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In What Sense do Firms Evolve?

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  • Nooteboom Bart

    (Adelheidstraat 82, 2595 EE, the Hague, the Netherlands)

Abstract

Does evolutionary theory help, for a theory of the firm, or, more widely, a theory of organization? In this paper I argue that it does, to some but also limited extent. Evolutionary theories of economies, and of culture, have acquired considerable following, but have also been subject to considerable criticism. Most criticism has been aimed at inappropriate biological analogies, but recently it has been claimed that a ‘universal Darwinism’, purged of all such mistaken analogy, is both useful and viable. Why should we try to preserve evolutionary theory, and will such theory stand up to sustained critical analysis? How useful is it for theory of the firm? Evolutionary theory appears to be the most adequate theory around for solving the problem of agency and structure, avoiding both an overly rational, managerial ‘strategic choice’ view of organizations and a ‘contingency’ view of organizations as fully determined by their environment. Whether universal Darwinism stands up to critical analysis remains to be seen. Here, the focus is on evolutionary theory of organization. Use is made of a constructivist ‘embodied cognition’ view of cognition and of elements of a cognitive theory of the firm.

Suggested Citation

  • Nooteboom Bart, 2014. "In What Sense do Firms Evolve?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(2-3), pages 185-209, April.
    • Handle: RePEc:jns:jbstat:v:234:y:2014:i:2-3:p:185-209
    DOI: 10.1515/jbnst-2014-2-306
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    Cited by:

    1. Dhaoui, Elwardi, 2012. "Cognitive Capitalism: Foundations, Assessment and Evaluation of New Perspectives," MPRA Paper 63688, University Library of Munich, Germany.

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    More about this item

    Keywords

    Evolutionary economics; theory of the firm; industrial organization;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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