Entrepreneurship and market order: Some historical evidence

Our objective here is to establish the proposition that creative entrepreneurship gives rise to a market order which is optimally adjusted to facilitate the introduction and the diffusion of innovations, particularly those that take the form of new markets, new organizational schemes, new management devices and new methods and means of doing business. To substantiate this claim we extract from the existing historical literature and employ the ideal type entrepreneurial method of the Greek diaspora network. The interpretation we offer is that this method showed a high degree of operational flexibility and institutional adaptability and that it is these two proper-ties that explain its marked tenacity over time. The key ingredient for its success is traced to the self-regulatory robustness of the network, which was secured by the commitment of its partners to a moral order based on the triptych of ‘trust, reliability and reciprocity’ as well as to their ac-ceptance in advance of the sanctions in case of transgressions. Moreover, the embeddedness of the branches of the network in the Greek communities abroad, called Paroikies, where the Greek Orthodox Church provided moral leadership and maintained the community ties, reinforced the adherence of network partners to the rules of ethical business conduct. But in our view the domi-nant force in the design of the core mechanism that made the Greek diaspora network such a suc-cess was entrepreneurship.Entrepreneurship; Institutions; Networks; International Business Organizations

The Greek state and the international financial community, 1922-1932: Demystifying the 'foreign factor'.

In the decade between the Asia Minor debacle of 1922 and the foreign loan default of 1932, the Greek State formed tight links with the international capital market. This thesis examines the foreign loans raised. It investigates: the negotiations involved; the institutional framework through which these loans were provided; how they were used; and how they enhanced foreign tutelage over Greece. Book I explores the loans issued under the auspices of the Legue of Nations. It analyses how the League tackled the Refugee problem and uncovers how the stabilization plan was devised. It demonstrates the manner in which the League, the Bank of England and the British Treasury co-operated as regards Greece; and how these institutions withheld foreign finance (e.g. via embargoes) to force Greece to attain political stability and curb military expenditure. Book I also focuses on the divergent economic philosophy of the Greek authorities vis-a-vis the League and the Bank of England. Moreover, it brings to the surface the underlying antagonism between the International Financial Commission and the League of Nations. In addition, the parameters, other than the world economic crisis, that contributed to the demise of free convertibility in Greece are delineated. Finally, the stabilization experiment of the twenties is placed in a comparative perspective. Book II discusses foreign capital inflow outside 'formal' international control. This category of loans financed the development of infrastructure by foreign firms through 'agency' contracts. The terms and how the projects were carried out is investigated. The momentum attained in public works prior to stabilization and why it was not maintained during the gold exchange standard system is delineated. The growing dependence of the State on Hambros and the intimate relationship this merchant bank enjoyed with Greece's supervisors and the National Bank of Greece is brought into relief. Finally, an important issue analysed throughout the thesis is the internal weakness of the Greek state

Entrepreneurship and market order: Some historical evidence

Our objective here is to establish the proposition that creative entrepreneurship gives rise to a market order which is optimally adjusted to facilitate the introduction and the diffusion of innovations, particularly those that take the form of new markets, new organizational schemes, new management devices and new methods and means of doing business. To substantiate this claim we extract from the existing historical literature and employ the ideal type entrepreneurial method of the Greek diaspora network. The interpretation we offer is that this method showed a high degree of operational flexibility and institutional adaptability and that it is these two proper-ties that explain its marked tenacity over time. The key ingredient for its success is traced to the self-regulatory robustness of the network, which was secured by the commitment of its partners to a moral order based on the triptych of ‘trust, reliability and reciprocity’ as well as to their ac-ceptance in advance of the sanctions in case of transgressions. Moreover, the embeddedness of the branches of the network in the Greek communities abroad, called Paroikies, where the Greek Orthodox Church provided moral leadership and maintained the community ties, reinforced the adherence of network partners to the rules of ethical business conduct. But in our view the domi-nant force in the design of the core mechanism that made the Greek diaspora network such a suc-cess was entrepreneurship

A hesitant evolution: industrialisation and de-industrialisation in Greece over the long run

The paper is an attempt to examine the idiosyncratic unfolding of Greek industrialisation and de-industrialisation from a long-run perspective (1867-1994). Following stylized facts, it is shown that the main shifts in the Greek economy occurred outside industry (from agriculture to services). Also, industrialization was a hesitant process evolving slowly and reaching a plateau in 1950-73. Three structural continuities that accompanied this progress have been a large state sector, the commercial character of Greek entrepreneurship and the incomplete transition from a mercantile/family to corporate capitalism. Also, a rising share of manufacturing in GDP related consistently with increasing per capita income, improving trade performance and ‘trading up’ efforts within manufacturing

Diaspora entrepreneurial networks in the Black Sea and Greece, 1870-1917

This study follows the socio-economic aspects of the Greek entrepreneurial network in southern Russia in 1870-1917 using largely new material from Russian archives. The multi-dimensional character of Greek merchants (often being industrialists and landowners) and the close links established between the Greek trade, banking and shipping networks are confirmed. Their contribution to the Greek economy via foreign government loans raised in the international capital market is enquired. Finally, the decline of the diaspora is found to be a long drawn-out process which began in Odessa in the 1870s and spread to the eastern ports of the Black Sea prior to the Balkan Wars and World War I, thus predating the October revolution of 1917

Entrepreneurship and market order: Some historical evidence

Our objective here is to establish the proposition that creative entrepreneurship gives rise to a market order which is optimally adjusted to facilitate the introduction and the diffusion of innovations, particularly those that take the form of new markets, new organizational schemes, new management devices and new methods and means of doing business. To substantiate this claim we extract from the existing historical literature and employ the ideal type entrepreneurial method of the Greek diaspora network. The interpretation we offer is that this method showed a high degree of operational flexibility and institutional adaptability and that it is these two proper-ties that explain its marked tenacity over time. The key ingredient for its success is traced to the self-regulatory robustness of the network, which was secured by the commitment of its partners to a moral order based on the triptych of ‘trust, reliability and reciprocity’ as well as to their ac-ceptance in advance of the sanctions in case of transgressions. Moreover, the embeddedness of the branches of the network in the Greek communities abroad, called Paroikies, where the Greek Orthodox Church provided moral leadership and maintained the community ties, reinforced the adherence of network partners to the rules of ethical business conduct. But in our view the domi-nant force in the design of the core mechanism that made the Greek diaspora network such a suc-cess was entrepreneurship

A Quantitative Exploration on the Determinants of (De-)Industrialisation: The case of Greece

The aim of this paper is to explore the main determinants of (de-) industrialisation, taking Greece as a case study. Industrialisation in postwar Greece measured in terms of manufacturing industry's share of output was not impressive. It reached its peak (20.2% of GDP) in the mid 1970s and, since then, it followed a declining path. Relevant theory relates the evolution of industry to macro and micro variables, stressing the role of structural change or 'trading up' within manufacturing. The regression results underline that the reasons behind the unimpressive Greek industrialisation performance, compared with advanced capitalist economies, are to be found in the low GDP per capita, the deep and long economic recession and the unfavourable manufacturing trade conditions. The preponderance of traditional, low technology, consumer goods sectors over high technology industries is also found to affect negatively the share of manufacturing, but its statistical significance is relatively small. The implications for industrialisation policies are that macro-variables should preferably be used, since micro-tools are not likely to be particularly effective.