From Diaspora Traders to Shipping Tycoons: The Vagliano Bros.

This study traces the origins of the twentieth-century Greek shipping tycoons and their global business to the nineteenth-century Greek diaspora traders. It examines the distinct characteristics of a diaspora firm, which can be treated partially as a multinational or “free standing firm” with distinctive features. Based in the main European financial centers, diaspora traders were international operators who developed ethnic-religious networks with their own unofficial international market, enabling them to operate independently of the countries or states in which they were established. The Vagliano house is a prime example of a diaspora trading house that transformed itself into a major shipping and ship-management firm, paving the way for the global success of twentieth-century Greek-owned shipping. The Vagliano network integrated the Greek shipping sector into the international shipping production system by creating an institutional framework based on trust that minimized transaction costs and entrepreneurial risk and provided information flow.