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Original Articles

Multinational mining companies, employment and knowledge transfer: Chile and Norway from ca. 1870 to 1940Footnote

Pages 197-221 | Published online: 06 Dec 2017
 

Abstract

This article compares employment at multinational mining companies in Chile and Norway from ca. 1870 to 1940. I find that multinationals in Chile recruited foreigners to managing and middle-management positions, while Norwegian workers were heavily involved in management of multinationals in Norway. The exclusion of Chileans encouraged enclave tendencies and prevented knowledge transfer, while strong networks were created between multinationals and the local industry in Norway through job switching. Evidence suggests that local workers were employed if they were qualified and that discrepancies in institutions stimulating capacity building in the two countries largely explain the different employment patterns.

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Acknowledgements

The author wishes to express her very great appreciation to her former supervisor, Kristine Bruland, and to give special thanks to Keith Smith, Olav Wicken and Mary O’Sullivan for very valuable comments and suggestions. She is sincerely grateful to Adoración Álvaro Moya, Susanna Fellman, Núria Puig Rapaso and to the anonymous reviewers for very useful advices in the writing process.

Notes

This paper is based on parts of the author’s PhD dissertation.

1. Mackinnon, An introduction, 138–139.

2. Macchiavello, El problema, 91.

3. Anuario Estadistico, Mineria, 1925, 34.

4. Jones, Multinationals, 267.

5. Macchiavello, El problema, 91.

6. Stonehill, Foreign Ownership, 32.

7. Kaldal, Historisk forskning, 134.

8. North, ‘Institutions’.

9. Student biographies, published in so called ‘student yearbooks’ from Norway, published by the University, NIT and technical schools, and some yearbooks from Chile, provide unique information about the life and work of secondary school graduates after they completed their exams. They are collections of reports about their education, working experience, working positions etc. See Ranestad, ‘The mining sectors’, for a detailed explanation of the sources and the use of them.

10. For further description, see Ranestad, ‘The mining sectors’, 151–197.

11. Universidad, Memoria de la Universidad, 1922, 166.

12. See Compañía, ‘Memoras del directorio’; Compañía Salitrera, Memorias (1934–1941).

13. Braden, Topicos, nr. 12 1919, 12–13.

14. Hiliart, Braden; Solano Vega, El Mineral de Potrerillos; Baros Mansilla, Una historia.

15. Letter from Frederick Laist to William Wraith (MHSA/169/73/78–6).

16. Letter from Wilbur Jurden to Frederick Laist (MHSA/169/73/78–6).

17. Solano, El Mineral de Potrerillos, 12–14; Baros Mansilla, Una historia, 39–40.

18. Jones, Multinationals, 268.

19. One engineer worked at two multinationals.

20. Jones, Multinationals, 267.

21. Stonehill, Foreign Ownership.

22. Bergh, Brytningstider; Petersen, Elektrokemisk 190454; Thonstad, Multinationals, Subsidiaries, 35–36.

23. Statens bergskole, Bergskolen.

24. Studentene 18551940. For further descriptions of trained workers at multinationals, see Ranestad, ‘The mining sectors’, pp. 323–331.

25. Storli, Out of Norway, 71–73 and 148.

26. Fasting, Norsk Aluminium.

27. Pinto, Chile, un caso, 56.

28. Arias, ‘Large Mining Enterprises’, 5–6.

29. Jones, Multinationals, 273.

30. Gershenberg, ‘The Training and Spread’, 932.

31. See Ranestad, ‘The mining sectors’, 334.

32. Jones, Multinationals, 273.

33. Wilkins, The Maturing of Multinational, 125.

34. Jones, Multinationals, 274–275.

35. Mamalakis, The growth and structure, 34.

36. Wilkins, The Maturing of Multinational, 126.

37. Villalobos, Historia de la ingenieria, 97–101 and 174.

38. See descriptions of unexploited mineral and metal ores in Boletin de la Sociedad Nacional de Minería.

39. For a detailed presentation of the argument, see Ranestad, ‘The mining sectors’, 210–213.

40. Gandarillas, Estado actual, 75.

41. Ibid, 125.

42. For a full explanation of this gap, see Ranestad, ‘The mining sectors’, 205–213.

43. Cohen, ‘Absorptive capacity’, 128.

44. Lluch, ‘Reinterpreting corporate change’.

45. Arias, ‘Large Mining Enterprises’, 2.

46. Jones, Multinationals, 266.

47. Ibid, 260.

48. Sæland, Bergingeniør Emil Knudsens, 84.

49. Ibid, 105.

50. Ibid, 105.

51. For a description of innovation processes at these companies, Ranestad, ‘The mining sectors’, 215–217.

52. Chandler, Scale and Scope.

53. Jones, Multinationals, 273.

54. Letter from Frederick Laist to Williams Wraith (MHSA/169/73/78–6).

55. Letter from assistant chief engineer to Frederick Laist (MHSA/169/73/75–13).

56. Teknisk Ukeblad, 23 January 1896, 33.

57. Lange, ‘The concession laws of 1906–09’.

58. Lov om erverv av vannfall mv.

59. Alstad, Trondhjemsteknikernes Matrikel.

60. Jones, Multinationals, 201.

61. Pinto, Chile, un caso de desarrollo frustrado, 56.

62. Macchiavello, El problema, 249.

63. Braden, Topicos vol 1 1915, 14.

64. Jones, Multinationals, 56.

65. Baros Mansilla, Una historia de pioneros, 106.

66. For a detailed explanation about the knowledge that was required for management positions, see Ranestad, ‘The mining sectors’, 166–178.

67. David, ‘Increasing Returns’, 231.

68. For a comparison of the formal mining instruction in Chile and Norway, see Ranestad, ‘The mining sectors’, 256–313.

69. Bergh, Norge fra u-land, 52.

70. Escuela, Boletin Centenario, 9.

71. Muñoz, Enseñanza Universitaria.

72. For a detailed analysis, see Ranestad, ‘The mining sectors’, 304 and 311–312.

73. Anuario Estadistico, Mineria, 1916, 40.

74. For details related to this argument, see Ranestad, ‘The mining sectors’, 306–307.

75. See Boletin de la Sociedad Nacional de Minería.

76. Braden, Topicos No. 6 1917, 23.

77. See Boletín de la Sociedad Nacional de Minería. See also Ranestad, ‘The mining sectors’, 335–336.

78. Maloney, ‘Engineering growth’, 63.

79. Tidsskrift for kemi, 1924, 50–51.

80. For details, see Ranestad, ‘The mining sectors’, 343–344.

81. For details about this discussion, see Ranestad, ‘The mining sectors’, 314–354.

82. Egaña, La educación primaria, 123.

83. Engerman, ‘The evolution of suffrage’.

84. Blomström, Diverging paths, 7.

85. Blitz, ‘Some observation’, 305–306.

86. Boletín de la Sociedad Nacional de Minería 1910, 119; Anales de la Universidad de Chile 1920, 319.

87. Prospecto de admisión de alumnos, 9.

88. O’Rourke, ‘Education, Globalization and Catch-Up’, 299.

89. Solano, El Mineral de Potrerillos, 12–14.

90. Grönberg, Learning and Returning, 1.

91. Stang, ‘The Dispersion of Scandinavian Engineers’, 26.

92. For a detailed analysis of the scholarships in both countries, see Ranestad, ‘The mining sectors’, 362–372 and 489–490.

93. Letter from Frederick Laist to Williams Wraith (MHSA/169/73/78–6).

94. Arias, ‘Large Mining Enterprises’, 6.

95. Universidad, Anales de la Universidad, 1859, 978.

96. Jones, Multinationals, 261.

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