Institutions and the Evolution of Modern Business: Introduction

For more than 30 years a symbiosis has developed between the ‘new institutionalists’ and business historians, which stems from synergies in the interests of both groups. The central questions posed by Coase and Williamson, of why firms exist and grow, have found echoes in the historical work of Chandler on the forces leading to the rise of big business first in the United States and then in Europe. ¹ Conversely Williamson used Chandler's historical evidence to give foundation to his development of transaction cost economics. ²