Preference Aggregation in Firms and Corporatist Organizations
The Enterprise Group as a Cellular Encompassing Organization
Bibliographic Data
| ID | 6231330 |
|---|---|
| Authors | Richard Jankowski (0000-0003-4230-5374, corresponding author) |
| Year | 1989 |
| Volume | 33 |
| Issue | 4 |
| Pages | 973 |
| Publication date | 1989-11-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | American Journal of Political Science (JOURNAL) |
| Journal identifiers | ISSN: 0092-5853 • E-ISSN: 1540-5907 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2111117 |
| OpenAlex | W2333470545 |
| Language | EN |
| Citations received | 5 |
| References cited | 20 |
Mancur Olson has introduced the concept of encompassing organizations to explain variation in economic growth rates among countries. Encompassing, as opposed to narrow special interest promote economic growth because they internalize externalities. I modify Olson's definition of encompassing organizations herein as a result of analyzing how the structure of business firms affects the formation of public policy. The Japanese enterprise groups are my paradigmatic example of cellular encompassing organizations, analogs of which are found in a surprisingly large number of countries: bank holding companies in Germany, diversified conglomerates in Netherlands and Sweden, and trading companies in Denmark. These cellular encompassing organizations are more likely than nationwide, encompassing organizations to promote efficient economic policies. Because Olson's encompassing organizations are, in practice, Schmitter's corporatist associations, the analysis has implications for all corporatist associations. Specifically, the structure of business firms can explain the greater stability of corporatist associations in countries where both cellular and nationwide corporatist organizations exist. Stability is enhanced because of the small number of individuals running cellular encompassing organizations. Hence, these organizations are better able to overcome the free rider problem that threatens large, nationwide organizations. Overall, cellular encompassing organizations promote both efficiency in public policies and greater institutional stability
Business · Economics · Externality · Microeconomics · Preference · Banking stability, regulation, efficiency · Corporate Finance and Governance · Economic theories and models
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| Unique citing works | 5 |
|---|---|
| Citations per year | 0,15 |
| Citation span | 1993 - 2013 (21) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 5 |