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Billions of Entrepreneurs: How China and India are Reshaping Their Futures and Yours

Khanna, Tarun
September 2007

China and India, occupied by a third of the world's population, are undergoing social and economic revolutions that are capturing the best minds and money of Western business. This book presents a new view of development, centered around entrepreneurial behavior by both public and private sectors. The author charts China's and India's trajectories of development-where they overlap and complement each other, and where they diverge and compete with one another. There are opportunities for Western companies to participate in this development. This book should serve as an excellent beginning of that participation. Through a series of intriguing comparisons, Khanna probes the salient, practical differences between China and India in such areas as information and transparency, the roles of capital and talent, public and private property rights, social constraints on market forces, attitudes toward expatriates abroad and foreigners at home, entrepreneurial and corporate opportunities, and the importance of urban and rural communities. The differences suggest how these two countries will develop further, how their paths will cross and diverge, what they can learn from and contribute to each other, and, ultimately, how they will reshape the world around them in terms of business, politics, and society at large.

HBS Press publication expected January 2008

Microfinance: Business, Profitability, and the Creation of Social Value

Book chapter in Business Solutions for the Global Poor: Creating Social and Economic Value, edited by V. Kasturi Rangan, John A. Quelch, Gustavo Herrero, and Brooke Barton

Chu, Michael
September 2007

After thirty years of development, commercial microfinance in the developing world-the provision of financial services to low-income populations on a financially-sustainable basis-is an example with many lessons applicable to the study of business and the global poor. In recent years, there has been ample evidence, both in the literature and in capital markets, of the ability of leading microfinance institutions, particularly in Latin America and Asia, to generate superior economic returns. The issue is less clear in terms of the contribution successful microfinance makes to the reduction of global poverty. This paper seeks to address aspects of the creation of economic value and social value in microfinance, which the author believes contains insights applicable to all endeavors that seek to address the needs of the poor on a commercial basis.

John Wiley & Sons, Inc, 2007

The Empire in One City? Liverpool's Inconvenient Imperial Past

Book chapter in Return to Imperial Trade? John Holt & Co (Liverpool) Ltd. as a Contemporary Free-Standing Company, 1945-2006

Decker, Stephanie
September 2007

John Holt & Co is one of a group of unlikely survivors from the imperial era: medium-sized firms that continue to trade between Europe and Africa and whose continued existence is only rarely commented upon. The Liverpool-based John Holt & Co with its Nigerian subsidiary John Holt PLC is an interesting case for a pilot study because the company returned in 2001 to an organizational form that is known as free-standing company in the historical literature on imperial business. These companies only had a small head office in the metropolitan country, often in major port cities or the capital, which supervised the operations in another, normally less developed, country, where all business and investment took place. Although frequently associated with imperialism, there is reason to believe that John Holt is not an isolated case of a company assuming this form. Holt and others function as intermediaries between global business, which rarely invests in small African markets and where commercial practices are often complicated, heavily based on personal contacts, and incompatible with the structures of large multinationals.

Manchester: Manchester University Press, forthcoming

The Rules of Globalization: Case Book

Abdelal, Rawi
August 2007

This is a book about the politics of the global economy - about how firms prosper by understanding those politics, or fail by misunderstanding them. Understanding the politics of globalization may once have been a luxury; it is now, for most high-level managers, simply a necessity. The book contains cases which can be used by instructors and students to build a framework of analysis that enables them to understand the challenges of international trade and investment and master the opportunities they represent. This framework is based on a systematic evaluation of the informal and formal rules that define markets for goods, services, and capital. These insightful cases allow for evaluation of: the political and economic origins of our current era of globalization and how the rules that constrain and enable firms are changing; the impact of governments' policies and which tools are available for predicting, avoiding, or even employing the long arm of the government; and the influence of informal and formal institutions on opportunities for success in international finance and trade.

Singapore: World Scientific

Prophet of Innovation: Joseph Schumpeter and Creative Destruction

McCraw, Thomas K.
July 2007

Pan Am, Gimbel's, Pullman, Douglas Aircraft, Digital Equipment Corporation, British Leyland--all once as strong as dinosaurs, all now just as extinct. Destruction of businesses, fortunes, products, and careers is the price of progress toward a better material life. No one understood this bedrock economic principle better than Joseph A. Schumpeter. "Creative destruction," he said, is the driving force of capitalism. Described by John Kenneth Galbraith as "the most sophisticated conservative" of the twentieth century, Schumpeter made his mark as the prophet of incessant change. His vision was stark: Nearly all businesses fail, victims of innovation by their competitors. Businesspeople ignore this lesson at their peril--to survive, they must be entrepreneurial and think strategically. Yet in Schumpeter's view, the general prosperity produced by the "capitalist engine" far outweighs the wreckage it leaves behind. During a tumultuous life spanning two world wars, the Great Depression, and the early Cold War, Schumpeter reinvented himself many times. From boy wonder in turn-of-the-century Vienna to captivating Harvard professor, he was stalked by tragedy and haunted by the specter of his rival, John Maynard Keynes. By 1983--the centennial of the birth of both men--Forbes christened Schumpeter, not Keynes, the best navigator through the turbulent seas of globalization. Time has proved that assessment accurate. Prophet of Innovation is also the private story of a man rescued repeatedly by women who loved him and put his well-being above their own. Without them, he would likely have perished, so fierce were the conflicts between his reason and his emotions. Drawing on all of Schumpeter's writings, including many intimate diaries and letters never before used, this biography paints the full portrait of a magnetic figure who aspired to become the world's greatest economist, lover, and horseman--and admitted to failure only with the horses.

Cambridge, Mass.: Harvard University Press, 2007

The Moral Leader: Challenges, Tools, and Insights

Sucher, Sandra J.
July 2007

Successful leaders-at any level and in any arena-are inevitably presented with moral and ethical choices. This unique and innovative textbook is designed to encourage students and managers to confront those fundamental moral challenges, to develop skills in moral analysis and judgment, and to come to terms with their own definition of moral leadership and how it can be translated into action. Drawing on the inspiration of major literary and historical figures such as Machiavelli, Conrad, Shackleton and Achebe, and based upon an impressive array of literary sources, including novels, plays, history and biography, the book centers on four questions implicitly asked of all leaders:
* What is the nature of a moral challenge?
* How do people "reason morally"?
* How do leaders contend with the moral choices they face
* How is moral leadership different from leadership in general?

Routeledge 2007

Teaching the Moral Leader: A Literature-Based Leadership Course

Sucher, Sandra J.
July 2007

This book is a comprehensive, practical manual to help instructors integrate moral leadership in their own courses, drawing from the experience and resources of the Harvard Business School course "The Moral Leader", an MBA elective taken by thousands of HBS students over nearly twenty years. Through the close study of literature-novels, plays, and historical accounts-followed by rigorous classroom discussion, this innovative course encourages students to confront fundamental moral challenges, to develop skills in moral analysis and judgment, and to come to terms with their own definition of moral leadership. Using this guide's background material and detailed teaching plans, instructors will be well prepared to lead their students in the study of this vital and important subject. Featuring a website to run alongside that links the manual with the textbook and provides a wealth of extra resources, including on-line links to Harvard Business School case studies and teaching notes, this manual forms a perfect complement to The Moral Leader core text.

Routeledge 2007

The Concise Guide to Macroeconomics: What Managers, Executives, and Students Need to Know

Moss, David A.
June 2007

Now more than ever before, executives and managers need to understand their larger economic context. In The Concise Guide to Macroeconomics, David Moss leverages his many years of teaching experience at Harvard Business School to lay out important macroeconomic concepts in engaging, clear, and concise terms. In a simple and intuitive way, he breaks down the ideas into "output," "money," and "expectations." In addition, Moss introduces powerful tools for interpreting the big-picture economic developments that shape events in the contemporary business arena. Detailed examples are also drawn from history to illuminate important concepts. This book is destined to become a staple in MBA courses--as well as the go-to resource for executives and managers at all levels seeking to brush up on their knowledge of macroeconomic dynamics.

Boston: Harvard Business School Press, 2007

The Second World War as an Economic Disaster

Book chapter in Economic Disasters of the Twentieth Century

Ferguson, Niall
June 2007

World War II was the greatest ever man-made disaster. Yet for all the damage to life and property, the war also brought to an end the deepest Depression in history. Moreover, the decades after the war witnessed more rapid economic growth than the world had ever seen, not least in the vanquished countries. This paper reassesses the economic motivations of the war's instigators; the economic arguments that prevented their being deterred from going to war; the economic reasons for their ultimate defeat; and the economic consequences of the Allied victory. False economic assumptions led the Axis powers to start the war and prevented the Western powers from effectively deterring them. Yet the economic successes of the Allied war economies ensured that the new empires created by the Axis powers did not endure for long. Two models of state-led production - the American and the Soviet - passed the test of total war. Those new models were then exported around the northern hemisphere, generating major improvements in economic performance nearly everywhere they were adopted or imposed.

Cheltenham: Edward Elgar Publishers, Ltd, 2007

Capital Rules: The Construction of Global Finance

Abdelal, Rawi
May 2007

The rise of global financial markets in the last decades of the twentieth century was premised on one fundamental idea: that capital ought to flow across country borders with minimal restriction and regulation. Freedom for capital movements became the new orthodoxy. In an intellectual, legal, and political history of financial globalization, Rawi Abdelal shows that this was not always the case. Transactions routinely executed by bankers, managers, and investors during the 1990s--trading foreign stocks and bonds, borrowing in foreign currencies--had been illegal in many countries only decades, and sometimes just a year or two, earlier. How and why did the world shift from an orthodoxy of free capital movements in 1914 to an orthodoxy of capital controls in 1944 and then back again by 1994? How have such standards of appropriate behavior been codified and transmitted internationally? Contrary to conventional accounts, Abdelal argues that neither the U.S. Treasury nor Wall Street bankers have preferred or promoted multilateral, liberal rules for global finance. Instead, European policy makers conceived and promoted the liberal rules that compose the international financial architecture. Whereas U.S. policy makers have tended to embrace unilateral, ad hoc globalization, French and European policy makers have promoted a rule-based, "managed" globalization. This contest over the character of globalization continues today.

Cambridge, Mass.: Harvard University Press, 2007

Redefining Global Strategy: Crossing Borders in a World Where Differences Still Matter

Ghemawat, Pankaj
May 2007

Why do so many global strategies fail-despite companies' powerful brands and other border-crossing advantages? Seduced by market size, the illusion of a borderless, "flat" world, and the allure of similarities, firms launch one-size-fits-all strategies. But cross-border differences are larger than we often assume, explains Pankaj Ghemawat in Redefining Global Strategy. Most economic activity-including direct investment, tourism, and communication-happens locally, not internationally. Companies must instead reckon with cross-border differences. Ghemawat shows you how-by providing tools for:
* Assessing the cultural, administrative, geographic, and economic differences between countries at the industry level and deciding which ones merit attention.
In this "semiglobalized" world, one-size-fits-all strategies don't stand a chance.
* Tracking the implications of particular border-crossing moves for your company's ability to create value.
* Creating superior performance with strategies optimized for adaptation (adjusting to differences), aggregation (overcoming differences), and arbitrage (exploiting differences), and for compound objectives.
* In-depth examples reveal how companies such as Cemex, Toyota, Procter & Gamble, Tata Consultancy Services, IBM, and GE Healthcare have adroitly managed cross-border differences-as well as how other well-known companies have failed at this challenge.

Boston: Harvard Business School Press, forthcoming

Entrepreneurship in the Social Sector

Wei-Skillern, Jane, James Austin, Herman Leonard, and Howard Stevenson
March 2007

Written for students and practitioners, this unique text, with Harvard cases, provides detailed analysis and frameworks for achieving maximum impact through social entrepreneurship. Entrepreneurship in the Social Sector enables readers to attain an in-depth understanding of the distinctive characteristics of the social enterprise context and organizations. The authors offer tools to develop the knowledge to pursue social entrepreneurship more strategically and achieve mission impact more efficiently, effectively, and sustainably.

Sage Publications, 2007

Against Desperate Peril: High Performance in Emergency Preparation and Response.

Book chapter in Communicable Crises: Prevention, Response, and Recovery in the Global Arena, edited by Deborah E. Gibbons

Leonard, Herman B.
March 2007

What accounts for whether governments will be able to provide effective responses to unfolding disaster events? How can they best be organized to respond to significant emergencies? What must they do in advance to create the capacities they will need in the face of disasters? Answering these questions requires differentiating three different types of disaster situations. Each presents a different set of challenges in both execution and planning, and yields to different forms of leadership. Each requires different skills and processes for effective performance, and therefore, requires different forms of organization, resourcing, skill-building, practice, and other preparation in advance.

IAP - Information Age Publishing, Inc., forthcoming

Health Services for the Poor in Developing Countries: Private vs. Public vs. Private & Public

Book chapter in Business Solutions for the Global Poor: Creating Social and Economic Value, edited by V. Kasturi Rangan, John A. Quelch, Gustavo Herrero, and Brooke Barton

Khanna, Tarun, and David M. Bloom.
February 2007

San Francisco: Jossey-Bass, 2007

Corruption and the Demand for Regulating Capitalists

Book chapter in International Handbook on the Economics of Corruption, edited by Susan Rose-Ackerman

Di Tella, Rafael, and Robert MacCulloch
February 2007

Edward Elgar Publishing, 2006

Masters of Illusion: American Leadership in the Media Age

Steven Rosefielde, Mills, D. Quinn
February 2007

The United States will confront a series of fundamental challenges through the middle of the twenty-first century. Using a theory of economic systems to gauge present and future global conflicts, Steven Rosefielde and D. Quinn Mills see the challenges as posed sequentially by terrorism, Russia, China, and the European Union. In the cases of terrorism, Russia, and China, Western leaders appreciate aspects of these perils, but they are crafting unduly soft policies to deal with the challenges. The authors believe that "globalists"' notwithstanding, such views are myopic in an era where nuclear proliferation has invalidated the concept of mutually assured destruction. What America requires is a new security concept that the authors call "strategic independence" to enable keeping the peace in dangerous times and foster new generations of leaders capable of acting sanely despite a current public culture addicted to wishful thinking.

New York: Cambridge University Press, 2007

Developments in Asset Allocation Modeling

Book chapter in Global Perspectives on Investment Management: Learning from the Leaders, edited by Rodney N. Sullivan

Viceira, Luis M.
February 2007

The "traditional" approach to designing policy portfolios assumes that expected returns, risk, and real interest rates do not change over time so that short-term and long-term risk properties of asset returns are the same. Thus, target asset allocations are the same regardless of investment horizon and remain constant over time. The "modern" approach, in contrast, recognizes that expected returns, risk, and real interest rates may change over time. This view creates a wedge between the short-term and long-term risk properties of asset returns and implies that target allocations may vary with investment horizon and over time. One implication of this view is that short-term bonds may not be the "safe asset" for long-term investors.

CFA Institute, 2006

Readings in Modern Marketing

Quelch, John A.
January 2007

Readings in Modern Marketing is a collection of Quelch's highly-praised scholarly articles previously published in leading business journals, such Harvard Business Review, Sloan Management Review, Strategy and Business, and Business Horizons, in the past two decades. Topics covered include marketing and business strategy, managing product lines, pricing, managing the point of sales, global marketing, building global brands, marketing and the new technologies, marketing and society, and so forth. A fine representation of the author's sound scholarship, Readings in Modern Marketing offers important theories as well as practical, insightful tactics. It is an indispensable source of reference.

Hong Kong: Chinese University Press, 2006

How Countries Compete: Strategy, Structure, and Government in the Global Economy

Vietor, Richard H.K.
January 2007

As the world globalizes, countries compete for the markets, technologies, and skills needed to raise their standards of living. These strategies can make--or break--the government's efforts to drive and sustain growth. In "How Countries Compete," Richard Vietor sheds light on ways in which governments can best set direction and provide a healthy climate for a nation's economic development and profitable private enterprise. Drawing on history, economic analysis, and interviews with executives and officials around the globe, Vietor provides concentrated examinations of different approaches to government facilitation of development. Individual chapters focus on the unique social, economic, cultural, and historical forces that shape governments' approach to economic growth. Countries discussed include: China, India, Japan, Singapore, the United States, Mexico, Russia, Saudi Arabia, and South Africa. Vietor challenges the widespread notion that, in market-driven economies such as the United States, a strong government can only hinder business success. A provocative resource, "How Countries Compete" offers potent insights into how the business environment has evolved in crucial nations--and what its trajectory might look like in the future.

Boston: Harvard Business School Press, 2007

Making Foreign Investments Safe: Property Rights and National Sovereignty

Wells, Louis T.
December 2006

Oxford; New York: Oxford University Press, 2007.