Business, College of


Date of this Version

March 1992


Published by Journal of Economic Issues Vol. XXVI, No. 1, March 1992. Copyright © 1992 Journal of Economic Issues. Used by permission.


This article is built upon the legacy from three of Thorstein Veblen's theories. The first may be best summarized by Martin Gellen who wrote:
Veblen was the first economist to recognize that management was an important factor of production in modem business enterprise, and nowhere was this more evident than in the rise of the large corporation. ... These new enterprises took over from the market the coordination and integration of the flow of goods and services all the way from the production of the raw materials through the several processes of production to the sale of the ultimate consumer. ... Veblen perceived correctly that administered production by means of large corporations would eventually spread throughout most of the economy [Gellen 1984, pp. 82-83].

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