From Firm to Networked Systems
Thomas Parke Hughes · The Business History Review · 2005
Because of Alfred D. Chandler Jr.'s widely influential books and articles, historians of management and of business have often taken a firm, especially a manufacturing firm, as their unit of analysis. Despite its usefulness as an organizing concept, the firm-based approach does not take into consideration the management of networked systems, which have spread widely and posed major managerial challenges in recent decades. In the following essay, I shall compare the firm and the networked-systems approaches, but first I should stress that I am not dealing with networked systems in general, which are numerous and vary greatly in form. My attention, instead, is focused upon networked electric-power systems.