Cliques and Capitalism (PDF)

DEBORAH DE LANGE Assistant Professor of Strategy and Business, Sawyer Business School, Suffolk University, UK.

"The financial crisis has brought about a great deal of reflection, about the efficiency of markets, the effectiveness of governments in smoothing economic cycles, and the ability and willingness of profit-oriented actors to police themselves. Cliques and Capitalism contributes to this reflection by thoughtfully critiquing the American model of corporate governance: Did it contribute to the crisis? Has it outlived its usefulness? Is the worst yet to come? de Lange suggests yes, yes, and perhaps yes. Drawing on theory and a variety of practices from around the world, she also proposes a 'sustainable' model of corporate governance that might avert future problems. But can we get from here to there?" - Olav Sorenson, Professor, Yale School of Management

''Too big to fail' became the mantra of the recent financial crises on Wall Street. But de Lange's analysis in this book shows that the problems go much deeper. Using support from a variety of academic theories, and grounding her work in the practical realities of toady's model of the firm, she points out that American capitalism has systemic problems that won't go away easily. She is not afraid to gore some sacred cows, most notably that the democratization of markets is a myth as real power is held by what she calls a 'stock market bureaucracy.' And she is not afraid to offer solutions to this problem by outlining a sustainable model of the firm that is stakeholder and network oriented. This book is a valuable contribution for those that care about an American capitalism that is sustainable for the long term.' - Andrew J. Hoffman, Holcim (US) Professor of Sustainable Enterprise, University of Michigan

"This book represents a masterful weaving together of theory and practice, international management and strategic management, corporate governance, network analysis and sustainability, as well as case studies. Readers - researchers, students, and practitioners - interested in understanding the modern