Institutional Migration and the Corporation
This chapter talks about the interplay between family, religion, and ruler—three key components of every premodern society, which was the major factor in shaping the pattern of migration of the various organizational forms. The interplay determined the resistance of regions and civilizations outside Europe to the importation and transplantation of the business corporation. It argues that sixteenth-century Europeans, particularly the Portuguese, did not design a good institutional framework for conducting Cape Route trade with Asia. Seventeenth-century Europeans, led by the Dutch and the English, designed an institutional framework that suited their environmental challenges well and facilitated long-distance trade between Europe and Asia. The chapter emphasizes that organizational factors determined the rise of English and Dutch Eurasian trade dominance in the seventeenth century—asserting instead that technology and violence had more determinative weight.
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