“The basic insight of the finance conception was that such a firm could be more tightly controlled by strict accounting. This progression does not imply, however, that one conception of control caused the emergence of its successor. New conceptions of control evolved out of key interactions among firms and between firms and the state.”

—  Neil Fligstein

Source: The transformation of corporate control, 1993, p. 16

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Neil Fligstein40
American sociologist 1951

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“The power struggle within the firm determines which conception of control will dominate and how that conception will be translated into concrete strategies. The winners of this struggle will push the organization into a certain direction and maintain that direction as long as their strategies bring positive results.”

Neil Fligstein (1951) American sociologist

Source: The transformation of corporate control, 1993, p. 17

“Property rights, governance structures and rules of exchange are arenas in which modern states establish rules for economic actors. States provide stable and reliable conditions under which firms organize, compete, cooperate and exchange. The enforcement of the laws affects what conceptions of control can produce stable markets. There are political contests over the content of laws, their applicability to given firms and markets, and the extent and direction of state intervention into economy. Such laws are never neutral. They favor certain groups of firms.”

Neil Fligstein (1951) American sociologist

Source: Markets as politics: A political-cultural approach to market institutions, 1996, p. 657

“The main problem actors face is uncertainty caused by difficulties in finding suppliers and customers and in controlling their own firm.”

Neil Fligstein (1951) American sociologist

Source: The architecture of markets, 2001, p. 16

Gary Hamel photo

“If a top management team cannot clearly articulate the five or six fundamental industry trends that most threaten its firm's continued success, it is not in control of the firm's destiny.”

Gary Hamel (1954) American management expert

Source: Competing for the Future, 1996, p. 73

“A leading firm that controlled a large portion of the output of a given organizational field operated as a price setter. To set prices, the actors in that firm had to control their suppliers and marketing in order to increase their own efficiency and have the potential to cut off other firms from supplies or customers.”

Neil Fligstein (1951) American sociologist

Source: The transformation of corporate control, 1993, p. 89

“All large organizations have an internal power struggle over the goals and resources of the organization…. In the largest firms, there are two bases of control : formal ownership and authority. Those who own the firm control by virtue of ownership. Authority relations embedded in the organizational structure legitimate how managers can control organizations.”

Neil Fligstein (1951) American sociologist

Source: The transformation of corporate control, 1993, p. 10 ; As cited in: François L'Italien, BÉHÉMOTH CAPITAL. Contribution à une théorie dialectique de la financiarisation de la grande corporation. Université Laval, 2012. p. 147 (Many of the following quotes came from this source)

“This paper integrates elements from the theory of agency, the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. We define the concept of agency costs, show its relationship to the 'separation and control' issue, investigate the nature of the agency costs generated by the existence of debt and outside equity, demonstrate who bears the costs and why, and investigate the Pareto optimality of their existence. We also provide a new definition of the firm, and show how our analysis of the factors influencing the creation and issuance of debt and equity claims is a special case of the supply side of the completeness of markets problem.”

Michael Jensen (1939) American economist

Source: "Theory of the firm: Managerial behavior, agency costs and ownership structure", 1976, p. 305 Abstract

“I claim that the central goal of managers in the past hundred years has been to make sure their firms survived. To promote survival they proposed various forms of control, both inside and outside the firm. Internally, control was oriented to ensuring that organizational resources were deployed so that top management could be confident that their directives were being executed. Externally, this control was oriented toward establishing stable relations between competitors to promote the survival of their organizations.”

Neil Fligstein (1951) American sociologist

Source: The transformation of corporate control, 1993, p. 5

Ella Wheeler Wilcox photo

“There is no chance, no destiny, no fate,
Can circumvent or hinder or control
The firm resolve of a determined soul.”

Ella Wheeler Wilcox (1850–1919) American author and poet

"Will," included in Maurine: And Other Poems, p. 145 (1888). Often quoted by Nigerian drummer Babatunde Olatunji.
Poetry quotes, New Thought Pastels (1913)
Context: There is no chance, no destiny, no fate,
Can circumvent or hinder or control
The firm resolve of a determined soul.
Gifts count for nothing; will alone is great;
All things give way before it soon or late.
What obstacle can stay the mighty force
Of the sea seeking river in its course,
Or cause the ascending orb of day to wait?

“The finance conception of the modern corporation, which currently dominates, emphasizes control through the use of financial tools which measure performance according to profit rates. Product lines are evaluated on their short-run profitability and important management decisions are based on the potential profitability of each line. Firms are viewed as collections of assets earning differing rates of return, not as producers of given goods. The firm is not seen as being a member of only one industry. Consequently if the prospect of an industry in which it participates declines, the firm disinvests. The problem for management from this perspective is to maximize short-run rates of return by altering product mix, thereby increasing shareholder equity and keeping the stock price high”

Neil Fligstein (1951) American sociologist

Source: The transformation of corporate control, 1993, p. 15

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