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Searching for the Firm: The Role of Decision in the Economics of Organizations

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  • Kay, Neil

Abstract

This paper considers reasons for the existence of firms and concludes that traditional perspectives provided by economics may be unsatisfactory and incomplete. It suggests that there has been an overemphasis on the role of contractual relations in economic organization, and argues instead that it is the character of decisions that defines and influences the nature of firms. The paper explores some directions for integrating decisions into studies of the firm. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Kay, Neil, 2000. "Searching for the Firm: The Role of Decision in the Economics of Organizations," Industrial and Corporate Change, Oxford University Press, vol. 9(4), pages 683-707, December.
  • Handle: RePEc:oup:indcch:v:9:y:2000:i:4:p:683-707
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    References listed on IDEAS

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    1. Teece, David J, 1993. "The Dynamics of Industrial Capitalism: Perspectives on Alfred Chandler's Scale and Scope," Journal of Economic Literature, American Economic Association, pages 199-225.
    2. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters,in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87 World Scientific Publishing Co. Pte. Ltd..
    3. Dosi Giovanni & Gambardella Alfonso & Grazzi Marco & Orsenigo Luigi, 2008. "Technological Revolutions and the Evolution of Industrial Structures: Assessing the Impact of New Technologies upon the Size and Boundaries of Firms," Capitalism and Society, De Gruyter, vol. 3(1), pages 1-49, June.
    4. Richard N. Langlois, 2003. "The vanishing hand: the changing dynamics of industrial capitalism," Industrial and Corporate Change, Oxford University Press, pages 351-385.
    5. Nelson, Richard R., 1990. "Capitalism as an engine of progress," Research Policy, Elsevier, pages 193-214.
    6. David C. Mowery, 1995. "The Boundaries of the U.S. Firm in R&D," NBER Chapters,in: Coordination and Information: Historical Perspectives on the Organization of Enterprise, pages 147-182 National Bureau of Economic Research, Inc.
    7. Chandler, Alfred D., 1973. "Decision Making and Modern Institutional Change," The Journal of Economic History, Cambridge University Press, vol. 33(01), pages 1-15, March.
    8. David, Paul A & Wright, Gavin, 1997. "Increasing Returns and the Genesis of American Resource Abundance," Industrial and Corporate Change, Oxford University Press, pages 203-245.
    9. Nelson, Richard R., 2008. "What enables rapid economic progress: What are the needed institutions," Research Policy, Elsevier, pages 1-11.
    10. Chandler, Alfred D., 1965. "The Railroads: Pioneers in Modern Corporate Management," Business History Review, Cambridge University Press, pages 16-40.
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    Cited by:

    1. Rita YI MAN LI, 2008. "Nature Of The Firm: A Study On Developers In China And Hong Kong," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 3(4(6)_Wint).
    2. Calderini, Mario & Garrone, Paola, 2001. "Liberalisation, industry turmoil and the balance of R&D activities," Information Economics and Policy, Elsevier, vol. 13(2), pages 199-230, June.
    3. Elsner, Wolfram & Schwardt, Henning, 2015. "The (dis-)embedded firm: Complex structure and dynamics in inter-firm relations. Adding institutionalization as a Veblenian dimension to the Coase-Williamson approach – An emerging triangular organiza," MPRA Paper 67193, University Library of Munich, Germany.
    4. Shuana Zafar Nasir & Nasir Mahmood, 2016. "Determinants of Employee Retention: An Evidence from Pakistan," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(9), pages 182-194, September.
    5. Otten, J.A., 2008. "Theories on executive pay. A literature overview and critical assessment," MPRA Paper 6969, University Library of Munich, Germany.

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