Work

Innovation in investment banking: the dynamics of control systems within the Chandlerian firm

Year: 2000

Type: article

Abstract: This paper extends the technological aspects of Chandler's 'Scale and Scope' framework from 19th-century manufacturing firms that processed physical materials, to a modern service firm that processes information. The intangible nature of information-intensive service provision means that scale and scope economies in investment banking are constrained more by regulations on risk-exposure than developments in production technologies. Profitability and corporate dynamics are therefore dependent on innovation in risk-control systems. Drawing on a case study, the paper shows that risk control systems undergo qualitative changes as they increase in size and complexity.

Source: Industrial and Corporate Change

DOI: 10.1093/icc/9.1.113

Author: P Nightingale

Language: English

Topic: Management and Organizational Studies

Subfield: Organizational Behavior and Human Resource Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: green

Funder: Economic and Social Research Council

OpenAlex ID: W2009167607

FWCI: 2.949

Cites:

Cited by: 30

Related to: 10