Cited by 850Economic Theory and InstitutionsHistorical Economic and Social StudiesFirm Innovation and Growth

The DOI matches its Crossref record; 256 of the 256 references it cites were found in a registry or an index; none of the 49 sources its claims cite is checked for support yet.

Organizational Capabilities and the Economic History of the Industrial Enterprise

Open access
Chandler, Alfred D·1992·Journal of Economic Perspectives

Abstract

In my book Scale and Scope (1990), I focused on the history of the modern industrial firm from the 1880s, when such firms first appeared, through World War II. I did so by comparing the fortunes of more than 600 enterprises—the 200 largest industrial firms at three points in time (World War I, 1929, and World War II) in each of the three major industrial economies (those of the United States, Britain, and Germany). In this paper, I first describe the similarities in the historical beginnings and continuing evolution of these enterprises and then outline my explanation for these similarities. Next, I relate my explanation of these “empirical regularities” to four major economic theories relating to the firm: the neoclassical, the principal-agent, the transaction cost, and the evolutionary. Finally, I suggest the value of the transactions cost and evolutionary theories to historians and economists who are attempting to explain the beginnings and growth of modern industrial enterprises.

Overview

Integrity signals

Registry

Crossref · 10.1257/jep.6.3.79

Cites

256 of 256 references verified0 citation errors · 0 not checkable

Statistics

Nothing to recompute.

Verification

Claims the paper makes

0 of 49 cited sources checked · 0 supported · 0 flagged

Show all 83 claims

  • It may state two separate claims as one. 25
  • Probably not a substantial claim. 11
30 of 30
  • The paper relies on this without support.

    The ability to gain and maintain market share and profits tests the efficiency of a capitalist enterprise, particularly in foreign markets.

    “The ability to gain and maintain market share and profits tests the efficiency of a capitalist enterprise, particularly in foreign markets where different laws, customs, working habits, and availability of supplies tend to favor domestic producers.”
  • The paper relies on this without support.

    The historical cases reviewed are representative enough to support general conclusions about the role of organizational capabilities in competitive success and industry creation.

    “This brief review of the beginning and growth of the modern industrial enterprise suggests how the evolutionary theory of the firm, which emphasizes continuous learning that makes a firm's assets dynamic, provides an understanding of why in the past new firms began through the process of integrating production and distribution and why and how they grew by expanding into new markets.”
  • The paper relies on this without support.

    Differences in organizational capabilities and investments, rather than other unexamined factors, explain the observed competitive successes and failures of firms and national industries.

    “The point of recounting this bit of history is to document that, unless investments were made essential to utilize the cost advantages of scale and scope, the enterprises and the industries and national economies in which they operated lost out in international markets to foreign enterprises that made them.”
3 of 3

Citations

Cites

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Research works printed but not linked: 1

  1. Winter S., 1988, Journal of Law, Economics and Organization, 4, 163

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Metadata

Authors
Chandler, A. D.
Affiliations
Harvard University (US)
Corresponding author
Chandler, Alfred D
Venue
Journal of Economic Perspectives
Published
1992-08-01
Volume
6
Issue
3
Pages
79-100
ISSN
0895-3309 (ISSN-L)
OpenAlex
W2031847699
Cited by
847
References
10
Citations by year
2026: 14 · 2025: 14 · 2024: 15 · 2023: 39 · 2022: 18 · 2021: 26 · 2020: 17 · 2019: 20 · 2018: 33 · 2017: 69 · 2016: 27 · 2015: 35 · 2014: 27 · 2013: 30 · 2012: 27
FWCI
33.48
Type
journal article
Language
en
Open access
Locations
  • The Journal of Economic Perspectives (publishedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Theory and Institutions
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Historical Economic and Social Studies
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Firm Innovation and Growth
Keywords
industrial firm, organizational capabilities, history of the firm, transaction cost economics, evolutionary theory of the firm, agency theory, neoclassical theory of the firm, World War I, World War II

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