Towards a ‘Managerial Revolution’ in European Business? The transformation of Danish and Spanish Big Business, 1973–2003

Abstract

This article examines the growth strategies and ownership of the 40 largest corporations in Spain and Denmark from 1973 to 2003 in the light of European economic integration. It follows the tradition of the Harvard Program and builds on the work of Richard Whittington and Michael Mayers on the history of European corporations. These studies have been extended in three ways: geographically, introducing a small north European and a medium sized south European economy; methodologically by supplementing internationalization to diversification as main growth strategies; and chronologically by analysing three decades of corporate changes, 1973-2003. The result showed no convergence in diversification or ownership patterns while in both countries the largest corporations were less market oriented and more international at the end of the period.

Strategic transformations in Danish and Swedish big business in an era of globalisation, 1973–2008

“…4 Katzenstein suggested as early as 1983 that corporations from small open economies would tend to define export niches, and existing studies of strategic responses to economic integration confirms that. For instance Danish corporations from 1993 to 2003 were marked by a combination of high levels of internationalisation and low level of diversification (Binda & Iversen, 2007). The findings from the medium sized Spanish economy were on the other hand marked by an increase in related diversification from 18% in 1973 to 45% in 2003 (Binda & Iversen, 2007).…”

“…For instance Danish corporations from 1993 to 2003 were marked by a combination of high levels of internationalisation and low level of diversification (Binda & Iversen, 2007). The findings from the medium sized Spanish economy were on the other hand marked by an increase in related diversification from 18% in 1973 to 45% in 2003 (Binda & Iversen, 2007). Both the theoretic and empirical findings suggest that the particular Danish tendency Business History 121 towards very focused corporations continued after 2003 and that the Swedish case will show a similar tendency towards a typical 'small state' approach in terms of an increasing degree of internationalisation and market focus congruently with increasing economic integration.…”

“…The assumption is that by registering large corporations in the national context of Denmark and Sweden, these corporations mirror the specific structure of a corporate landscape. That landscape might be dominated by international subsidiaries -see for instance Binda and Iversen's (2007) similar study of the Spanish development. The analysis covers the period from 1973 to 2008 and we have chosen five benchmark years: 1973, 1983, 1993, 2003 and 2008.…”

“…The analysis covers the period from 1973 to 2008 and we have chosen five benchmark years: 1973, 1983, 1993, 2003 and 2008. This selection makes it possible to compare our results with the findings of Whittington and Mayer (2000) and Binda and Iversen (2007). The data consists of a combination of annual reports, the database 'Mapping Corporate Denmark' and various written overviews of the corporate annual accounts.…”

The Spanish corporate structure through interlocking directorates

“…Firstly, Spanish banks have been leaving their industrial groups, replacing investments in non-financial companies for shareholdings in banking businesses, both in Spain and Latin America, fitting the framework of an increasing internationalization of the Spanish economy (Binda and Iversen 2007). Some savings banks, however, have continued to maintain their industrial groups (Fernández 2003).…”