Alfred D. Chandler

Big Business and the Wealth of Nations

Written in non-technical terms, this book explains how the dynamics of big business have influenced national and international economies. A path-breaking study, it provides the first systematic treatment of big business in advanced, emerging, and centrally-planned economies from the late nineteenth century, when big businesses first appeared in American and West European manufacturing, to the present. Large industrial enterprises play a vital role in developing new technologies and commercializing new products in all of the major countries. How such firms emerged and evolved in different economic, political, and social settings constitutes a significant part of twentieth-century world history. This historical review of big business is particularly valuable today, when the viability of large enterprises is being challenged by small firms, networks, and alliances. These essays, written by internationally-known historians and economists, help one understand the essential role and functions of big business.

The Emergence of Managerial Capitalism

In this article, Professor Chandler compares and contrasts the emergence of managerial capitalism in the United States, Great Britain, Germany, and Japan. Though he observes that large firms tended to evolve according to a common pattern, he is equally impressed by international differences in the pace, timing, and character of change.

Managerial hierarchies : comparative perspectives on the rise of the modern industrial enterprise

Argues that the organization of modern industrial activities depends on managerial hierarchies with the ability to grow and develop.

The Competitive Performance of U.S. Industrial Enterprises since the Second World War

This article begins with an overview of the changing context of U.S. industrial enterprise from the Second Industrial Revolution of the late nineteenth century to the end of the Second World War. It then examines the changes in the nature of competition, in the financial markets, and in corporate management that transformed the industrial environment in the postwar decades. Against that historical background, the essay describes in detail the results of an empirical study aimed at discovering how U.S. companies maintained, increased, or dissipated their organizational capabilities and how the market for corporate control affected that behavior.

The Beginnings of “Big Business” in American Industry

The growth of big business in America in the last two decades of the nineteenth century was primarily a response to the rise of urban markets — a result, in turn, of the spreading railroad network. Then, as a new century began to unfold, the dominant influence upon big business development came to be technological. Discernible patterns of integration, combination, diversification, and administration influenced and were influenced by the rise of huge companies and oligopolistic industries. Price competition yielded to other weapons, and the economy adjusted to make room for the young giants in its midst.

Anthracite Coal and the Beginnings of the Industrial Revolution in the United States

Professor Chandler traces the rise and spread of the factory system in American industry, suggesting an explanation for the timing and the pattern of development of the industrial revolution in the United States.

Recent Developments in American Business Administration and their Conceptualization

The following article appeared in the March, 1961, issue of the Weltwirt-Schaftliche Archiv, published since 1913 by the Institut fur Weltwirt-Schaft an der Universitat Kiel. Because of the pertinence and broad interest of the study, publication in America seemed highly desirable. Reproduction rights were graciously extended by Dr. Anton Zottmann, editor of the Archiv, and by the authors. The article is printed here directly from galley proof supplied by the Archiv. Commentaries by American scholars will be published in a subsequent issue of the Business History Review.

The Structure of American Industry in the Twentieth Century: A Historical Overview

Professor Chandler uses data compiled by two of his students, Harold C. Livesay and P. Glenn Porter, whose work is condensed in the charts and tables which accompany this article, to propose a historical explanation for the changing industrial structure of the modem American economy.

Management Decentralization: An Historical Analysis

This article deals with development of basic management structures of large American corporations. In general, the problem has been one of growing operational complexity; the solution commonly adopted has been operational decentralization. This solution, however, has raised difficult questions of control, and various administrative answers have been evolved. These have fallen into recognizable patterns, for an examination of case histories graphically illustrates the close connection between the nature of a companys business and its administrative structure. Those firms whose activities cross established industry lines have tended toward product decentralization. Companies producing a relatively restricted line have decentralized on a functional or a geographic basis. Market-oriented firms have tended to decentralize on a geographic basis. Among the fifty companies studied, however, other variations are discernible. Historical analysis of the decentralization trend also suggests the importance of management personalities in governing the timing of structural changes and indicates clearly the reasons why some companies have yet to find decentralization a meaningful answer for their prevailing administrative problems.

Managerial Enterprise and Competitive Capabilities

This article relates the managerial enterprise (a firm in which decisions as to current production and distribution and allocation of resources for future production and distribution are made by salaried managers with little or no equity in the firms they operate in) to competitive success in the new capital-intensive industries that began to appear in the United States and Western Europe after the completion of modern transportation and communication networks. It begins by examining the reasons for the rapid rise of managerial firms in these industries, the global oligopolistic competition that ensued, and the organisational capabilities such competition engendered. It then reviews the competitive performance of such firms in global markets in chemicals, metals, electrical equipment, and heavy and light machinery in the early years of the century, motor vehicles in the inter-war years, and computers and semiconductors after World War II. These managerial firms grew by moving into foreign or related produ...