Table of Contents
Contents
PART I
Introduction: Scale and Scope
1
The Modern Industrial Enterprise
2
Scale, Scope, and Organizational Capabilities
The New Institution
Historical Attributes
Economies of Scale and Scope in Production
Economies of Scale and Scope in Distribution
Building the Integrative Hierarchy
First-Mover Advantages and Oligopolistic Competition
Continuing Growth of the Modern Enterprise
Horizontal and Vertical Combination
Geographical Expansion and Product Diversification
The Modem Enterprise in Labor-Intensive Industries
PART II
The United States: Competitive Managerial Capitalism
3
The Foundations of Managerial Capitalism in American Industry
The Domestic Market
The Impact of the Railroads and Telegraph
The Revolution in Distribution
The Revolution in Production
Branded, Packaged Products
Mass-produced Light Machinery
Electrical Equipment
Industrial Chemicals
Metals
Merger, Acquisition, and Rationalization
Political and Legal Responses
The Response of Financial Institutions
The Response of Educational Institutions
The Coming of Competitive Managerial Capitalism
4
Creating Organizational Capabilities: Vertical Integration and Oligopolistic Competition
Oil: From Monopoly to Oligopoly
Creating the Monopoly
Changing Markets and Sources of Supply
Vertical Integration and Oligopolistic Competition
Rubber: A Stable Oligopoly
Industrial Materials: Evolutionary and Revolutionary Technological Change
Paper
Stone, Clay, Glass, and Cement
Fabricated Metals
Primary Metals: Technology and Industrial Concentration
Aluminum
Copper and Other Nonferrous Metals
Steel
Major Trends
5
Expanding Organizational Capabilities: Investment Abroad and Product Diversification in Food and Chemicals
Branded, Packaged Products: Foods, Consumer Chemicals, Tobacco
General Characteristics
Selecting the Players, 1880 to World War I
Continuing Investment in Marketing and Distribution
Expansion through Direct Investment Abroad
Continuing Growth through Diversification
Diversification through Merger
Perishable Products
Scope-Related Growth
Industrial Chemicals
General Characteristics
The Players Selected
Continuing Growth through Diversification
Diversification through Merger
The Du Pont Example
Diversification, Organizational Complexity, and Managerial Control
6
Expanding Organizational Capabilities: Investment Abroad and Product Diversification in Machinery
General Characteristics
Nonelectrical Machinery
The Players Selected
Continuing Growth through Expansion Abroad
Growth through Diversification
Transportation Equipment
The Players Selected
Expansion Abroad
Growth through Diversification
Electrical and Electronic Equipment
The Players Selected
Expansion Abroad
Growth through Diversification
Organizational Complexities and Managerial Control
The Dynamics of Modern Industrial Enterprise: The American Experience
PART III
Great Britain: Personal Capitalism
7
The Continuing Commitment to Personal Capitalism in British Industry
Underlying Differences
Prototypes of British Industrial Enterprise: Cadbury Brothers and Imperial Tobacco
Domestic and Foreign Markets
The Impact of the Railroads
The Revolution in Distribution
The Revolution in Production
Entrepreneurial Success: Branded, Packaged Products
Entrepreneurial Success: Rubber, Glass, Explosives, Alkalies, and Fibers
Entrepreneurial Failure: Machinery, Electrical Equipment, Organic Chemicals, Electrochemicals, and Metals
Accounting for Entrepreneurial Failure
Growth through Merger and Acquisition, British Style
Continuing Dominance of Personal Management
8
Creating Organizational Capabilities: Success and Failure in the Stable Industries
The Impact of World War I
The Modern Industrial Enterprise during the Interwar Years
Oil: The Creation of Organizational Capabilities
Rubber: The Enhancement of Organizational Capabilities
Industrial Materials: Organizational Capabilities Constrained by the Ways of Personal Management
Rayon
Stone, Clay, and Glass
Paper
Metal Fabricating
Metal Making
Textiles
Costs of the Failure to Develop Organizational Capabilities
9
Creating Organizational Capabilities: Success and Failure in the Dynamic Industries
Machinery
Nonelectrical Machinery: Continuing Foreign Dominance
Transportation Equipment
Electrical Equipment: Catching Up
Industrial Chemicals
The Personally Managed Firms
Imperial Chemical Industries: Organizational Achievement
Branded, Packaged Products
The Bastion of the Family Firm
Expansion Overseas and Product Diversification
Perishable Products
Unilever: From Personal to Collective Management
Implications of the British Experience
PART IV
Germany: Cooperative Managerial Capitalism
10
The Foundations of Managerial Capitalism in German Industry
Similarities and Differences
Two German Industrial Enterprises: Gebrüder Stollwerck and Accumulatoren-Fabrik AG
Domestic and Foreign Markets
The Impact of the Railroads
The Railroads and the New Financial Institutions
Changes in Distribution
The Legal and Educational Environment
The Coming of Cooperative Managerial Capitalism
11
Creating Organizational Capabilities: The Lesser Industries
The Second Industrial Revolution
Branded, Packaged Products: Limited Entrepreneurial Response
Other Lesser Industries: Effective Entrepreneurial Response
Oil: Late Challengers
First Movers, European Style: Rubber, Rayon, Alkalies, and Explosives
First Movers, American Style: Light, Mass-produced Machinery
The German Entrepreneurial Response in the Lesser Industries
Textiles: A Labor-Intensive Industry
12
Creating Organizational Capabilities: The Great Industries
Nonelectrical Machinery: Exploiting Economies of Scope
Electrical Machinery: Exploiting Economies of Scale and Scope
Siemens and AEG: Creating Industrial Giants
Merger and Rationalization
Chemicals: Exploiting Economies of Scope
The Dye Makers: Creating Capabilities
The Dye Makers: Interfirm Cooperation
Other World Leaders in Pharmaceuticals, Agricultural Chemicals, and Electrochemicals
Metals: Exploiting Economies of Scale
First Movers in Nonferrous Metals
Steel: Europe's Leaders
Organizational Capabilities and Industrial Power
13
War and Crises: Recovery in the Lesser Industries
War and Postwar Crises
Impact on Interfirm Relationships
The Growth of I.G.'s and Konzerne
The Changing Role of Banks
Recovery in the Lesser Industries after Stabilization
Branded, Packaged Products and Textiles: Weak Recovery
Oil: Dismemberment
Rubber, Rayon, Alkalies, Explosives and Light Machinery: Strong Recovery
Transportation Equipment: A New Start
Recovery as a Function of Organizational Capabilities
14
Recovery in the Great Industries
Nonelectrical Industrial Machinery: Revival and Rationalization
Electrical Machinery
Rapid Recovery and Continued Modernization
The Evolving Structure of the Leaders
Metals
Steel: Merger, Rationalization, and Restructuring
Nonferrous Metals: The Return of Metallgesellschaft
Chemicals
The Formation of I. G. Farben
Rationalization at I. G. Farben
I.G. Farben's Changing Structure: Failure to Achieve Overall Control
The Independents
The German Experience: The Evolution of Cooperative Managerial Capitalism
Conclusion: The Dynamics of Industrial Capitalism
Organizational Capabilities as the Core Dynamic
First Movers and Challengers
Challengers from Abroad and from Other Industries
Post–World War II Developments
The Transformation of the Global Economy
Continuing Role of the Modern Industrial Enterprise
Continuing Growth
A New Era of Managerial Capitalism?
Notes
Credits
Index
