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Hybridizing the Emerging European Corporation: Danone, Hachette, and the Divisionalization Process in France during the 1970s

Published online by Cambridge University Press:  18 February 2015

Pierre-Antoine Dessaux  and
Jean-Philippe Mazaud
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Abstract

This article addresses the issue of the uses of the multidivisional form in the French context at the end of the 1960s and the beginning of the 1970s. Comparing two case studies, Danone and Hachette, it sheds light on specific experiences in two different industries, the food and the book industry, respectively, in order to contribute to the debate over the Chandlerian paradigm. These two cases show that the implementation of the M-form in European companies can neither be reduced to the necessary diffusion of a universal structure nor to managerial fashion. At first a matter of redistributing the power between the shareholders and the management, the M-form led to hybrid organizations with characteristics heavily dependent on intensive internal negotiations. These findings emphasize the potential diversity of the implementation of the M-form and of the relations between management and shareholders. Far from being linear, company trajectories then heavily depend on partial compromises.

Type
Articles
Information
Enterprise & Society , Volume 7 , Issue 2 , June 2006 , pp. 227 - 265
Copyright
Copyright © The Author(s) 2006. Published by Cambridge University Press on behalf of the Business History Conference. All rights reserved.

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