Elements of a Cognitive Theory of the Firm
AbstractThis paper presents elements of a cognitive theory of the firm, from the perspective of embodied cognition.It entails the notion of 'cognitive distance' between people that have developed their cognition in different environments. This yields the notion of the firm as a 'focusing device', to reduce cognitive distance for the sake of efficient collaboration and for the resolution of conflict.This focus yields organisational myopia, which needs to be compensated by outside relations, between firms, at some cognitive distance.Next, on the basis of principles derived from cognitive science, this paper tries to resolve the problem of combining structural stability and change, which in economics is known as the problem of combining exploitation and exploration.This provides the basis for a theory of learning and innovation in organisations and economies.The theory is elaborated on the basis of the notion of 'scripts', also derived from cognitive science.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2005-46.
Date of creation: 2005
Date of revision:
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Web page: http://center.uvt.nl
organizational learning; theory of the firm;
Find related papers by JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-04-09 (All new papers)
- NEP-BEC-2005-04-09 (Business Economics)
- NEP-CBE-2005-04-09 (Cognitive & Behavioural Economics)
- NEP-INO-2005-04-09 (Innovation)
- NEP-MIC-2005-04-09 (Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wuyts, Stefan & Colombo, Massimo G. & Dutta, Shantanu & Nooteboom, Bart, 2005.
"Empirical tests of optimal cognitive distance,"
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- Wuyts, S.H.K. & Colombo, M. & Dutta, S. & Nooteboom, B., 2005. "Empirical Tests of Optimal Cognitive Distance," Discussion Paper 2005-45, Tilburg University, Center for Economic Research.
- Wuyts, S.H.K. & Colombo, M.G. & Dutta, S. & Nooteboom, B., 2004. "Empirical Tests Of Optimal Cognitive Distance," ERIM Report Series Research in Management ERS-2004-007-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
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- Colombo, Massimo G. & Garrone, Paola, 1998. "Common carriers' entry into multimedia services," Information Economics and Policy, Elsevier, vol. 10(1), pages 77-105, March.
- Bart Nooteboom, 2007.
"Methodological interactionism: Theory and application to the firm and to the building of trust,"
The Review of Austrian Economics,
Springer, vol. 20(2), pages 137-153, September.
- Nooteboom, B., 2007. "Methodological interactionism: Theory and application to the firm and to the building of trust," Open Access publications from Tilburg University urn:nbn:nl:ui:12-284231, Tilburg University.
- Nooteboom, B., 2007. "Methodological Interactionism: Theory and Application to the Firm and to the Building of Trust," Discussion Paper 2007-5, Tilburg University, Center for Economic Research.
- Cayla, David, 2008. "Learning, Rationality and Identity Building - From Simon To Varela," Economics Papers from University Paris Dauphine 123456789/5005, Paris Dauphine University.
- repec:hal:wpaper:halshs-00340832 is not listed on IDEAS
- Bart Nooteboom, 2008. "In what sense do firms evolve?," Papers on Economics and Evolution 2008-12, Philipps University Marburg, Department of Geography.
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