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Paper #049434 :: Biggart?s ?Charismatic Capitalism: Direct Selling Organizations?
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This paper reviews Nicole Biggart?s ?Charismatic Capitalism: Direct Selling Organizations? by comparing her theories to those of Max Weber.

Written in 2004; 1,425 words; 1 source; APA; $ 47.95

Paper Summary:

The paper explains that both Weber and Biggart have discussed the commercial market by studying the roles, relationships, and structure of economic organizations. The paper points out that Direct Selling Organizations or DSO, as Biggart sees them, is an evolution of the entrepreneurial process, which combines the structural elements of the hierarchy with American ethics based on the need to incorporate social relationships within the context of the organization. The paper states that the method by which goals are accomplished differ from a bureaucratic organization in that independent distributors work under guidelines set up by a charismatic leader.

From the Paper:

"The DSO relies on the on independent distributors to recruit new distributors who then choose the degree of participation they wish to contribute. This incorporates a sense (what Biggart calls an ?ideology?) of entrepreneurship that promotes profit through personal investment in the mission of the organization. To use Weber?s metaphor, members happily enter and exit a cage fortified by charisma. They do so by choice because it is profitable and, more so, because the organization reflects and promotes values in which they are invested. It?s not an organization as much as it is a way of life. The rules, policies and standards of the bureaucracy are replaced by "individualism, meritocracy, patriotism, religion, (and) community" (p. 10)."

Tags: cage control ethics leader entrepreneurship

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