When monetary profit maximization does not rule: historical analysis of English Quakers and the role of religious institutional logic
ISSN: 1751-1348
Article publication date: 22 March 2023
Issue publication date: 21 November 2023
Abstract
Purpose
This paper examines the limitations on monetary profit maximization assumption in Quaker businesses, historically one of England's most successful set of business people. This view challenges the central theoretical assumptions of management and strategic entrepreneurship by demonstrating the influence of religious institutional logic over the profit maximization drive in business.
Design/methodology/approach
Using a historical analysis of Quaker religious institutional logic, the authors demonstrate how Quakers’ religious logic of simplicity in lifestyle and equality of all people led, in turn, to actions by Quaker businesses that limited the monetary profit maximizing for their businesses. Such actions are consistent with the Quakers’ belief that linked their business activities to their religious beliefs.
Findings
The present analysis shows that English Quakers had specific beliefs, enforced by the group’s willingness to expel members that limited monetary profit maximization among Quaker businesses. Thus, the authors challenge the typical assumptions of business scholars by demonstrating that business entities can succeed economically even when they do not embrace profit maximization as their core element. This paradoxical finding has the potential to significantly expand management and strategic entrepreneurship theory.
Originality/value
The authors discuss how religious logic can replace profit maximization as a foundation for business. This insight enriches not only the understanding of business but also of religious institutional logic. Finally, the authors address the call for greater use of historical analysis in the management literature.
Keywords
Acknowledgements
The authors would like to thank the reviewers for their valuable opinions that helped improve this paper. And also, the following scholars comment on earlier versions of this paper are acknowledged and appreciated: Ben Pink Dandelion from the Centre for Research in Quaker Studies, Woodbrooke Quaker Study Centre/University of Birmingham/Lancaster University, Tom Hamm from Earlham University, Mike Hitt from Texas A&M, Han Jiang from Tulane University, Barbara J. McClure from Brite Divinity School, Michael Rowlinson from Exeter University, Nicola Sleapwood/University of Birmingham, Richard Turnbull from the Centre for Enterprise, Markets and Ethics (Oxford), Jim Walsh from the University of Michigan, Margaret White from Oklahoma State University and David Ahlstrom from the Chinese University of Hong Kong.
Declarations of interest: none.
Citation
Bruton, G.D. and Sheng, N. (2023), "When monetary profit maximization does not rule: historical analysis of English Quakers and the role of religious institutional logic", Journal of Management History, Vol. 29 No. 4, pp. 502-517. https://doi.org/10.1108/JMH-07-2022-0027
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited