Are Latin America's corporate elites transnationally interconnected? A network analysis of interlocking directorates

Conflicting perspectives appear when thinking about the emergence of a cohesive transnational corporate network in Latin America. On the one hand, regional political integration, foreign investment growth, increased cross‐border mergers and acquisitions, and cultural and linguistic homogeneity may have fostered transnational networks among Latin America's corporate elites. On the other hand, domestic‐based business groups, family control and trade orientation to the USA may have hindered the emergence of a cohesive transnational corporate network in Latin America. Based on a network analysis of interlocking directorates among the 300 largest corporations in Latin America, I ask whether the region's corporate elites interconnect at the transnational level and form a cohesive transnational corporate network. I found few transnational interlocks, a lack of cohesion in the transnational corporate network and no regional leaders. Corporate elites in Latin America are not transnationally interconnected and so a cohesive transnational corporate network has not emerged. I discuss implications and avenues of future research.     

CROSS-BORDER ACQUISITIONS AND BOARD GLOBALIZATION IN THE WORLD'S LARGEST TNCS, 1995–2005

Because of their size, power, and undemocratic nature, the cross-border activities of the world's transnational corporations (TNCs) are of particular interest to sociologists. Previous research shows that over the past decade the boards of directors of the world's largest TNCs have become more multinational, in other words are increasingly composed of individuals from different countries. During the same period there was also a dramatic increase in the number of cross-border TNC mergers and acquisitions (M&As). Anecdotal evidence suggests a connection between cross-border acquisitions and the increasingly multinational composition of TNC boards, and this study explores that relationship using data on the 148 largest TNCs and commercial banks. We find that a cross-border acquisition almost always results in a more multinational board of directors, that multinational boards are more likely to do cross-border deals, and that once a board becomes multinational it stays that way. The evidence also shows that multinational boards are concentrated in Europe, suggesting another dynamic between the integrating forces of the European Union and its TNCs. Because the results show increasing cross-national contact between the corporate elites who serve on multinational TNC boards, the results also provide some support for claims about the recent emergence of a "Transnational Business Class" or "Transnational Capitalist Class," at least in Europe, although it is recognized that more study is needed to make the case that such a class is forming.     

Transnational land investment web: land grabs,TNCs, and the challenge of global governance

ABSTRACT

Despite international media’s waning attention, research and political debates on global land grabbing have not subsided. We argue the importance of understanding the ‘transnational land investment web’ of corporate and state actors and institutions, which are not always immediately visible. Focusing on transnational corporations (TNCs) based in the European Union (EU), we examine five sets of actors and institutional spheres through which these actors are able to grab lands beyond Europe. It is crucial to understand these not as individual sets of actors or institutions, but as interconnected sets, comprising a web. These are EU-based: (1) Private companies using regular institutional platforms; (2) Finance capital companies; (3) Public–private partnerships; (4) Development Finance Institutions; and (5) Companies using EU policies to gain control of land through the supply chain. One implication of this complex web is that democratic governance in the context of land grabs becomes an even more daunting challenge.     

Intra-Firm Transactions of TNCs in Ukraine: Empirical Investigation

Modern transnational corporations (TNCs) are integrated, internally deterministic systems characterized by sustainable organizational, production and financial interrelations between their subsidiaries located in different countries. Intra-firm shifting of financial resources within TNCs has become an important means of covering funding needs of particular subsidiaries in a more efficient way and responding to opportunities and threats of the macroeconomic environment. Although the literature on intra-firm transactions of TNCs is already sufficiently developed, most research is either theoretical, or is based on secondary sources of information. There is a lack of relevant research in Ukraine. In contrast, this study is one of a few in the contemporary economic research on intra-firm activities and the second one in Ukraine which is based on empirical information collected from primary sources. The study shows that most TNCs operating in Ukraine decide on financial terms of their intra-firm transactions based on a mixed decision-making system with a centralized system also commonly used. Responsibility over intra-firm operations is largely spread within different units of the group financial function and inside different departments of local subsidiaries. We found significant difference in the use of intra-firm financial instruments depending on the type of control over their Ukrainian subsidiaries. In particular, TNCs use a wider range of intra-firm financial instruments in their relations with subsidiaries with lower degree of control from the parent company than with wholly-owned subsidiaries. We found that tangible or intangible character of core activities of a TNC has an impact on the use of some instruments.     

Global Agro-Food Corporations and the State: The Ferruzzi Case

The relationship between transnational corporations (TNCs) in the agro-food sector and the nation-state in the context of global post-Fordism is examined through a case study of recent events involving the Ferruzzi transnational corporation. TNCs have a complex and contradictory set of relations with the state that are affected by competition among TNCs, by TNCs' internal disagreements, and by the fragmented nature of the state. The state assists TNCs through formal and informal channels. In this specific case, the informality of the system is underscored by the openly illegal arrangement that was operated for years by Ferruzzi officials and members of the officialdom of the state. However, the state also has the capacity to counter the actions of TNCs and to enforce the interests of subordinate groups.     

International Collaboration in Translating Career Theory to Practice

This article describes an effort to apply a theoretical perspective developed in one country (the United States) to cope with increasing demand for career services and limited funding in another country (the United Kingdom) faced with similar increasing demands for cost‐effective service delivery. The authors hope that the experience gained in the transnational application of theory to practice they present can be replicated in other countries using other theoretical perspectives. This article describes the process used in one transnational career theory adaptation project and discusses implications for transnational adaptations of career theory across countries.     

New insights in reproducing transnational corporate elites: the labour market intermediation of executive search in the pursuit of global talent in Singapore

In this article, I provide new theoretical and empirical insights into the reproduction of transnational corporate elites through the process of people moving between firms’ internal labour markets rather than from expatriation. Theoretically, the article advances understandings of the reproduction of transnational corporate elites by drawing on a pioneering engagement with global talent, transnational elites and labour market intermediary discourses. I generate these new theoretical insights through an original case study of how global executive search firms in Singapore create pipelines for the recruitment of transnational corporate elites between firms’ internal labour markets. The findings also highlight the vital role of Singapore's neoliberal labour market practices, as well as its foreign talent programme to ‘win the war for talent'. By situating this research on the agency of executive search in reproducing Singapore's transnational corporate elite, the article's key contribution is to decentre North American and Western perspectives on the reproduction of knowledge on transnational corporate elites.     

Agri-Food Restructuring: A Synthesis of Recent Australian Research

Abstract Globalizing tendencies within capitalism are leading to important alterations in the structure of agricultural production and the ways food companies are involving themselves in processing and marketing. Increasingly, finance capital and transnational agribusiness have sought ways to influence, and in some cases redirect, farming activities in Australia. The penetration of farming structures by corporate capital has been hastened by state deregulation. Rather than providing detailed empirical evidence, this paper presents a broad synthesis of recent Australian research with the aim of informing readers otherwise unaware of events in the Antipodes of the forms and impacts of agri-food change in Australia.     

The Rapid Rise of Supermarkets?

A series of articles, many of them published in this journal, have charted the rapid spread of supermarkets in developing and middle‐income countries and forecast its continuation. In this article, the level of supermarket penetration (share of the retail food market) is modelled quantitatively on a cross‐section of 42 countries for which data could be obtained, representing all stages of development. GDP per capita, income distribution, urbanisation, female labour force participation and openness to inward foreign investment are all significant explanators. Projections to 2015 suggest significant but not explosive further penetration; increased openness and GDP growth are the most significant factors.     

The global corporate elite after the financial crisis: evidence from the transnational network of interlocking directorates

What impact did the recent financial crisis have on the corporate elite's international network? Has corporate governance taken on an essentially national structure or have transnational networks remained robust? We investigate this issue by comparing the networks of interlocking directorates among the 176 largest corporations in the world economy in 1976, 1996, 2006 and 2013. We find that corporate elites have not retrenched into their national business communities: the transnational network increased in relative importance and remained largely intact during the crisis lasting from 2006 to 2013. However, this network does not depend – as it used to do – on a small number of big linkers but on a growing number of single linkers. The network has become less hierarchical. As a group, the corporate elite has become more transnational in character. We see this as indicative of a recomposition of the corporate elite from a national to a transnational orientation.     

Powers and Limits of Transnational Corporations: The Case of ADM

Abstract This analysis employs the case of lysine price fixing involving the food‐processing transnational corporation (TNC) Archer Daniels Midland (ADM) and Asian‐based firms. In an “economy and society” conceptual framework grounded in the sociology of agriculture and food, we investigate the powers and limits of TNCs in the global era. We argue that TNCs maintain significant powers which allow them to avoid the laws and regulations of nation‐states. ADM was able to organize an illegal global cartel to control the world production and price of the feed supplement lysine. In addition, TNCs' actions in the global arena are limited by their inability to trust business partners and to organize and maintain systems of social control; these roles historically have been played by the nation‐state. We conclude that despite their significant powers, TNCs' contradictory position in the global arena provides opportunities that can be used to democratize society.     

Institutional legacies in TNCs and their management through training academies: the case of transnational law firms in Italy

In this article we highlight the effects of heterogeneous institutional contexts on transnational professional service firms, a relatively poorly studied issue. Specifically, we provide empirical analysis of how the specificities of the Italian institutional context affect the activities of English legal professional service firms in Milan. This reveals the intimate connection between a variety of capitalism, place specific workplace cultures and practices, and the institution‐related challenges transnational professional service firms and all transnational corporations (TNCs) face. We also reveal the way institutionally generated differences at the level of work practices are managed in transnational law firms through worldwide training programmes designed to ‘govern’ the practices of workers in different parts of the TNC's network. This emphasizes the importance of studying attempts to manage institutional heterogeneity at the level of workplace practices, something often missed in existing mesoscale studies of TNC governance structures. Consequently, we highlight detailed empirical archaeologies that explore the direct links between institutions and practices as an important component of future research on the effects of institutions on TNCs.     

Evidence of a transnational capitalist class‐for‐itself: the determinants of PAC activity among foreign firms in the Global Fortune 500, 2000–2006

Transnational capitalist class (TCC) theory is rooted in the claim that the globalization of the economy has led to a globalization of economic interests and of class formation. However, systematic evidence linking the indicators of transnational class formation with political behaviour is largely missing. In this article, I combine data on board of director interlocks among the 500 largest business firms in the world between 2000 and 2006 with data on the political donations to US elections of foreign corporations via the corporate political action committees (PACs) of their subsidiaries, divisions or affiliates. Controlling for the various interests of individual firms, I find that foreign firms that are highly central in the transnational intercorporate network contribute more money to US elections than do the less central foreign firms. Given prior research on board of director interlocks, this finding suggests that a segment of the transnational business community has emerged as a class‐for‐itself.     

China’s flexible overseas food strategy: food trade and agricultural investment between Southeast Asia and China in 1990–2015

Using the UN Comtrade database and multiple sources of agricultural investment data, this paper outlines the emerging patterns of food trade and agricultural investment between Southeast Asian countries and China. The paper shows that China has adopted a flexible overseas food strategy. First, China has increased food export and shifted its food trade with Southeast Asia from a dependent relationship towards a complementary relationship at the regional level in recent years. Second, China tends to adapt to the existing conditions of food production and trade in Southeast Asian countries instead of fundamentally altering them. Finally, Chinese overseas agricultural investment is less driven by domestic food demand but more oriented for profit making, and this gives it flexibility in diversifying investment. An adequate understanding of China’s flexible food strategy in bilateral and multilateral relationships holds implications for global food security.     

Use of Overseas Migrants' Remittances to the Extended Family for Business Investment: A Research Note1

Abstract The extended family's role in economic improvement has been extensively debated. From a modernization theory perspective, the extended family is viewed as an institutional obstacle to economic progress, while a social capital perspective suggests that it is an “engine” insofar as it permits individuals to activate networks and pool resources beyond their own. This paper examines, from these perspectives, extended family influences on the use of remittances from transnational migrants. The research asks whether family influences are positive or negative and are more or less important than other factors in determining business investments. The research draws on interviews with 170 family heads in a small community in Pakistan. The results show that relatively little remittance income from family members working in the Middle East was channeled into business investments, despite government incentives offered to migrant households. Most of the extended family measures used in the research are statistically unimportant in explaining level of business investment. There thus appears to be little support for either modernization theory or social capital arguments on the role of the extended family. Of the five operationalized extended family dimensions only one was related to business investment, and that positively. However, “family” considerations are not irrelevant. The best predictors of business investment were a preexisting level of business exposure/experience within the family and whether or not the family head was aware of business investment opportunities. The results raise questions about the need to reconceptualize family influences beyond the formal dimensions of extended family structure.     

THE TRANSFORMATION FROM MULTIDIVISIONAL FORM TO CORPORATE GROUPS OF SUBSIDIARIES IN THE 1980s:

In the 1980s, the corporate form shifted from multidivisional forms to corporate groups of subsidiaries. Although many aspects of corporate change during the 1980s have been examined, the magnitude and nature of changes in corporate form have received relatively little attention. Moreover, this transformation of corporate form has been inadequately explained by the dominant theoretical perspectives on corporate form—managerialism, institutionalism, and agency theory. A new theory that incorporates dimensions of the existing perspectives is presented. This perspective maintains that corporate change occurs as a dialectical process, which in the 1980s involved a shift of corporate control from managers to owners, resulting from a crisis in the accumulation of capital in the corporation. After gaining control through institutional investments, owners insisted on greater return on their investments. Mergers and acquisitions transferred corporate capital from corporations, controlled by managers, to shareholders. The relative utility of this perspective compared to existing perspectives for explaining the transformation of corporate form in the 1980s is demonstrated, and hypotheses for understanding changes in corporate form in the 1990s are proposed.     

Voting here and there: political integration and transnational political engagement among immigrants in Europe

In this article, I examine voting patterns in origin and receiving country national elections among immigrants in Europe. The existing scholarship on transnational political engagement offers two competing interpretations of the relationship between immigrant integration and transnational engagement, which I classify as the resocialization and complementarity perspectives. The resocialization perspective assumes that transnational political engagement gradually declines as immigrants become socialized into the new receiving society. Conversely, the complementarity perspective assumes that immigrant integration increases transnational political engagement. I test these competing perspectives with survey data collected between 2004 and 2008 for 12 different immigrant groups residing in seven European cities. The analysis examines how immigrant political and civic participation in receiving countries affect their proclivities to vote in homeland elections. I also analyse the effects of receiving and origin country contexts on immigrant voting behaviour in homeland elections. While my findings support both the resocialization and complementarity perspectives, they also highlight the ways in which a set of origin‐country contexts shape immigrant propensities to engage in transnational electoral politics. I observe a degree of complementarity among immigrants with resources who are motivated and eligible to participate in both receiving and origin‐country elections.     

Fringe public relations: How activism moves critical pr toward the mainstream

The dominance of Excellence Theory in public relations theory and research may be eroding as contemporary issues in corporations, including the concern with activist challenges to reputation management and corporate social responsibility, increase in visibility and demand explanation. We argue that Excellence Theory‘s seemingly reluctant evolution has provided unsatisfactory treatments of concepts like power and activism, even though it has attempted to address some limitations of the symmetrical model's efficacy in responding to activist challenges. Excellence Theory‘s acknowledgment of once-vilified concepts like persuasion and power sets the stage for critical public relations theory and research to emerge as significantly more capable of addressing activist advocacy and concomitant issues. The paper argues that critical theory, buoyed by acceptance of its key concepts, its increasing access to presentation venues and journals sympathetic to once-marginalized, alternative perspectives, is poised to infiltrate the public relations orthodoxy. This possibility offers hope that once marginalized pluralistic approaches, especially critical public relations, may disrupt the colonization of the orthodoxy and infiltrate mainstream public relations.     

Agricultural Exports,Food Production,and Food Security in Latin America1

Abstract This study assesses the impact of agricultural, export-oriented policies on food consumption through a time-series, cross-sectional regression model. The results of this study lead to three basic conclusions. First, there is a significant negative relationship between agricultural export promotion and food consumption. Economic growth and increasing agricultural exports earnings do not necessarily increase food security. Second, protein consumption per capita constitutes a more sensitive indicator of changes in food consumption and a proxy for the distributional dimension of the food consumption problem. Third, alternative policies should incorporate agricultural export into a broader agroindustrial development strategy aimed at achieving food security both by increasing income and by food production.     

The network of global corporations and elite policy groups: a structure for transnational capitalist class formation?

This study situates five top transnational policy–planning groups within the larger structure of corporate power that is constituted through interlocking directorates among the world's largest companies. Each group makes a distinct contribution towards transnational capitalist hegemony both by building consensus within the global corporate elite and by educating publics and states on the virtues of one or another variant of the neo–liberal paradigm. Analysis of corporate–policy interlocks reveals that a few dozen cosmopolitans – primarily men based in Europe and North America and actively engaged in corporate management – knit the network together via participation in transnational interlocking and/or multiple policy groups. As a structure underwriting transnational business activism, the network is highly centralized, yet from its core it extends unevenly to corporations and individuals positioned on its fringes. The policy groups pull the directorates of the world's major corporations together, and collaterally integrate the lifeworld of the global corporate elite, but they do so selectively, reproducing regional differences in participation. These findings support the claim that a well–integrated global corporate elite has formed, and that global policy groups have contributed to its formation. Whether this elite confirms the arrival of a transnational capitalist class is a matter partly of semantics and partly of substance.