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The Nature of the Firm – Static versus Developmental Interpretations

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  • Klaus Rathe

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  • Ulrich Witt

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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
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    References listed on IDEAS

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    1. Mueller, Dennis C, 1972. "A Life Cycle Theory of the Firm," Journal of Industrial Economics, Wiley Blackwell, vol. 20(3), pages 199-219, July.
    2. 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, January.
    3. Ulrich Witt (ed.), 1993. "Evolutionary Economics," Books, Edward Elgar Publishing, number 595.
    4. Dosi, Giovanni & Nelson, Richard R, 1994. "An Introduction to Evolutionary Theories in Economics," Journal of Evolutionary Economics, Springer, vol. 4(3), pages 153-172, September.
    5. Langlois,Richard, 1989. "Economics as a Process," Cambridge Books, Cambridge University Press, number 9780521378598, May.
    6. 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.
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    Cited by:

    1. Georg Schwesinger, 2013. "Natural and Economic Selection - Lessons from the Evo-Devo and Multilevel Selection Debate," Jena Economic Research Papers 2013-014, Friedrich-Schiller-University Jena.

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