Article contents
Multinationals and the Dutch Business System: The Cases of Royal Dutch Shell and Sara Lee
Published online by Cambridge University Press: 14 April 2011
Abstract
The impact of the strategies of multinational companies on the Dutch business system during the twentieth century is described in relation to two fi rms. The fi rst case examines the attitude of the Dutch (in this example, Anglo-Dutch) parent company Royal Dutch Shell toward its international subsidiaries. The second looks at the approach taken by the American company Sara Lee toward its Dutch subsidiary, Douwe Egberts. Until the 1980s, both companies were prepared to adjust their organizations to national traditions and ambitions. However, when these nationally based global fi rms came under pressure during that decade, both changed their organizational structures. Their actions can be seen both as responses to globalization and as attempts to advance that process by simultaneously building international institutions and changing elements of the national business system in the Netherlands.
- Type
- National Business Systems: Focus on the Netherlands
- Information
- Business History Review , Volume 84 , Issue 4: Business History and Varieties of Capitalism , Winter 2010 , pp. 799 - 822
- Copyright
- Copyright © The President and Fellows of Harvard College 2010
References
1 See the introduction by Keetie Sluyterman to this special section on page 737. The authors would like to thank our colleagues from the BINT project, Bram Bouwens, Joost Dankers, Mila Davids, Jacques van Gerwen, Ferry de Goey, Abe de Jong, Erik Nijhof, Jan Peet and Arjan van Rooij, Gerarda Westerhuis, and the anonymous reviewers of BHR for their helpful comments on an earlier draft.
2 Whitley, Richard, ed., European Business Systems: Firms and Markets in Their National Contexts (London, 1992), 5. See also the introduction by Sluyterman to this special section.Google Scholar
3 Jones, Geoffrey, Multinationals and Global Capitalism: From the Nineteenth to the Twenty-First Century (Oxford, 2005);Google ScholarSluyterman, Keetie E., Dutch Enterprise in the Twentieth Century: Business Strategies in a Small Open Economy (London, 2005).Google Scholar
4 Bordo, Michael D., Taylor, Alan M., and Williamson, Jeffrey G., Globalization in Historical Perspective (Chicago, 2003), introduction.CrossRefGoogle Scholar
5 See the following by Ronald Findlay and Kevin H. O'Rourke: “Commodity Market Integration, 1500–2000,” in Globalization in Historical Perspective, ed. Bordo, Taylor, and Williamson, 13–64, and Power and Plenty: Trade, War, and the World Economy in the Second Millennium (Princeton, 2007), 425–28, 471–73, 525–26;Google Scholar see also Obstfeld, Maurice and Taylor, Alan M., Global Capital Markets: Integration, Crisis, and Growth (Cambridge, 2004), 23–42, 158–63.CrossRefGoogle Scholar
6 Doremus, Paul N. et al., eds., The Myth of the Global Corporation (Princeton, 1998), 3–4.Google Scholar
7 Ibid., 138–49.
8 Morgan, Glenn, “The Multinational Firm: Organising across Institutional and National Divides,” in The Multinational Firm: Organising across Institutional and National Divides, ed. Morgan, Glenn et al. (Oxford, 2003), 1.Google Scholar
9 Richard Whitley, “How and Why are International Firms Different? The Consequences of Cross-Border Managerial Coordination for Firm Characteristics and Behaviour,” in The Multinational Firm, ed. Morgan et al., 27–68.
10 Morgan, Glenn, “Introduction: Changing Capitalisms? Internationalization, Institutional Change, and Systems of Economic Organization,” in Changing Capitalisms? Internationalization, Institutional Change, and Systems of Economic Organization, ed. Morgan, Glenn, Whitley, Richard, and Moen, Eli (Oxford, 2005), 1–17.Google Scholar
11 Hall, Peter A. and Soskice, David, “An Introduction to Varieties of Capitalism,” in Varieties of Capitalism: The Institutional Foundations of Comparative Advantage, ed. Hall, Peter A. and Soskice, David(Oxford, 2001), 1–68.CrossRefGoogle Scholar
12 A recent article by Hall and Thelen focuses on the possibilities of institutional change in varieties of capitalism. Hall, Peter A. and Thelen, Kathleen, “Institutional Change in Varieties of Capitalism,” Socio-Economic Review 7 (2009): 7–34.CrossRefGoogle Scholar
13 Crouch, Colin, Capitalist Diversity and Change: Recombinant Governance and Institutional Entrepreneurs (Oxford, 2005), 3.CrossRefGoogle Scholar
14 Casson, Mark and Lundan, Sarianna M., “Conclusion: Methodological Issues in International Business,” in Economics of International Business: A New Research Agenda, ed. Casson, Mark (Cheltenham, U.K., 2000), 278–308.CrossRefGoogle Scholar
15 Djelic, Marie-Laure and Quack, Sigrid, “Introduction: Governing Globalization—Bringing Institutions Back In,” in Globalization and Institutions: Redefi ning the Rules of the Economic Game, ed. Djelic, Marie-Laure and Quack, Sigrid (Cheltenham, U.K., 2003), 1–14, esp. 5.CrossRefGoogle Scholar
16 Djelic and Quack, “Introduction,” 1–14.
17 Jonker, Joost and Zanden, Jan Luiten van, A History of Royal Dutch Shell, vol. 1: From Challenger to Joint Industry Leader (Oxford, 2007), 90–99.Google Scholar
18 Blair, A. P., “Shell and Its Staff,” Jan. 1959, 16–20, internal report written by Shell's Head of Recruitment Division, Boxes HR, Shell London Archives (hereafter SLA).Google Scholar
19 Ibid., 32–33.
20 Committee of Managing Directors (CMD), Personnel fi le, 19 Feb. 1959, Personnel, 1957–1962, files S12, SLA.Google Scholar
21 Howarth, Stephen and Jonker, Joost, A History of Royal Dutch Shell, vol. 2: Powering the Hydrocarbon Revolution (Oxford, 2007), 137–39.Google Scholar
22 McKenna, Christopher D., The World's Newest Profession: Management Consulting in the Twentieth Century (Cambridge, U.K., 2006), 176–81.CrossRefGoogle Scholar
23 Howarth and Jonker, Powering, 140–48.
24 Royal Dutch Annual Report, 1969, 14–15.Google Scholar
25 Sluyterman, Keetie, A History of Royal Dutch Shell, vol. 3: Keeping Competitive in Turbulent Markets, 1973–2007 (Oxford, 2007), 265.Google Scholar
26 Ibid., 31–35.
27 Minutes of the CMD, 4 May 1971, CMD fi les, DCS, S 65, SLA.Google Scholar
28 Wachem, Lo van, “Unity in Diversity: Organisation and People in Multinational Enterprises,” paper presented at the German Society for Business Economics conference, Berlin, 13 Oct. 1992.Google Scholar
29 Shell Global Scenarios, 1992–2020, and Global Scenarios, 1995–2020, internal Shell reports, SLA.
30 Conference Minutes, 14 Dec. 1994, 11 Jan. 1995, 8 Feb. 1995, Service companies review and transformation, 1995–1997, SC 98, SHA, SLA.Google Scholar
31 Shell World (Apr. 1995), 3.Google Scholar
32 RD Annual Reports, 1990–2000.Google Scholar
33 RD Annual Report, 1994.Google Scholar
34 Veen, Willem Trommel en Romke van der, De herverdeelde samenleving: Ontwikkeling en herziening van de Nederlandse verzorgingsstaat (Amsterdam, 1999), 271–73.Google Scholar
35 “Outlook Expatriate Survey: Summary of Findings and Summary of Changes,” Shell World, Feb. 1995, Shell Outpost Family Archive Centre.Google Scholar
36 Regional and International Staffi ng Study (ca. 1989), Boxes HR, SLA; Destinations 21 (Dec.2001).Google Scholar
37 Shell World (July 2003): 19–21.Google Scholar
38 Veer, Jeroen van der, “Shell's Strategy to Fuel the Future,” paper presented at the IMD CEO Roundtable, Lausanne, 11 Nov. 2005.Google Scholar
39 Shell World (May 2005): 10.Google Scholar
40 Letter to 100-percent-owned Shell companies, from regional coordinators, PA 34, SLA.
41 W. J. M. van Geneugten et al., NGO's als nieuwe “toezichthouders” op de naleving van
42 Memoranda, , 12 Aug. 1994 and 27 May 1997, 190 Y, 881, Shell Archives, The Hague.Google Scholar
43 Shell News (Nov. 1999), 6–9.Google Scholar
44 Douwe Egberts, Koninklijke Tabaksfabriek-Koffi ebranderijen-Theehandel B.V., Annual Report, 1977, 6.Google Scholar
45 van der Zee, P. R., Van Winkelnering tot Wereldmerk (Utrecht, 1987), 239–40.Google Scholar
46 McKinsey & Company Inc., Memorandum aan E. D. de Jong, 23 July 1971, Sara Lee Archive, Utrecht (SLAU).Google Scholar
47 Douwe Egberts Annual Accounts, 1975, 5.Google Scholar
48 Interviews with Albert Six, Corporate Secretary, Sara Lee International bv, in Utrecht, Dec. 2006–Apr. 2007.Google Scholar
49 Fudge, Anthony, Consolidated Foods Corporation Douwe Egberts 1978/Sara Lee Corporation Sara Lee/DE 1998 (Hilversum, 1998), 11–13.Google Scholar
50 Deed of Contract Koninklijke Tabaksfabriek-Koffi ebranderijen-Theehandel B.V. and Consolidated Foods Corporation, 14 Nov. 1977, SLAU.Google Scholar
51 Douwe Egberts, Koninklijke Tabaksfabriek-Koffi ebranderijen-Theehandel B.V., Annual Report, 1977, 9.Google Scholar
52 Memorandum on the role and responsibilities of the Stichting Administratiekantoor Douwe Egberts Consolidated and its Trustees, June 1977, 10, SLAU.Google Scholar
53 Ibid., 10–11.
54 For example, former Prime Minister Piet de Jong, president of the Board of DSM Wim Bogers, and president of the Board of Hoogovens Paul Justman Jacobs.
55 Fudge, Consolidated Foods Corporation, 23.
56 Sara Lee Corporation, Annual Report, 1987.Google Scholar
57 Wolpert, Luc-Jan S., “Management van organisatievernieuwing: Een analyse van de constructieprocessen van de business-unitvorming binnen Akzo (1987–1993),” PhD diss., Groningen, 2002, 15.Google Scholar
58 Sara Lee/DE NV, Jaarverslag, 1988/1989.Google Scholar
59 Fudge, Consolidated Foods Corporation, 37.
60 Metze, Marcel, Let's Make Things Better (Nijmegen, 1997) 94–102.Google Scholar
61 Ibid., 39–41.
62 Whitley, “How and Why are International Firms Different,” 27–68.
63 Interviews with Albert Six.
64 Fudge, Consolidated Foods Corporation, 39.
65 Ibid., 41.
66 Sara Lee Corporation, Annual Report, 1998.Google Scholar
67 Sara Lee Corporation, Annual Report, 2000.Google Scholar
68 Interviews with Albert Six.
69 Sara Lee, Annual Report, 2002.Google Scholar
70 Sara Lee, Annual Report, 2005.Google Scholar
71 Sara Lee, Annual Report, 2006.Google Scholar
72 Sara Lee, Management Information: Plan tot herstructurering van Sara Lee International, 20 Mar. 2007.Google Scholar
- 8
- Cited by