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Theories of the Firm and the Relationship between Different Perspectives on the Division of Labour

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Russell Smyth, Dic Lo

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Abstract

This paper explores the tension between the organisational learning, market and hierarchies rationales for the firm. It is not clear, from the organisational learning and market-hierarchies literatures, what role exists for the different approaches. The paper suggests that this reflects the fact that each paradigm is premised on a particular notion of the division of labour but, at the same time, does not recognise that the division of labour is multifaceted. The paper suggests one possible approach to reconcile the various rationales for the firm. To do this, the different paradigms are placed in the context of different growth patterns that support different conceptions of the division of labour.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Review of Political Economy.

Volume (Year): 12 (2000)
Issue (Month): 3 (July)
Pages: 333-349
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:3:p:333-349

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    Other versions:
  4. Yang, Xiaokai & Ng, Yew-Kwang, 1995. "Theory of the firm and structure of residual rights," Journal of Economic Behavior & Organization, Elsevier, vol. 26(1), pages 107-128, January. [Downloadable!] (restricted)
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  9. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October. [Downloadable!] (restricted)
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  20. Bowles, Samuel & Gintis, Herbert, 1993. "The Revenge of Homo Economicus: Contested Exchange and the Revival of Political Economy," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 83-102, Winter. [Downloadable!] (restricted)
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    Other versions:
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