The commercialization thesis, the historical materialist thesis and the Protestant ethic thesis are three theories that have been put forward to explain the origin of capitalism. The commercialization thesis states that it began with a transformation from mercantile capitalism (the use of money to buy goods) to industrial capitalism (the production of goods for profit). Historical materialism looks at the social and economic conditions in Europe prior to the Industrial Revolution, arguing that these conditions led to changes in technology, which then enabled capitalists to increase their profits. Finally, the Protestant ethic thesis postulates that certain values associated with Protestant Christianity contributed to capitalistic behavior and ideas. All three theories provide explanations as to how capitalist relations of production became dominant; however they differ in terms of their emphasis on certain factors such as religious beliefs or technology.

The Commercialization Thesis maintains that industry and commerce were linked long before capitalism was established. This connection resulted from merchants finding new ways to make profits by replacing traditional forms of exchange like bartering with monetary systems. As a result, merchants were able to accumulate wealth more quickly than ever before. This new method gave rise to an increasingly competitive environment among traders who had access to larger amounts of resources leading ultimately lead them into joint stock companies – key institutions needed for developing a capitalistic society.