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
