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Innovation in investment banking: the dynamics of control systems within the Chandlerian firm.
journal contributionposted on 2023-06-07, 19:30 authored by Paul NightingalePaul Nightingale, R Poll
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.
JournalIndustrial and Corporate Change
PublisherIndustrial and Corporate Change
Department affiliated with
- SPRU - Science Policy Research Unit Publications
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