Getting it right the first time: Alfred Chandler, anthracite coal, and the origins of American management

Abstract

Purpose

This paper reconsiders the criticisms of the most influential theory of the rise of the large corporations, and to see how these criticisms can be met without entirely abandoning the basic elements of the theory.

Design/methodology/approach

This problem is approached by first analyzing the weaknesses inherent in Chandler's theory as presented in The Visible Hand, and then by reworking elements of the theory by relying on data generated by other historical accounts.

Findings

The author found that the theory could be salvaged by reordering the evolution of managerial practices based on a variety of historical studies, many not considered by Chandler, but even some of his own earlier work. Given these changes in historical order, vital managerial reforms can be placed sufficiently early that organizational techniques existed to solve the problems and exploit the opportunities that Chandler identifies as creating the pressures necessary to generate the large industrial corporation, thus responding to one class of criticism. My approach can also incorporate other factors that critics see as missing in Chandler's account.

Originality/value

What is new in this paper is that it reconciles Chandler's analysis with those of his critics by re‐examining and correcting some of his assumptions. The result is a theory of corporate evolution that is less global but more realistic. Economic and business historians as well as sociologists of organizations will find this reassessment valuable.

Citation

Marens, R. (2005), "Getting it right the first time: Alfred Chandler, anthracite coal, and the origins of American management", Management Decision, Vol. 43 No. 3, pp. 433-449. https://doi.org/10.1108/00251740510589805