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Varieties of Hierarchies and Markets: An Introduction


  • Hamilton, Gary G
  • Feenstra, Robert C


The paper presents both a theoretical and an empirical argument that the concept of hierarchy needs to be reconceptualized. In our theoretical discussion we develop a synthesis between Coase's and Williamson's conception of a market/hierarchy dichotomy and Weber's distinction between economic power and authority. We hold that the authoritative aspects of hierarchies, especially within networks of firms, have independent effects on the formation of market economies. We empirically demonstrate the relevance of this reconceptualization in an analysis of the economies of South Korea and Taiwan. With these cases, we show that two different types of authoritative interfirm networks, one vertically and the other horizontally arranged, substantially shape the performance of these economies. Copyright 1995 by Oxford University Press.

Suggested Citation

  • Hamilton, Gary G & Feenstra, Robert C, 1995. "Varieties of Hierarchies and Markets: An Introduction," Industrial and Corporate Change, Oxford University Press, vol. 4(1), pages 51-91.
  • Handle: RePEc:oup:indcch:v:4:y:1995:i:1:p:51-91

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    References listed on IDEAS

    1. Teece, David J, 1993. "The Dynamics of Industrial Capitalism: Perspectives on Alfred Chandler's Scale and Scope," Journal of Economic Literature, American Economic Association, vol. 31(1), pages 199-225, March.
    2. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters,in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87 World Scientific Publishing Co. Pte. Ltd..
    3. Dosi Giovanni & Gambardella Alfonso & Grazzi Marco & Orsenigo Luigi, 2008. "Technological Revolutions and the Evolution of Industrial Structures: Assessing the Impact of New Technologies upon the Size and Boundaries of Firms," Capitalism and Society, De Gruyter, vol. 3(1), pages 1-49, June.
    4. Richard N. Langlois, 2003. "The vanishing hand: the changing dynamics of industrial capitalism," Industrial and Corporate Change, Oxford University Press, vol. 12(2), pages 351-385, April.
    5. David C. Mowery, 1995. "The Boundaries of the U.S. Firm in R&D," NBER Chapters,in: Coordination and Information: Historical Perspectives on the Organization of Enterprise, pages 147-182 National Bureau of Economic Research, Inc.
    6. Chandler, Alfred D., 1973. "Decision Making and Modern Institutional Change," The Journal of Economic History, Cambridge University Press, vol. 33(01), pages 1-15, March.
    7. Chandler, Alfred D., 1965. "The Railroads: Pioneers in Modern Corporate Management," Business History Review, Cambridge University Press, vol. 39(01), pages 16-40, March.
    8. Nelson, Richard R., 1990. "Capitalism as an engine of progress," Research Policy, Elsevier, vol. 19(3), pages 193-214, June.
    9. David, Paul A & Wright, Gavin, 1997. "Increasing Returns and the Genesis of American Resource Abundance," Industrial and Corporate Change, Oxford University Press, vol. 6(2), pages 203-245, March.
    10. Nelson, Richard R., 2008. "What enables rapid economic progress: What are the needed institutions," Research Policy, Elsevier, vol. 37(1), pages 1-11, February.
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    Cited by:

    1. Berkowitz, Daniel & Pistor, Katharina & Richard, Jean-Francois, 2003. "Economic development, legality, and the transplant effect," European Economic Review, Elsevier, vol. 47(1), pages 165-195, February.
    2. Rakesh Basant & Pankaj Chandra & Lynn Mytelka, 2001. "Inter-Firm Linkages and Development of Capabilities in the Indian Telecom Software Sector," Economics Study Area Working Papers 14, East-West Center, Economics Study Area.
    3. Nicola Lacetera, 2001. "Corporate Governance and the Governance of Innovation: The Case of Pharmaceutical Industry," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 5(1), pages 29-59, March.
    4. Robert C. Feenstra & Tzu-Han Yang & Gary G. Hamilton, "undated". "Business Groups And Trade In East Asia: Part 2, Product Variety," Department of Economics 96-14, California Davis - Department of Economics.
    5. Lee, Keun & Kim, Ji Youn & Lee, Oonkyu, 2010. "Long-term evolution of the firm value and behavior of business groups: Korean chaebols between weak premium, strong discount, and strong premium," Journal of the Japanese and International Economies, Elsevier, vol. 24(3), pages 412-440, September.
    6. Daphne W. Yiu & Yuan Lu & Garry D. Bruton & Robert E. Hoskisson, 2007. "Business Groups: An Integrated Model to Focus Future Research," Journal of Management Studies, Wiley Blackwell, vol. 44(8), pages 1551-1579, December.
    7. Richter, Rudolf, 2001. "New economic sociology and new institutional economics," MPRA Paper 4747, University Library of Munich, Germany.

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