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Rising of the Phoenix: Mitigating Political Risk through Knowledge Management—Behn, Meyer & Co., 1840–1959

Published online by Cambridge University Press:  07 August 2018

SHAKILA YACOB
SHAKILA YACOB*
Affiliation:
Shakila Yacob is a professor at the Department of History, Faculty of Arts & Social Sciences and executive director at the International Institute of Public Policy & Management (INPUMA), University of Malaya. She is also the director of the Center for Civilisational Dialogue, University of Malaya. This article was written with the assistance of Grant UM.0000026/HRU.RG.HE. Contact: Department of History, University of Malaya, 50603 Kuala Lumpur, Malaysia. Phone: (603)79675562; e-mail: shakila@um.edu.my.
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Abstract

This article examines how a German firm in the Malay Peninsula—Behn, Meyer & Co.—capitalized on its knowledge management to overcome political risks during the period from 1840 until 1959. During the two world wars, all assets and properties of the Behn Meyer firm were systematically expropriated because of the introduction of the Alien Enemies (Winding Up) Act of 1914 and the subsequent imposition of a ten-year ban by the British colonial administration in the Malay Peninsula. However, Behn Meyer’s resilience and flexible outlook, as demonstrated by its management of political risks during these tumultuous periods, enabled it to rebuild its business interests and reestablish a foothold in postcolonial Malaysia and the region. This article argues that Behn Meyer displayed an exemplary business strategy, utilized its understanding of the geopolitics of the area, and leveraged its local and international networks to ensure its survival and longevity in the most tumultuous period in the history of the world.

Type
Article
Information
Enterprise & Society , Volume 19 , Issue 4 , December 2018 , pp. 946 - 978
Copyright
Copyright © The Author 2018. Published by Cambridge University Press on behalf of the Business History Conference. All rights reserved. 

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Footnotes

I would like to thank the editor and two reviewers for their patience and valuable feedback. My utmost gratitude goes to Dr. Dirk Lorenz-Meyer, J. M. Friele, Ruhaya Muhammad, and Dr. Fritz Kleinsteuber for their input on the firm. Acknowledgment is also due to Mark Casson, Stephen Morgan, Bernardo Bátiz-Lazo, and Geoffrey Jones, who provided critical insights into the preliminary discussions and early drafts of this paper.

References

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Loree, David, Bapuji, Hari, and Crossan, Mary. “Relying on external Knowledge for Competitive Advantage: Why It Might Not Work.” Ivey Business Online, May–June 2011. http://www.iveybusinessjournal.com/topics/the-organization/relying-on-external-knowledge-for-competitive-advantage-why-it-might-not-work.Google Scholar
Lubinski, Christina. “Liability of Foreignness in Historical Context: German Business in Pre-independence India (180–1940).” Enterprise and Society 15 (2014): 722–758.Google Scholar
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Nonaka, Ikujiro “A Dynamic Theory of Organizational Knowledge Creation.” Organization Science 5 (1994): 14–37.CrossRefGoogle Scholar
Moazzin, Ghassan. “From Globalization to Liquidation: The Deutsch–Asiatische Bank and the First World War in China.” Cross-Currents: East Asian History and Culture Review, E-journal no. 16 (September 2015). https://cross-currents.berkeley.edu/sites/default/files/e-journal/articles/moazzin_0.pdfGoogle Scholar
Plessis, M. D. “Drivers of Knowledge Management in the Corporate Environment.” International Journal of Information Management 25 (2005): 193–202.CrossRefGoogle Scholar
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