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Path dependence, change and the emergence of the first joint-stock companies.
- Source :
- Business History; Jun2011, Vol. 53 Issue 3, p363-374, 12p, 1 Black and White Photograph
- Publication Year :
- 2011
-
Abstract
- This paper presents a model of path dependence and change and focuses on the gaining of new institutional knowledge. The main thesis is that in 'extraordinary' historical situations the possibility of change increases as a result of external pressure and successful adaptation to it. The model is tested applying it to the case study of seventeenth-century United Provinces (Dutch Republic). Such a situation existed in the sixteenth-seventeenth-century United Provinces, due to their uprising against Spanish rule. Because there existed no strong central authority, the decision-makers had to develop new institutions in order to successfully capture the lucrative spice trade from their enemies. The solution was the joint-stock company, which, through the phases of a continuous decision-making procedure, developed into the 'permanent' Dutch East India Company (VOC) in parallel also to the development of the Amsterdam Stock Exchange. [ABSTRACT FROM AUTHOR]
- Subjects :
- STOCK companies
PATH dependence (Social sciences)
HISTORY of the Netherlands
Subjects
Details
- Language :
- English
- ISSN :
- 00076791
- Volume :
- 53
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- Business History
- Publication Type :
- Academic Journal
- Accession number :
- 61460220
- Full Text :
- https://doi.org/10.1080/00076791.2011.565513