Chandler's Model of Large-Scale, Integrated Managerial Enterprise on Long-Term Competitiveness of Leading Economies
To what extent can Chandler’s model of large-scale, integrated managerial enterprise explain the long-term competitiveness of leading economies?
Chandler`s model of large-scale enterprises is a way from and shift away from the ‘invisible hand’ model given by Adam Smith. Chandler`s model is an attempt to explain the developments in the second phase of industrial revolution where he tends to reason behind the enhancement of capital. In this context, he gave the concept of modern industrial enterprise, which according to him grew in three phases. That is, there were investments in the production facilities, mostly the ones with technological potential to produce economies of scale and the economies of scope, concepts which would be touched upon in the paper. Further, he argued that there were also increases investments in marketing and the distribution networks. Followed by these developments was the recruitment drive of managers and a build-up of managerial hierarchy to make important decisions regarding the functional units. Therefore, Chandler`s theory tends to build upon these central stipulations via which he explains how an industrial enterprise demonstrates long-term competitiveness. He also gives the concept of managerial capitalism in his theory which he claims is the decision making body overseeing various operations of the organization. Also, he adds that in addition to the industrial enterprise, there are various other sub-species forming the business enterprise, all of which carry out the modern production functions (Chandler 1997: 16). Therefore, the paper will aim at explaining in detail how Chandler has built a model explaining how the modern industrial units seek to produce economies of scale and economies of scope. The paper will also compare and contrast the modern economies of various nations to give practical implications of the model being discussed.
As mentioned above as well, an industrial enterprise is one of the
Chandler`s model of large-scale enterprises is a way from and shift away from the ‘invisible hand’ model given by Adam Smith. Chandler`s model is an attempt to explain the developments in the second phase of industrial revolution where he tends to reason behind the enhancement of capital. In this context, he gave the concept of modern industrial enterprise, which according to him grew in three phases. That is, there were investments in the production facilities, mostly the ones with technological potential to produce economies of scale and the economies of scope, concepts which would be touched upon in the paper. Further, he argued that there were also increases investments in marketing and the distribution networks. Followed by these developments was the recruitment drive of managers and a build-up of managerial hierarchy to make important decisions regarding the functional units. Therefore, Chandler`s theory tends to build upon these central stipulations via which he explains how an industrial enterprise demonstrates long-term competitiveness. He also gives the concept of managerial capitalism in his theory which he claims is the decision making body overseeing various operations of the organization. Also, he adds that in addition to the industrial enterprise, there are various other sub-species forming the business enterprise, all of which carry out the modern production functions (Chandler 1997: 16). Therefore, the paper will aim at explaining in detail how Chandler has built a model explaining how the modern industrial units seek to produce economies of scale and economies of scope. The paper will also compare and contrast the modern economies of various nations to give practical implications of the model being discussed.
As mentioned above as well, an industrial enterprise is one of the
Bibliography: CHANDLER, A. D. (1962). Strategy and structure: chapters in the history of the industrial enterprise. Cambridge, M.I.T. Press. CHANDLER, A. D. (1977). The visible hand the managerial revolution in American business. Cambridge, Mass, Belknap Press of Harvard University Press. http://hdl.handle.net/2027/heb.00628. CHANDLER, A. D. (1991). Competitive performance of U.S. industrial enterprises a historical perspective. [Washington, D.C.?], [Council on Competitiveness?]. http://catalog.hathitrust.org/api/volumes/oclc/39266532.html. CHANDLER, A. D., AMATORI, F., & HIKINO, T. (1997). Big business and the wealth of nations. Cambridge, Cambridge University Press. CHANDLER, S., & BLACK, D. (2007). The hands-off manager how to mentor people and allow them to be successful. Franklin Lakes, NJ, Career Press. http://www.books24x7.com/marc.asp?bookid=16506. CHANDLER, A. D., & DAEMS, H. (1980). Managerial hierarchies: comparative perspectives on the rise of the modern industrial enterprise. Cambridge, Mass, Harvard University Press. CHANDLER, A. D., HAGSTRÖM, P., & SÖLVELL, O. (1998). The dynamic firm: the role of technology, strategy, organization and regions. Oxford, Oxford University Press. CHANDLER, A. D., & MAZLISH, B. (2005). Leviathans: multinational corporations and the new global history. Cambridge, UK, Cambridge. CHANDLER, A. D., MONTGOMERY, J., & DALLIBA, J. (1979). Precursors of modern management. New York, Arno Press. CHANDLER, A. D., & MCCRAW, T. K. (1988). The essential Alfred Chandler: essays toward a historical theory of big business. Boston, Mass, Harvard Business School Press. LAZONICK, W., & TEECE, D. J. (2012). Management innovation: essays in the spirit of Alfred D. Chandler, Jr. Oxford, Oxford University Press. CHANDLER, A. D., & TEDLOW, R. S. (1985). The coming of managerial capitalism: a casebook on the history of American economic institutions. Homewood, Ill, R.D. Irwin.