Chester Barnard revisited: spontaneous orders and the firm

That governance within the firm is deliberate, conscious and hierarchical, based on authority is considered almost axiomatic. Chester Barnard is cited as an early theorist of this view. In this short article we review Barnard's original theory of authority, his later work and his private correspondence with F. A. Hayek, Michael Polanyi, Bertrand de Jouvenal and others. We show that Barnard focused in his later thinking less on authority and more on ‘responsibility’ and on the spontaneous nature of coordination within the firm, argued for ‘invisible hand’ explanations of coordination within the firm and compared coordination within the firm to market coordination. We use this information to produce novel insights into the work of Chester Barnard and also to demonstrate that his insights into the inner workings of firms is still not completely understood or reflected in the literature on the firm.

Managing Collaborative Effort: How Simmelian Ties Advance Public Sector Networks

The research reported here is a structural analysis of the significance of ties to network leaders in securing the essential effort necessary to whole, goal-directed network functioning. Drawing on the work of Chester Barnard, we focus on one of Barnard’s three functions of the executive, securing essential effort and then examine the importance of certain network ties for securing effort in a goal-directed network. We specifically focus on Simmelian or mutual third-party ties to network leaders and the conditions under which those Simmelian ties are of greater significance for securing effort. Our study examines the Southern Alberta Child and Youth Network (SACYHN), a multisector publicly funded network that worked to facilitate interorganizational connections to improve child and youth health and well-being. Data were collected via an organizational questionnaire and elite interviews and were analyzed using Multiple Regression Quadratic Assignment Procedure (MRQAP). Implications are discussed for network management and leadership, for both theory and practice, focusing especially on the role of ties to network leaders in facilitating connections among member organizations working in different domains.