Two motors in corporate growth processes

Abstract

This paper advances the general structure of two motors in corporate growth processes. They are: the continuing growth motor, whichcomprises a process whereby growth produces more growth, and the co-evolution motor, relating the concomitant growth of parts and whole, such as firms (parts) and their industry (whole). The paper drew on Chandler´s “The Visible Hand” (1977) to derive the proposed motors. Chandler’s book was thoroughly examined within Mohr’s (1982) process-oriented perspective seeking to answer the question “what is Chandler’s theory on how and why did the modern business enterprise (MBE) appear and grow?” Four processes – MBE formation, MBE development, industryformation and industry development – were identified and described by means of chains of necessary relations (base on necessary conditions).Although endowed with less predictive power than causal relations (based on necessary and sufficient conditions), necessary relations are likely tobetter describe the complexity of social processes. Finally, the microcomputers industry growth was examined in the light of the proposed motors. The analysis revealed their adequacy to explain the emergence of modern industries, suggesting that the proposed motors are potentially transhistorical, contributing therefore to a general theory and to the management of corporate growth.