IDEAS home Printed from https://ideas.repec.org/a/kap/jmgtgv/v5y2001i3p331-351.html
   My bibliography  Save this article

The Nature of the Firm – Static versus Developmental Interpretations

Author

Listed:
  • Klaus Rathe
  • Ulrich Witt

Abstract

Different from the prevailing staticperspective in the theory of the firm, adevelopmental approach focuses on processes ofchange in firm organizations (rather than onstates and their properties). Although businesshistory provides ample evidence for systematicorganizational change, few contributions in theliterature take a developmental viewpoint andoffer explanations for the endogenous processesof change. To contrast static and developmentalinterpretations, the paper identifies threeparadigmatic questions for each of them. Theircomparison sheds some new light on the theoryof the firm and draws attention to theneglected entrepreneurial role inorganizational change. Copyright Kluwer Academic Publishers 2001

Suggested Citation

  • Klaus Rathe & Ulrich Witt, 2001. "The Nature of the Firm – Static versus Developmental Interpretations," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 5(3), pages 331-351, September.
    • Handle: RePEc:kap:jmgtgv:v:5:y:2001:i:3:p:331-351
    DOI: 10.1023/A:1014051112548
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/A:1014051112548
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/A:1014051112548?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Anna Grandori, 2000. "Conjectures for a New Research Agenda on Governance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 4(1), pages 1-9, March.
    2. Giovanni Dosi & Richard R. Nelson, 2000. "An Introduction to Evolutionary Theories in Economics," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 11, pages 327-346, Edward Elgar Publishing.
    3. Robert E. Quinn & Kim Cameron, 1983. "Organizational Life Cycles and Shifting Criteria of Effectiveness: Some Preliminary Evidence," Management Science, INFORMS, vol. 29(1), pages 33-51, January.
    4. 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.
    5. Foss, Nicolai J. (ed.), 1997. "Resources, Firms, and Strategies: A Reader in the Resource-Based Perspective," OUP Catalogue, Oxford University Press, number 9780198781790, Decembrie.
    6. Richard R. Nelson, 1991. "Why do firms differ, and how does it matter?," Strategic Management Journal, Wiley Blackwell, vol. 12(S2), pages 61-74, December.
    7. Witt, Ulrich, 2000. "Changing Cognitive Frames--Changing Organizational Forms: An Entrepreneurial Theory of Organizational Development," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(4), pages 733-755, December.
    8. Mueller, Dennis C, 1972. "A Life Cycle Theory of the Firm," Journal of Industrial Economics, Wiley Blackwell, vol. 20(3), pages 199-219, July.
    9. Alfred D. Chandler, 1969. "Strategy and Structure: Chapters in the History of the American Industrial Enterprise," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262530090, December.
    10. Fransman, Martin, 1999. "Visions of Innovation: The Firm and Japan," OUP Catalogue, Oxford University Press, number 9780198289357, Decembrie.
    11. Ulrich Witt (ed.), 1993. "Evolutionary Economics," Books, Edward Elgar Publishing, number 595.
    12. Langlois,Richard, 1989. "Economics as a Process," Cambridge Books, Cambridge University Press, number 9780521378598, Enero-Abr.
    13. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 1, number 1.
    14. Alfred D. Chandler, 1992. "Organizational Capabilities and the Economic History of the Industrial Enterprise," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 79-100, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Murmann Johann Peter & Korn Jenny & Worch Hagen, 2014. "How Fast Can Firms Grow?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(2-3), pages 210-233, April.
    2. Georg Schwesinger, 2013. "Natural and Economic Selection - Lessons from the Evo-Devo and Multilevel Selection Debate," Jena Economics Research Papers 2013-014, Friedrich-Schiller-University Jena.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stoelhorst, J. W. & van Raaij, Erik M., 2004. "On explaining performance differentials: Marketing and the managerial theory of the firm," Journal of Business Research, Elsevier, vol. 57(5), pages 462-477, May.
    2. Weiß, Christian, 2010. "The Ownership Concentration of Firms: Three Essays on the Determinants and Effects," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 30247.
    3. Volker Mahnke, 2001. "The Process of Vertical Dis-Integration: An Evolutionary Perspective on Outsourcing," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 5(3), pages 353-379, September.
    4. Kapás, Judit, 1999. "Szükséges-e többdimenziós vállalatelmélet?. Az evolúciós vállalatelmélet kritikai összefoglalása [Is a multi-dimensional theory of the firm necessary?. A critical summary of the evolutionary theory," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 823-841.
    5. Jackie Krafft, 2003. "Vertical structure of the industry and competition: an analysis of the info-communications industry," Post-Print hal-00203652, HAL.
    6. Dosi, Giovanni & Nelson, Richard R., 2010. "Technical Change and Industrial Dynamics as Evolutionary Processes," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 51-127, Elsevier.
    7. John Finch & Nicola Dinnei, 2001. "Capturing Knightian Advantages of Large Business Organisations Through Group Decision-making Processes," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(3), pages 379-403.
    8. Fritz Rahmeyer, 2006. "From a Routine-Based to a Knowledge-Based View: Towards an Evolutionary Theory of the Firm," Discussion Paper Series 283, Universitaet Augsburg, Institute for Economics.
    9. Baarda, James R., 2003. "Current Law & Economics Debates: Tools for Assessing Fundamental Cooperative Changes?," 2003 Annual Meeting, October 29 31802, NCERA-194 Research on Cooperatives.
    10. Nishant B. Labhane, 2019. "Dividend Policy Decisions in India: Standalone Versus Business Group-Affiliated Firms," Global Business Review, International Management Institute, vol. 20(1), pages 133-150, February.
    11. Agnieszka Kuś & Dorota Grego-Planer, 2021. "A Model of Innovation Activity in Small Enterprises in the Context of Selected Financial Factors: The Example of the Renewable Energy Sector," Energies, MDPI, vol. 14(10), pages 1-17, May.
    12. Gamal Atallah, 2002. "Production Technology, Information Technology, and Vertical Integration Under Asymmetric Information," Working Papers 0203EClassification-JEL: , University of Ottawa, Department of Economics.
    13. Kim, Sukkoo, 1999. "The Rise of Multiunit Firms in U.S. Manufacturing," Explorations in Economic History, Elsevier, vol. 36(4), pages 360-386, October.
    14. Kerstin Puschke, 2009. "Task assignment and organizational form," Journal of Economics, Springer, vol. 96(2), pages 149-168, March.
    15. Stavros Ioannides, 1999. "Towards an Austrian Perspective on the Firm," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 11(1), pages 77-97, January.
    16. Christos Pitelis, 2022. "Big tech and platform-enabled multinational corporate capital(ism): the socialisation of capital, and the private appropriation of social value," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 46(6), pages 1243-1268.
    17. Martin, Ben R. & Steinmueller, W. Edward, 2025. "Richard R Nelson (1930–2025): Evolutionary economist and innovation scholar," Research Policy, Elsevier, vol. 54(4).
    18. Sang-Lyul Ryu & Jayoun Won, 2022. "The Value Relevance of Operational Innovation: Insights from the Perspective of Firm Life Cycle," Sustainability, MDPI, vol. 14(4), pages 1-18, February.
    19. Henriques, Irene & Sadorsky, Perry, 2011. "The effect of oil price volatility on strategic investment," Energy Economics, Elsevier, vol. 33(1), pages 79-87, January.
    20. Dorra Yahiaoui & Hela Chebbi, 2008. "The limits of top-down transfers within a multinational corporation: the need for knowledge hybridization," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 85-104.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jmgtgv:v:5:y:2001:i:3:p:331-351. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.