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The Firm as a Community of Belonging

Author

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  • Obregon Diaz, Carlos Federico

Abstract

This paper develops a theoretical model of the firm based on the concept of belonging, defined as the degree of relational and institutional integration of individuals within an organization. It proposes that belonging determines the structure of internal competition, cooperation, and overall firm performance. The model distinguishes between low-belonging equilibria characterized by internal conflict and inefficiency, and high-belonging equilibria characterized by cooperation and improved economic outcomes. The framework incorporates elements of game theory and institutional analysis to explain how organizational structures influence equilibrium selection. The paper contributes to the literature on institutional economics, organizational behavior, and firm theory by introducing belonging as a key explanatory variable linking micro-level interactions with macro-level performance.

Suggested Citation

  • Obregon Diaz, Carlos Federico, 2026. "The Firm as a Community of Belonging," MPRA Paper 128766, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:128766
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    Keywords

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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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