Published online by Cambridge University Press: 13 December 2011
This article begins with an overview of the changing context of U.S. industrial enterprise from the Second Industrial Revolution of the late nineteenth century to the end of the Second World War. It then examines the changes in the nature of competition, in the financial markets, and in corporate management that transformed the industrial environment in the postwar decades. Against that historical background, the essay describes in detail the results of an empirical study aimed at discovering how U.S. companies maintained, increased, or dissipated their organizational capabilities and how the market for corporate control affected that behavior.
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2 Ibid., 200.
3 Ibid., chap. 4.
5 Ibid., 221.
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8 Ibid., 253–54, 285, 398, 775.
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32 Directory of Multinationals (1989), 1: 42; also The Wall Street Journal, 28 Sept. 1987.
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35 Dertouzos, et al., Made in America, 195–97, and Bozdogan, “Transformation of the U.S. Chemicals Industry,” 31–37. Valuable too is Bower, Joseph L., When Markets Quake: The Management Challenge of Restructuring Industry (Boston, Mass., 1986Google Scholar), especially chaps. 3, 5, and 6. The rubber, food, and mining companies listed in Table 1 also came into the industry, usually by investing in technologically related lines.
36 Bozdogan, “Transformation of the U.S. Chemicals Industry,” 33–34. The shift from commodities into specialties is elegantly documented in Lane, Sarah J., “Corporate Restructuring in the Chemicals Industry,” in The Deal Decade: What Takeovers and Leveraged Buyouts Mean for Corporate Governance, ed. Blair, Margaret M. (Washington, D.C., 1993), 239–72.Google Scholar
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38 Ibid., Figure 9, p. 97 for 1987; Business Week (13 Jan. 1992), 74 for 1991.
39 Temin, Peter, Taking Your Medicine: Drug Regulation in the United States (Cambridge, Mass., 1980), chap. 4.CrossRefGoogle Scholar
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43 See Moskowitz, MiltonLevering, Robert, and Katz, Michael, eds., Everybody's Business, An Almanac: The Irreverent Guide to Corporate America (San Francisco, Calif., 1980Google Scholar) and Moskowitz, Levering and Katz, eds., Everybody's Business (1990) for many of these food, drink, and tobacco companies, supplemented by the Directory of Multinationals and Moody's Manual. For Beatrice, see Baker, George P. III, “Beatrice: A Study in the Creation and Destruction of Value,” Journal of Finance 47 (July 1992): 1081–119.CrossRefGoogle Scholar
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47 See Yonekura, Seiichiro, The Japanese Iron and Steel Industry (London, 1994), 223, 236.Google Scholar For information on U.S. steel companies, see Directory of Multinationals and Moody's Manual and Moskowitz, Levering, and Katz, eds., Everybody's Business (1990), 505–15. The major postwar expansion of U.S. steel capacity using the older technologies had been carried out a decade earlier; see Tiffany, Paul, The Decline of American Steel (New York, 1988), 132, 173–76.Google Scholar
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49 March, Barbara, A Corporate Tragedy: The Agony of International Harvester Company (New York, 1985), chaps. 10–17Google Scholar, and Broehl, Wayne G. Jr., John Deere's Company: A History of John Deere & Company and Its Tunes (New York, 1984), chaps. 14–16.Google Scholar Particularly valuable on the Deere-Harvester rivalry is “Deere Sails; Harvester Ails,” Sales Marketing and Management (4 Feb. 1985), 30–33.
50 For Caterpillar's strategy see F. M. Scherer, “The U.S. Response to High Technology Imports,” paper presented at the Business History Seminar, Harvard Business School, 17 Dec. 1990, 42–46.
51 Directory of Multinationals, Moody's Manual, and references in Broehl, John Deere's Company, and Scherer, “U.S. Response to High Technology Imports”; also Industry Week (9 Feb. 1987), 45–46. For its earlier history, see Chandler, Scale and Scope, 202–3.
52 Information on these companies and those listed in the next four paragraphs comes from the Directory of Multinationals and Moody's Manuals, supplemented by Moskowitz, Levering, and Katz, eds., Everybody's Business (1980). For FMC's development, see Chandler, Scale and Scope, 202; for the growth of Cooper Industries, Keller, David N., Cooper Industries: 1833–1982 (Athens, Ohio, 1983).Google Scholar For Cooper and McGraw-Edison see The Wall Street Journal, 25, 27, 28 March, 2 April 1986. For FMC's financial restructuring and the resulting legal suit against Boesky, see ibid., 2 Feb., 9 Dec. 1986.
53 Directory of Multinationals (1989), 1: 326–27.
54 For Fruehauf, see Moskowitz, Levering, and Katz, eds., Everybody's Business (1990), 287–89, and The Wall Street Journal, 25 April, 2 May, 16, 26 June, 25 Aug. 1986, 25 April 25 Aug., 1 Sept., 5 Dec. 1988; 29 March, 9 May, 17 July 1989; for Clark Equipment, ibid., 11 March, 4, 11, 13 May 1987; for Borg-Warner, Moskowitz, Katz, and Levering, eds., Everybody's Business (1990), 267.
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