Enron and the California Energy Crisis: The Role of Networks in Enabling Organizational Corruption

Abstract

We provide an analytically structured history of Enron's involvement in the California energy crisis, exploring its emergence as a corrupt organization and its use of an interorganizational network to manipulate California's energy supply markets. We use this history to introduce the concept of network-enabled corruption, showing how corruption, even if primarily enacted by a single dominant organization, is often highly dependent on the support of other organizations. Specifically, we show how Enron combined resources from partner firms with its own capabilities, manipulating the energy market and capitalizing on the crisis. From a methodological point of view, our study emphasizes the growing importance of digital sources for historical research, drawing particularly on telephone and email records from the period to develop a rich, fly-on-the-wall understanding of a phenomenon that is otherwise hard to observe.

Publication DOI: https://doi.org/10.1017/S0007680521001008
Divisions: College of Business and Social Sciences > Aston Business School
Additional Information: © The President and Fellows of Harvard College 2022. This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
Uncontrolled Keywords: Organizational corruption,analytically structured history,digital sources,energy supply industry,organizational misconduct,Business and International Management,Business, Management and Accounting (miscellaneous),History
Publication ISSN: 2044-768X
Last Modified: 20 May 2024 07:38
Date Deposited: 22 Feb 2022 16:40
Full Text Link:
Related URLs: https://www.cam ... 03F531DD768D3F4 (Publisher URL)
PURE Output Type: Article
Published Date: 2022-01-12
Published Online Date: 2021-12-31
Accepted Date: 2021-12-01
Authors: Nix, Adam
Decker, Stephanie (ORCID Profile 0000-0003-0547-9594)
Wolf, Carola

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