Carol M. Connell

Discerning a mentor's role

Purpose – The central focus of this paper is the mentorship relationship of economist Fritz Machlup and his graduate student Edith Penrose, and specifically how that relationship contributed both to her development as a scholar and to her seminal work, The Theory of the Growth of the Firm.Design/methodology/approach – The qualitative research on which this paper is based is the sociohistorical biographical approach, based on a close examination of published works and archival materials. Content analysis is used to draw inferences about Fritz Machlups mentoring content, style, and impact on Penroses methodology and argumentation as reflected in The Theory of the Growth of the Firm, and the correspondence exchanged while Penrose was writing The Theory of the Growth of the Firm.Findings – The Theory of the Growth of the Firm mirrors Machlups methodology and methodological framework. The arguments supporting Penroses theoretic model of the growth of firms were discussed, debated and shaped by the exchange...

Transformation of “a business in risks”: knowledge and learning for reinvention

Jardine Matheson & Company is a Hong Kong multi‐industry conglomerate that has gone through political upheaval, global and regional economic crises, and has survived and transformed itself several times in the process. Firm learning and adaptability are audited across five breakpoints (1832, 1885, 1977, 1996, 2004), thereby contributing information about changes in the long‐term, large‐scale behavior of Jardine Matheson & Company. The paper takes a historical transformation approach to learning and knowledge in Jardine Matheson, largely inspired by Edith Penrose and The Theory of the Growth of the Firm and the recent work of William Lazonick to describe a theory of innovative enterprise. The paper also draws on contemporary resource‐based and knowledge‐learning literature. The paper addresses the question of whether firms can learn from change and apply new knowledge for continuous reinvention. The analysis reveals the extent to which Jardine Matheson stimulated or adapted to changes in the environment and saw new opportunities for value capture that demanded the development or reuse of capabilities and the reconfiguration of relationships necessary for survival, transformation and advantage in Hong Kong and the ASEAN. The research is analytical, observational and interpretive. The analytic approach is generalizable and provides insight useful to scholars and practitioners. The research itself is neither predictive nor prescriptive. The research findings communicated here present a picture of Jardine Mathesons ability to acquire, integrate and apply knowledge.

Method, Structure and Argument in Edith Penrose's Theory of Growth

Edith Penroses The Theory of the Growth of the Firm proposed a process theory of growth based on the pursuit and coordination of knowledge. From 1956 to 1973, Penrose began to focus on large international firms operating in developing countries. She found government to be a continuous input to the growth process. We argue here that Penrose was a heterodox economist, who followed the methodological style and structure of her Austrian mentor Fritz Machlup, embraced the neoclassical case study method of Marshall, and articulated a viewpoint on international growth that is much in line with Roy Harrod, Maurice Byé and Charles Kindleberger, who devoted considerable attention to why governments find it necessary to impose restraints on how such firms invest in their economies. The background and development of Penroses work has implications for theory and policy, specifically for the Resource-based view which recognizes Penrose as its founder.

Pursuing three horizons of growth # three cases: Bombardier (Canada), Disney (US) and Hutchison Whampoa (China)

Purpose – The article looks at how companies pursuing a three‐horizon growth strategy weathered the last economic downturn and what became of their growth initiatives.Design/methodology/approach – The paper examines the financial performance and continued investment of three growing companies from 1996‐2004: Bombardier (Canada), Hutchison Whampoa (Hong Kong/China) and Disney (US).Findings – The Bombardier, Disney and Hutchison Whampoa cases teach a powerful lesson about the importance of using investment in growth to manage uncertainty and limit downside risk.Research limitations/implications – While the focus of this article is on three companies only, the financial performances of a dozen other growing firms are examined over the same period for purposes of comparison.Practical implications – Following the last downturn, companies sought to preserve the core and outsource non‐critical functions to reduce the cost of business. Some chose to sideline growth initiatives during this period. This article ana...

Reforming the world monetary system

Purpose – The purpose of this paper is to examine Fritz Machlups method and use of scenario analysis in the policy discussions around exchange rate solutions to balance of payments problems.Design/methodology/approach – The qualitative research on which this paper is based is the sociohistorical biographical approach, based on a close examination of published works and archival materials.Findings – What makes Machlup unique is his focus on the impact to an economic system of discrete human actions, each set of actions associated with a change in exchange rate policy and the operations and institutions necessary to implement it. Impact on the system was evaluated in terms of three values – balance of payments adjustment, liquidity and confidence. In his use of a systems approach, his focus on change and adjustment to change, and most particularly his focus on human action, Machlup is also distinctively Austrian.Research limitations/implications – This is the first paper generated from the authors far la...

Building Community in Professional Education: Team Learning by Design

Raising his hand, Solomon sought to make an exchange, “Professor Connell, our team RASNER is willing to trade two shapers for a plant and a coordinator.” Sarah answered back, “Team TQM (Total Quality Management) will trade you one coordinator. We are also looking for a Networker, if you have more than one.” The two teams—RASNER and Team TQM—were attempting to create well-rounded teams, made up of individuals who had specific skill areas lacking in the current team configuration. The process is called rebalancing. To understand what team skills they possessed and what skills they still needed, all team members had taken a team roles assessment test that allowed them to understand their individual role preferences and those of their team mates. In fact, there was only one self-defined “networker” in the class: a member whose specific skill was communicating with the world outside the team to obtain scarce resources to complete team activities.

Managing risky business: the case of Jardine Matheson & Company

Purpose – Jardine Matheson & Company is a Hong Kong multi‐industry conglomerate that has gone through political upheaval, global and regional economic crises, and has survived and transformed itself several times in the process, using unique governance schemes and financial performance measures to manage risk and volatility.Design/methodology/approach – This research paper answers the following question: how do firms manage risk? Can firms effectively use governance and financial measurements to manage risk? Is this a distinctive capability that contributes to competitive advantage and sustainability?Findings – The analysis reveals the extent to which Jardine Matheson adapted to changes in the environment and learned from failure to manage risk.Research limitations/implications – The research is analytical, observational and interpretive. The analytic approach is generalizable and provides insight useful to scholars and practitioners.Practical implications – Firms seeking to reduce the volatility in their...