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The knowledge-Based Approach and Organizational Economics: How Much Do They Really Differ? And How Does It Matter?

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  • Kirsten Foss
  • Nicolai Foss

Abstract

The knowledge-based approach and organizational economics are usually seen as offering opposing approaches to the explanation of organizational phenomena. Relying on a taxonomic framework from the philosophy of science, we argue that many differences between these approaches are more apparent than real. Thus, many insights associated with the knowledge-based approach can be reduced to organizational economics insights. However, not everything can be thus reduced. There is an important residual, comprising differential cognition, learning, and bounded rationality.

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Paper provided by Department of Industrial Economics and Strategy, Copenhagen Business School in its series IVS/CBS Working Papers with number 99-1.

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Handle: RePEc:ivs:iivswp:99-1

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Web page: http://www.cbs.dk/forskning_viden/fakulteter_institutter_centre/institutter/oekonomi/ivs/

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Keywords: economic organization; firm strategy;

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