The kinetics of capital formation and economic organisation
We examine the inseparability of capital formation and economic organisation in capitalist economic systems. Capital possesses a complex, multilevel (micro, meso, macro) structure that is always in the process of transformation. Levels of the capital structure are interdependent and interactive. Correspondingly, economic organisation at these various levels is not an independent entity in itself--it occurs as a by-product and structural aspect of capital formation. Rather than the transaction, our focal unit of analysis is a production notion: the capital combination that emanates from the kinetic organisation of material by human agency. We consider the behaviour of entrepreneurs as causal agents in specifying and appraising potential capital combinations, reorganising production and scrapping capital. Entrepreneurs' combinatorial actions often change existing materials to serve functions for which they were not originally designed, thereby changing capital structures and the shape and boundaries of economic organisation at different levels of economic complexity. Capital is created in a dynamic knowledge-generation process that depends on entrepreneurs' perceptions of gaps in the capital structure. Copyright The Author 2012. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved., Oxford University Press.
Volume (Year): 36 (2012)
Issue (Month): 4 ()
|Contact details of provider:|| Postal: |
Fax: 01865 267 985
Web page: http://www.cje.oupjournals.org/
|Order Information:||Web: http://www.oup.co.uk/journals|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lewis, Paul & Runde, Jochen, 2007. "Subjectivism, social structure and the possibility of socio-economic order: The case of Ludwig Lachmann," Journal of Economic Behavior & Organization, Elsevier, vol. 62(2), pages 167-186, February.
- repec:cup:cbooks:9780521862431 is not listed on IDEAS
- Richard N. Langlois & Nicolai J. Foss, 1996.
"Capabilities and Governance the Rebirth of Production in the Theory of Economic Organization,"
1996-02, University of Connecticut, Department of Economics.
- Langlois, Richard N & Foss, Nicolai J, 1999. "Capabilities and Governance: The Rebirth of Production in the Theory of Economic Organization," Kyklos, Wiley Blackwell, vol. 52(2), pages 201-18.
- Richard N. Langlois & Nicolai J. Foss, 1997. "Capabilities and Governance the Rebirth of Production in the Theory of Economic Organization," DRUID Working Papers 97-2, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Harper, David A. & Endres, Anthony M., 2010. "Capital as a layer cake: A systems approach to capital and its multi-level structure," Journal of Economic Behavior & Organization, Elsevier, vol. 74(1-2), pages 30-41, May.
- Prof John Foster, 2004.
"From Simplistic to Complex Systems in Economics,"
Discussion Papers Series
335, School of Economics, University of Queensland, Australia.
- Holmstrom, Bengt R. & Tirole, Jean, 1989. "The theory of the firm," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 2, pages 61-133 Elsevier.
- repec:cup:cbooks:9780521096720 is not listed on IDEAS
- Giovanni Dosi & Marco Faillo & Luigi Marengo, 2003. "Organizational Capabilities, Patterns of Knowledge Accumulation and Governance Structures in Business Firms. An Introduction," LEM Papers Series 2003/11, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Luigi Marengo & Giovanni Dosi, 2003.
"Division of Labor, Organizational Coordination and Market Mechanism in Collective Problem-Solving,"
LEM Papers Series
2003/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Marengo, Luigi & Dosi, Giovanni, 2005. "Division of labor, organizational coordination and market mechanisms in collective problem-solving," Journal of Economic Behavior & Organization, Elsevier, vol. 58(2), pages 303-326, October.
- Fleetwood, Steve, 1996. "Order without Equilibrium: A Critical Realist Interpretation of Hayek's Notion of Spontaneous Order," Cambridge Journal of Economics, Oxford University Press, vol. 20(6), pages 729-47, November.
- A. Cohen & G. Harcourt., 2009. "Whatever Happened to the Cambridge Capital Theory Controversies?," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 8.
- Peter Lewin, 2005. "The Capital Idea and the Scope of Economics," The Review of Austrian Economics, Springer, vol. 18(2), pages 145-167, June.
- Kirsten Foss & Nicolai J. Foss & Peter G. Klein & Sandra K. Klein, 2007. "The Entrepreneurial Organization of Heterogeneous Capital," Journal of Management Studies, Wiley Blackwell, vol. 44(7), pages 1165-1186, November.
- Georgescu-Roegen, Nicholas, 1970. "The Economics of Production," American Economic Review, American Economic Association, vol. 60(2), pages 1-9, May.
- J. Stan Metcalfe, 2010. "Technology and economic theory," Cambridge Journal of Economics, Oxford University Press, vol. 34(1), pages 153-171, January.
- Avi J. Cohen, 2003. "Retrospectives: Whatever Happened to the Cambridge Capital Theory Controversies?," Journal of Economic Perspectives, American Economic Association, vol. 17(1), pages 199-214, Winter.
- Tony Smith, 2010. "Technological change in Capitalism: some Marxian themes," Cambridge Journal of Economics, Oxford University Press, vol. 34(1), pages 203-212, January.
- Foster, John, 1993. "Economics and the Self-Organisation Approach: Alfred Marshall Revisited," Economic Journal, Royal Economic Society, vol. 103(419), pages 975-91, July.
- Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
- Langlois, Richard N., 2002. "Modularity in technology and organization," Journal of Economic Behavior & Organization, Elsevier, vol. 49(1), pages 19-37, September.
- Kurt Dopfer & John Foster & Jason Potts, 2004. "Micro-meso-macro," Journal of Evolutionary Economics, Springer, vol. 14(3), pages 263-279, 07.
- 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.
- Howard, M C & King, J E, 2001. "Where Marx Was Right: Towards a More Secure Foundation for Heterodox Economies," Cambridge Journal of Economics, Oxford University Press, vol. 25(6), pages 785-807, November.
When requesting a correction, please mention this item's handle: RePEc:oup:cambje:v:36:y:2012:i:4:p:963-980. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.