BIBLIOGRAPHIC NOTE

The indispensable authority on the history of the company is Alfred Chandler. Chandler has produced three classic books: Strategy and Structure: Chapters in the History of the American Industrial Enterprise (Cambridge, Mass.: MIT Press, 1962); The Visible Hand: The Managerial Revolution in American Business (Cambridge, Mass.: Harvard University Press, 1977); and Scale and Scope: The Dynamics of Industrial Capitalism (Cambridge, Mass.: Harvard University Press, 1990). The first two of these books focus on America; the third broadens the argument to include Britain and Germany.

Another great authority is Peter Drucker. His best book on the company is a snapshot of General Motors after the Second World War, The Concept of the Corporation (New York: Mentor, 1983; first published in 1946), but historical insights are scattered around his voluminous writings on management.

General books on the history of the company are rare: most historians sensibly prefer to limit themselves by company and period. A handful of books are indispensable. Nathan Rosenberg and L. E. Birdzell’s How the West Grew Rich: The Economic Transformation of the Industrial World(New York: Basic Books, 1986) is full of insights into the role that companies played in the West’s successes. Jonathan Barron Baskin and Paul Miranti’s A History of Corporate Finance (Cambridge: Cambridge University Press, 1997) is a comprehensive guide to the subject, complete with extensive footnotes. Anthony Sampson’s Company Man: The Rise and Fall of Corporate Life (New York: Times Business, 1995) tells the history of the company through the experience of its most loyal servants. Creating Modern Capitalism: How Entrepreneurs, Companies and Countries Triumphed in Three Industrial Revolutions (Cambridge, Mass.: Harvard University Press, 1995), edited by Thomas McCraw, contains essays on Britain, Germany, and the United States. Colossus: How the Corporation Changed America (New York: Broadway Books, 2001), edited by Jack Beatty, is a useful collection of readings. Another useful collection of essays is The Political Economy of the Company (Oxford: Hart, 2000), edited by John Parkinson, Andrew Gamble, and Gavin Kelly. Daniel Yergin and Joseph Stanislaw’s The Commanding Heights: The Battle Between Government and the Marketplace That Is Remaking the Modern World (New York: Simon & Schuster, 1998) is excellent on the relationship between governments and companies.

An excellent introduction to business in the ancient world is Foundations of Corporate Empire by Karl Moore and David Lewis (London: Financial Times/Prentice Hall, 2000). The best starting point for the Middle Ages and Renaissance is Fernand Braudel’s monumental Civilization and Capitalism: 15th–18th Century (New York: Harper & Row, 1982). Iris Origo’s The Merchant of Prato: Daily Life in a Medieval Italian City (London: Penguin, 1992) provides a micro-view to complement Braudel’s macro.

The most eminent historian of the East India Company is K. N. Chaudhuri; see The East India Company: The Study of an Early Joint-Stock Company, 1600–1640 (New York: Reprints of Economic Classics, Augustus M. Kelley, Bookseller, 1965) and The Trading World of Asia and the English East India Company (Cambridge: Cambridge University Press, 1978). Other useful studies are John Keay’s The Honourable Company: A History of the English East India Company (New York: Macmillan, 1991) and Philip Lawson’s The East India Company: A History (London: Longman, 1993). Nathaniel’s Nutmeg: How One Man’s Courage Changed the Course of History (London: Spectre, 1999), by Giles Milton, provides the most entertaining description of the Company’s early days.

The most engaging account of the shenanigans of the South Sea Company is a novel written by an American academic: A Conspiracy of Paper: A Novel (New York: Ballantine, 2001) by David Liss. A more conventional account is John Carswell’s The South Sea Bubble (Palo Alto: Stanford University Press, 1960). P.G.M. Dickson’s The Financial Revolution in England: A Study in the Development of Public Credit 1688–1756 (Aldershot, Hampshire, U.K.: Gregg Revivals, 1993 edition) is academic history at its best. The best introduction to the extraordinary John Law is H. Montgomery Hyde’s John Law: The History of an Honest Adventurer (London: Home & Van Thal, 1948). On the history of financial panics in general, see: Charles Kindelberger’s Manias, Panics and Crashes: A History of Financial Crises (3d ed., New York: John Wiley, 1996) and Niall Ferguson’s The Cash Nexus: Money and Power in the Modern World 1700–2000 (London: Allen Lane, 2001). Ferguson’s two-volume history of the Rothschilds, The House of Rothschild: Money’s Prophets 1798–1848 (New York: Penguin, 1999) and The House of Rothschild: The World’s Banker 1849–1999 (New York: Penguin, 2000), also provides one of the best overviews of European capitalism.

Armand Budington DuBois’s The English Business Company after the Bubble Act 1720–1800 (New York: Octagon Books, 1971) traces the impact of a calamitous piece of legislation. One day a historian will write a great book on the debate about the joint-stock company in nineteenth-century England. Until then, the following books are useful: Charles Kindelberger’s A Financial History of Western Europe (Oxford: Oxford University Press, 1993), L.C.B. Gower’s The Principles of Modern Company Law (London: Stevens and Sons, 1954), James Jefferys’s Business Organizations in Great Britain 1856–1914 (New York: Arno Press, 1977), and P. L. Cottrell’s Industrial Finance 1830–1914: The Finance and Organization of English Manufacturing Industry (London: Methuen, 1980).

The best introduction to the rise of big business in America is, of course, Alfred Chandler. For a contrary view, see William Roy’s Socializing Capital: The Rise of the Large Industrial Corporation in America (Princeton: Princeton University Press, 1997) and Charles Perrow’s Organizing America: Wealth, Power and the Origins of Corporate Capitalism (Princeton: Princeton University Press, 2002). A classic short account of society’s attempts to adjust to big business is by Samuel P. Hays: The Response to Industrialism 1885–1914 (Chicago: University of Chicago Press, 1957). Other useful works (chosen almost arbitrarily out of the vast literature on the subject) might include Olivier Zunz’s Making America Corporate, 1870–1920 (Chicago: University of Chicago Press, 1990), Naomi Lamoreauz’s The Great Merger Movement in American Business, 1895–1904 (Cambridge: Cambridge University Press, 1985), and Richard Tedlow’s Giants of Enterprise: Seven Business Innovators and the Empires They Built (New York: HarperBusiness, 2001). Two books by Ron Chernow put human faces on the rise of big business: Titan: The Life of John D. Rockefeller (New York: Random House, 1998) and The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance (New York: Atlantic Monthly Press, 1990).

Alfred Chandler’s Scale and Scope: The Dynamics of Industrial Capitalism (Cambridge, Mass.: Harvard University Press, 1990) is also the best introduction to the rise of the company in Britain and Germany. An indispensable source on Britain is Leslie Hannah’s The Rise of the Corporate Economy (London: Methuen, 1983). Martin J. Wiener’s English Culture and the Decline of the Industrial Spirit (Cambridge: Cambridge University Press, 1981) lays out some of the reasons why Britain failed to embrace companies. The relevant essays in Creating Modern Capitalism: How Entrepreneurs, Companies and Counties Triumphed in Three Industrial Revolutions (Cambridge, Mass.: Harvard University Press), edited by Thomas McCraw, provide introductions to corporate development in Germany and Japan. See also Masahiko Aoki and Ronald Dore’s The Japanese Firm (New York: Oxford University Press, 1994).

The best source on Alfred Sloan is Alfred Sloan: My Years with General Motors (Garden City, N.Y.: Doubleday, 1963), one of the finest management books ever written. Thomas McCraw’s American Business, 1920–2000: How It Worked (Wheeling, Ill.: Harlan Davidson, 2000) is an excellent introduction. See also his classic Prophets of Regulation: Charles Francis Adams, Louis Brandeis, James Landis, Alfred Kahn (Cambridge, Mass.: Belknap Press, 1984).

The sources on the unbundling of the company are voluminous: you could probably find interesting insights by reading any of the business magazines published in this period. A few highlights chosen almost at random: Michael Jensen’s “Eclipse of the Public Corporation,” Harvard Business Review (September/October 1989); Daniel Jones, James Womack, and Daniel Roos’s The Machine That Changed the World: The Story of Lean Production (New York: Rawson Associates, 1990); AnnaLee Saxanian’s Regional Advantage: Culture and Competition in Silicon Valley and Route 128 (Cambridge, Mass.: Harvard University Press, 1994); Marina Whitman’s New World, New Rules: The Changing Role of the American Corporation (Boston: Harvard Business School Press, 1999); and Nitin Nohria, Davis Dyer, and Frederick Dalzell’s Changing Fortunes: Remaking the Industrial Corporation (New York: John Wiley, 2002).

The most insightful commentator on multinationals was the late Raymond Vernon. See his Sovereignty at Bay (New York: Basic Books, 1977) and In the Hurricane’s Eye: The Troubled Prospects of Multinational Enterprises (Cambridge, Mass.: Harvard University Press, 1998). Anything by Charles Wilson is also worth devouring (though some of his best writing is buried in obscure academic collections). Mira Wilkins has edited two useful collections of essays on multinationals. She is also the author of a standard book on American multinationals, The Emergence of Multinational Enterprise (Cambridge, Mass.: Harvard University Press, 1970). The best introduction to British multinationals is British Multinationals: Origins, Management and Performance, edited by Geoffrey Jones (Aldershot, Hampshire, U.K.: Gower, 1986).

NOTES

INTRODUCTION: Utopia Limited

1. K. Theodore Hoppen, The Mid-Victorian Generation, 1846–1886, New Oxford History of England (Oxford: Clarendon Press, 1998).

2. Quoted in Jack Beatty, ed., Colossus: How the Corporation Changed America (New York: Broadway Books, 2001), 18. See also Stephen Innes, Creating the Commonwealth: The Economic Culture of Puritan New England (New York: Norton, 1995), 206–9, 212–14.

3. A. V. Dicey, Law and Opinion in England (London: Macmillan, 1920), 245.

4. Anthony Trollope, The Way We Live Now (New York: Penguin Books, 2002), 78.

5. Thomas McCraw, American Business 1920–2000: How It Worked (Wheeling, Ill.: Harlan Davidson, 2000), 47.

6. James Watson, ed., Golden Arches East: McDonald’s in East Asia (Stanford: Stanford University Press, 1998).

7. This happened among others to Peter Verhoef, the commander of one Dutch East Indies fleet, who was lured into a spot on the island of Neira by the Bandanese, and duly slaughtered with forty of his men.

8. Douglas North and R. P. Thomas, The Rise of the Western World (Cambridge: Cambridge University Press, 1973); Nathan Rosenberg and L. E. Birdzell, How the West Grew Rich: The Economic Transformation of the Industrial World (New York: Basic Books, 1986).

9. Rosenberg and Birdzell, How the West Grew Rich, 190.

10. Ibid., 22–32.

11. In 1998 (the last year for which figures are available), companies accounted for around 90 percent of the sales and receipts reported by American businesses.

ONE: MERCHANTS AND MONOPOLISTS, 3000 B.C.–A.D. 1500

1. Jonathan Barron Baskin and Paul J. Miranti, A History of Corporate Finance (Cambridge: Cambridge University Press, 1997), 29.

2. Quoted in Peter Jay, Road to Riches (London: Weidenfeld & Nicolson, 2000), 49.

3. Karl Moore and David Lewis, Foundations of Corporate Empire (London: Financial Times/Prentice Hall, 2001), 33.

4. Ibid., 67.

5. Ibid., 97.

6. A.H.M. Jones, The Roman Economy: Studies in Ancient Economic and Administrative History (Oxford: Basil Blackwell, 1974).

7. Quoted in Oscar Handlin and Mary Handlin, “Origins of the American Business Corporation,” in Frederic Lane (ed.), Enterprise and Secular Change (Homewood, Ill.: Richard Irwin, 1953).

8. M. Rostovtzeff, Social and Economic History of the Roman Empire (Oxford: Oxford University Press, 1926), 160.

9. Richard Duncan-Jones, The Economy of the Roman Empire: Quantitative Studies (Cambridge: Cambridge University Press, 1977), 33.

10. Timur Koran, “The Islamic Commercial Crisis: Institutional Roots of Economic Underdevelopment in the Middle East,” University of Southern California Research Paper, available at http://papers2.ssrn.com/paper.taf?pip_jrnl=276635.

11. Fernand Braudel, Civilization and Capitalism, 15th–18th Century. Vol. II: The Wheels of Commerce (New York: Harper & Row, 1982), 434.

12. Baskin and Miranti, A History of Corporate Finance, 50.

13. Figure quoted in Howard Means, Money and Power: The History of Business (New York: John Wiley, 2001), 36.

14. Baskin and Miranti, A History of Corporate Finance, 43–44.

15. Most of the information about Datini comes from Iris Origo’s excellent The Merchant of Prato: Daily Life in a Medieval Italian City (London: Penguin, 1992).

16. Ibid., 81.

17. Quoted in ibid., 110.

18. Braudel, The Wheels of Commerce, 437.

19. Eileen Power, The Wool Trade in English Medieval History (Oxford: Oxford University Press, 1942, 1955), 96–103.

TWO: IMPERIALISTS AND SPECULATORS, 1500–1750

1. Fernand Braudel, The Wheels of Commerce, 440.

2. Jack Beatty, ed., Colossus: How the Corporation Changed America, 6.

3. Quoted in Beatty, Colossus, 6–8.

4. Quoted in Giles Milton, Nathaniel’s Nutmeg: How One Man’s Courage Changed the Course of History (London: Spectre, 1999), 35.

5. Quoted in ibid., 139.

6. Braudel, The Wheels of Commerce, 443.

7. John Keay, The Honourable Company: A History of the English East India Company (New York: Macmillan, 1991), xxii.

8. Quoted in Milton, Nathaniel’s Nutmeg, 91.

9. K. N. Chaudhuri, The English East India Company: The Study of an Early Joint-Stock Company, 1600–1640 (New York: Reprints of Economic Classics, Augustus M. Kelley, Bookseller, 1965), 208–11.

10. Keay, The Honourable Company, 113.

11. Ibid., 113.

12. Chaudhuri, East India Company, 111–39.

13. Ibid., 140–72.

14. Baskin and Miranti, A History of Corporate Finance, 78.

15. Thomas McCraw, ed., Creating Modern Capitalism: How Entrepreneurs, Companies and Countries Triumphed in Three Industrial Revolutions (Cambridge, Mass.: Harvard University Press), 59.

16. Saul David, The Indian Mutiny 1857 (London: Viking, 2002).

17. Niall Ferguson, The Cash Nexus: Money and Power in the Modern World 1700–2000 (London: Allen Lane, 2001), 310–15.

18. Quoted in P.G.M. Dickson, The Financial Revolution in England: A Study in the Development of Public Credit in England 1688–1756 (Aldershot, Hampshire, U.K.: Gregg Revivals, 1993), 84.

19. Ibid., 72.

20. For a readable account of the South Sea Bubble, see David Liss, A Conspiracy of Paper: A Novel (New York: Ballantine, 2001).

21. Dickson, The Financial Revolution in England, 118.

22. Ibid., 112–14.

23. Ibid., 90.

24. Ferguson, The Cash Nexus, 118.

25. Dickson, The Financial Revolution in England, 90.

26. Both quoted in Anthony Sampson, Company Man: The Rise and Fall of Corporate Life (New York: Times Business, 1995), 17.

27. Quoted in Lawrence James, Raj: The Making and Unmaking of British India (London: Abacus, 1998), 49.

28. Beatty, Colossus, 18.

29. Stephen Innes, “From Corporation to Commonwealth,” in ibid., 18.

30. Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, vol. 2 (New York: Oxford University Press, 1976), 733. He details the shortcomings of chartered companies on pp. 733–58.

31. K. N. Chaudhuri, The Trading World of Asia and the English East India Company (Cambridge: Cambridge University Press, 1978), 454.

32. Ann Carlos and Stephen Nicholas, “Giants of an Earlier Capitalism: The Chartered Trading Companies as Modern Multinationals,” Business History Review 62 (Autumn 1988): 398–419.

33. Keay, The Honourable Company, 170.

34. Quoted in Sampson, Company Man, 19.

THREE: A PROLONGED AND PAINFUL BIRTH, 1750–1862

1. Paul Langford, A Polite and Commercial People: England 1727–1783 (Oxford: Oxford University Press, 1989), 396ff.

2. Quoted in William Roy, Socializing Capital: The Rise of the Large Industrial Corporation in America (Princeton: Princeton University Press, 1997), 53.

3. Langford, A Polite and Commercial People, 396ff.

4. Armand Budington DuBois, The English Business Company after the Bubble Act 1720–1800 (New York: Octagon Books, 1971).

5. Charles Kindleberger, A Financial History of Western Europe (Oxford: Oxford University Press, 1993).

6. Hugh Thomas, The Slave Trade (New York: Simon & Schuster, 1997), 225.

7. Ibid., 294.

8. Leslie Hannah, The Rise of the Corporate Economy (London: Methuen, 1983), 19.

9. Howard Means, Money and Power: The History of Business (New York: John Wiley, 2001), 101.

10. Charles Perrow, Organizing America: Wealth, Power and the Origins of Corporate Capitalism (Princeton: Princeton University Press, 2002), 33.

11. Roy, Socializing Capital, 49.

12. Handlin and Handlin, “Origins of the American Business Corporation,” 119–20.

13. Roy, Socializing Capital, 46.

14. Ibid., 54.

15. Charles Freedeman, Joint-Stock Enterprise in France 1807–1867: From Privileged Company to Modern Corporation (Chapel Hill: University of North Carolina Press, 1979).

16. P. L. Cottrell, Industrial Finance 1830–1914: The Finance and Organization of English Manufacturing Industry (London: Methuen, 1980), 42.

17. Ibid., 43.

18. Kindleberger, A Financial History of Western Europe, 195.

19. Baskin and Miranti, A History of Corporate Finance, 136.

20. Ibid., 152.

21. Ruth Dudley Edwards, The Pursuit of Reason (London: Hamish Hamilton, 1993), 90.

22. L.C.B. Gower, The Principles of Modern Company Law (London: Stevens and Sons, 1954), 41–42.

23. James Jefferys, Business Organization in Great Britain 1856–1914 (New York: Arno Press, 1977), 20–21.

24. Ibid., 41.

25. Quoted in Andrew Gamble and Gavin Kelly, “The Politics of the Company,” in John Parkinson, Andrew Gamble, and Gavin Kelly, The Political Economy of the Company (Oxford: Hart, 2000), 32.

26. Freedeman, Joint-Stock Enterprise in France 1807–1867, 132–33.

27. We are indebted to Dr. Simon Green of All Souls College for this insight.

28. Robert Lowe’s speech on March 13, 1866, in G. M. Young and W. D. Handcock, eds., English Historical Documents 1833–1874, vol. 12, part 1 (New York: Oxford University Press, 1956), 165.

29. Gower, The Principles of Modern Company Law, 48.

30. Nicholas Crafts, “Institutional Quality and European Development Before and After the Industrial Revolution,” paper for the World Bank, Washington, D.C., July 2000.

31. We are grateful to Leslie Hannah for this observation.

32. Quoted in Cottrell, Industrial Finance 1830–1914, 58.

33. Cottrell, Industrial Finance 1830–1914, 55.

34. See Gamble and Kelly, “The Politics of the Company.”

35. Quoted in Sampson, Company Man, 26.

FOUR: THE RISE OF BIG BUSINESS IN AMERICA, 1862–1913

1. Quoted in Alfred Chandler, Scale and Scope: The Dynamics of Industrial Capitalism (Cambridge, Mass.: Harvard University Press, 1990), 61.

2. Alfred Chandler, The Visible Hand: The Managerial Revolution in American Business (Cambridge, Mass.: Harvard University Press, 1977), 17.

3. Michael Leapman, The World for a Shilling: How the Great Exhibition of 1851 Shaped a Nation (London: Headline, 2001), 129.

4. Chandler, Scale and Scope, 47.

5. Richard Tedlow, Giants of Enterprise: Seven Business Innovators and the Empires They Built (New York: HarperBusiness, 2001), 66.

6. See Chandler, The Visible Hand, 80–144.

7. Chandler, Scale and Scope, 53.

8. Chandler, The Visible Hand, 92.

9. Charles R. Geisst, Wall Street: A History (New York: Oxford University Press, 1997), 70.

10. Roy, Socializing Capital, 108.

11. Baskin and Miranti, A History of Corporate Finance, 150.

12. Chandler, The Visible Hand, 204–5.

13. See ibid., 209–39.

14. John Micklethwait and Adrian Wooldridge, A Future Perfect (London: Random House Business, 2001).

15. Quoted in Tedlow, Giants of Enterprise, 58.

16. Chandler, The Visible Hand, 280.

17. See ibid., 285–379.

18. Ron Chernow, Titan: The Life of John D. Rockefeller, Sr. (New York: Random House, 1998), 150–51.

19. Ibid., 332.

20. Ibid., 430.

21. Jonathan Rowe, “Reinventing the Corporation,” Washington Monthly (April, 1996).

22. Tedlow, Giants of Enterprise, 59.

23. Thomas McCraw, “American Capitalism,” in McCraw, ed., Creating Modern Capitalism, 320.

24. Tedlow, Giants of Enterprise, 421–22.

25. Baskin and Miranti, A History of Corporate Finance, 178–79.

26. James P. Young, Reconsidering American Liberalism: The Troubled Odyssey of the Liberal Idea (Boulder: Westview, 1996), 130.

27. Sampson, Company Man, 27.

28. Geisst, Wall Street, 131.

29. Samuel P. Hays, The Response to Industrialism 1885–1914 (Chicago: University of Chicago Press, 1957), 54.

30. Roland Marchand, Creating the Corporate Soul: The Rise of Public Relations and Corporate Imagery in American Big Business (Berkeley: University of California Press, 1998), 1–87.

31. E. Digby Baltzell, An American Business Aristocracy (New York: Free Press, 1962), 135.

32. Ibid., 120.

33. Tedlow, Giants of Enterprise, 104.

FIVE: THE RISE OF BIG BUSINESS IN BRITAIN, GERMANY, AND JAPAN, 1850–1950

1. Hannah, The Rise of the Corporate Economy, 17.

2. Ibid., 1.

3. Chandler, Scale and Scope, 313.

4. George Orwell, The Road to Wigan Pier (Harmondsworth, U.K.: Penguin, 1962), 140.

5. Martin J. Wiener, English Culture and the Decline of the Industrial Spirit, 1850–1980 (Cambridge: Cambridge University Press, 1981), 131.

6. Quoted in Neil McKendrick, “General Introduction” to R. J. Overy, William Morris, Viscount Nuffield (London: Europa Publications, 1976), xl.

7. J. B. Priestley, English Journey (London: Heinemann, 1934), 64.

8. Michael Sanderson, The Universities and British Industry, 1850–1970 (London: Routledge and Kegan Paul, 1972), 282–83.

9. Gordon Roderick and Michael Stephens, “The British Educational System,” in Gordon Roderick and Michael Stephens, eds., The British Malaise: Industrial Performance, Education and Training in Britain Today (Barcombe, Sussex, U.K.: Falmer Press, 1982).

10. Sanderson, Universities and British Industry, 282–83.

11. Quoted in Sampson, Company Man, 59.

12. Leslie Hannah, “Marshall’s Trees and the Global Forest: Were Giant Redwoods Differenti?,” in Naomi Lamoreaux, Daniel Raff, and Peter Tremin, eds., Markets, Firms and Countries (Chicago: University of Chicago Press, 1999), 265.

13. Leslie Hannah, “The American Miracle, 1875–1950 and After: A View in the American Mirror,” Business and Economic History 24, no. 2 (Winter 1994).

14. Charles Wilson, “Multinationals, Management and World Markets: A Historical View,” in Harold Williamson, ed., Evolution of International Management Structures (Newark, Del.: University of Delaware Press, 1975), 209.

15. McCraw, American Business 1920–2000, 48.

16. Chandler, Scale and Scope, 423.

17. Jeffrey Frear, “German Capitalism,” in McCraw, ed., Creating Modern Capitalism, 142–43.

18. Ibid., 165.

19. A. E. Twentyman, “Note on the Earlier History of the Technical High Schools in Germany,” Board of Education, Special Report on Educational Subjects. Vol. 9: Education in Germany (London: His Majesty’s Stationery Office, 1902), 465.

20. Peter Drucker, Post-Capitalist Society (London: Butterworth Heinemann, 1993), 33.

21. R. B. Haldane, “Great Britain and Germany: A Study in Education,” in Education and Empire: Addresses on Certain Topics of the Day (London, 1902), 28.

22. Frear, “German Capitalism,” 140.

23. Ibid., 145–46.

24. Chandler, Scale and Scope, 500.

25. Frear, “German Capitalism,” 144.

26. Jeffrey Bernstein, “Japanese Capitalism,” in McCraw, ed., Creating Modern Capitalism, 447–48.

27. Francis Fukuyama, Trust: The Social Virtues and the Creation of Prosperity (London: Penguin, 1996), 162.

28. Sampson, Company Man, 33.

29. Bernstein, “Japanese Capitalism,” 460.

30. Moore and Lewis, Foundations of Corporate Empire, 248.

SIX: THE TRIUMPH OF MANAGERIAL CAPITALISM, 1913–1975

1. Hannah, “Marshall’s Trees and the Global Forest,” 58.

2. Baltzell, An American Business Aristocracy, 449.

3. Alfred Sloan, My Years with General Motors (Garden City, N.Y.: Doubleday, 1963).

4. Tedlow, Giants of Enterprise, 171.

5. John Byrne, The Whiz Kids: Ten Founding Fathers of American Business—and the Legacy They Left Us (New York: Doubleday Currency, 1993), 106.

6. Tedlow, Giants of Enterprise, 174.

7. Chandler, Scale and Scope, 207.

8. McCraw, American Business 1920–2000, 24.

9. Chandler, Scale and Scope, 177.

10. McCraw, American Business 1920–2000, 48.

11. Sampson, Company Man, 41.

12. Ibid., 71–73.

13. Quoted in Milton, Nathaniel’s Nutmeg, 137.

14. Peter Drucker, The Concept of the Corporation (New York: Mentor, 1983), 78.

15. Ibid., 132.

16. Robert Averitt, The Dual Economy: The Dynamics of American Industry Structure (New York: Norton, 1968).

17. Chandler, Scale and Scope, 609.

18. Baskin and Miranti, A History of Corporate Finance, 242.

19. Robert Reich, The Future of Success (New York: Knopf, 2001), 71.

20. Company Man’s best biographer is Anthony Sampson, though he would not claim to have invented the phrase; Organization Man was the creation of William H. Whyte.

SEVEN: THE CORPORATE PARADOX, 1975–2002

1. Daniel Yergin and Joseph Stanislaw, The Commanding Heights: The Battle Between Government and the Marketplace That Is Remaking the Modern World (New York: Simon & Schuster, 1998), 60–64.

2. Ibid., 114.

3. Ibid., 285–89.

4. Nitin Nohria, Davis Dyer, and Frederick Dalzell, Changing Fortunes: Remaking the Industrial Corporation (New York: John Wiley, 2002), 4.

5. Ibid., 24.

6. Tom Stewart, The Wealth of Knowledge (London: Nicholas Brealey, 2002), 8.

7. George Baker and Thomas Hubbard, “Make versus Buy in Trucking,” Harvard Business School Working Paper.

8. Fernando Flores and John Gray, Entrepreneurship and the Wired Life (London: Demos, 2000), 13.

9. “Special Report: Car Manufacturing,” Economist, February 23, 2002.

10. Bill Emmott, Japanophobia: The Myth of the Invincible Japanese (New York: Times Books, 1992), 25.

11. Ibid., 41.

12. Michael Porter, Hirotaka Takeuchi, and Mariko Sakakibara, Can Japan Compete?(London: Macmillan, 2000), 69.

13. Ibid., 77.

14. Nohria, Dyer, and Dalzell, Changing Fortunes, 187.

15. Bennett Stewart and David Glassman, quoted in Michael Jensen, “The Eclipse of the Public Corporation,” Harvard Business Review (October 1989).

16. George P. Baker and George David Smith, The New Financial Capitalists: Kohlberg Kravis Roberts and the Creation of Corporate Value (Cambridge: Cambridge University Press, 1998).

17. Susan Faludi, “Reckoning at Safeway,” in Beatty, ed., Colossus, 406.

18. Baskin and Miranti, A History of Corporate Finance, 295.

19. Robert Monks, The New Global Investors (Oxford: Capstone, 2001), 69.

20. The classic account of this is AnnaLee Saxenian, Regional Advantage: Culture and Competition in Silicon Valley and Route 128 (Cambridge, Mass.: Harvard University Press, 1994).

21. Joint Venture Silicon Valley, 2002 Index, see: http://www.jointventure.org/resources/2002Index/index.html.

22. Frances Cairncross, The Company of the Future (Boston: Harvard Business School Press, 2002), 4.

23. Tedlow, Giants of Enterprise, 385.

24. John Byrne, Chainsaw: The Notorious Career of Al Dunlap in the Era of Profit-at-Any-Price (New York: HarperBusiness, 1999), 27.

25. Nicholas Lemann, “Letter from Philadelphia,” New Yorker, June 5, 2000.

26. Quoted in Sampson, Company Man, 217.

27. Nicholas Varchaver, “Who’s the King of Delaware?,” Fortune, May 13, 2002.

28. In 1983, Americans who were between twenty-five and thirty-four had spent a median 3 years with the same employer; by 1996, the figure was 2.8 years. In the thirty-five to forty-four age group, the figure actually rose from 5.2 years in 1983 to 5.3 in 1996, though the figures fell again for older age groups, with the median tenure for the fifty-five to sixty-four age group dropping from 12.2 years to 10.2 years.

29. Stewart, The Wealth of Knowledge, 27.

30. http://www.britishchambers.org.uk/cutredtape/burdens barometer2.htm.

31. Thomas Hopkins, of the Rochester Institute of Technology.

32. Gerald Seib and John Harwood, “Rising Anxiety: What Could Bring 1930s-Style Reform of U.S. Businesses,” Wall Street Journal, July 25, 2002.

33. Quoted in David Leonhardt, “The Imperial Chief Executive Is Suddenly in the Cross Hairs,” New York Times, June 24, 2002.

34. Daniel Kadlec, “WorldCon,” Time, July 8, 2002.

EIGHT: AGENTS OF INFLUENCE: MULTINATIONALS, 1850–2002

1. Charles Wilson, “The Multinational in Historical Perspective” in K. Nakagawa, ed., Strategy and Structure in Big Business (Tokyo, 1974), 270.

2. Ibid., 271.

3. Ibid., 274.

4. Geoffrey Jones, ed., British Multinationals: Origins, Management and Performance (Aldershot, Hampshire, U.K.: Gower, 1986), 4.

5. Ibid., 4.

6. Ibid., 7.

7. The phrase “free-standing companies” was coined by Mira Wilkins. See Mira Wilkins, “European and North American Multinationals, 1870–1914: Comparisons and Contrasts,” Business History 30 (1988): 15–16.

8. Jones, British Multinationals, 13.

9. Wilkins, “European and North American Multinationals,” 21.

10. Ibid., 25.

11. Ibid., 27–28.

12. Mira Wilkins, “Japanese Multinationals,” Business History Review 60 (1986): 207.

13. Ibid., 209.

14. Ibid., 218.

15. Ibid., 221.

16. Ibid., 222.

17. Chandler, The Visible Hand, 369.

18. Chandler, Scale and Scope, 200.

19. Jones, British Multinationals, 5.

20. Sampson, Company Man, 143.

21. Paul Doremus et al., The Myth of the Global Corporation (Princeton: Princeton University Press, 1998), 8.

22. Quoted in Yves Doz et al., From Global to Metanational: How Companies Win in the Knowledge Economy (Boston: Harvard Business School Press, 2001), 63.

23. Peter Drucker, The New Realities (London: Heinemann, 1989), 119.

24. Doz et al., From Global to Metanational, 13.

25. These statistics all come from “How Big Are Multinational Companies?,” a paper released in January 2002 by Paul de Grauwe, of the University of Leuven, and Filip Camerman, of the Belgian Senate.

26. Quoted in Langford, A Polite and Commercial People, 534.

27. The Casement Report can be found online at: http://web.jjay.cuny.edu/~jobrien/reference/ob73.html.

28. Clive Crook, “A Survey of Globalisation,” Economist, September 27, 2001, 15.

29. Wilson, “The Multinational in Historical Perspective,” 297.

CONCLUSION: THE FUTURE OF THE COMPANY

1. Woodrow Wilson, The New Freedom (New York: Doubleday, 1913).

2. This is a phrase borrowed from Leslie Hannah.

3. Fariborz Ghadar and Pankaj Ghemawat, “The Dubious Logic of Global Megamergers,” Harvard Business Review 78, no. 4 (July–August 2000).

4. Reich, The Future of Success, 84–85.

5. See Reinier Kraakman, “The Durability of the Corporate Form,” in Paul DiMaggio, ed., The Twenty-first Century Firm: Changing Economic Organization in International Perspective (Princeton: Princeton University Press, 2001), 147–60.

6. Leslie Hannah, “The Moral Economy of Business: A Historical Perspective on Ethics and Efficiency,” in Paul Burke, Brian Harrison, and Paul Slack, eds., Civil Histories: Essays Presented to Sir Keith Thomas (Oxford: Oxford University Press, 2000).

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