Capabilities and Coherence in Firms and Markets
AbstractThere is a tradition in the literature of transaction-cost economics that seeks to explain the existence of firms in terms of the inherent superiority of firms as an organizational form in some circumstances. The problem with these arguments is that they tend to contrast real firms with an idealized -- and extremely narrow -- picture of the market. This paper draws on the evolutionary theory of the firm in economics and the resource-based view of the firm in strategic management in order to elucidate the concepts of firm and market. Its central thesis is that firms do not exist because they are inherently superior to markets (that is, to markets at their best). Rather, firms exist because they are superior to particular markets at particular times and places. The explanation for the existence of firms is thus a historically contingent one in many respects.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 9309003.
Date of creation: 17 Sep 1993
Date of revision:
Note: This paper is a Word for Windows document. The file is in binary form and must be downloaded with a binary transfer.
Contact details of provider:
Web page: http://18.104.22.168
Find related papers by JEL classification:
- L - Industrial Organization
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Takehiko Isobe & Shige Makino & David Montgomery, 2008. "Technological capabilities and firm performance: The case of small manufacturing firms in Japan," Asia Pacific Journal of Management, Springer, vol. 25(3), pages 413-428, September.
- Montgomery, David B. & Isobe, Takehiko & Makino, Shige & Lee, Kong Chian, 2007. "Technological Capabilities and Firm Performance: The Case of Small Manufacturing Firms in Japan," Research Papers 1980, Stanford University, Graduate School of Business.
- Pursey P.M.A.R. Heugens, 2004. "A Neo-Weberian Theory of the Firm," Working Papers 04-02, Utrecht School of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.