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A market-process approach to corporate coherence

Author

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  • Nicolai J Foss

    (Department of Industrial Economics and Strategy, Copenhagen Business School, Copenhagen, Denmark)

  • Jens Frøslev Christensen

    (Department of Industrial Economics and Strategy, Copenhagen Business School, Copenhagen, Denmark)

Abstract

We address the notion of corporate coherence recently made prominent by Teece et al. (1994. Understanding corporate coherence: theory and evidence. Journal of Economic Behavior and Organization 23 : 1-30). We argue that the literature is confused on the meaning of this notion (and similar notions) along a number of dimensions. Drawing on insights from market-process theories, we propose a dynamic understanding of corporate coherence, an understanding that involves the corporate capacity to strike a favorable balance between the production and exploitation of new knowledge. This argument is elaborated drawing on Austrian economics, evolutionary economics, and post-Marshallian economics. Copyright © 2001 John Wiley & Sons, Ltd.

Suggested Citation

  • Nicolai J Foss & Jens Frøslev Christensen, 2001. "A market-process approach to corporate coherence," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 22(4-5), pages 213-226.
    • Handle: RePEc:wly:mgtdec:v:22:y:2001:i:4-5:p:213-226
    DOI: 10.1002/mde.1012
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    References listed on IDEAS

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    Cited by:

    1. Jens Frøslev Christensen, 1998. "The Dynamics of the Diversified Corporation and the Role of Central Management of Technology," DRUID Working Papers 98-4, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    2. J. Krafft & J. -L. Ravix, 2008. "Corporate Governance And The Governance Of Knowledge: Rethinking The Relationship In Terms Of Corporate Coherence," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(1-2), pages 79-95.
    3. Michael Dietrich & Jackie Krafft & Jacques-Laurent Ravix, 2008. "Regulation and governance of the firm," Post-Print hal-00203479, HAL.
    4. Saras D. Sarasvathy & Nicholas Dew, 2013. "Without judgment: An empirically-based entrepreneurial theory of the firm," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 26(3), pages 277-296, September.
    5. Nicolai J. Foss & Peter G. Klein, 2010. "Austrian Economics and the Theory of the Firm," Chapters, in: Peter G. Klein & Michael E. Sykuta (ed.), The Elgar Companion to Transaction Cost Economics, chapter 27, Edward Elgar Publishing.
    6. Enrico Santarelli & Hien Thu Tran, 2016. "Diversification strategies and firm performance in Vietnam," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(1), pages 31-68, January.
    7. Peter Kariuki & Beatrice Elesani Ombaka & Paul Kiumbe Mburu, 2021. "Sustainability strategies and performance of public universities in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(7), pages 40-52, October.
    8. Karthik, D. & Upadhyayula, Rajesh, 2011. "Performance Implications of Diversification in Professional Service Firms: The Role of Synergies," IIMA Working Papers WP2011-01-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    9. Kristina Jespersen & Damiana Rigamonti & Morten Berg Jensen & Rune Bysted, 2018. "Analysis of SMEs partner proximity preferences for process innovation," Small Business Economics, Springer, vol. 51(4), pages 879-904, December.
    10. Stefano Valvano & Davide Vannoni, 2003. "Diversification Strategies and Corporate Coherence Evidence from Italian Leading Firms," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(1), pages 25-41, August.
    11. Yi-Chia Chiu & Hsien-Che Lai & Yi-Ching Liaw & Tai-Yu Lee, 2010. "Technological scope: diversified or specialized," Scientometrics, Springer;Akadémiai Kiadó, vol. 82(1), pages 37-58, January.
    12. Jackie Krafft & Jacques-Laurent Ravix, 2009. "The Governance of the Knowledge-Intensive Firm in an Industry Life Cycle Approach," Chapters, in: Mario Morroni (ed.), Corporate Governance, Organization and the Firm, chapter 3, Edward Elgar Publishing.
    13. Ioannis Ioannou, 2014. "When Do Spinouts Enhance Parent Firm Performance? Evidence from the U.S. Automobile Industry, 1890–1986," Organization Science, INFORMS, vol. 25(2), pages 529-551, April.
    14. Jackie Krafft & Jacques-Laurent Ravix, 2005. "The governance of innovative firms: an evolutionary approach," Post-Print hal-00203620, HAL.
    15. Walter E. Block, 2010. "Is There A Ph.D. Glut In Economics In Academia?," Romanian Economic Business Review, Romanian-American University, vol. 5(1), pages 9-26, March.
    16. Piaskowska, D., 2005. "Essays on firm growth and value creation," Other publications TiSEM 89053610-79c6-4c52-9d1c-6, Tilburg University, School of Economics and Management.

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