Cultural variation in the theory of the firm
This paper presents a model of the firm that includes the possibility of firm and employee on-the-job decision making based on alternatives to profit and utility maximization. Such alternatives are relevant and significant when explaining firm activity in cultural environments in which self-interest is not considered to be a primary force driving human behavior. Three types of firms are defined and their properties are compared: the Western firm, the Japanese firm, and the clan. The third is a combination of the first two.
Volume (Year): 28 (2006)
Issue (Month): 2 (January)
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