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Overlap of Organizations: Corporate Transorganization and Veblen's Thesis on Higher Education

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].