Is there one best way to run the modern business corporation? What is the appropriate balance between shareholders, executives, and employees? These questions are being vigorously debated as layoffs, scandals, and restructurings rattle companies around the world. The common assumption is that globalization is merging the varieties of corporate capitalism. Yet, as this book shows, corporations in Japan and the United States are responding differently to the pressures unleashed by globalization. In The Embedded Corporation, Sanford Jacoby traces this diversity to national differences in economic history and social norms, and, paradoxically, to global competition itself. The book's vantage point for exploring the varieties of capitalism is the human resource departments of large corporations, where changes in markets and technology turn into corporate labor policies affecting millions of workers. Despite some cross-fertilization, Japanese and American corporations maintain distinctive approaches to human resource management, which has important consequences for how firms compete, for corporate governance, and even for the level of inequality in Japan and the United States. The Embedded Corporation is a major contribution to our understanding of comparative management and the relationship between business, society, and the global economy.

From award-winning economic historian Sanford M. Jacoby, a fascinating and important study of the labor movement and shareholder capitalism Since the 1970s, American unions have shrunk dramatically, as has their economic clout. Labor in the Age of Finance traces the search for new sources of power, showing how unions turned financialization to their advantage. Sanford Jacoby catalogs the array of allies and finance-based tactics labor deployed to stanch membership losses in the private sector. By leveraging pension capital, unions restructured corporate governance around issues like executive pay and accountability. In Congress, they drew on their political influence to press for corporate reforms in the wake of business scandals and the financial crisis. The effort restrained imperial CEOs but could not bridge the divide between workers and owners. Wages lagged behind investor returns, feeding the inequality identified by Occupy Wall Street. And labor’s slide continued. A compelling blend of history, economics, and politics, Labor in the Age of Finance explores the paradox of capital bestowing power to labor in the tumultuous era of Enron, Lehman Brothers, and Dodd-Frank.

The globalization of capital markets since the 1980s has been accompanied by a vigorous debate over the convergence of corporate governance standards around the world towards the shareholder model. But even before the financial and economic crisis of 2008/2009, the dominance of the shareholder model was challenged with regard to persisting divergences and national differences in corporate law, labor law and industrial relations. This collection explores this debate at an important crossroads, echoing Karl Polanyi's famous observation in 1944 of the disembeddedness of the market from society. Drawing on pertinent insights from scholars, practitioners and regulators in corporate and labor law, securities regulation as well as economic sociology and management theory, the contributions shed important light on the empirical effects on the economy of the shift to shareholder primacy, in light of a comprehensive reconsideration of the global context, policy goals and regulatory forms which characterize market governance today.

This essay discusses various aspects of corporate organization in Japan and the United States. First it examines some concrete empirical questions, such as relative differences in decentralization of decision-making, and in outsourcing. Next it turns to more theoretical and historical questions to do with the meaning of embeddedness (in what sense are companies embedded in national contexts) and with the process of organizational change. It analyzes the role played by institutions and social norms in determining the rate and direction of economic change in Japan and the United States. The essay is for a book symposium on The Embedded Corporation.

In The Undevelopment of Capitalism, Emigh argues that the expansion of the Florentine economic market in the fifteenth century helped to undo the development of markets of other economies--especially the rural economy of Tuscany. As this highly developed urban market penetrated rural regions, it actually erased rural market institutions that rural inhabitants had used to organize agricultural production and family life. Thus, an advanced economy at the time of the late Middle Ages and early Renaissance "undeveloped" over time. The economic development of this region in Italy was delayed as it failed to keep pace with the rest of Europe. Using a negative case methodology to show how urban and rural markets change, Emigh employs methods of historical sociology and sectoral theories to examine how markets can prosper and suffer at the same time. She shows how sectoral relations are crucial to transitions to capitalism and how capitalist development can also contract markets.

The author traces the enduring diversity of corporate culture in Japan and the U.S. to national differences in economic history and social norms, and, paradoxically, to global competition itself.