Bernard Paranque

Cooperatives — Saviours or Gravediggers of Capitalism? Critical Performativity and the John Lewis Partnership

The structures of ownership and governance at John Lewis, a major UK employee-owned retailer, have been commended by those who wish to recuperate capitalism and by those who seek to transform it. From a perspective of ‘critical performativity’, John Lewis is of special interest since it is celebrated as a successful organization and heralded as an alternative to more typical forms of capitalist enterprise. By examining the cooperative elements of the John Lewis structures of ownership and governance, we illuminate a number of issues faced in realizing the principles ascribed to employee-owned cooperatives—notably, with regard to ‘democratic member control’, ‘member economic participation’ and ‘autonomy and independence’.

Value slippage in brand transformation: a conceptualization

Purpose – The purpose of this paper is to explore brand transformation and the value slippage that can ensue. Design/methodology/approach – This is a conceptual paper drawing upon a solid bibliographic base; its intended contribution is to create a linkage among constructs. It mobilizes a socio-economic framework which enables the multiple transformations of the brand to be monitored. Two case vignettes of Nutella brand are used to discuss this brand transformation framework. Findings – The framework identifies four key brand transformation practices: brand appropriation by consumers forming a brand community, brand “surfeiting” through brand community actions, brand genericization throughout the society and brand regeneration in the market. The discussion highlights four categories of value slippage effects that enable us to ascertain whether the use value generated by the brand community slips – or does not – to another actor who captures it in the form of use or exchange value. Research limitations/imp...

Private property and collective action: Co-operation instead of competition

Purpose – The purpose of this paper is to reconsider commonly held views on the ownership and management of private property, contrasting capitalist and simple property, particularly as it relates to the impact of the firm shareholder governance model on the shape of society. Design/methodology/approach – The author contrasts an exchange value standpoint with a use value perspective to explicate current conditions under which neither the state nor the market prevail in organizing economic activity (i.e. the co-operative form of governance and community-created brand value). Findings – This paper offers mechanisms and recommendations regarding the formalized conditions for collective action and definitions of common guiding principles to facilitate new expressions of the principles of co-ordination. Such behaviour will allow for the development of common resources the purpose being a re-appropriation of the world. Originality/value – This consideration is motivated by the scale and scope of the modern glob...

Financial Constraints and Economic Behaviour: A Study of the Specific Features of French Small and Medium-Sized Manufacturing Firms From 1985 To 1995

The aim of this paper is to give an overwiev of the behavior of manufacturing firms, in particular the small ones and to go deeper into the conclusion of a previous paper (Equity and rate of return, ewp-fin-9608001 and 40th International Council of Small Business, Sydney, June 1996). After some quotes about capital structure and private firms, a comparison of own funds is made between german, french, spanish, italian and austrian manufacturing firms. We can find that french manufacturing firms, for each size studied, are less indebted than their foreign counterparts. Otherwise, french small firms are more profitable and more efficient than the larger ones. We then point out two economic behaviors. The first one depends on growth capacity of the firms and also on their accumulation outlay; the second depends on the intensity of the links with the financial markets, the facilities to obtain lendable funds, all aspects which oblige firms to make high financial profitabilities that can reduce accumulation decisions.

Islamic Investment versus Socially Responsible Investment: Lessons from Comparison

Abstract Purpose The objective of this chapter is twofold. It first explores the complementarities of Islamic investment with Socially Responsible Investment. Secondly, it examines the financial price, for investors, of being both shariah-compliant and socially responsible. Methodology/approach Using a value-weighted approach, we experiment the construction of a set of sharia-compliant stock portfolios with different Environmental, Social, and Governance (ESG) performance. We use the KLD ratings of 238 companies listed in U.S. stock market from 2007 to 2011. We measure and compare their performance using the model developed by Fama and French (1993) and extended by Carhart (1997). Findings The results indicate no adverse effect on returns due to the application of a double screening, Islamic and SRI, and show a substantially higher performance for positive governance screen during 2008–2011 periods. This outperformance cannot be explained by differences in investment style. Though, we observe significant outperformance for some ‘irresponsible’ portfolios involved in community and human rights controversies. Research limitations/implications The study only focuses on U.S. market. Future works should extend the experimentation to other markets. Practical implications This study provides a venue for Islamic funds managers to consider SRI screening as fully in line with shariah-compliance requirements, while preserving the performance of their portfolios. Social implications Potentially, the reconciliation of Islamic investment with positive SRI practices may foster the implementation of CSR policies by firms’ manager willing to attract Islamic investors. Originality/value With reference to the many studies emphasising the compatibility between CSR criteria and Islamic principles, this experimental study is the first to investigate the integration of a positive screening process designed to select companies based on their ESG performance in addition to a traditional shariah-compliant screening.

Cooperatives – An Alternative to Capitalism? The Case of the John Lewis Partnership ☆

Abstract Purpose From a perspective of ‘critical performativity’, John Lewis is of special interest since it is celebrated as a successful organization and heralded as an alternative to more typical forms of capitalist enterprise. Methodology/approach Our analysis uses secondary empirical material (e.g. JLP documents in the public domain, histories of John Lewis and recent empirical research). Our assumption is that engagement and interrogation of existing empirical work can be at least as illuminating and challenging as undertaking new studies. In addition to generating fresh insights, stimulating reflection and fostering debate, our analysis is intended to contribute to an appreciation of how structures of ownership and governance are significant in enabling and constraining practices of organizing and managing. Findings The structures of ownership and governance at John Lewis, a major UK employee-owned retailer, have been commended by those who wish to recuperate capitalism and by those who seek to transform it. Research limitations/implications JLP can be read as a ‘subversive intervention’ insofar as it denies absentee investors access to, and control of, its assets. Currently, however, even the critical performative potential of the Partnership model is impeded by its paternalist structures. Exclusion of Partners’ participation in the market for corporate control is reflected in, and compounded by, a weak form of ‘democratic’ governance, where managers are accountable to Partners but not controlled by them. Practical implications Our contention is that JLP’s ownership and governance structures offer a practical demonstration, albeit flawed, of how an alternative form of organization is sufficiently ‘efficient’ and durable to be able to ‘compete’ against joint-stock companies. Originality/value By examining the cooperative elements of the John Lewis structures of ownership and governance, we illuminate a number of issues faced in realizing the principles ascribed to employee-owned cooperatives – notably, with regard to ‘democratic member control’, ‘member economic participation’ and ‘autonomy and independence’.

I choose my business model! A cross-national analysis of business model choice in family firms

Purpose – Drawing on family-business and business model (BM) literature the purpose of this paper is to explore whether a relationship exists between the family involvement in the management (i.e. closed or mixed management) and BM choice. Design/methodology/approach – A multiple case study analysis of family-owned wineries in Chianti (Italy) and Cotes du Rhone (France) has been conducted. Findings – The analysis surprisingly reveals that no relationship exists between the BM ideal type chosen and the type of management composition. Rather, it seems that the choice of hiring non-family managers is dictated by the willingness to reinforce the BM chosen by the owner and that the role played by non-family managers is not revolutionary but reinforces the owner’s BM choice. The authors propose that the stewardship theory can contribute in explaining the findings. Originality/value – A twofold contribution is offered by this study: first, it links the strategic management research on BMs to family business (FB)...

Informational intermediation: a tool to assess SMEs’ ability to access financing

Purpose – This paper aims to highlight a typology of small firms which, beyond the criteria of size or industrial field, makes it possible to distinguish the quality of firms according to their internal organisation and the type of market on which they act with the objective of reducing the capital gap and credit rationing.Design/methodology/approach – Based on a global approach using qualitative and quantitative data.Findings – Still at the experimental stage, this method of assessing the ability of small firms to access financing from their various external partners could, if widely used, offer a means of increasing the transparency of small businesses and thereby enhancing their positioning and their chances of survival.Research limitations/implications – The research is at an early stage and needs to be validated empirically.Originality/value – While this paper describes a method of assessing an economic policy intended to benefit SMEs in France, its main purpose is to show how such a tool can help to...

Publication of Environmental Accounting Issues By Australia's and New Zealand's Sole Social Science Citations Index Accounting Journal

Currently, Accounting and Finance is the only Social Science Citations Index accounting journal in the academic writing of Australia and New Zealand (SSCI, 2006) but its contribution to stand alone environmental accounting research output, for the period 2000-2005, amounts to one journal article. Whilst Keef and Roufs (2005) narrowly constructed capital market based link between weather and bond performance, breaks the pattern of Accounting and Finance ritualistic non-publication of environmental accounting, the absence of a contemporary wide-ranging number of environmental accounting research articles by this Social Science Citations Indexed journal underlies Australian and New Zealand elite accounting academias complicity in the planets destruction.

Finance and Small Manufacturing Firms: Do Market Listing and Size Entail Behavioural Differences?

It is possible to study companies according to their methods of gaining access to finance, and in particular the stock market. Two approaches are possible. The first looks at the organization of such access through the relationships built up by the company with suppliers of capital, enabling the financial territory of the company to be defined. The second approach, which does not exclude the first, is to compare companies according the degree to which they enjoy access to financial markets, which can be defined in terms of whether a company is listed on the stock market or not. Both approaches have been tested using data for recent years. The purpose of this paper is to examine firstly the differences in access to financial markets between large and small companies, and secondly the effects and constraints generated by the fact of being listed (comparison of listed and unlisted companies).