the Chandlerian model

The Chandlerian model, developed by economist Alfred Chandler, explains how large corporations grow by investing in management and organizational structures. It suggests that successful firms expand by building specialized departments, systems, and managerial practices, which improve efficiency and coordination. This growth in management capabilities enables these companies to undertake larger-scale operations, develop new products, and compete more effectively. In essence, the model highlights the importance of managerial innovation and organizational capability as key drivers of a company's expansion and success over time.