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The knowledge-Based Approach and Organizational Economics: How Much Do They Really Differ? And How Does It Matter?

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  • Kirsten Foss
  • Nicolai Foss

Abstract

The knowledge-based approach and organizational economics are usually seen as offering opposing approaches to the explanation of organizational phenomena. Relying on a taxonomic framework from the philosophy of science, we argue that many differences between these approaches are more apparent than real. Thus, many insights associated with the knowledge-based approach can be reduced to organizational economics insights. However, not everything can be thus reduced. There is an important residual, comprising differential cognition, learning, and bounded rationality.

Suggested Citation

  • Kirsten Foss & Nicolai Foss, "undated". "The knowledge-Based Approach and Organizational Economics: How Much Do They Really Differ? And How Does It Matter?," IVS/CBS Working Papers 99-1, Department of Industrial Economics and Strategy, Copenhagen Business School.
    • Handle: RePEc:ivs:iivswp:99-1
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    Keywords

    economic organization; firm strategy;

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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