“The Danger Threatening Representative Government” Speech (1897) http://www.wisconsinhistory.org/pdfs/lessons/EDU-SpeechTranscript-SpeechesLaFollette-DangerThreatening.pdf
Context: Since the birth of the Republic, indeed almost within the last generation, a new and powerful factor has taken its place in our business, financial and political world and is there exercising a tremendous influence. The existence of the corporation, as we have it with us today, was never dreamed of by the fathers…The corporation of today has invaded every department of business, and it’s powerful but invisible hand is felt in almost all activities of life. The effect of this change upon the American people is radical and rapid. The individual is fast disappearing as a business factor and in his stead is this new device, the modern corporation.
“This study partitions the total variance in rate of return among FTC Line of Business reporting units into industry factors (whatever their nature), time factors, factors associated with the corporate parent, and business-specific factors. Whereas Schmalensee (1985) reported that industry factors were the strongest, corporate and market share effects being extremely weak, this study distinguishes between stable and fluctuating effects and reaches markedly different conclusions. The data reveal negligible corporate effects, small stable industry effects, and very large stable business-unit effects. These results imply that the most important sources of economic rents are business-specific; industry membership is a much less important source and corporate parentage is quite unimportant.”
Source: "How Much Does Industry Matter?", 1991, p. 167; Abstract
Help us to complete the source, original and additional information
Richard Rumelt 25
American economist 1942Related quotes
Source: The Management of Innovation, 1961, p. 96, as cited in: Richard Whittington (2014), Corporate Strategies in Recession and Recovery, p. 40
1900s, First Annual Message to Congress (1901)
Context: The captains of industry who have driven the railway systems across this continent, who have built up our commerce, who have developed our manufactures, have on the whole done great good to our people. Without them the material development of which we are so justly proud could never have taken place. Moreover, we should recognize the immense importance of this material development of leaving as unhampered as is compatible with the public good the strong and forceful men upon whom the success of business operations inevitably rests. The slightest study of business conditions will satisfy anyone capable of forming a judgment that the personal equation is the most important factor in a business operation; that the business ability of the man at the head of any business concern, big or little, is usually the factor which fixes the gulf between striking success and hopeless failure.
Source: The Cambridge Encyclopedia of the English Language, 1987, p. 120
1920s, The Genius of America (1924)
Source: Common risk factors in the returns on stocks and bonds, 1993, p. 4-5