Pathways to Power: Class, Hyper-Agency and the French Corporate Elite
Abstract
This paper explores pathways to power from the perspective of the French corporate elite. It compares those who enter the ‘field of power’ with those who fail to reach this final tier. Adopting an innovative econometric approach, we develop and test three hypotheses. These underline the pivotal role of external networks and the strategic advantage of hyper-agency in maintaining power; and indicate that social origin remains a powerful driver in determining success. Birthright and meritocracy emerge as two competing institutional logics which influence life chances. Higher-status agents benefit from mutual recognition which enhances their likelihood of co-option to the extra-corporate networks that facilitate hyper-agency. The objectification of class-based differences conceals their arbitrary nature while institutionalizing the principles informing stratification. We re-connect class analysis with organizational theory, arguing that social origin exerts an enduring influence on selection dynamics which inform processes of hierarchical reproduction in the corporate elite and society at large.
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Appendices
| Variable | Name | Type of variable |
|---|---|---|
| 1. Pathways to power | ||
| y1 | Top-tier executive (CEO or Executive Chairman) | Dummy variable |
| y2 | Corporate networkers having at least two directorships of top 100 companies or one plus at least two other company directorships | Dummy variable |
| y3 | Membership of two or more extra-corporate boards | Dummy variable |
| y4 | Company founder retaining ≥ 25% of equity | Dummy variable |
| 2. Variables of choice | ||
| eliteschl | Elite school | Dummy variable |
| elitehe | Elite higher education | Dummy variable |
| dis_no, dis_ahss, dis_bea, dis_lop, dis_sem | Discipline type in HE: arts, humanities, social sciences; business, economics, administration; law and other professions; science, engineering, mathematics | Categorical (nominal variable) |
| qual_no, qual_fd, qual_hd, qual_phd | Highest level in HE: none; first degree; higher degree; doctorate excluding honorary degrees | Ordinal variable |
| profqual | Recognized professional qualification: yes, no, or not known | Dummy variable |
| pqtype_af, pqtype_ag, pqtype_bi, pqtype_et, pqtype_l, pqtype_mba | Professional qualification types: accounting, finance; agrégation; banking, insurance; engineering, technical; legal; master of business administration | Categorical (nominal variable) |
| chevaliers, officiers, commandeurs grand_off, grand_croix | Rank within honours system | Ordinal variable |
| corps_1, corps_2, corps_3, corps_4, corps_5 | Grand corps membership: Conseil d’Etat (1); Corps des Mines (2); Cour des Comptes (3); Inspection des Finances (4); Corps des Ponts et Chaussées (5) | Categorical (nominal variable) |
| type_b, type_pa_b, type_p_b | Career types: business; public administration into business; profession into business | Categorical (nominal variable) |
| ACAD, ENT, EST, FIN, GMT, HRM, LAW, M_M, OWN, PAD | Career platforms: academic; entrepreneur; engineering, scientific, technical; financial; general, operations management; personnel; law; media, sales, marketing; inherited ownership; public administration | Categorical (nominal variable) |
| tyear | Year first joined top 100 French company main board | Continuous variable |
| tage | Age first joined top 100 French company main board | Continuous variable |
| t98 | Number of top 100 French company directorships in 1998 | Continuous variable |
| oth98 | Number of non-top 100 French company directorships in 1998 | Continuous variable |
| t04 | Number of top 100 French company directorships in 2004 | Continuous variable |
| oth04 | Number of non-top 100 French company directorships in 2004 | Continuous variable |
| pb_ac, pb_bf, pb_b, pb_ft, pb_l, pb_s | Power base: academia; banking, finance; business; family trust; law; state | Categorical (nominal variable) |
| exnet | Number of extra-corporate board or commission memberships | Continuous variable |
| cbd | Charity board | Dummy variable |
| pbody | Membership of public body or significant political role | Dummy variable |
| bassoc | Board of business, trade or professional association | Dummy variable |
| edbd | Board of HE or research institution | Dummy variable |
| asbd | Board of top sports or cultural organization | Dummy variable |
| con_no | Highest total number of corporate and extra-corporate board memberships in 1998 or 2004 | Continuous variable |
| con_span | Number of life-worlds involved in at highest level from executive director, non-executive director, public or political body, business association, charitable foundation, education or research, arts or sports | Continuous variable |
| 3. Variables of fate | ||
| class_1 to class_4 | Social class | Four categories and thus split into three dummy variables |
| h_gender | Gender | Dummy variable: 1 for males and 0 for females |
| h_region | Birthplace | Dummy variable: 1 if born in Paris and 0 otherwise |
| age98 | Age | Continuous variable in years |
| h_afil | Nationality | Dummy variable: 1 for French nationals and 0 for others |
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Biographies
Mairi Maclean is Professor of International Management and Organisation Studies at the University of Exeter Business School, where she is Director of Research. Her research interests include international business elites and elite power from a Bourdieusian perspective, entrepreneurship and philanthropy, history and strategy, and comparative organization studies. She is the author of four books, and editor of a further four. These include Business Elites and Corporate Governance in France and the UK (2006), written with Charles Harvey and Jon Press. Recent publications include contributions to Organization Studies, Human Relations, Management Learning, Business History and Business History Review.
Charles Harvey is Pro-Vice-Chancellor and Provost, and Professor of Business History and Strategic Management at Newcastle University. He is author of numerous books and articles in business history and management. He is co-author, with Sydney Finkelstein and Thomas Lawton, of Breakout Strategy (2007). In 2006 he published, with Mairi Maclean and Jon Press, Business Elites and Corporate Governance in France and the UK, a path-breaking study of the exercise of power within two very different national business systems. Recent publications include contributions to the Journal of Management Studies, Human Relations, Organization Studies, Business History and Business History Review.
Gerhard Kling is Professor of International Business and Management at the School of Oriental and African Studies, University of London. He received his PhD in Economics from the University of Tuebingen and was awarded the Dissertation Prize of the International Economic History Association. He has published in the British Journal of Management, International Journal of Research in Marketing and R&D Management. His current research focuses on corporate governance, statistical and mathematical modelling and corporate finance.
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