| Description | The large managerial firm, operating in a number of product and geographic markets and controlled by managers rather than owners, plays a major role in modern economies. Although it is now being challenged by new institutions such as LBOs and strategic alliances, the large managerial firm is itself a recent phenomenon which only began to emerge in the 1880s. This unit of study analyses the development of the large managerial firm since the 1880s, distinguishing between firms in standardised mass production industries and those in industries where technology has changed rapidly since the 1970s. It also distinguishes between managerial firms that emerged in the West with those in Japan. In analysing the attributes of managerial firms in different regimes, the unit focuses on two main issues: the nature of corporate competencies, and the role of imperfect information within managerial firms and markets, alliances, and networks. The unit includes detailed analysis of case studies drawn from the USA, Australia, and Japan. |
