IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

The kinetics of capital formation and economic organisation

  • Anthony M. Endres
  • David A. Harper
Registered author(s):

    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.

    If 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.

    File URL: http://hdl.handle.net/10.1093/cje/bes002
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Oxford University Press in its journal Cambridge Journal of Economics.

    Volume (Year): 36 (2012)
    Issue (Month): 4 ()
    Pages: 963-980

    as
    in new window

    Handle: RePEc:oup:cambje:v:36:y:2012:i:4:p:963-980
    Contact details of provider: Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
    Fax: 01865 267 985
    Web page: http://www.cje.oupjournals.org/
    Email:

    Order Information: Web: http://www.oup.co.uk/journals

    References listed on IDEAS
    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.:

    as in new window
    1. Richard N. Langlois & Nicolai J. Foss, 1996. "Capabilities and Governance the Rebirth of Production in the Theory of Economic Organization," Working papers 1996-02, University of Connecticut, Department of Economics.
    2. Foster, John, 1993. "Economics and the Self-Organisation Approach: Alfred Marshall Revisited," Economic Journal, Royal Economic Society, vol. 103(419), pages 975-91, July.
    3. J. Stan Metcalfe, 2010. "Technology and economic theory," Cambridge Journal of Economics, Oxford University Press, vol. 34(1), pages 153-171, January.
    4. 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.
    5. 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.
    6. Kurt Dopfer & John Foster & Jason Potts, 2004. "Micro-meso-macro," Journal of Evolutionary Economics, Springer, vol. 14(3), pages 263-279, 07.
    7. 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.
    8. 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.
    9. Tony Smith, 2010. "Technological change in Capitalism: some Marxian themes," Cambridge Journal of Economics, Oxford University Press, vol. 34(1), pages 203-212, January.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. Peter Lewin, 2005. "The Capital Idea and the Scope of Economics," The Review of Austrian Economics, Springer, vol. 18(2), pages 145-167, June.
    15. 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.
    16. John Foster, 2005. "From simplistic to complex systems in economics," Cambridge Journal of Economics, Oxford University Press, vol. 29(6), pages 873-892, November.
    17. Richard N. Langlois, 2002. "Modularity in Technology and Organization," Chapters, in: Entrepreneurship and the Firm, chapter 2 Edward Elgar.
    18. repec:cup:cbooks:9780521862431 is not listed on IDEAS
    19. Georgescu-Roegen, Nicholas, 1970. "The Economics of Production," American Economic Review, American Economic Association, vol. 60(2), pages 1-9, May.
    20. A. Cohen & G. Harcourt., 2009. "Whatever Happened to the Cambridge Capital Theory Controversies?," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 8.
    21. repec:cup:cbooks:9780521096720 is not listed on IDEAS
    22. 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.
    23. 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.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    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 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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.