiently enforced regulation. As the distorted governance structure of the Italian football industry represented only the clubs' interests, it allowed widespread abusive practices against players by hindering the adoption of those principles of labor legislation already guaranteed to other categories of workers. At the same time, it favored the diffusion of a culture of malpractice by preventing the federal bodies from monitoring clubs' compliance with the rules. Moreover, lack of competition in the media industry and conflicts of interest at the institutional and managerial levels allowed significant shortcomings in clubs' corporate governance. The familial style of ownership structure typical of Italian football clubs and poor entrepreneurial attitude also proved major obstacles to solving the problem of illegal practices.

Gail Triner and Huancheng Du
Capitalizing Petroleum in Brazil

Opening the Brazilian economy to global capital and trade markets in the 1990s occurred nearly simultaneously with the recognition of significant (and continually increasing) petroleum deposits in offshore territory. These fundamental changes have reinvigorated a question that resonates deeply in Brazilian history: how to accumulate sufficient capital to meet policy goals while also accommodating concerns about the national sovereignty of a crucial resource. This paper makes two contributions toward exploring this question. It offers the first historical extension of petroleum history to incorporate the new reserves that have changed the Brazilian position in global markets. Second, the paper introduces capital market data—rather than policy/political analysis—to consider the question of capitalization. The opening of the sector to private domestic and foreign capital, through both capital market operations, and the termination of the state-owned (Petrobras) monopoly, serve as turning points that allow us to test the efficacy of one of the most important "openings" among emerging markets with the advent of late twentieth century globalization. Mechanisms for accumulating private capital flows also motivated substantial changes in governance. While pursuing very large amounts of private capital, the state has kept a tight lid on the sector by maintaining a majority share of Petrobras and by the structure of regulation. We hypothesize that hybrid governance changes have reduced the perception of financial investors (as a proxy for all stakeholders) that open markets determine the actions of sector participants. Two approaches support our analysis. First, we evaluate the financial structure of Petrobras, distributed between equity and long-term debt, to assess financial patterns. Further, econometric analysis of our data on equity prices tests the effects of sovereign, financial, and commodity risks in the Brazilian petroleum sector. Financial and commodity risks (as measured by stock indices and petroleum prices, respectively) are crucially important. However, sovereign risk (as measured by real exchange and interest rate fluctuations) influences the sector equally strongly, suggesting strong limitations on expectations of political independence.

Riini Turunen
Bankrupts' Destinies: The Social and Economic Effects of Business Failure in a Small Finnish Urban Community at the End of the 1870s

A certain kind of cultural historical grand narrative of Western bankruptcy portrays how attitudes to and therefore experience of bankruptcy became worldly during the nineteenth century. From this viewpoint my paper examines the faiths of market-orientated people who went bankrupt during the first years of the Long Depression in Jyväskylä, a small town in central Finland. The research is conducted through actor-level in-depth analysis of ten individual bankrupts and will show how the social and economic spheres of life were inextricably linked. In the paper, bankruptcy is approached through the concept of threat, meaning that the financial troubles exposed an economic actor's and his family's social standing and economic ability to danger. In this respect the paper concentrates on how business failure might influence social relationships, social participation—or exclusion, and the ability to maintain or reproduce previous wealth, power and prestige. Therefore the paper pays attention not only to bankrupts' financial recovery—incomes, satisfaction with financial situation, business re-entry—but also to the social consequences of bankruptcy. This is studied through the variables of moving, being invited to serve as a godparent, and commissions of trust in relation to bankrupts' former social standing. Essentially, the paper aims to study whether bankrupts' social capital facilitated their recovery from ruin.

Heidi Tworek
Magic Connections: German News Agencies and Global News Networks, 1905'1945

"Magic Connections" challenges our historical understanding of the news business. My research in twelve archives and seven countries investigates the global networks behind German media to trace how infrastructures, ideas, and individuals created news in the twentieth century. I consider the political economy of news to understand why German politicians, industrialists, and journalists came to question and seek to reform one of the very premises of modernity: the organizational structure of global communications. I argue that these elites seized upon news agencies to reshape national and global news for two main reasons. First, the business model of the news agency rendered it an ideal means to influence broader political, economic, and social circumstances. News agencies acted as the first gatekeepers of information and operated an astonishingly durable global cartel from 1870 to 1939. Second, the development of wireless technology enabled Germans to reconfigure geopolitics and reach directly audiences as far away as South America and East Asia. Indeed, "Magic Connections" explores how German news agencies reconstituted the modern infrastructure of communications from cartels and cables to competing wireless waves.

Steven Usselman
In Good Times and in Bad: IBM and the Federal Government

This paper interprets the recent resurgence of IBM as resulting from its return to a business model grounded in providing comprehensive business services that leverage proprietary technologies. The approach, which the paper characterizes as one of closed systems, harkens back to earlier periods of IBM's history. In those instances, the proprietary technology involved hardware and operating systems, while today it involves applications software. During previous periods of its history, IBM pursued this business model within a framework established by its relations with the federal government. The paper emphasizes four aspects of those relations: antitrust, procurement, research funding, and tax policies. Together, these policies sought to create a virtuous cycle that balanced private and public interests and kept the perceived deleterious effects (or vices) of the business strategy in check. This balancing act has withered under forces of globalization and technological change. Offshore software factories have replaced domestic hardware factories, generating large returns on which IBM pays significantly reduced taxes, while operating within a relaxed antitrust regime and pumping fewer resources into research.

Sean H. Vanatta
Protecting Plastic: Credit Card Fraud and the Defense of America's Credit Currency

This paper takes up a simple irony, namely that the credit cards issued by banks and companies like American Express in the 1950s and 1960s functioned as a new form of money, but the companies issuing them forgot to consider one thing: people like to steal money. Hilarity, needless to say, did not ensue. Instead, as I will show, credit card companies pursued a mixture of strategies to combat escalating card fraud. They sought to recast the image of fraudsters from "elegant swindlers" to "professional criminals," they hired internal security forces to track down miscreant card users, and, most important, they sought to harness state policing capacity to protect their new card products. These efforts yielded—and continue to yield, as any recent Target customer knows—mixed successes, and in the late 1960s brought new state scrutiny to the industry, and with it, new consumer protections. In examining this case, particularly the development of credit card fraud legislation in New York state in the late 1960s, I suggest that scholars begin to consider criminal law as a form of financial regulation as important as, and intertwined with, consumer protection and safety and soundness.

Natascha Van der Zwan
Capital Scarcity, Ideational Change, and the Pension Free-For-All

Recent historical scholarship has revealed how the deregulation of financial markets was U.S. policy-makers' solution to the capital scarcity experienced during the economic crisis of the 1970s, leading to massive inflows of foreign capital and—ultimately—America's debt-driven growth regime. Less explored in this scholarship is the search for domestic sources of private capital during this period, in particular the pension assets accumulated on behalf of millions of American workers. Between 1970 and 1985, such assets grew from $239.2 billion to $1.7 trillion, according to the U.S. Census Bureau—an attractive pool of capital for state and local politicians in need of closing public budgets as well as financiers hoping to make a quick buck out of the purchase of undervalued firms. Both groups of actors instigated a wave of pension plan terminations during the early to mid-1980s. This paper explains why workers' pension assets became such an economic free-for-all. I will attribute these changes not only to the changing economic circumstances of the 1970s and early 1980s, but also to the shifting notions of investment and ownership that legitimated the appropriation of workers' pension plans. Such ideas, however, did not go unchallenged, and the paper therefore reveals important opposition from labor unions, business actors, and politicians from industrial states.

Natalya Vinokurova
When Analogies Fail the Test of Time: The 2008 Mortgage Crisis as a Case of Analogical Lock-In

This paper examines the long-term consequences of using analogies to help facilitate the diffusion of innovations. Using a historical case study, I examine how an analogy (in this case, "mortgage-backed securities are like bonds") affects the innovation's trajectory after the innovation has been adopted. I introduce the notion of "analogical lock-in" to explain decision-makers' inability to update their beliefs about the validity of the accepted analogy when faced with evidence that the analogy is not valid. The paper presents qualitative evidence that analogical lock-in can occur even if the decision makers evaluate the analogy using the best-case-scenario criteria set out by analogical reasoning scholars. Drawing on a combination of interview, archival, and industry trade manual data, I document the role played by the "mortgage-backed securities as bonds" analogy in the diffusion and evolution of mortgage-backed securities (MBS) from 1968 to 2008. I find that analogical lock-in can lead to negative consequences unanticipated by the decision makers. My research also highlights the interaction between persistence of the analogy and the technical tools used to bridge the gap between the innovation and the existing phenomenon to which the innovation is compared. This finding suggests that technological and analogical lock-ins are mutually reinforcing.

Lee Vinsel
Virtue via Association: The National Bureau of Standards, Automobiles, and Political Economy, 1919-1940

In his classic article on Herbert Hoover, Ellis Hawley argued that Hoover's "associative state" would "function through promotional conferences, expert inquiries, and cooperating committees, not through public enterprise, legal coercion, or arbitrary controls." Hawley focused on private industry and trade association in his narrative. While more recent work has broadened the scope of associationalism to include voluntary associations and other non-government organizations, this paper argues that historians have still not accounted for many varieties of this form of governance. I use the National Bureau of Standards' work on automobiles to explore this topic. Soon after the First World War, the bureau's activities exploded, at a time when Herbert Hoover was heading its home agency, the Department of Commerce. The bureau developed a wide variety of organizational routines that produced, disseminated, and internalized knowledge. Many of its activities were aimed at shaping markets and technologies, and at least some of the bureau's efforts were aimed at making markets and their products more virtuous—for instance, by making products safer. Moreover, some of the bureau's activities were slyly coercive in ways that bureau staff members themselves called "clever," conflicting with Hawley's original intuition about the Hooverians and suggesting that even ardent associationalists thought virtue required a little discipline.

Fei-Hsien Wang
Protecting Private Interests under the Shadow of the Law: Shanghai Booksellers' "Copyright" Regime, 1905-1949

In 1905, Chinese booksellers in Shanghai revived their guild to deal with an increasingly acute problem in the book trade—piracy; they transformed this early modern establishment from a mutual-aid organization into a quasi-legal institution aiming to regulate and protect what they believed to be "copyright." Drawing from the rich and underused archives, I explore in this paper how the Shanghai Booksellers' Guild, a private trade organization with no legitimate jurisdiction or official authorization, established and enforced its "copyright" regime when the Chinese central state and its laws existed more in name than reality. In the first half of the twentieth century, the Guild registered new titles and old printing blocks, adjudicated ownership disputes, punished those who pirated its members' books, and later even operated a private police force hunting pirates nationwide. In the absence of an evenly effective state, the Guild operated its private "copyright" regime not according to the state's formal copyright law, but according to Shanghai booksellers' collective civility, morality, customs, and their own conceptions of publication ownership.

Nick White
The Trouble with Tin: Businesses and Governments in Decolonizing Malaya

Focusing on the decolonization period of the late 1940s to late 1950s, this paper analyzes the contestations that surrounded the future of the tin industry in the world's premiere producing country, Malaya (today's peninsula or West Malaysia). Government-business relations were not only complicated by deep fissures between U.S., British, and Malayan administrations but also by the long-standing structural and ideological cleavages within the foreign-controlled dredging sector. Against the backdrop of communist insurgency and political devolution, the developmentalist orientation and administrative idiosyncrasies of terminal colonialism underlined the autonomy of the Malayan state from business actors (whether expatriate, multinational, or ethnic Chinese).

Steven Wilf
Patents, Markets, and Discontent in Late Nineteenth Century America

From the mid-1880s to the mid-1890s, a particular culture of patents emerged in the United States which combined a political economy of citizenship, anxieties about the power of industrial combinations, and contention about whether patents represented the public virtue of technological innovation or the private vice of monopoly. Focusing upon the introduction of patent enforcement to a new market—the American Midwest—the paper examines how both courts and ordinary citizens responded to inclusion within the framework of intellectual property protection. This historical moment was prompted by an onslaught of harassing infringement suits concerning barbed wire, fencing, and wells, and established a movement against patent law that became a major political issue in the agricultural midwestern states beginning in the 1880s. Farmers organized under the larger agrarian movement of the Grange. Activists deluged Congress with petitions, proposed legislation to limit the ability of patent holders to sue, and created legal defense funds. Prairie populism mixed with a campaign against patent misuse. This paper excavates competing business models for late nineteenth century patents. Sometimes patents were seen as favoring those with economic and knowledge resources, sometimes as a meritocratic, leveling enterprise. A variety of proposed radical reforms such as the immunization of innocent infringers against law suits, severe reduction of the patent term, and the establishing of a bundle of rights for patent emerged from newly created anti-patent networks. Does the call for the abolition or the significant weakening of patent protection relate to other late nineteenth-century responses to business? Or is intellectual property anomalous? The patent wars—the late nineteenth-century prairie agrarian revolt against intellectual property—underscore the unease experienced by those unwillingly included in intellectual property business and legal frameworks.

Jocelyn Wills
The "Proper Meshing": Geopolitics and the Commercialization of Space

During October 1957, the Soviet Union launched Sputnik. Three months later, the United States launched Explorer. Together, these satellites inaugurated a global space race, accelerated the arms race, and encouraged other nations to compete for the military and commercial promise of earth observation. Very quickly, however, President Eisenhower worried about the forces such acts had unleashed. In his famous farewell address to the American people on January 17, 1961, Eisenhower warned, "we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex." Further, he cautioned: "Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals so that security and liberty may prosper together." Taking my queue from Eisenhower's latter caution, and as part of the BHC's focus on the "vices and virtues" of business, my paper contemplates the commercialization of space during the Cold War era, the rapid expansion of that effort since the Internet went global, the elusive nature of the "proper meshing" of security and liberty, and the ways in which the costs of public-private partnerships in space have increased and socialized the risks of global surveillance and orbital debris.

James Wolfinger
"Humanizing the Capitalistic System": Thomas Mitten, the Philadelphia Rapid Transit Company, and the Labor Question in the Early Twentieth Century United States

Thomas Mitten came to Philadelphia in 1910 determined to use the city's transit company as a laboratory for the development of his plan to solve the "labor question." Just a year earlier the city had suffered through a transit strike that grew into a general strike where 200,000 people walked off the job and twenty-nine people were killed in widespread violence. Corporate capitalism, in Mitten's eyes, had caused this problem but it also offered the solution. To appease the workers and larger populace, Mitten established one of the best known corporate welfare programs in the United States and received wide acclaim for offering a solution to the labor question. His plan improved his employees' wages and working conditions, gained the trust of the public, and made Philadelphia's transit system one of the most efficient in the country. But he also developed a network of spies, used a company union to make workers think they had power over their workplace when they actually had little, and made himself wealthy on company profits. Mitten won acclaim for "solving" the labor question, but his story represents the good and bad of business: he used his company to try to solve a vexing social problem, but he simultaneously controlled and exploited his workers.

JoAnne Yates and Craig Murphy
The Role of Firms in Industrial Standards Setting: Virtue and Vice

Most industrial standards have been set through the process of voluntary consensus standard setting (VCSS) since around 1900. Engineers volunteered their time to serve on technical committees of VCSS organizations to develop the standards. Early on, the participation of engineers working for concerned firms was controversial, since some claimed that representatives of firms would serve the firm's own interests rather than the common good. Others claimed that only engineers of the highest caliber, ethically as well as technically, would serve on these committees and that they would serve the greater good. This paper examines how the VCSS process evolved to reflect both the assumption of disinterestedness and the possibility of interested behavior. VCSS assumed that participating engineers would be fair and built this fairness into the process; at the same time, it developed committee membership rules that ensured a balance of potentially competing interests as a check against interested behavior. In recent decades, however, a flood of new standards-setting organizations and methods have appeared in the area of communication and information technology, upsetting that balance and potentially threatening fairness. The paper ends by posing questions about the implications of this change.

Melih Yeşilbağ
Ideological Accumulation by Dispossession: Changing Hegemonic Strategies of Business in Turkey before and after the Neoliberal Era

This paper scrutinizes the ideological strategies of business before and after the 1980 military intervention, a landmark initiating the neoliberal era in Turkey. By tracing the publications and public announcements of two powerful employers' associations (MESS and TISK) in the period of concern, it analyzes the transformation of the efforts of the business front in the public realm. Due to strong unionism, labor militancy, student activism, and widespread anti-business sentiments before 1980, business representatives preferred not to be publicly visible, pursued a low profile, and could establish only weak ties with the media and the academy. Although the military intervention immediately eliminated the political factors that could potentially undermine business, business achieved its prestigious social status through a systematic and extensive public relations campaign in line with the neoliberalization process.

Richard Yntema
Balancing Private and Public Interests: Trade Credit and Collective Action in Holland's Early Modern Brewing Industry

The question of the economic impact of guilds has long dominated the study of guilds in early modern Europe. This case study analyzes how brewers and town governments in seventeenth-century Haarlem and Rotterdam established and enforced guild laws to solve collective action problems resulting from asymmetries of information between brewers and their distributors. To keep their breweries operating near capacity and realize the economies of scale in brewing, brewers financed extensive distribution networks. Despite contracts stipulating exclusive dealing with their distributors, clandestine beer delivers by poaching brewers (who also marketed "Rotterdam" or "Haarlem" style beer) were common. Drawing on archival records, this paper shows how the brewers' guild and town government in Haarlem and Rotterdam established and enforced rules that shifted the risks in poaching and structured competition for distributors between brewers. While the guild regulations upheld a brewer's right to exclusive dealing with a distributor, the regulations also established how brewers could take over an incumbent brewer's distributor. By structuring the right to extend credit and deliver beer to distributors, the guild regulations also limited the race to the bottom in providing credit to distributors, and thus worked to preserve the town's financial capital and the common good.

Susan Yohn
Cooperation over Confrontation? Working Collectively or Individually? Debating the Problems of Women in the Corporation

This paper examines the impact of social policy debates upon the workings of the corporation by focusing on the discussion of the problems faced by women employees in balancing work with family responsibilities. The most recent iteration of this debate is that between Sheryl Sandberg and Anne Marie Slaughter, but theirs reprises the controversy that erupted upon the publication of an article by Felice Schwartz, founder of Catalyst—a feminist organization that lobbies for women to be hired and promoted into corporate management—in a 1989 Harvard Business Review. Catalyst has sought to make corporations more "virtuous" and receptive to the needs of women employees by employing strategies of cooperation rather than confrontation. Best known for giving rise to the term "mommy track," the article was a seemingly reasonable appeal for companies to take a flexible approach to the needs of female employees who were mothers. The article generated a volume of letters previously unseen by the journal and led to impassioned debate among a range of individuals, from corporate leaders to feminists like Betty Friedan, about the efficacy of Schwartz' proposals. In this exchange one can track a shift from a commitment to a collective response to one that is more individual, suggesting why the United States continues to lag behind other nations in the development of maternity and family policies.

Jeffrey R. Yost
Access Control Software, Corporate Responsibility, and the Origin and Early History of the Computer Security Industry

Through a case study of the hitherto unexplored origins and first decade (mid-1970s to mid-1980s) of the computer security industry, this paper investigates the role of established and start-up firms interpreting and acting on market demand in a new field, as well as the virtue of secure corporate computer systems versus the vice of inadequate protection of (internal, customer, and supplier) data. In doing so it analyzes the nature of new IT industry segment formation, cultural and corporate values for security and privacy, the economics of computer security, and evolving notions of acceptable risk. Corporate customers and potential corporate customers of the first computer security software products, IBM's RACF and startup SKK, Inc.'s ACF2 helped shape these products, and for many, fostered momentum for enacting meaningful security only as a responsive last resort—the legacy of which is evident in today's common "penetrate and patch" practices. The study draws extensively on recently conducted oral histories and archives from the Charles Babbage Institute's current three-year NSF-sponsored project "Building an Infrastructure for Computer Security History."

Christina A. Ziegler-McPherson
Keuffel & Esser: German-American Entrepreneurship and Opportunity in Wartime

Keuffel & Esser Company (K&E) was founded by German immigrants Wilhelm J. D. Keuffel and Hermann Esser and manufactured high-quality surveying, drafting, and calculating tools for architects, engineers, surveyors, and building contractors in Hoboken, New Jersey, between 1875 and 1967. By the start of World War I in 1914, both Keuffel and Esser had died, leaving ownership and management of the business to their American-born sons and naturalized sons-in-law. K&E began making optical equipment for the U.S. Navy, using glass imported from Germany, in the early 1910s, but began experimenting with its own manufacture of optical glass at the urging of the National Bureau of Standards. When the United States entered the war in April 1917, Hoboken was made the main port of embarkation for the American Expeditionary Force, and many German-owned businesses were either seized or shut down by the U.S. government. This paper argues that the American citizenship of K&E's owners protected the firm from confiscation, and helped K&E win valuable contracts from the Navy to make optical glass for telescopes, periscopes, and other sighting and targeting tools. Although K&E employed many German craftspeople, the location of its factory away from the militarized waterfront meant that it did not have to purge German employees.