“…In his pioneering study “The Visible Hand: The Managerial Revolution in American Business,” Alfred D. Chandler (1977) traced the emergence of the modern multiunit business enterprise that fundamentally transformed the U.S. economy in the decades between 1840 and 1920. He argued that these hierarchically organized enterprises resulted from a trend that gave administrative coordination an advantage over market mechanisms in securing greater productivity, lower costs, and higher profits (for a transaction cost perspective on this issue, see, for example, da Silva & Saes, 2007; Ouchi, 1980; Williamson, 1991 and, for a critical view, Simon, 1995). Although Chandler focused on organizational rather than technical development, his study indicated that the economic advantage of administrative coordination depended on technological innovations, above all the railroad, the telegraph, and the telephone.…”