Clarendon Lectures in Management Studies – serie

Reassembling the Social is a fundamental challenge from one of the world's leading social theorists to how we understand society and the 'social'. Bruno Latour's contention is that the word 'social', as used by Social Scientists, has become laden with assumptions to the point where it has become misnomer. When the adjective is applied to a phenomenon, it is used to indicate a stablilized state of affairs, a bundle of ties that in due course may be used to account for another phenomenon. But Latour also finds the word used as if it described a type of material, in a comparable way to an adjective such as 'wooden' or 'steely'. Rather than simply indicating what is already assembled together, it is now used in a way that makes assumptions about the nature of what is assembled. It has become a word that designates two distinct things: a process of assembling; and a type of material, distinct from others. Latour shows why 'the social' cannot be thought of as a kind of material or domain, and disputes attempts to provide a 'social explanations' of other states of affairs. While these attempts have been productive (and probably necessary) in the past, the very success of the social sciences mean that they are largely no longer so. At the present stage it is no longer possible to inspect the precise constituents entering the social domain. Latour returns to the original meaning of 'the social' to redefine the notion, and allow it to trace connections again. It will then be possible to resume the traditional goal of the social sciences, but using more refined tools. Drawing on his extensive work examining the 'assemblages' of nature, Latour finds it necessary to scrutinize thoroughly the exact content of what is assembled under the umbrella of Society. This approach, a 'sociology of associations', has become known as Actor-Network-Theory, and this book is an essential introduction both for those seeking to understand Actor-Network Theory, or the ideas of one of its most influential proponents.

We live in a time of crises - economic turmoil, workplace disempowerment, unresponsive government, environmental degradation, social disintegration, and international rivalry. In The 99 Percent Economy, Paul S. Adler, a leading expert on business management, argues that these crises are destined to deepen unless we radically transform our economy. But despair is not an option, and Adler provides a compelling alternative: democratic socialism. He argues that to overcome these crises we need to assert democratic control over the management of both individual enterprises and the entire national economy. To show how that would work, he draws on a surprising source of inspiration: the strategic management processes of many of our largest corporations. In these companies, the strategy process promises to involve and empower workers and to ensure efficiency and innovation. In practice, this promise is rarely realized, but in principle, that process could be consolidated within enterprises and it could be scaled-up to the national level.Standing in the way? Private ownership of society's productive resources, which is the foundation of capitalism's ruthless competition and focus on private gain at the cost of society, the environment, and future generations. Adler shows how socialized, public ownership of our resources will enable democratic councils at the local and national levels to decide on our economic, social, and environmental goals and on how to reach them. The growing concentration of industry makes this socialization step ever easier. Democratic socialism is not a leap into the unknown, Adler shows. Capitalist industry has built the foundations for a world beyond capitalism and its crises.

We live in a time of crises - economic turmoil, workplace disempowerment, unresponsive government, environmental degradation, social disintegration, and international rivalry. In The 99 Percent Economy, Paul S. Adler, a leading expert on business management, argues that these crises are destined to deepen unless we radically transform our economy. But despair is not an option, and Adler provides a compelling alternative: democratic socialism. He argues that to overcome these crises we need to assert democratic control over the management of both individual enterprises and the entire national economy. To show how that would work, he draws on a surprising source of inspiration: the strategic management processes of many of our largest corporations. In these companies, the strategy process promises to involve and empower workers and to ensure efficiency and innovation. In practice, this promise is rarely realized, but in principle, that process could be consolidated within enterprises and it could be scaled-up to the national level. Standing in the way? Private ownership of society's productive resources, which is the foundation of capitalism's ruthless competition and focus on private gain at the cost of society, the environment, and future generations. Adler shows how socialized, public ownership of our resources will enable democratic councils at the local and national levels to decide on our economic, social, and environmental goals and on how to reach them. The growing concentration of industry makes this socialization step ever easier. Democratic socialism is not a leap into the unknown, Adler shows. Capitalist industry has built the foundations for a world beyond capitalism and its crises.

Business firms around the world are experimenting with new organizational designs, changing their formal architectures, their routines and processes, and their corporate cultures as they seek to improve their current performance and their growth prospects. In the process they are changing the scope of their business operations, redrawing their organization charts, redefining the allocation of decision-making authority and responsibility, revamping the mechanisms for motivating and rewarding people, reconsidering which activities to conduct in-house and which to out-source, redesigning their information systems, and seeking to alter the shared beliefs, values and norms that their people hold. In this book, John Roberts argues that there are predictable, necessary relationships among these changes that will improve performance and growth. The organizations that are successful will establish patterns of fit among the elements of their organizational designs, their competitive strategies and the external environment in which they operate and will go about this in a holistic manner. The Modern Firm develops powerful conceptual frameworks for analyzing the interrelations between organizational design features, competitive strategy and the business environment. Written in a non-technical language, the book is nevertheless based on rigorous modeling and draws on numerous examples from eighteenth century fur trading companies to such modern firms such as BP and Nokia. Finally the book explores why these developments are happening now, pointing to the increase in global competition and changes in technology. Written by one of the world's leading economists and experts on business strategy and organization, The Modern Firm provides new insights into the changes going on in business today and will be of interest to academics, students and managers alike.

Business firms around the world are experimenting with new organizational designs, changing their formal architectures, their routines and processes, and their corporate cultures as they seek to improve their current performance and their growth prospects. In the process they are changing the scope of their business operations, redrawing their organization charts, redefining the allocation of decision-making authority and responsibility, revamping the mechanisms for motivating and rewarding people, reconsidering which activities to conduct in-house and which to out-source, redesigning their information systems, and seeking to alter the shared beliefs, values and norms that their people hold. In this book, John Roberts argues that there are predictable, necessary relationships among these changes that will improve performance and growth. The organizations that are successful will establish patterns of fit among the elements of their organizational designs, their competitive strategies and the external environment in which they operate and will go about this in a holistic manner.The Modern Firm develops powerful conceptual frameworks for analyzing the interrelations between organizational design features, competitive strategy and the business environment. Written in a non-technical language, the book is nevertheless based on rigorous modeling and draws on numerous examples from eighteenth century fur trading companies to such modern firms such as BP and Nokia. Finally the book explores why these developments are happening now, pointing to the increase in global competition and changes in technology.Written by one of the world's leading economists and experts on business strategy and organization, The Modern Firm provides new insights into the changes going on in business today and will be of interest to academics, students and managers alike.The Modern Firm was the Economist Best Business Book of the Year 2004.

There is a strong awareness that the new economy has arrived, and that firms and management need to focus on a plethora of new issues at present only dimly perceived. The astute management of technology can advance not only the fortunes of the innovators, but also of society at large. In this book David Teece considers how firms can exploit technological innovation, protecting their intellectual capital, while staying ahead of the competition. He provides frameworks as well as practical advice, looking in particular at the organization structures most likely to support innovation, and how managerial decisions and strategy affect the division of the gains. This will be essential reading for academics, maangers, and students alike who want to keep abreast of contemporary strategic challenges.

There is a strong awareness that the new economy has arrived, and that firms and management need to focus on a plethora of new issues at present only dimly perceived. The astute management of technology can advance not only the fortunes of the innovators, but also of society at large. In this book, David Teece considers how firms can exploit technological innovation, protecting their intellectual capital, while staying ahead of the competition. He provides frameworks as well as practical advice, looking in particular at the organization structure most likely to support innovation, and how managerial decision and strategy affect the division of the gains. This will be essential reading for academics, managers, and students alike who want to keep abreast of contemporary strategic challenges.

In recent years a growing number of commentators have declared that we are at the beginning of a technical revolution that will see profound changes in the way we live and work. Yet what constitutes a technological revolution, and what logic supports how successive technological revolutions have unfolded in Western societies? How do technologies change organizations and what are the implications of intelligent technologies for work and employment?Here, Stephen R. Barley reflects on over three decades of research to explore both the history of technological change and the approaches used to investigate how technologies are shaping our work and organizations. He begins by placing current developments in artificial intelligence into the historical context of previous technological revolutions, drawing on William Faunce's argument that the history of technology is one of progressive automation of the four components of any production system: energy, transformation, transfer, and control technologies. He then considers how technologies change work, and when those changes will and will not result in organizational change. In doing so he lays out a role-based theory of how technologies produce changes in organizations. He then tackles the issue, alongside Matt Beane, of how to conceptualize a more thorough approach to assessing how intelligent technologies, such as artificial intelligence, can shape work and employment. They identify the main reasons why the current state of research on intelligent technologies in the workplace is inadequate, and provide pointers on how empirical studies in this area may, and must, be improved. He concludes with a discussion with his long-time colleague Diane Bailey about the fears that arise when one sets out to study technical work and technical workers, and the methods that they, and future ethnographers, can use for controlling those fears.

Why are there so many crises in the world? Is it true that the global system is today riskier and more dangerous than in past decades? Do we have any tools at our disposal to bring these problems under control, to reduce the global system's proneness to instability? These are the tantalizing questions addressed in this book. Using a variety of demographic, economic, financial, social, and political indicators, the book demonstrates that the global system has indeed become an 'architecture of collapse' subject to a variety of shocks. An analysis of the global financial crisis of 2008, the bilateral relationship between the U.S. and China, and the European sovereign debt crisis illustrates how the complexity and tight coupling of system components creates a situation of precarious stability and periodic disruption. This state of affairs can only be improved by enhancing the shock-absorbing components of the system, especially the capacity of states and governments to act, and by containing the shock-diffusing mechanisms. In particular, those related to phenomena such as trade imbalances, portfolio investment, cross-border banking, population ageing, and income and wealth inequality.

In the wake of a series of corporate governance disasters in the US and Europe which have gained almost mythic status - Enron, WorldCom, Tyco, Adelphia, HealthSouth, Parmalat - one question has not yet been addressed. A number of 'gatekeeping' professions - auditors, attorneys, securities analysts, credit-rating agencies - exist to guard against these governance failures. Yet clearly these watchdogs did not bark while corporations were looted and destroyed. But why not?To answer these questions, a more detailed investigation is necessary that moves beyond journalism and easy scapegoating, and examines the evolution, responsibilities, and standards of these professions. John C. Coffee Jr, world-renowned Professor of Corporate Law, examines how these gatekeeping professions developed, to what degree they failed, and what reforms are feasible. Above all, this book examines the institutional changes and pressures that caused gatekeepers to underperform or neglect their responsibilities, and focuses on those feasible changes that can restore gatekeepers as the loyal agents of investors.This informed and readable view of the players on the contemporary business stage will be essential reading for investors, professionals, executives and business academics concerned with issues of good governance.

In this classic text, Masahiko Aoki explores how the 2008-9 financial crisis demanded a re-examination of the role of corporations and the working of financial markets around the world, providing a compelling new analysis of the corporate firm; the role of shareholders, managers and workers; and institutional governance structures.In recent decades the firm has predominantly been seen as an organization run and governed in the interests of shareholders, where management act as the agent of shareholders, and the workers simply as instruments for share-value maximization. This book reverses this viewpoint. It sees corporations as associational cognitive systems where 'cognitive actions' are distributed amongst managers and workers, with shareholders supplying 'cognitive tools' and monitoring their use in the systems. Aoki analyses the different relationships that can exist between shareholders, managers, and workers from this perspective, and identifies a range of different models of organizational architecture and associated governance structures. He also discusses ways in which corporations act as players in social, political, and organizational games, as well as global economic games; how these inter-related social dynamics may change particular distinctive national structures into the diversity incorporated in the global corporate landscape; and how they now call for new roles for financial markets.

Financial markets, processes, and instruments are often difficult to fathom; the credit crisis highlights both their importance and their fragility. Donald MacKenzie is one of the most perceptive analysts of the workings of the financial world. In this book, he argues that economic agents and markets need to be analyzed in their full materiality: their physicality, their corporeality, their technicality. Markets are populated not by disembodied, abstract agents, but by embodied human beings and technical systems. Concepts and systematic ways of thinking that simplify market processes and make them mentally tractable are essential to how markets function.In putting forward this material sociology of markets, the book synthesizes and contributes to the field of social studies of finance; the application to financial markets not just of economics but of wider social-science disciplines, in particular science and technology studies. The topics covered include the development of financial derivatives exchanges; arbitrage; how corporate profit figures are constructed; the crucial new markets in carbon emissions; and a case-study of a hedge fund (based, unusually, on direct observation of its trading).The book will appeal to research students and academics across the social sciences, and the general reader will enjoy the book's explanations and analyses of some of the most important phenomena of today's turbulent markets.

People often face complex, novel, fateful, and wildly unbounded problems throughout their lives. In their work, disciplinary scientists hone their wisdom on the complexities of necessarily bounded problems. Bounded Disciplines and Unbounded Problems offers a vision for schools of management science to bring these worlds together, by doing more of what they do best, co-creating solutions in ways that serve the world and the disciplines. Disciplinary wisdom is illustrated with studies eliciting beliefs and preferences. Collaboration is illustrated with a wide variety of applications, including climate, energy, health, security, technology, and natural disasters. The proposed strategy, for bonding bounded disciplines, offers a realistic path forward, at a time when the value of academia is sometimes questioned by the public, students, and even some of its members.

Before a nation can produce, it must achieve social peace. That social peace has been reached in different nations by differing means, some of which have then been embedded in business firms, in corporate ownership patterns, and in corporate governance structures. The large publicly held, diffusely owned firm dominates business in the United States despite its infirmities, namely the frequently fragile relations between stockholders and managers. But in other economically advanced nations, ownership is not diffuse but concentrated. It is concentrated in no small measure because the delicate threads that tie managers to shareholders in the public firm fray easily in common political environments, such as those in the continental European social democracies. Social democracies press managers to stabilize employment, to forego some profit-maximizing risks with the firm, and to use up capital in place rather than to downsize when markets no longer are aligned with the firm's production capabilities. Since managers must have discretion in the public firm, how they use that discretion is crucial to stockholders, and social democratic pressures induce managers to stray farther than otherwise from their shareholders' profit-maximizing goals. Moreover, the means that align managers with diffuse stockholders in the United States-incentive compensation, hostile takeovers, and strong shareholder-wealth maximization norms-are weaker and sometimes denigrated in continental social democracies.Hence, public firms there have higher managerial agency costs, and large-block shareholding has persisted as shareholders' best remaining way to control those costs. Social democracies may enhance total social welfare, but if they do, they do so with fewer public firms than less socially responsive nations. The author therefore uncovers not only a political explanation for ownership concentration in Europe, but also a crucial political prerequisite to the rise of the public firm in the United States, namely the weakness of social democratic pressures on the American business firm.

The 2008-9 financial crisis demands we look anew at the role of corporations, and the working of financial markets around the world. In this challenging and insightful book, one of our most eminent economists provides a compelling new analysis of the corporate firm; the role of shareholders, managers and workers; and institutional governance structures.In recent decades the firm has predominantly been seen as an organization run and governed in the interests of shareholders, where management act as the agent of shareholders, and the workers simply as instruments for share-value maximization. This book reverses this viewpoint. It sees corporations as associational cognitive systems where 'cognitive actions' are distributed amongst managers and workers, with shareholders supplying 'cognitive tools' and monitoring their use in the systems. Aoki analyses the different relationships that can exist between shareholders, managers, and workers from this perspective, and identifies a range of different models of organizational architecture and associated governance structures. He also discusses ways in which corporations act as players in social, political, and organizational games, as well as global economic games; how these inter-related social dynamics may change particular, distinctive national structures into the diversity incorporated in the global corporate landscape; and how they now call for new roles for financial markets.

As we move into an era of simultaneous innovation and commoditization, enabled by digital technologies, managers around the world are asking themselves "how can we both adapt to rapid changes in technology and markets, and still make enough money to survive - and thrive?" To provide answers to these important and urgent questions, MIT Sloan School of Management Professor Michael Cusumano draws on nearly 30 years of research into the practices of global corporations that have been acknowledged leaders and benchmark setters - and Microsoft, Apple, Intel, Google, and others in software, internet services, and consumer electronics, and Toyota in manufacturing. If we look deeply enough, he contends, we can see the ideas that underpin the management practices that make for great companies, and drive their strategic evolution and innovation capabilities.From his deep knowledge of these organizations, Cusumano distils six enduring principles that he believes have been - in various combinations - crucial to their strategy, innovation management practices, and ability to deal with change and uncertainty. The first two principles - platforms (not just products), and services, for product firms - are relatively new and broader ways of thinking about strategy and business models, based on Cusumano's latest research. The other four - capabilities (not just strategy), the "pull" concept, economies of scope, and flexibility (not just efficiency) - all contribute to agility, which is a mix of flexibility and speed. Some practices associated with these ideas, such as dynamic capabilities, just-in-time production, iterative or prototype-driven product development, flexible design and manufacturing, modular architectures, and component reuse, are now commonly regarded as standard best practices. They are also essential to a new world dominated by platforms and technology-enabled services.

Before a nation can produce, it must achieve social peace. That social peace has been reached in different nations by differing means, some of which have then been embedded in business firms, in corporate ownership patterns, and in corporate governance structures. The large publicly held, diffusely owned firm dominates business in the United States despite its infirmities, namely the frequently fragile relations between stockholders and managers. But in other economically advanced nations, ownership is not diffuse but concentrated. It is concentrated in no small measure because the delicate threads that tie managers to shareholders in the public firm fray easily in common political environments, such as those in the continental European social democracies.Social democracies press managers to stabilize employment, to forego some profit-maximizing risks with the firm, and to use up capital in place rather than to downsize when markets no longer are aligned with the firm's production capabilities. Since managers must have discretion in the public firm, how they use that discretion is crucial to stockholders, and social democratic pressures induce managers to stray farther than otherwise from their shareholders' profit-maximizing goals. Moreover, the means that align managers with diffuse stockholders in the United States-incentive compensation, hostile takeovers, and strong shareholder-wealth maximization norms-are weaker and sometimes denigrated in continental social democracies.Hence, public firms there have higher managerial agency costs, and large-block shareholding has persisted as shareholders' best remaining way to control those costs. Social democracies may enhance total social welfare, but if they do, they do so with fewer public firms than less socially responsive nations. The author therefore uncovers not only a political explanation for ownership concentration in Europe, but also a crucial political prerequisite to the rise of the public firm in the United States, namely the weakness of social democratic pressures on the American business firm.

The Web has been with us for less than a decade. The popular and commercial diffusion of the Internet has been extraordinary-instigating and enabling changes in virtually every area of human activity and society. We have new systems of communication, new businesses, new media and sources of information, new forms of political and cultural expression, new forms of teaching and learning, and new communities.But how much do we know about the Internet-its history, its technology, its culture, and its uses? What are its implications for the business world and society at large? The diffusion has been so rapid that it has outpaced the capacity for well-grounded analysis. Some say everything will change, others that little will change.Manuel Castells is widely regarded as the leading analyst of the Information Age and the Network Society. In addition to his academic work, he acts as adviser at the highest inter-national levels. In this short, accessible, and informative book he brings his experience and knowledge to bear on the Internet Galaxy.How did it all begin? What are the cultures that make up and contest the Internet? How is it shaping the new business organization and re-shaping older business organizations? What are the realities of the digital divide? How has the Internet affected social and cultural organization, political participation and communication, and urban living? These are just some of the questions addressed in this much needed book. Castells avoids any predictions or prescriptions-there have been enough of those-but instead draws on an extraordinary range of detailed evidence and research to describe what is happening, and to help us understand how the Internet has become the medium of the new network society.

Social Capital, the advantage created by location in social structure, is a critical element in business strategy. Who has it, how it works, and how to develop it have become key questions as markets, organizations, and careers become more and more dependent on informal, discretionary relationships. The formal organization deals with accountability; Everything else flows through the informal: advice, coordination, cooperation friendship, gossip, knowledge, trust.Informal relations have always been with us, they have always mattered. What is new is the range of activities in which they now matter, and the emerging clarity we have about how they create advantage for certain people at the expense of others. This is done by brokerage and closure. Ronald S. Burt builds upon his celebrated work in this area to explore the nature of brokerage and closure. Brokerage is the activity of people who live at the intersection of social worlds, who have a vision advantage of seeing and developing good ideas, an advantage which can be seen in their compensation, recognition, and the responsibility they're entrusted with in comparison to their peers. Closure is the tightening of coordination in a closed network of people, and people who do this do well as a complement to brokers because of the trust and alignment they create. Brokerage and Closure explores how these elements work together to define social capital, showing how in the business world reputation has come to replace authority, pursued opportunity assignment, and reward has come to be associated with achieving competitive advantage in a social order of continuous disequilibrium.

Social Capital, the advantage created by location in social structure, is a critical element in business strategy. Who has it, how it works, and how to develop it have become key questions as markets, organizations, and careers become more and more dependent on informal, discretionary relationships. The formal organization deals with accountability; Everything else flows through the informal: advice, coordination, cooperation friendship, gossip, knowledge, trust. Informal relations have always been with us, they have always mattered. What is new is the range of activities in which they now matter, and the emerging clarity we have about how they create advantage for certain people at the expense of others. This is done by brokerage and closure. Ronald S. Burt builds upon his celebrated work in this area to explore the nature of brokerage and closure. Brokerage is the activity of people who live at the intersection of social worlds, who have a vision advantage of seeing and developing good ideas, an advantage which can be seen in their compensation, recognition, and the responsibility they're entrusted with in comparison to their peers. Closure is the tightening of coordination in a closed network of people, and people who do this do well as a complement to brokers because of the trust and alignment they create. Brokerage and Closure explores how these elements work together to define social capital, showing how in the business world reputation has come to replace authority, pursued opportunity assignment, and reward has come to be associated with achieving competitive advantage in a social order of continuous disequilibrium.

The Web has been with us for less than a decade. The popular and commercial diffusion of the Internet has been extraordinary - instigating and enabling changes in virtually every area of human activity and society. We have new systems of communication, new businesses, new media and sources of information, new forms of political and cultural expression, new forms of teaching and learning, and new communities. But how much do we know about the Internet - its history, its technology, its culture, and its uses? What are its implications for the business world and society at large? The diffusion has been so rapid that it has outpaced the capacity for well-grounded analysis. Soem say everything will change, others that little will change.Manuel Castells is widely regarded as the leading analyst of the Information Age and the Network Society. In addition to his academic work, he acts as adviser at the highest international levels. In this short, accessible, and informative book, he brings his experience and knowledge to bear on the Internet Galaxy.How did it all begin? What are the cultures that make up and contest the Internet? How is it shaping the new business organization and re-shaping older business organizations? What are the realities of the digital divide? How has the Internet affected social and cultural organization, political participation and communication, and urban living?These are just some of the questions addressed in this much needed book. Castells avoids any predictions or prescriptions - there have been enough of those - but instead draws on an extraordinary range of detailed evidence and research to describe what is happening, and to help us understand how the Internet has become the medium of the new network society.

Reassembling the Social is a fundamental challenge from one of the world's leading social theorists to how we understand society and the 'social'.Bruno Latour's contention is that the word 'social', as used by Social Scientists, has become laden with assumptions to the point where it has become misnomer. When the adjective is applied to a phenomenon, it is used to indicate a stablilized state of affairs, a bundle of ties that in due course may be used to account for another phenomenon. But Latour also finds the word used as if it described a type of material, in a comparable way to an adjective such as 'wooden' or 'steely'. Rather than simply indicating what is already assembled together, it is now used in a way that makes assumptions about the nature of what is assembled. It has become a word that designates two distinct things: a process of assembling; and a type of material, distinct from others.Latour shows why 'the social' cannot be thought of as a kind of material or domain, and disputes attempts to provide a 'social explanations' of other states of affairs. While these attempts have been productive (and probably necessary) in the past, the very success of the social sciences mean that they are largely no longer so. At the present stage it is no longer possible to inspect the precise constituents entering the social domain. Latour returns to the original meaning of 'the social' to redefine the notion, and allow it to trace connections again. It will then be possible to resume the traditional goal of the social sciences, but using more refined tools. Drawing on his extensive work examining the 'assemblages' of nature, Latour finds it necessary to scrutinize thoroughly the exact content of what is assembled under the umbrella of Society. This approach, a 'sociology of associations', has become known as Actor-Network-Theory, and this book is an essential introduction both for those seeking to understand Actor-Network Theory, or the ideas of one of its most influential proponents.

Financial markets, processes, and instruments are often difficult to fathom; the credit crisis highlights both their importance and their fragility. Donald MacKenzie is one of the most perceptive analysts of the workings of the financial world. In this book, he argues that economic agents and markets need to be analyzed in their full materiality: their physicality, their corporeality, their technicality. Markets are populated not by disembodied, abstract agents, but by embodied human beings and technical systems. Concepts and systematic ways of thinking that simplify market processes and make them mentally tractable are essential to how markets function.In putting forward this material sociology of markets, the book synthesizes and contributes to the new field of social studies of finance: the application to financial markets not just of economics but of wider social-science disciplines, in particular science and technology studies. The topics covered include the development of financial derivatives exchanges (non-existent in 1970, but now trading products equivalent to $13,000 for every human being on earth); arbitrage; how corporate profit figures are constructed; the crucial new markets in carbon emissions; and a case-study of a hedge fund (based, unusually, on direct observation of its trading).The book will appeal to research students and academics across the social sciences, and the general reader will enjoy the book's explanations and analyses of some of the most important phenomena of today's turbulent markets.

In the wake of a series of corporate governance disasters in the US and Europe which have gained almost mythic status - Enron, WorldCom, Tyco, Adelphia, HealthSouth, Parmalat - one question has not yet been addressed. A number of 'gatekeeping' professions - auditors, attorneys, securities analysts, credit-rating agencies - exist to guard against these governance failures. Yet clearly these watchdogs did not bark while corporations were looted and destroyed. But why not?To answer these questions, a more detailed investigation is necessary that moves beyond journalism and easy scapegoating, and examines the evolution, responsibilities, and standards of these professions. John Coffee, world-renowned Professor of Corporate Law, examines how these gatekeeping professions developed, to what degree they failed, and what reforms are feasible. Above all, this book examines the institutional changes and pressures that caused gatekeepers to underperform or neglect their responsibilities, and focuses on those feasible changes that can restore gatekeepers as the loyal agents of investors.This informed and readable view of the players on the contemporary business stage will be essential reading for investors, professionals, executives and business academics concerned with issues of good governance.

As we continue in an era of simultaneous innovation and commoditization, enabled by digital technologies, managers around the world are asking themselves "how can we both adapt to rapid changes in technology and markets, and still make enough money to survive - and thrive?" To provide answers to these important and urgent questions, MIT Sloan School of Management Professor Michael Cusumano draws on nearly 30 years of research into the practices of global corporations that have been acknowledged leaders and benchmark setters - including Apple, Intel, Google, Microsoft, Toyota, Sony, Panasonic, and others in a range of high-technology, services, and manufacturing industries. These companies have also encountered major challenges in their businesses or disruptions to their core technologies.If we look deeply enough, he contends, we can see the ideas that underpin the management practices that make for great companies, and drive their strategic evolution and innovation capabilities.From his deep knowledge of these organizations, Cusumano distils six enduring principles that he believes have been - in various combinations - crucial to their strategy, innovation management practices, and ability to deal with change and uncertainty. The first two principles - platforms (not just products), and services (especially for product firms) - are relatively new and broader ways of thinking about strategy and business models, based on Cusumano's latest research. The other four - capabilities (not just strategy or positioning), the "pull" concept (not just push), economies of scope (not just scale), and flexibility (not just efficiency) - all contribute to agility, which is a mix of flexibility and speed. Many practices associated with these ideas, such as dynamic capabilities, just-in-time production, iterative or prototype-driven product development, flexible design and manufacturing, modular architectures, and component reuse, are now commonly regarded as standard best practices. These six enduring principles are essential in a new world dominated by platforms and technology-enabled services.