Week 1: Growth of Managerial Capitalism Flashcards
Morgan 2000
Marketing and advertising favors large companies
Coase 1937
Large firms reduced transaction costs. Technology brought factors of production closer together → more transactions → larger firms Industry that has high MES + few managerial mistakes → Large firm
Not so simple or sequential. Ignores competition: rivalry leading to growth
Teece 2010
Ghoshal and Moran 1996
Williamson says firms exist to reduce opportunistic behaviour. This study says that hierarchy in firms may increase opportunism, not increase it
Teece 2010
Not so simple or sequential. Ignores competition: rivalry leading to growth
Aaaker 1990
Large firms (established brand) expanding to new products (Chandler) reduces risk
John 1997
Ignores social factors – rise of labor force, effects on workers (danger, poor work conditions)
Large firms (established brand) expanding to new products (Chandler) reduces risk
Aaaker 1990
Williamson 1981
Humans aren’t perfectly rational→incomplete contracts + misunderstandings → Complex contracts hard to enforce Discusses asset specificity Says humans are opportunistic
Williamson says firms exist to reduce opportunistic behaviour. This study says that hierarchy in firms may increase opportunism, not increase it
Ghoshal and Moran 1996
Chandler 1984
Argues a historical view. Integration → Multinationalisation → Expansion into new product lines → Increase in output due to technology → The coordination of all this needed a managerial team. Main reason for integration was that existing markets were too small. Bonsack machine produced 120,000 cigarettes a day → needed marketing/distribution to create demand and sell them.
Klein et al. 1978
Fisher Bodies proves this case of transaction costs for high specificity assets. Was originally a contractor for GM but eventually acquired by GM
High specificity of assets → high cost of market exchange
Kocchar 1996
Fisher Bodies proves this case of transaction costs for high specificity assets. Was originally a contractor for GM but eventually acquired by GM
Klein et al. 1978
Argues a historical view. Integration → Multinationalisation → Expansion into new product lines → Increase in output due to technology → The coordination of all this needed a managerial team. Main reason for integration was that existing markets were too small. Bonsack machine produced 120,000 cigarettes a day → needed marketing/distribution to create demand and sell them.
Chandler 1984
