Acknowledgments ix
CHAPTER 1: Introduction 1
Some Central Concepts 3
Density and concentration 3
Size and small-firm networks 4
Organizations or capitalism 6
Noneconomic organizations 7
Power 8
Culture and other shapers of society 9
Organizations as the independent variable 10
What Do Organizations Do? 12
What Kind of Organizations? 16
Alternative Theories 17
Conclusion 19
CHAPTER 2: Preparing the Ground 22
Communities, Markets, Hierarchies, and Networks 22
Community 23
The market direction 25
Toward hierarchy and networks 28
The Legal Revolution that Launched Organizations 31
Fear of corporations 33
What organizations need to be able to do 35
Making capitalism corporate 36
Capitalism to Corporate Capitalism 40
Lawyers: "The Shock Troops of Capitalism" 43
CHAPTER 3: Toward Hierarchy: The Mills of Manayunk 48
Getting the Factory Going: The Role of Labor Control 48
The first mill-a workhouse 50
To mechanize or not? 51
Social Consequences 53
Labor Policies and Strikes 58
Organizations and Religion 60
From Working Classes to a Working Class 61
The politics of class 62
Conclusion 63
CHAPTER 4: Toward Hierarchy and Networks 65
Lowell and the Boston Associates 65
Wage dependence and labor control 65
Lowell I: The benign phase 67
Profits and market control 69
Lowell II: The exploitive phase 70
Explaining the First Modern Business 75
Structural constraints 77
The Slater Model 79
Toward Networks with the Philadelphia Model 81
When capital counts 82
Philadelphia's large mills 84
Size and technology 86
Networks of Firms 88
Labor conflict 90
Externalities 90
The Decline of Textile Firms 92
Summary 94
CHAPTER 5: Railroads, the Second Big Business 96
Railroads in France, Britain, and the United States: The Organizational Logic 102
France 104
Britain 108
The importance of the railroads 111
Why Were the Railroads Unregulated and Privatized? 113
The efficiency argument 115
Historical institutionalism 117
Historical institutionalism assessed 122
The neoinstitutionalist account 123
The organization interest account 127
The details 129
Self-interested opposition to the railroads 139
Corruption Observed but Not Interpreted 141
Evidence from the public record, and the outcry 144
Scholars explain corruption 151
Summary and Conclusions 157
CHAPTER 6: The Organizational Imprinting 160
Making the Railroads Work 160
Divisionalization 161
Finance takes charge 162
Inevitable, or a chance path? 165
Contracting out 166
Leadership Style and Worker Welfare 173
Work in general 175
Nationalization and Centralization: The Final Spike 179
Organizational versus political interpretations 180
Where did the money come from? 183
Regionalization versus Nationalization 186
The debate over the ethos 187
A political or an organizational interpretation of the struggle? 192
Was Regionalism Viable? 194
Concentrating Capital and Power 196
The corporate form triumphs 197
Explaining the arrival of the corporate form 201
An organizational agency account 204
Summary and Conclusions 212
CHAPTER 7: Summary and Conclusions 217
Appendix Alternative Theories Where Organizations Are the Dependent Variable 229
Notes 237
Bibliography 243
Index 251
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