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This chapter examines the path and record of economic development in South Korea. This is carried out in several stages, focusing on the increases in GDP and the structural changes that transformed the economy after the Korean War. These are investigated in terms of aggregate and sectoral expansions and shifts, the rise of capital- and technological-intensive industries, the expansion of the scale of business enterprises, and changes in the magnitude and pattern of foreign trade. The chapter also evaluates the structural changes in various economic sectors, such as social overhead capital, industry, manufacturing, service sectors, agriculture, mining, and others. It follows with an examination of the fundamental changes in industrial structure and organization, including the rise of jaebeol and their importance to economic growth. Finally, the factors affecting economic growth and structural changes are enumerated.

This chapter evaluates the economic impacts of the government's industrial and financial policies, which provided interest subsidies, wealth, and inflation windfalls to privileged businesses in terms of production costs, profits, investments, sectoral growth, industrial organization, and savings. The chapter further evaluates the impact of resource allocation on macroeconomic disruptions, sectoral misallocations between privileged and unsupported businesses, manufacturing vs. service industries, heavy and chemical industries vs. light industries, and large vs. small businesses. Economic rent-seeking activities, cronyism and corruption, non-performing loans, financial burdens, the disciplining of financial intermediaries, and financial and corporate reforms in recent years are assessed. The chapter also asks: were the government's industrial and financial policies the optimal measures to achieve the industrialization and the expansion of the nation's economy? Who were the major beneficiaries of the government's industrial and financial policies? Did government control of financial institutions deprive the banks of incentive to improve efficiency? Finally, the chapter lists the future economic and financial challenges facing the country.

This chapter argues that organisational control and accounting’s role in it has become an increasingly digitised and technologically enabled process. New centres of calculation have emerged within post-industrial organisations which, in turn, are facilitating more disembedded and intensified forms of accounting control. This post-industrial phenomenon of organisational control is examined by drawing on a case study of an Australian call centre.

This chapter focuses on cartels and cartel-like organizations in Nazi Germany. The report explains German industrial organization is dominated by large vertical combines. Cartels and other associations of business, a common fixture of the German economy, have been used by the combines as means for the domination of industry and are in part a reflection of the degree of concentration of German industry. The prototypes of the combines are those within so-called heavy industry. The chapter first considers the role of cartels and cartel-like organizations in Germany before offering a number of recommendations relating to denazification, administration, cartels, Reichsvereinigungen, the Chambers of Industry and Commerce, and the main committees and rings.

This chapter looks at the industrial organisation as networks, focusing on interorganisational networks. Some theoretical issues raised by interorganisational networks are discussed, including questions of the limits of an institutional analysis, knowledge with respect to these kinds of networks, the role of complementary and self-organisation, evolutionary approaches to networks, and problems associated with embeddedness and variety production that they pose. The chapter also explores how the network model has been deployed in the specification and analysis of the relationships between firms and other agents that occupy the microeconomic field of economic organisation. The strengths of networks as opposed to other mechanisms of socio-economic coordination, like markets and hierarchies, in organising inter-firm relationships are also considered, along with cooperation and trust between main firms and their subcontractors and suppliers, knowledge and innovation in networks, whether knowledge networks are effective as institutions, neural networks, venture capital and networking, and the evolution, biology, complexity, and self-organisation of networks.

This chapter focuses on the opposition to ‘management systems’; on the objection of manufacturers, engineers, and employee representatives. It argues that management systems were not promoted by capitalists or their representatives, but rather by a group of engineers — a new class of salaried technocrats — wishing to carve out their own domain within industrial organizations.

This chapter develops the key argument of the book and sets the stage for the four detailed empirical case studies of company and industry level adjustment that follow. If the French economy appears neither blocked in reform, nor excessively dependent on the state, the focus on state and market as adjustment mechanisms needs to be replaced by a different focus. The chapter examines the role that large firms have played in corporate governance, labour relations, and industrial organization.

This chapter examines the restructuring of Japanese business groups during the 1990s. Using the Basic Survey of Business Structure and Activity, the chapter analyses the business portfolio of Japanese firms from the perspective of the group structure of parent and affiliate. While previous studies have examined the net shift in diversification or specialization of business, the chapter also adopts an original approach by looking at the actual flow of entry and exit from business segments. The analysis demonstrates that Japanese business groups engaged in a high level of restructuring during the 1990s, and a growing preference to separate businesses into subsidiaries and affiliated firms rather than managing them in house. Although Japanese firms have no trend toward greater diversification or greater focus on aggregate, entry and exit are important complementary strategies that improve firms.

A critical survey is presented of some of the theories that have been used to explain why multinational enterprises (MNEs) exist, with special emphasis on the transaction costs/internalization approach. The first part of the chapter discusses early capital flow and industrial organization theories in the evolution of the MNE. The second part focuses on transaction costs/internalization theories, which are now dominant theories of the MNE.

This chapter provides a new perspective on a longstanding debate concerning the development of contemporary capitalism: does globalization erode the influence of territorial institutions on economic organization? While the theory of institutional comparative advantage and the varieties of capitalism (VoC) approach more generally maintain that globalization is compatible with persistent institutional diversity, the global commodity/value chain (GCC/GVC) approach holds that the organization of production increasingly reflects governance logics that are industry specific and global in scope. In order to empirically evaluate these contending claims, This chapter first derives two sets of divergent hypotheses regarding the degree to which a particular dimension of economic organization — spatial fragmentation — varies by either institutional or industry type, and then conducts a longitudinal statistical analysis in which thi chapter compares rates of spatial fragmentation (measured as the ratio of imports to domestic value-added) across industries and varieties of capitalism. The results provide strong (but imperfect) evidence in support of the GCC/GVC approach insofar as relative rates of spatial fragmentation vary across industries in a manner consistent with industry-specific global governance models, while the observed variation between institutional types is not significantly larger than that within them. The chapter interprets these findings as evidence for the claim that, across different institutional contexts, firms in the manufacturing sector are participating in coordinated trade networks of the sort described in the global commodity/value chains literature. The conclusion charts a parallel path forward in calling for future research that draws on both the VoC and GCC/GVC approaches to understand how spatial fragmentation is occurring, especially at the level of inter-firm relations in particular institutional contexts.

Offers an in-depth discussion of regulatory and competitive issues in German banking. Emphasising that regulation, market structure, and competitive conduct are deeply interrelated the authors look at bank regulation from an Industrial Organisation perspective. Special consideration is given to the three-pillar structure of German banking comprising private, public, and co-operative banking institutions as well as to the driving forces that shaped bank regulation and supervision from its beginning in 1931. To assess market structure and competition in Germany’s banking market, the available empirical evidence is carefully discussed. A concluding section points to the challenges stemming from the decision to phase out state-guarantees for public banks.

In Ch. 5, it was stated that security analysis is consistent with market efficiency because it interprets the news that reaches the market from firms and other sources. This chapter discusses in more detail how this interpretation is accomplished, drawing mostly on three sources: the economics of industrial organization, data on industry growth, and accounting; most of the examples are from the USA. It begins by examining the implications of market efficiency for the possible returns to be gained from security analysis, and explaining how to analyze the intrinsic value of a corporate equity by taking into account the responsiveness of the company's performance to economic growth, the structure of its industry, and its sources of competitive advantage. It also explains the insights to be gained by proper analysis of a company's financial statements. Finally, it assesses the uses and pitfalls of various shortcuts to security valuation, including the uses of price earnings ratios and Tobin's q ratio.