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Capabilities, Confusion, and the Costs of Coordination On Some Problems in Recent Research On Inter-Firm Relations

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  • Nicolai J. Foss

Abstract

The arguably dominant approaches to the study of interfirm relations are the capabilities and organizational economics perspectives. This paper discusses their merits and weaknesses, concentrating on the capabilities perspective, which is argued to rest on rather weak foundations, particularly as a theory of economic organization (including interfirm relations). However, it is suggested that both perspectives may be seen as part of an overarching bargaining approach to economic organization (yet to be developed). Both perspectives have identified impediments to efficient bargaining.

Suggested Citation

  • Nicolai J. Foss, 1999. "Capabilities, Confusion, and the Costs of Coordination On Some Problems in Recent Research On Inter-Firm Relations," DRUID Working Papers 99-7, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    • Handle: RePEc:aal:abbswp:99-7
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    2. Juniper, James, 2007. "Philosophizing with a hammer? A critique of Mirowski's markomata informed by continental philosophy," Journal of Economic Behavior & Organization, Elsevier, vol. 63(2), pages 266-283, June.
    3. Liu, Xiaohui & Gao, Lan & Lu, Jiangyong & Wei, Yingqi, 2015. "The role of highly skilled migrants in the process of inter-firm knowledge transfer across borders," Journal of World Business, Elsevier, vol. 50(1), pages 56-68.
    4. Duanmu, Jing-Lin & Fai, Felicia M., 2007. "A processual analysis of knowledge transfer: From foreign MNEs to Chinese suppliers," International Business Review, Elsevier, vol. 16(4), pages 449-473, August.

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    More about this item

    Keywords

    Interfirm relations; capabilities; organizational economics; research methodology;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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