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Organizations and Language Games

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  • Roger Koppl
  • Richard Langlois

Abstract

We borrow Wittgenstein's concept of ``languagegames'' to create a theory of action. Thelanguage-games framework integrates theeconomic model of rational maximizing and thesociological model of rule following. Languagegames are subject to a process of naturalselection. Strong competition creates a``tight'' evolutionary filter. When it does,agents are constrained to act as if they wererational. Traditional economic logic applies. When it does not, agents are free to chooseidiosyncratic actions. Sociologicalunderstanding is required. We combine thelanguage-games framework with the concept of``modular system.'' In a modular system, partsare grouped to minimize interaction betweengroups. The parts in one module interact withthose of another module only through relativelyformal ``interfaces.'' Large firms are modularsystems, and so is the larger social system,including the division of labor. Combining thelanguage-game framework with the idea ofmodular system helps us explain firm growth. Acharismatic leader founds an enterprise andplaces his interpretive framework in aprivileged position within it. The firm is nota modular system; it is not ``decomposable.'' Firm growth leads to a greater division oflabor within the enterprise and to a moremodular organization. Modularity helps thelarger enterprise function smoothly, even whenemployees have conflicting mental models. Success in transforming small firms to largefirms depends on finding the right modularstructure for the enterprise. Copyright Kluwer Academic Publishers 2001

Suggested Citation

  • Roger Koppl & Richard Langlois, 2001. "Organizations and Language Games," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 5(3), pages 287-305, September.
    • Handle: RePEc:kap:jmgtgv:v:5:y:2001:i:3:p:287-305
    DOI: 10.1023/A:1014098711639
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    References listed on IDEAS

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    1. Langlois, Richard N., 2002. "Modularity in technology and organization," Journal of Economic Behavior & Organization, Elsevier, vol. 49(1), pages 19-37, September.
    2. Roger Koppl, 2002. "Big Players and the Economic Theory of Expectations," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-62924-0, September.
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    5. Langlois, Richard N. & Robertson, Paul L., 1992. "Networks and innovation in a modular system: Lessons from the microcomputer and stereo component industries," Research Policy, Elsevier, vol. 21(4), pages 297-313, August.
    6. Koppl, Roger, 2000. "Fritz Machlup and Behavioralism," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(4), pages 595-622, December.
    7. Arthur T. Denzau & Douglass C. North, 1994. "Shared Mental Models: Ideologies and Institutions," Kyklos, Wiley Blackwell, vol. 47(1), pages 3-31, February.
    8. Richard N. Langlois, 1994. "Cognition and Capabilities: Opportunities Seized and Missed in the History of the Computer Industry," Industrial Organization 9406003, University Library of Munich, Germany.
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    2. Michael Taylor, 2010. "Clusters: A Mesmerising Mantra," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 101(3), pages 276-286, July.
    3. William F. Shughart & Diana W. Thomas & Michael D. Thomas, 2020. "Institutional Change and the Importance of Understanding Shared Mental Models," Kyklos, Wiley Blackwell, vol. 73(3), pages 371-391, August.
    4. Mário Gómez, 2009. "Risk, Uncertainty and Expectation as language game categories: - what we can still learn from Keynes," Working Papers Department of Economics 2009/14, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    5. Nicolas Jullien & Karine Roudaut, 2012. "Can Open Source projects succeed when the producers are not the users ? Lessons from the data processing field," Post-Print hal-01682500, HAL.
    6. J. -C. Spender, 2017. "BSchools and Their Business Models," Humanistic Management Journal, Springer, vol. 1(2), pages 187-204, April.
    7. James Lee Caton, 2019. "Creativity in a theory of entrepreneurship," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 8(4), pages 442-469, September.
    8. Roger G. Koppl, 2006. "The Science Game: An Experiment on Reducing errors in Forensic Science and Other Areas," Papers on Economics and Evolution 2006-09, Philipps University Marburg, Department of Geography.

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