Mauro Guillen - Faculty Research in Knowledge@Wharton

Economic Recovery: Are Happy Days Here Again?

Wed, 10 Jun 2009 17:08:51 EST

Stocks have rebounded on Wall Street during the past two months. The pace of job losses seems to be slowing down. Even quarterly reports from banks suggest that the banking sector is slowly struggling back to its feet. Do these signs portend the first indicators of an economic recovery? Not yet, according to experts at Wharton and elsewhere, who insist that despite some of the hopeful data, the recovery will be weaker and take longer to gain momentum than past slowdowns.

Going Green: Why Germany Has the Inside Track to Lead a New Industrial Revolution

Tue, 07 Apr 2009 12:01:31 EST

Already a leading player in so-called clean technology -- the mix of environmentally benign power generation and environmentally friendly technologies -- Germany may become the epicenter of the world's next industrial revolution: the triumph of clean, cheap, sustainable electricity.

The Race for Energy: What Will It Mean for Western Firms?

Mon, 22 Sep 2008 16:33:05 EST

Rising energy demand from China and India has unleashed a worldwide race to secure access to scarce fossil fuel resources, a more difficult proposition with the emergence of national oil companies in the resource-owning countries. While Western companies will likely feel the pain of increasing energy costs, there is a potential upside to global energy scarcity, according to experts from Wharton and The Boston Consulting Group: Renewable and nuclear energy present huge opportunities for investors and entrepreneurs.

Behind the Curve: Have U.S. Automakers Built the Wrong Cars at the Wrong Time -- Again?

Wed, 09 Jul 2008 17:42:19 EST

Gasoline at more than $4 a gallon has proved to be the price point at which U.S. consumers make big changes in their driving habits. With SUVs and pickups suddenly out of favor in the world's biggest automobile market, Asian manufacturers who invested heavily in fuel-saving technologies -- and European car makers who sell to markets where expensive gas is nothing new -- are better positioned to meet new consumer demands. Just how dire is the situation for U.S. auto manufacturers and is there any relief in sight?

The New Global Middle Class: Potentially Profitable -- but Also Unpredictable

Wed, 09 Jul 2008 17:41:19 EST

A new global middle is rising up in emerging economies around the world, providing competition for labor and resources along with enormous promise for multinationals eager to sell to the burgeoning ranks of first-time consumers. But don't expect this new group to act in the same way -- and have the same preferences -- as prior generations of middle-class consumers, suggest Wharton faculty and analysts.

When Are Emerging Markets No Longer 'Emerging'?

Wed, 05 Mar 2008 15:48:59 EST

The term "emerging markets" is now more than 25 years old and has come to define wide swaths of the world undergoing rapid economic change. Dozens of countries fall under the label even though they are evolving at their own pace and with their own twists on economic development. Now, as many emerging markets show signs of a strong and growing middle-class population, observers wonder whether the term has lost some of its meaning. What qualifies a country as "emerging"? While some say measures based on income or other statistics are critical factors, others place an increasing emphasis on the way business is conducted, with rules that are transparent and apply equally to all participants.

The Global Auto Industry: New Cars, Old Problems

Wed, 23 Jan 2008 16:49:57 EST

The rise in delinquencies on auto loans is one sign that America's auto industry is in trouble -- along with the rest of the economy. How hard are the auto makers being hit and what should the Big Three do to stem the damage? Meanwhile, the global auto industry has seen some interesting developments, including the introduction in India of Tata Motors' Nano and the arrival of five Chinese auto manufacturers at the Detroit auto show earlier this month. Will China and India be big players in the global market for cars? What is the current state of Europe's auto industry? Knowledge@Wharton asked Wharton management professors John Paul MacDuffie and Mauro Guillen to steer us through the turmoil.

Is One Global Model of Corporate Governance Likely, or Even Desirable?

Wed, 09 Jan 2008 15:30:15 EST

In Germany, labor unions traditionally have had seats on corporate boards. At Japanese firms, dozens of loyal managers cap off careers with a stint in the boardroom. Founding families hold sway on Indian corporate boards. And in China, Communist Party officials are corporate board fixtures. But as companies continue to globalize, should they consider adopting one uniform model of corporate governance? Or do global investors benefit from diverse governance structures? Wharton faculty and others offer their opinions.

In Global Entrepreneurship, One Small Initiative Can Make One Huge Difference

Wed, 31 Oct 2007 13:49:19 EST

Entrepreneurs love to grumble about the roadblocks and delays created by bureaucrats. Government officials, they say, are slow, bumbling and concerned only about sticking to the rules and clocking out at 4:55 p.m. But in a study of global entrepreneurship, Raffi Amit and Mauro Guillen, both Wharton management professors, have found that a simple, if smart, bureaucratic initiative mattered critically in determining a country's level of entrepreneurship.

Once Called the 'Sick Man' of Europe, Germany Is Showing New Signs of Vitality

Wed, 28 Mar 2007 13:10:22 EST

Talk about good timing. With Germany assuming the rotating presidencies of the European Union and the Group of Eight (G8) developed nations, the country is enjoying an economic resurgence. It remains a formidable exporter of goods worldwide, its unemployment rate has eased and a recent major tax increase has not dampened economic activity as much as many had feared. Still, there is some question whether the recovery is sustainable and whether Germany is up to meeting such long-term challenges as an aging population and a declining birth rate, according to faculty members at Wharton and German business schools, as well as other experts.

Building a Modern Economy: How the 'Dubai CEO's' Big Bet Is Paying Off, for Now

Wed, 21 Mar 2007 15:21:30 EST

The announcement that Halliburton, the Houston, Tex.-based oil services company, was moving its headquarters to Dubai may have surprised many Americans. But for people in Dubai, it simply ratified decades of hard work. Led by the billionaire known today as "Dubai's CEO," Sheikh Mohammed bin Rashid Al Maktoum, Dubai's ruling family has invested heavily in the infrastructure of a modern economy. So far their efforts have been impressive, although observers warn of a possible real estate bubble, among other concerns.

Reluctant Vacationers: Why Americans Work More, Relax Less, than Europeans

Wed, 26 Jul 2006 12:03:13 EST

As most travelers to Europe know, French workers tend to take the month of August off, shutting down many of their shops and cutting back the hours of some museums. But the French aren't alone. People in much of Western Europe can afford to check out for a month because they receive an average of nearly two months a year in paid leave, a combination of vacation and government holidays. That distinguishes them from citizens of the United States, who, despite a similarly productive economy and a comparable standard of living, enjoy about half as much paid time off. What gives? Why are Americans reluctant, or unable, to extricate themselves from their jobs and sign up for some serious vacation time?

The Long and Winding Road to Privatization in China

Wed, 10 May 2006 17:29:08 EST

China's sweeping economic reforms, which have lifted the country to a starring role in the global economy in only a quarter-century, are marked by a more gradual transition from state control to private ownership of firms than in other countries that have also made the transition, according to Wharton faculty. Indeed, privatization in China has come slowly as government officials weighed the prospect of massive layoffs necessary to restructure bloated state-owned enterprises, known as SOEs. Privatization was also met with resistance from influential company managers, many of them Communist party officials. Despite these obstacles, however, a vibrant, entrepreneurial private sector has managed to survive alongside state-controlled firms.

Brazil: A 'Test Case' for Continuation of Free-market Reforms in Latin America

Wed, 01 Mar 2006 17:07:47 EST

Many Latin American countries, after trying to beat back rampant inflation and ignite economic prosperity through the adoption of free-market principles promoted by Washington in the 1990s, have grown unhappy with the results. So are these nations returning to the populist, leftist policies of the past? Or are leaders in the region still largely committed to democracy and market reforms, despite their disillusionment with the rate of change? Experts differ on the answer to this question, but agree on one thing: Brazil, Mexico and Chile are less inclined to revert to populist strategies, at least for now, than some of their neighbors.

Farewell, Peter Drucker: A Tribute to an Intellectual Giant

Wed, 30 Nov 2005 15:55:06 EST

Decades ago, Peter F. Drucker single-handedly began the exploration of what he called "the dark continent of management." That exploration, which gave birth to the field of management, came to an end on November 11 when Drucker passed away at age 95. Wharton professors point out that Drucker's most important contributions are grounded in his writings on management and marketing. Despite his death, his legacy and impact as a role model will last.

In the Wake of the Latest 'No' Votes, Will Economic Growth in Europe Be a Go?

Wed, 29 Jun 2005 16:12:24 EST

The reasons why voters in France and the Netherlands rejected the European Constitution a few weeks ago were many. But two overarching themes of the referendums were discontent and fear: discontent with politicians' inability to revitalize the lagging economies of many EU countries, and fear of what the future may hold for people accustomed to secure jobs and generous benefits. Scholars at Wharton and at universities in Europe say that the 25-member EU must institute free-market, Anglo-Saxon-style reforms to reinvigorate the economies; in particular, they point to labor laws that make it difficult to hire and fire people. But some also say that Europe can achieve higher growth rates without completely abandoning the social welfare policies that have been in place since World War II.

Global Players See Great Opportunity for Retail Banking in Emerging Economies

Wed, 22 Sep 2004 14:17:34 EST

As emerging economies in Eastern Europe, Latin America and Asia continue to mature, financial firms - including Citigroup, General Electric and major European banks - are stepping up efforts to bring retail banking services to developing nations. These firms, watching the erosion of U.S. and European banking profit margins, are increasingly willing to face the risks of setting up retail operations, such as checking and savings accounts and credit cards, in new markets. If successful, these initiatives can provide a foot in the door for future growth, according to Wharton faculty and banking executives.

A Global View of Corporate Governance: One Size Doesn�t Fit All

Wed, 20 Nov 2002 00:00:00 EST

Corporate governance plays a fundamental role in any economy, but does it play the same role, asks Wharton management professor Mauro Guillen in a research paper entitled �Corporate Governance and Globalization: Is There Convergence Across Countries?� The answer, Guillen concludes, is no. Despite increasing globalization, separate economies go about corporate governance in different ways, ranging from the Anglo-Saxon shareholder-centered model found in the U.S. and the U.K., to the hybrid shareholder/stakeholder models typically found in Japan and Germany.

Argentina: Can It Go From Bad to Worse?

Wed, 16 Jan 2002 00:00:00 EST

If ever the Broadway show tune �Don�t Cry For Me, Argentina� had poignancy, now is the time. The fact is, a lot of people are crying over Argentina, including the country�s bankers, government leaders and middle class, not to mention outside investors. Knowledge@Wharton looks at what went wrong with the Argentine economy and whether a recovery is on the horizon.

The Promise, and Pitfalls, of European Alliances

Wed, 19 Dec 2001 00:00:00 EST

With U.S. and European businesses increasingly finding merger partners across the Atlantic, managers face new sets of barriers that go well beyond the usual problems of integrating two different business cultures. A panel at Wharton�s 2001 Global Business Forum looked at why some mergers work and others don�t.

Corporate Culture Can Break (or Make) a Merger

Wed, 26 Sep 2001 00:00:00 EST

Can one mega-company absorb another and still run things the way it used to? Should it even try? How large does corporate culture loom in the high-tech sector, or in any industry? Is there one type of culture that holds the key to success? Wharton faculty explore these questions and more as they look at the broader issues raised by executives intent on establishing the �right� culture for their organizations.

Surfing Time for Wharton�s Summertime-Savvy Professors

Wed, 04 Jul 2001 00:00:00 EST

The summer holidays are here, and Wharton professors have identified their favorite surfing spots. Some of these locations will interest those who just want to get their toes wet; others are for more experienced surfers. Check them out.

Mexico�s President-Elect Faces High Expectations

Wed, 16 Aug 2000 12:09:56 EST

Vicente Fox, a conservative former Coca-Cola executive with a fondness for cowboy boots, has already made history by winning Mexico�s election for president, thereby ending the 71-year, one-party grip on that office by the Institutional Revolutionary Party (PRI). The challenges that await Fox when he takes office in December range from reforming taxes and attracting foreign investment to encouraging entrepreneurship and fighting corruption. But perhaps his biggest challenge will be managing the expectations of those who are impatient for change.

Gore and Bush on the Issues: Long on Assumptions, Short on Details

Wed, 19 Jul 2000 14:03:01 EST

When Gov. George W. Bush and Vice President Al Gore wrap up their nominating conventions in the next few weeks they will get back to campaigning in earnest, and voters are sure to hear plenty of talk about the state of the U.S. economy, the future of Social Security, health care, electronic commerce and foreign trade, among other issues. But so far, the candidates for the American presidency have been somewhat vague on the details. Wharton professors analyze what�s been said so far, and what hasn�t.

How Globalization Is Changing the World

Wed, 24 May 2000 14:45:22 EST

The protests that accompanied the 1999 World Trade Organization meeting in Seattle and the more recent International Monetary Fund meeting in Washington, D.C. highlighted very vividly the current debate over the merits of globalization. In an attempt to better understand the effects of globalization on economies, societies and political systems, Wharton management professor Mauro Guillen reviews existing literature on the subject, focuses on asking relevant questions and suggests, for now, that finding the right answers will be a complex and ongoing process.

Leveraging Differences in an Increasingly Borderless World

Wed, 10 Nov 1999 13:07:58 EST

As the world continues to shrink and the global marketplace grows, corporations increasingly look beyond their home countries for best practices. Executives are less concerned about where the ideas for improvements originate than they are about how to adapt a particular best practice to their unique corporate culture. Given the dominance American firms have had in the marketplace over the past decade (indeed, over the past half century), one might think that companies throughout the world would be eager to adopt the American model of corporate governance as unquestionably the best practice paradigm. Mauro F. Guillen, assistant professor of management at the Wharton School has found, however, that this is not the case. In fact, the opposite seems to be true, as he reports in a recent paper, �Corporate Governance and Globalization: Arguments and Evidence Against Convergence.�