Table Of ContentCorporate Governance, Organization and
the Firm
NEW PERSPECTIVES ON THE MODERN CORPORATION
Series Editor:Jonathan Michie,Professor of Management and Director
and Head,Birmingham Business School,University of Birmingham,UK
The modern corporation has far reaching influence on our lives in an
increasingly globalised economy.This series will provide an
invaluable forum for the publication of high quality works of
scholarship covering the areas of:
● corporate governance and corporate responsibility,including
environmental sustainability
● human resource management and other management practices,and the
relationship of these to organisational outcomes and corporate
performance
● industrial economics,organisational behaviour,innovation and
competitiveness
● outsourcing,offshoring,joint ventures and strategic alliances different
ownership forms,including social enterprise and employee ownership
● intellectual property and the learning economy,including knowledge
transfer and information exchange.
Titles in the series include:
Corporate Governance,Organization and the Firm
Co-operation and Outsourcing in the Global Economy
Edited by Mario Morroni
The Modern Firm,Corporate Governance and Investment
Edited by Per-Olof Bjuggren and Dennis C.Mueller
The Growth of Firms
A Survey of Theories and Empirical Evidence
Alex Coad
Corporate
Governance,
Organization and
the Firm
Co-operation and Outsourcing in the Global
Economy
Edited by
Mario Morroni
Department of Economics,University of Pisa,Italy
NEW PERSPECTIVES ON THE MODERN CORPORATION
Edward Elgar
Cheltenham,UK • Northampton,MA,USA
© Mario Morroni 2009
All rights reserved.No part of this publication may be reproduced,stored in
a retrieval system or transmitted in any form or by any means,electronic,
mechanical or photocopying,recording,or otherwise without the prior
permission of the publisher.
Published by
Edward Elgar Publishing Limited
The Lypiatts
15 Lansdown Road
Cheltenham
Glos GL50 2JA
UK
Edward Elgar Publishing,Inc.
William Pratt House
9 Dewey Court
Northampton
Massachusetts 01060
USA
A catalogue record for this book
is available from the British Library
Library of Congress Control Number:2008939737
ISBN 978 1 84720 820 0
Printed and bound in Great Britain by MPG Books Ltd,Bodmin,Cornwall
Contents
List of figures vii
List of tables viii
List of contributors x
Acknowledgements xii
1 Introduction:Organizational variety and economic
performance 1
Mario Morroni
PART I THEORETICAL ASPECTS
2 The stakeholder corporate governance view revisited 19
Mirella Damiani
3 The governance of the knowledge-intensive firm in an
industry life cycle approach 48
Jackie Krafft and Jacques-Laurent Ravix
4 Types of complementarity,combinative organization forms
and structural heterogeneity:beyond discrete structural
alternatives 63
Anna Grandori and Santi Furnari
5 Oliver Williamson and the logic of hybrid organizations 87
Claude Ménard
6 Organization of firms,knowing communities and limits of
networks in a knowledge-intensive context 104
Patrick Cohendet and Patrick Llerena
PART II APPLIED ANALYSES
7 Short-term gain,long-term pain? Implications of
outsourcing for organizational innovation and productivity 123
Andreas Reinstaller and Paul Windrum
8 The general profile of the outsourcing firm:evidence
for a local production system of Emilia Romagna 148
Massimiliano Mazzanti,Sandro Montresor and
Paolo Pini
v
vi Contents
9 Technical capital and social capital in outsourcing networks:
complements or substitutes? 181
Rafael Pardo and Ruth Rama
10 Manufacturing abroad while making profits at home:
the Veneto footwear and clothing industry 206
Carlo Gianelle and Giuseppe Tattara
Index 235
Figures
1.1 Basic conditions,decision making,coordination and
competitiveness 2
3.1 Governance of firms along the different stages of the ILC 53
3.2 The governance of the knowledge-intensive firm
along the ILC 59
6.1 Ranking of activities of the firm (distance from
‘core competence’) 117
7.1 Variety of activities being outsourced 125
7.2 Interdependence and modularity in organizational
architectures 133
7.3 Splitting and enrichment as strategies in organizational
redesign 135
7.4 Simulation runs 141
10.1 Employment in clothing according to firm type in Veneto 212
10.2 Value added at constant prices in textile-clothing-footwear
and employment in Veneto 213
10.3 Turnover in four companies (in thousands of euros,
current prices) 217
10.4 EBITDA in four companies (thousands of euros,
current prices) 218
10.5 Impact of relocation 220
10.6 Residuals of the regression of logTurnoverand logEBITDA
over controls 221
vii
Tables
2.1 Market for corporate control and executive turnover 28
2.2 Holding period of raiders’purchases:mean,median and
holding period distribution in some European countries
(1990–2001) 29
2.3 Flat CEO’s compensation and stakeholder society:
variable remuneration as percentage of total remuneration
in some countries 30
2.4 Comparative features of labour relations in some countries:
stability of employment,wage setting system and wage
spread in Coordinated Market Economies (CME) and
Liberal Market Economies (LME) 33
2.5 Comparative features of corporate governance in the
1990s in Coordinated Market Economies (CME) and
Liberal Market Economies (LME).Concentration of
ownership and of voting rights,role of financial institutions
and inter-firm relations 34
2.6 Remuneration and incidence of incentive systems in
Coordinated Market Economies (CME) and Liberal Market
Economies (LME) 36
2.7 Control rights and payoffrights of employees in some
OECD countries 40
4.1 Organizational elements and practices 70
4.2 Types of relationships among organizational elements 73
4.3 Equifinal organizational formulas (by function and
contingency) 82
7.1 Drivers of outsourcing by rank 126
7.A1 Parameter values used to calibrate the model 145
8.1 Expected outsourcing correlations:organizational level 151
8.2 Expected outsourcing correlations:production level 155
8.3 Expected outsourcing correlations:industrial level 157
8.4 Expected outsourcing correlations:innovation level 160
8.5 Reggio Emilia:industrial structure of the firm
population (2001) 164
8.6 Reggio Emilia:outsourcing firms of the sample by activity
(1998–2001) 165
viii
Tables ix
8.7 Regression results:the four different levels of analysis 170
8.8 Regression results:all levels of analysis 175
9.1 Characteristics of the sample (N= 162) 190
9.2 Correlations among the original variables 195
9.3 Association between variables denoting networking
activities and variables denoting technical capital 196
9.4 Canonical correlation analysis 197
9.5 Correlations between the VARvariables and the
canonical variables of the WITHvariables,and between
the WITHvariables and the canonical variables of the
VARvariables 198
10.1 Structure of the production in an integrated and in a
deverticalized firm 214
10.2 Effects of outsourcing on turnover 222
10.3 Effects of outsourcing on EBITDA 223
10.4 Net/gross effects of delocalization and fragmentation 226
10.5 Delocalization and the boundary of the firm 227
10.A1 Descriptive statistics of the companies included in the
sample (2003) 230
10.A2 Limited and joint stock companies 231
Contributors
Patrick Cohendet, BETA University Louis Pasteur, Strasbourg, France,
and HEC Montréal,Canada.
Mirella Damiani, Department of Economics, Finance and Statistics,
University of Perugia,Italy.
Santi Furnari,CRORA,Bocconi University,Milan,Italy.
Carlo Gianelle,Doctoral School,University of Siena,Italy.
Anna Grandori,CRORA,Bocconi University,Milan,Italy.
Jackie Krafft, University of Nice Sophia Antipolis, CNRS-GREDEG,
France.
Patrick Llerena,BETA Université Louis Pasteur,Strasbourg,France.
Massimiliano Mazzanti, Department of Economics, Institutions and
Territory,University of Ferrara,Italy.
Claude Ménard,University of Paris (Pantheon-Sorbonne),Paris,France.
Sandro Montresor, Department of Economics, University of Bologna,
Italy.
Mario Morroni,Department of Economics,University of Pisa,Italy.
Rafael Pardo, Department of Economics, CSIC (Spanish National
Research Council),Madrid,Spain.
Paolo Pini, Department of Economics, Institutions and Territory,
University of Ferrara,Italy.
Ruth Rama,Department of Economics,CSIC (Spanish National Research
Council),Madrid,Spain.
Jacques-Laurent Ravix, University of Nice Sophia Antipolis, CNRS-
GREDEG,France.
Andreas Reinstaller, Austrian Institute for Economic Research (WIFO),
Vienna,Austria.
x
