Traceability in global governance

An increasingly important challenge in global governance, which in some issue areas has been labelled ‘traceability’, has been to track the cross‐border travels of objects that are associated with positive or negative effects. However, the common properties and identifiable patterns of variation of traceability across issue areas or industries have been insufficiently explored. We identify key properties of traceability systems, including the variation and interactions between the physical properties of the traced object, the positive or negative effects with which it is associated, the monitoring technology, and the institutionalized power relations that activate and constrain traceability systems. We examine and compare traceability systems for food safety, conflict minerals, pharmaceuticals, carbon emissions, money laundering and financial transactions. Understanding traceability in this way is important not only for these cases, but also for understanding interactions between objects, infrastructures, as well as monitoring and political mechanisms in global governance more generally.     

How did the financial crisis affect the transnationality of the global financial elite? One step forward and one step back

Over the last few decades, transnational elite formation progressed hand in hand with a deterioration in national business elites. Most studies regard this process as progressive and linear. However, we argue that transnational elite formation is subject to a variety of opposing forces, and the assumed progression is not a given fact. As an intriguing case, we analyse the financial business elite with a focus on the financial crisis of 2008. This international event had substantial ramifications, including a possible external shock to transnational elite formation. To study the consequences of the crisis, we collected the board composition data of the 48 largest transnational financial companies for the period 2006–11. Changes in board composition show opposing effects. For example, transnationality increased during the crisis, but reversals appeared when national governments intervened.     

The social field of the European corporate elite: a network analysis of interlocking directorates among Europe's largest corporate boards

In this article I investigate the emerging patterns of the European corporate elite network as an example of a European social field, as described by Fligstein. The findings confirm that interlocking directorates form a European corporate network. However, the intercorporate network rests on a very small group of European corporate elite members: it remains the playground of a select few pan‐European ‘big linkers’. Although financial institutions and bankers appear in the upper echelons of the network, they do not occupy crucial positions. Rather, (former) CEOs of Europe's largest big non‐financial businesses knit together the network of interlocking directorates. The network rests on a coalescence of finance and industry, rather than on the dominance of the one over the other. Although the project of European unification has been quite successful in organizing the formal institutional structures, it has not yet led to reproduction of a European business community reminiscent of the national communities.     

The Mechanistic Structure Shift and Strategic Reorientation in Declining Firms Attempting Turnarounds

Past researchers have observed that decliningorganizations often experience mechanistic structuralchanges that centralize authority, increase reliance onformalized procedures, and reduce the amount of information flowing to top managers. Many haveproposed that this “mechanistic shift” indeclining organizations reduces their adaptivecapability by making innovative organizational change in response to decline less likely. However,despite much research on declining firms and theirturnaround attempts, many questions about mechanisticshifts remain, such as: (1) To what extent do declining firms become systematically mechanistic whentrying to recover from decline? (2) What aspects ofdeclining firms' situations make mechanistic shifts morelikely? (3) Do mechanistic shifts reduce the likelihood of large-scale strategic reorientation asdeclining firms attempt to recover? We sought answers tothese questions through an analysis of data fromin-depth interviews with top managers (mostly CEOs) at 29 U.S. firms attempting turnarounds fromdecline. Our primary finding was that mechanisticstructure shifts did restrict firms' abilities to changetheir strategic orientations in response to decline. Highlighting the important role of the contextof turnaround attempts, we further found the averagedeclining firm attempting a turnaround did not becomemore mechanistic, but that turnaround attempts launched from financial crises were significantly morelikely to lead to mechanistic shifts. Also, we foundthat the common practice of replacing the firm's CEOduring turnaround attempts had conflicting andparadoxical effects on firms' abilities to enact strategicreorientations.     

Is the locus of class development of the transnational capitalist class situated within nation‐states or in the emergent transnational space?

The rise of the modern corporation has disrupted the class structures of nation‐states because, in the era of globalization, such reorganization now occurs across borders. Yet, has globalization been deep enough to facilitate the emergence of a transnational capitalist class (TCC) in which both class formation and consolidation processes are located in the transnational space itself? I contribute to our understanding of the TCC by contrasting the personal characteristics, life histories and capital endowments of members of the British corporate elite with and without transnational board appointments. The existence of the honours system in the UK allows us to compare individuals objectively in terms of their symbolic capital and to link this trait to embeddedness in the TCC. By studying 448 directors from the 100 largest firms in the UK in 2011, I find evidence of a TCC with a class consolidation process that is located within transnational space, but whose class formation dynamics are still tethered to national processes of elite production and reproduction.     

Introduction to special section on blockchains and financial globalization

This special section shifts analytical attention onto efforts undertaken by dispersed sets of actors operating in online communities to mobilize a novel internet‐based technology that mysteriously appeared at the height of market volatility in 2008. Applications of blockchain technologies and the challenges presented to longstanding patterns of financial globalization are analysed by a group of scholars with backgrounds in anthropology, political science and sociology. This introductory article first elaborates what blockchain technologies consist of before foreshadowing the insights that the following interdisciplinary investigations yield for comprehending the implications that technological changes pose for global finance specifically and globalization more generally.     

Making Sense of “Quality?” — Toward a Review and Critique of Quality Initiatives in Financial Services

This article provides a broad classification and critique of the theoretical and empirical approaches toward quality initiatives. These are the technical managerialist, social managerialist, and critical nonmanagerialist approaches. The technical managerialist approach is based upon the flawed assumption that practice follows policy almost like night follows day. By contrast, focusing on intraorganizational politics and the tensions of hierarchy, social managerialists recognize that outcomes are always a negotiated compromise. A majority of these authors are concerned with rendering quality initiatives more effective for management. In contrast, critical nonmanagerialists refuse to take on uncritically the assumptions and attitudes of management, and are concerned with understanding the forms and content of quality initiatives. The article provides a conceptual framework for guiding and advancing research on quality initiatives, and it offers themes and issues which warrant exploring.     

Educational ties,social capital and the translocal (re)production of MBA alumni networks

Research on elite, transnational networks has identified social and cultural capital associated with particular academic credentials as being an important element in network formation. How and why such networks are reproduced after graduation, however, has received less attention. In response, in this article I combine work on social capital and personal networks to explore the reproduction of MBA alumni networks in London's financial services district that were created in leading business schools in the USA and UK. My analysis documents the ways in which business schools and individual alumni combine forms of virtual and corporeal co‐presence to reproduce translocal educational ties. I then argue that the motivation for sustaining these educational ties lies in the potential to convert the social and cultural capital of MBA alumni networks into different types of value ranging from enhanced career progression to increased alumni donations. In doing so, I develop debates on the intersections between social capital, academic credentials and the reproduction of elite networks.     

When “Life Is but a Dream”: Obliterating Politics Through Business Process Reengineering?

In this article, we explore the genesis andoperation of Business Process Reengineering (BPR) withina medium-sized U.K. bank from the late 1980s to themid-1990s. We dismiss the claims of those evangelical gurus who assume that BPR can bedecontextualized and decoupled from organizationalpolitics and posit that BPR can be managedinstantaneously and unproblematically. Instead we arguethat BPR is likely to be constituted by and through politicalrelations, and that BPR in turn will reconstituteorganizational forms and norms, in a highly politicalfashion. We endeavor to build upon current approachestoward organizational politics. We illustrate thatpolitics is not simply about resistance to some putativeorganizational norm of stability or uniformity as BPR'sgurus imply. Nor does it deriveexclusively from diverse interest groups pursuing separateor conflicting ends that can be juggled and managed asprocessual or pluralistic accounts of organizationalchange tend to assume. Neither, in this instance, can one interpret politics as being entirelyaxiomatic with labor's resistance to management(capital) which is characteristic of a traditional laborprocess analysis, although expressions of this were apparent in our case study. We suggest thatpolitics also needs to be understood interms of power and identity relations or how individualsseek, through political maneuverings, to further or secure their individual careers andidentities in an uncertain world. In view of this, weargue that politics are essential to the very fabric oforganizational life, which renders the outcomes of BPR uncertain and contested.     

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.