A structural theory of interlocking corporate directorates

A theory is proposed that explains where interlocking corporate directorates should appear between sectors of an economy, where they should not appear, and the profitability of efficient corporate interlocking. Taking the sector of an economy as the unit of analysis, interlocking directorates are cast as strategically created constraints on those sectors of the economy most “problematic” for obtaining profits in a given industry of firms. The extent to which each sector of the American economy is problematic for obtaining profits in two-digit and four-digit manufacturing industries is estimated from research linking industry profits with the form of the pattern of relations defining the industry as a position in the network of dollar flow transactions given in the 1967 Input-Output Study for the United States. A two-stage process is described for sampling firms representative of large corporations involved in American manufacturing. Measures of alternative strategies for interlocking across sectors are described. Two classes of hypotheses are derived: (1) Firms in an industry should interlock with firms in some other sector in proportion to the extent to which the sector constrains the industry's profits. (2) Controlling for production and market differences, the ability of firms in an industry to obtain unusually high profits reflects their success in creating interlocks with those sectors most problematic for their industry's profits.     

Union membership,market structure,and the innovation output of large and small firms

The determinants of the extent of union membership, industry concentration, and the innovation output of large firms and small firms are examined in a simultaneous-equations model. Data for 246 U.S. manufacturing industries are used to determine: (1) that there are significant interdependencies among these endogenous variables; (2) that contrary to recent findings, unionization is significantly lower in industries with high concentration and high innovation output; and (3) that although high unionization modestly reduces small-firm innovation output (as compared with large-firm innovation output), there is not a large difference in the effects of small-firm and large-firm innovation output on the extent of union membership across industries. I am grateful to John W. Ballantine for his comments on this study.     

Declining Share of Small Firms in U.S. Output: Causes and Consequences

We develop a dynamic general equilibrium model, with large and small firms, to examine possible causes and welfare implications of a declining trend in small firms' share of U.S. output since 1958. Numerical experiments indicate that recent technological advances and government tiering policies that have reduced fixed setup costs of production benefit the emergence of small firms, but lower their output share due to competition for resources among firms. However, this outcome is welfare improving. Therefore, if the policy objective is to raise small firms' output share and economic welfare simultaneously, it is desirable to concentrate on increasing antitrust and deregulatory efforts.     

The public relations contribution to IMC: Deriving opportunities from threats and solidifying public relations’ future

Integrated Marketing Communication (IMC) has been regarded primarily as a marketing concept. However, as an ever more dominant context for communication management, IMC presents opportunities for public relations scholarship's contributions to the discipline, in spite of IMC's recognized threats. This article, which outlines the state of the fields of IMC and public relations literature, proposes the way public relations roles in relationship cultivation and organizational behavior uniquely contribute to IMC, and, at the same time, establish management roles for public relations. This article also addresses three challenges facing public relations research in integration by providing a better definition of IMC, establishing relationship cultivation as a critical point in the theoretical convergence of public relations and IMC, and providing a framework through which to conceptualize communication structures.     

ARE SMALL FIRMS MORE BEAUTIFUL OR IS BIGGER BETTER? A Study of Compensating Differentials and Law Firm Internal Labor Markets

Research on the size–job rewards relationship emphasizes extrinsic rewards that are typically more prevalent in large, complex organizations. We examine whether certain intrinsic rewards are more characteristic of small firms and shift the focus from manufacturing industries to professional service (law) firms. We find that small is not entirely beautiful. Smaller firms offer more autonomy but no more challenging work or better coworker relations, whereas larger firms offer lucrative salaries, enhanced benefits, and greater promotional opportunities. Our results challenge the compensating differential explanation whereby large firms offer superior extrinsic rewards to compensate for a shortfall of instrinsic job rewards.     

Fighting in the Dark: Ideology and State Formation in Post‐Colonial Burma

Extant major approaches to states and revolutions privilege the role of state practices and the character of war‐making in shaping modern state‐making in the Third World. Bringing the role of ideology into this analytical landscape of state‐making, this paper advances an alternative claim that ideological practices shape modern state structures and practices as well as the dynamics of political contention between the state and the revolutions. First, I argue that that intra‐movement ideological dynamics within the nationalist movement can have a profound impact on the structure and practices of the state. Using the writings of the party leaders, memoirs and official publications of the Burmese communist party, I maintain that subtle and specific ideological differences amongst the Burmese leftist movements generated organizational splits and internecine conflicts in the nationalist struggle, which exerted profound influences on the structures and practices of the Burmese state Secondly, relative ideological positions of the state and the revolutionary movements play an important role in shaping the dynamics of contention between the state and revolution. For example, an intimate web of ideological affinity between the nascent Burmese state and the Burmese leftist movements shaped the context and content of political contention between the state and these movements in the post‐colonial Burma. To address these issues empirically, the first part of the paper examines the formation and cementation of organizational linkages amongst Burmese leftist nationalists during the anti‐colonial struggle. The second part of the paper addresses specific and subtle ways in which ideological character and practices of the Burmese state and the Burmese Communist party shaped state practices and state structures in modern Burma as well as the dynamics of political contention between the state and the revolutionary movements.     

Social harmony and the small firm: a reappraisal

Government, academics and the media have, over the past decade, entered fully into the spirit of ‘small business revival’. Many of the contributions to this debate, however, have taken for granted the nature of small firm employment relations. It has frequently been remarked that workers in a small firms behave in ways more compatible with the goals and interests of their employers than employees in large firms. Thus, industrial relations are assumed to be more harmonious. In support of this assertion attention is usually drawn to the relative infrequency of conflict and industrial disputes, and the absence of militant trade unionism as an indication of the small firm workers' greater commitment to the goals of the enterprise and the interests of the employer (Ingham 1970). This paper suggests that such assumptions are unwarranted and provide a potentially misleading starting point for studies of employment relations in small firms. Data from a small number of in-depth interviews with small firm personnel is used to illustrate some of the complex and contradictory processes through which capital-labour relations may be constituted within small enterprises.     

Women and Access to Political Office: a Comparison of Female and Male State Legislators

The status of women in state legislatures is examined in terms of representation across the United States. A sample of female state legislators and a sample of male state legislators are compared on social and political career characteristics, including marital status, education, occupation, age when one began serving, election mobility, party leadership, and tenure. Party leadership, education, age and, to a lesser extent, occupation were found to distinguish female from male legislators. But party leadership significantly differentiated only between female and male legislators with less than a college degree. Overall, access to state legislative office seems to depend on the same characteristics which define success in society as a whole; for certain groups of women, however, achievement within party ranks provides an alternative mechanism to this end.     

FIGHT,FOLD OR SETTLE?: MODELLING THE REACTION TO FTC MERGER CHALLENGES

This paper models the reaction of firms to Federal Trade Commission (FTC) decisions which seek to block proposed horizontal mergers. We find that firms' responses to the FTC's decisions depend on a number f factors, but only weakly on the structural merits of the FTC's challenge. For a large number of the FTC's merger challenges, we find that firms have strong incentives to settle with the Commission, regardless of the relevant competitive concerns. Therefore, in these matters the FTC appears to have powers more like a regulatory agency than a prosecutor.     

Applicability of the Generic Principles of Excellent Public Relations in a Different Cultural Context: The Case Study of Singapore

This study used 4 generic principles of public relations based on the Excellence Theory to analyze the extent to which strategic public relations management was practiced in Singapore and whether public relations is part of senior management in 4 types of organizations: public relations consulting firms, corporations, government agencies, and nonprofit organizations. Data were collected from 127 public relations professionals using a survey questionnaire based on the Excellence study. In addition, 22 in-depth interviews were conducted and organizational publications analyzed. The data revealed that the 4 generic principles studied are applicable in another culture. In Singapore, public relations has a lower status compared with advertising or marketing. Public relations is also not used as a strategic business tool and professionals do not practice strategic public relations in the city–state because of lack of proper training, among other things. Thus, although Singapore has emerged as an "Asian Tiger" the public relations profession has not developed as much as one would have expected.     

SOME EVIDENCE ON LUMP SUM VERSUS CONVEX COSTS OF CHANGING PRICES

Two models in which price stickiness results from price adjustment costs are tested. One, an (s,S) pricing model, assumes lump-sum adjustment costs and predicts firms will make relatively large, infrequent price changes. The other assumes convex adjustment costs and predicts frequent, partial price adjustments. Survey data of firms' price behavior reveal patterns consistent with the (s,S) model. However, many of the patterns are also consistent with partial-adjustment rules, although the high percentage of firms which fix prices for a quarter or more casts doubt on the plausibility of the partial-adjustment hypothesis.     

Party Elites and Women Candidates

ABSTRACT

Using a four state survey of party county chairs and locally elected women, this study finds support for the notion that potential women candidates are subject to bias in recruitment that hinders the cause of electing more women to state legislatures and Congress. It is hypothesized that bias is most likely due to one of two processes: one, the outgroup effect where negative evaluations of women as candidates are predicated on their lack of surface similarity to the predominantly male party elite, or two, the distribution effect where negative evaluations of women as candidates are predicated on the relative paucity of women in high status positions generally and politics specifically. Strong support was found for the outgroup effect, as party chairs consistently preferred candidates more like themselves. Given the ubiquity of men in the party elite, such outgroup biased attitudes represent a significant hurdle for prospective women candidates.     

Estimating the effects of activists in two-party and multi-party systems: comparing the United States and Israel

This article presents an electoral model where activist groups contribute resources to their favored parties. These resources are then used by the party candidates to enhance the electoral perception of their quality or valence. We construct an empirical model of the United States presidential election of 2008 and employ the electoral perception of the character traits of the two candidates. We use a simulation technique to determine the local Nash equilibrium, under vote share maximization, of this model. The result shows that the unique vote-maximizing equilibrium is one where the two candidates adopt convergent positions, close to the electoral center. This result conflicts with the estimated positions of the candidates in opposed quadrants of the policy space. The difference between estimated positions and equilibrium positions allows us to estimate the influence of activist groups on the candidates. We compare this estimation with that of Israel for the election of 1996, and show that vote maximization leads low valence parties to position themselves far from the electoral origin. We argue that these low valence parties in Israel will be dependent on support of radical activist groups, resulting in a degree of political fragmentation.     

Cooperation between newcomers and incumbents: The role of normative disagreements

Cooperation in groups often requires individual members to make costly contributions that benefit the group as a whole. Prior research suggests that shared norms can help to support ingroup cooperation by prescribing common standards of how much to contribute. These common standards may be disrupted when groups undergo membership change, i.e., when members from outgroups enter the ingroup. When newcomers and incumbents have different notions about how much to contribute, a normative disagreement ensues that could undermine cooperation and the extent to which individuals identify with the group. In a laboratory experiment, we manipulate whether newcomers and incumbents disagree about how much to contribute in a public goods game with peer punishment. We examine whether normative disagreement between newcomers and incumbents affects newcomer-incumbent relations in terms of group identification, the emergence of a social norm, and costly punishment. The main goal is to test whether normative disagreement and the resulting newcomer-incumbent relations harm cooperation in terms of contributions to the common good. We find that normative disagreement between newcomers and incumbents negatively affects the emergence of a shared social norm and lowers feelings of group identification. Contrary to expectations, normative disagreement does not affect cooperation negatively. Instead, participants adjust their behavior to each other’s standards, using punishment for norm enforcement. This punishment is especially directed at low-contributing newcomers, leading them to conform to the incumbents’ higher contribution standards.     

Corporate-governmental networks in the Netherlands

Corporate networks studies have been restricted mainly to the private or business sectors. Network analyses involving both corporations and state or government agencies have been extremely rare. In this paper, the intercorporate network of interlocking directorates in the Netherlands, based on 86 large corporations and financial institutions, is studied in terms of a bipartite corporate—governmental network which arises from the interlocking memberships linking these corporations with major committees, agencies and similar centers of decision in the public sector or central state mechanisms in the Netherlands. The corporations, representing 27 industrial sectors, have been related to government and state agencies in 28 policy sectors. In this exploratory analysis the two heavy industries, metal/shipbuilding and chemicals/oil stand out clearly. With respect to the 17 central firms the results demonstrate consistent correspondence between their central position in the Dutch corporate network and the degree of their interlocks with policy sectors in the state. The results also show that the interlocks are overwhelmingly linked with the two policy sectors “economic affairs” and “education and sciences”. Hence a more detailed analysis of the interlocks with these two policy sectors is reported.     

The impact of labor unions on the passage of economic legislation

This paper examines the political power of labor unions. A model of the decision of an interest group to contribute to a political campaign is developed and tested. The empirical evidence indicates that interest groups, and unions in particular, use political contributions in a systematic and coordinated manner. Unions give money to candidates with relatively little seniority (who might otherwise not be elected) and to candidates from districts with about the average number of union members. Such candidates might otherwise not vote as the union would desire. The influence of campaign contributions and of union membership on the voting of congressmen on issues of interest to unions is also investigated. Union membership is sometimes significant and campaign contributions are always significant in explaining voting on minimum wages, wageprice controls, benefits for strikers, and OSHA and CETA appropriations. The indirect economic effects of labor unions — those effects which occur because unions influence legislation — may be as important as the direct effects which occur through collective bargaining.     

COMPETITION AND COOPERATION IN A PUBLIC GOODS GAME: A FIELD EXPERIMENT

We explore the effects of competitive and cooperative motivations on contributions in a field experiment. A total of 10,000 potential political donors received solicitations referencing past contribution behavior of members of the competing party (competition treatment), the same party (cooperative treatment), or no past contribution information (control). We first theoretically analyze the effect of these treatments on the contribution behavior of agents with different social preferences in a modified intergroup public good (IPG) game. Then, we report the empirical results: Contribution rates in the competitive, cooperative, and control treatments were 1.45%, 1.08%, and 0.78%, respectively. With the exception of one large contribution, the distribution of contributions in the competitive treatment first order stochastically dominates that of the cooperative treatment. Qualitatively, it appears that the cooperative treatment induced more contributions around the common monetary reference point, while the competitive treatment led to more contributions at twice this amount. These results suggest that eliciting competitive rather than cooperative motivations can lead to higher contributions in IPG settings. (JEL D72, H41, C93)     

Framing Identity Politics: Right-Wing Women as Strategic Party Actors in the UK and US

ABSTRACT

Women’s political underrepresentation in right-wing parties remains a global phenomenon. Despite their rejection of “identity politics,” the United Kingdom’s Conservative Party and the United States’ Republican Party have launched formal initiatives to recruit women legislative candidates. In this article, we ask: How do right-wing women advocate for increasing women’s representation within parties that explicitly reject group identity politics? More specifically, we examine 1) how party elites frame the UK’s Women2Win and the US’s Project GROW campaigns, and 2) the role that women play in each of these initiatives. Through interviews with party elites and content analyses of news articles and campaign materials, we show that right-wing women in both countries function as strategic party actors, advocating for women’s representation tactically within the specific ideological and electoral context of their party.     

The political ideology of the Canadian capitalist class

Cet article expose les résultats d'une étude nationale faite en 1977 et portant sur les personnes occupant des postes exécutifs dans les plus grosses corporations canadiennes et les compagnies de grosseur moyenne ainsi que sur les politiciens et fonctionnaires des échelons supérieurs fédéraux, provinciaux et municipaux et sur les chefs de syndicats ouvriers. Le personnel de direction dont il est question, a pris des positions considérable plus à droite que l'élite de l'Etat et encore plus à droite des syndicate en ce qui a trait aux politiques de bien-être social, aux relations industrielles, à l'intervention du gouvernement dans l'économie, à l'investissement à l'étranger et aux taxes d'affaires. Quoiqu'on ait trouvé des différences idéologiques systématiques entre les personnes clef des corporations moyennes et majeures, entre les corporations d'industries différentes et les cor porations à contrôle canadien et étranger, il ressort que les différences idéologiques au sein de la classe capitaliste sont considérablement moins étendues qu'entre le personnel dirigeant des corporations et l'élite de l'Etat. Ces découvertes prêtent peu de support au capitalisme monopoliste et à d'autres théories qui suggèrent qu'il existe des divisions idéologiques majeures au sein des classes capitalistes. This paper presents the results of a 1977 national survey of the executives of the largest Canadian corporations, executives of medium size companies, top level federal, provincial and municipal politicians and civil servants, and trade union leaders. On questions about social welfare policy, labour relations, government intervention in the economy, foreign investment, and taxation business executives took positions considerably to the right of the state elites and far to the right of the trade unionists. While, there were some systematic ideological differences between the executives of large and medium size corporations, of corporations in different industries and of Canadian and foreign-controlled corporations, the ideological differences within the capitalist class were considerably smaller than the differences between the corporate executives and state elites. These findings lend little support to monopoly capitalist and other theories which suggest that there are major ideological divisions within national capitalist classes.     

Class struggle and the transformation of the labor process

Conclusion The reorganization of work in the early decades of this century was not the simple product of a group of far-sighted industrial engineers any more than it was the direct result of an omniscient capitalist class. The basic need for this reorganization (as well as the limits of its development) was set by a broad process which can best be termed capital accumulation. But, as I have argued in this paper, the particular forms, timing, and ideological effects of this reorganization in the United States were conditioned by the patterns of interacting organizations including the state and emergent occupational groups as well as the constitutive formal and informal organizations of the capitalist class and the working class. Relegating these patterns to the status of only epiphenomenal effects of an underlying and determinant process of capital accumulation obscures important political consequences which arise from these patterns themselves. To identify only a few: The contemporary system of American industrial relations finds its origins in the forms and timing of the reorganization of work examined in this essay. Although they did not spring into existence in their fully developed forms (and although their patterns did not evidence an uninterrupted unilinear development), many of elements — and the relations between them — of contemporary American labor relations were prefigured during the period studied here. For we find, especially during the crucial period of World War I, the American labor movement in a situation of double jeopardy — heavily dependent on the state to provide the basis legal conditions for organizing, but without a party of its own to struggle politically to maintain these conditions in periods when state managers find it less expedient to continue or extend these arrangements. With a significant part of the organized labor force concentrated in war-related industry, with collective bargaining defined as a set of technical operations in which legal and engineering experts from both sides engage in processes of productivity bargaining, and with the routinization of tasks and erosion of traditional work rules conducted under the aegis of conservative trade unions, we observe, in that period, a pattern of labor relations closely corresponding to that of our own.