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Path dependence, change and the emergence of the first joint-stock companies

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  • Nicholas Kyriazis
  • Theodore Metaxas

Abstract

This paper presents a model of path dependence and change and focuses on the gaining of new institutional knowledge. The main thesis is that in 'extraordinary' historical situations the possibility of change increases as a result of external pressure and successful adaptation to it. The model is tested applying it to the case study of seventeenth-century United Provinces (Dutch Republic). Such a situation existed in the sixteenth-seventeenth-century United Provinces, due to their uprising against Spanish rule. Because there existed no strong central authority, the decision-makers had to develop new institutions in order to successfully capture the lucrative spice trade from their enemies. The solution was the joint-stock company, which, through the phases of a continuous decision-making procedure, developed into the 'permanent' Dutch East India Company (VOC) in parallel also to the development of the Amsterdam Stock Exchange.

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  • Nicholas Kyriazis & Theodore Metaxas, 2011. "Path dependence, change and the emergence of the first joint-stock companies," Business History, Taylor & Francis Journals, vol. 53(3), pages 363-374.
    • Handle: RePEc:taf:bushst:v:53:y:2011:i:3:p:363-374
    DOI: 10.1080/00076791.2011.565513
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    References listed on IDEAS

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    Cited by:

    1. Nicholas Kyriazis & Xenophon Paparrigopoulos, 2014. "War and democracy in ancient Greece," European Journal of Law and Economics, Springer, vol. 38(1), pages 163-183, August.
    2. Kyriazis, Nicholas & Metaxas, Theodore, 2012. "War for Profit: Macroculture, Corsairs and partnership companies," MPRA Paper 40926, University Library of Munich, Germany.
    3. Nadia Matringe, 2022. "Early inventory management practices in the foreign exchange market: Insights from sixteenth‐century Lyon," Economic History Review, Economic History Society, vol. 75(3), pages 739-778, August.
    4. Emmanouil Economou & Nicholas Kyriazis & Theodore Metaxas, 2015. "The institutional and economic foundations of regional proto-federations," Economics of Governance, Springer, vol. 16(3), pages 251-271, August.
    5. Nicholas Kyriazis & Theodore Metaxas & Emmanouil M. L. Economou, 2018. "War for profit: English corsairs, institutions and decentralised strategy," Defence and Peace Economics, Taylor & Francis Journals, vol. 29(3), pages 335-351, April.
    6. Amankwah-Amoah, Joseph & Durugbo, Christopher, 2016. "The rise and fall of technology companies: The evolutional phase model of ST-Ericsson's dissolution," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 21-33.
    7. Georgiou, Militiades N. & Kyriazis, Nicholas & Economou, Emmanouel/Marios/Lazaros, 2015. "Political Stability and Democratic Governance. A Panel Data Analysis," MPRA Paper 62978, University Library of Munich, Germany.
    8. Militiades N. Georgiou & Nicholas Kyriazis & Emmanouil M. L. Economou, 2015. "Democracy, Political Stability and Economic performance. A Panel Data Analysis," Journal of Risk & Control, Risk Market Journals, vol. 2(1), pages 1-18.
    9. Emmanouil M. L. Economou & Nicholas C. Kyriazis, 2015. "The First Globalized Economy: Privateers, Joint-Stock Companies, Commerce and the Rise of the United Provinces," International Journal of Social Science Research, Macrothink Institute, vol. 3(2), pages 86-106, September.
    10. Economou, Emmanouel/Marios/Lazaros & Kyriazis, Nicholas & Metaxas, Theodore, 2014. "Warfare at sea and profit: Corsairs, institutions and partnership companies," MPRA Paper 58985, University Library of Munich, Germany.

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