The Nature of the Firm by Ronald Harry Coase Summary
In 1937, Ronald H. Coase published "The Nature of the Firm," a classic paper that raised fundamental questions about the concept of the firm in economic theory. Coase proposed that the comparative costs of organizing transactions through markets rather than within firms are the primary determinants of the size and scope of firms. Coase won the 1991 Nobel Prize in Economics for this work. This volume derives from a conference held in 1987 to commemorate the fiftieth anniversary of the publication of Coase's classic article. The first chapter affords an overview of the volume. It is followed by a republication of the 1937 article, and by the three lectures Coase presented at the conference. These lectures provide a lively and informative history of the origins and development of his thought. Subsequent chapters explore a wide-range of theoretical and empirical issues that have arisen in the transaction cost economic tradition. They illustrate the power of the transaction cost approach to enhance understanding not only of business firms, but of problems of economic organization generally. In addition to Coase's work, contributors include Sherwin Rosen, Paul Joskow, Oliver Hart, Harold Demsetz, Scott Masten, Benjamin Klein, as well as the volume's editors, Oliver E. Williamson, and Sidney G. Winter. The Nature of the Firm includes Coase's acceptance speech for his Nobel Prize in Economics.
Towards a Competence Theory of the Firm by Nicolai J. Foss,Christian Knudsen Summary
This book explores a new theory of the firm produced through an exchange between management theory and economics. In the process economics is seen to provide a foundational element for strategy research whilst developing a more realistic theory of the firm with a greater emphasis on its internal features. The success of competence theories of the firm also reflects their ability to explain significant trends in the business world, notably the declining importance of conglomerates and critical features in the success of Asian and Japanese business.
The Firm by Gary Bruce Summary
Based on previously classified documents and on interviews with former secret police officers and ordinary citizens, The Firm is the first comprehensive history of East Germany's secret police, the Stasi, at the grassroots level. Focusing on Gransee and Perleberg, two East German districts located north of Berlin, Gary Bruce reveals how the Stasi monitored small-town East Germany. He paints an eminently human portrait of those involved with this repressive arm of the government, featuring interviews with former officers that uncover a wide array of personalities, from devoted ideologues to reluctant opportunists, most of whom talked frankly about East Germany's obsession with surveillance. Their paths after the collapse of Communism are gripping stories of resurrection and despair, of renewal and demise, of remorse and continued adherence to the movement. The book also sheds much light on the role of the informant, the Stasi's most important tool in these out-of-the-way areas. Providing on-the-ground empirical evidence of how the Stasi operated on a day-to-day basis with ordinary people, this remarkable volume offers an unparalleled picture of life in a totalitarian state.
The Theory of the Growth of the Firm by Edith Penrose,Edith Tilton Penrose Summary
This 'goldmine of concepts for understanding business and industrial organization' was originally published in 1959 but has been an influence in business schools ever since. The author combines rigorous theory with close observation of the real business world, and writes simply but with anoriginal approach. Her focus on teams and organizational knowledge underlines contemporary discussion of 'organizational competences' and she has written a new introduction which assesses the book's impact and describes the subsequent development of her own ideas.
The Firm and the Market by Mark Casson,Professor of Economics Mark Casson Summary
In this book, a well known theorist of the multinational firm extends his major contributions to encompass the scope of the firm in general. Casson presents a model showing how the different activities of the firm - R & D, production, marketing, and distribution, for example - are linked in a way that is just as important in determining the scope of the firm as are the traditional factors of market share or product type. Casson infers from an extensive consideration of the history, development, and organization of the multinational that the scope of any firm is determined by the way it resolves the problem of coordinating these production activities; the possibility of its becoming a multinational, in fact, depends on the strategic problems encountered in these operations. After chapters in which he critically reviews the literature and sets forth his own theoretical insights, the author looks at case studies of topical concern in the shipping, construction, and motor vehicle industries in order to explain contemporary rationalization and restructuring in manufacturing. Mark Casson is Professor of Economics at the University of Reading and author of Economics of Unemployment: An Historical Perspective (MIT Press 1984).
The Growth of the Firm by Edith Tilton Penrose,Christos Pitelis Summary
Edith Penrose's contribution to the theory of the firm reinvented the classical tradition in economics. This volume builds on an issue of "Contributions to Political Economy" that celebrated 40 years since Penrose's publication, "The Theory of the Growth of the Firm".
The Internationalization of the Firm by Peter J. Buckley,Pervez N. Ghauri Summary
The Internationalization of the Firm is a collection of seminal articles on international business with particular reference to the experience of large European and American multinationals in Europe, Japan and the developing countries.
Resource-Based and Evolutionary Theories of the Firm by Cynthia A. Montgomery Summary
Resource-Based and Evolutionary Theories of the Firm: Towards a Synthesis explores the intersection of evolutionary theories of the firm with an emergent body of research in the field of strategic management that has been broadly referred to as the `resource-based view of the firm'. The volume approaches strategic questions from several vantage points, thereby fostering a useful cross-fertilization of ideas. The views presented spring from a variety of sources, namely the principles of strategic management, organisation economics, and population ecology.
Beyond the Firm by International Conference on Business History 1995,Shimotani Shiba,TAKAO AUTOR SHIBA,The Business History Society of Japan. Conferences Summary
Every economy faces a set of decisions about the optimal organization of its business activities. Firms acquire other firms, sell corporate assets, form strategic alliances, spin off factories and divisions as independent enterprises. In doing so they establish boundaries around business unitsand define the interrelationship between those units. Special attention has been devoted in recent years to the distinctive features of Japanese economic organization, and in particular the ways in which firms in Japan have created alternatives to arm's-length markets or vertically integratedhierarchies. This book brings together contributions from international scholars presenting analysis and evidence of these phenomenon. How have they evolved? Are they a particularly Japanese or Asian phenomenon? Are there historical comparisons in Europe and America? What distinguishes 'corporatecomplexes', 'corporate groups' and ' assembler- supplier relationships'? By raising these questions and presenting detailed evidence from the traditional business groups such as Mitsubishi, Sumitomo, and Mitsui; and the more recently established corporate groups such as Toyota, Sony, andMatsushita. In so doing the book both provides valuable historical detail, raises questions for conventional theories of the firm, offers insight into the resilient international competitiveness of Japanese companies and into the varying institutional characteristics of different business systemsand cultures. This is the second volume in the collaboration between OUP and the Business History Society of Japan to publish the 'Fuji Conference Series' under the general editorship of Professor Akira Kudo of the University of Tokyo. The series itself has been established for 20 years or so andis a major international forum for scholars from Asia, Europe and North America. Books in the series were formerly published by the University of Tokyo Press.
Entrepreneurship and the Firm by Nicolai J. Foss,Peter G. Klein Summary
While characteristically "Austrian" economic themes are clearly relevant to the business firm, Austrian economists have said little about management, organization and strategy. The 12 chapters in this work seek to advance the understanding of these issues by drawing on Austrian ideas.
Reshaping the Boundaries of the Firm in an Era of Global Interdependence by EIBA Summary
This volume of Progress in International Business Research includes a selection of 13 papers from the 35th European International Business Academy Annual Conference, which was held in Valencia (Spain) from the 13th to the 15th of December 2009.
The Changing Boundaries of the Firm by Massimo G. Colombo Summary
This book offers a distinctive analysis of the relations and interplay between the internal activities of firms, their changing boundaries, and increasing reliance on networks and alliances with other firms. The contributors offer a blend of theoretical and empirical studies; they are based on a set of related perspectives in modern economics, including transaction cost economics, competence and resource-based theories of the firm, evolutionary economics and the theories of foreign direct investments and the multinational enterprise. The unifying concern shared by the different studies is the need to model firm behaviour and inter firm cooperative activities in terms of knowledge growth and competence building rather than merely in terms of cost-reduction; they emphasize learning processes and dynamic efficiency rather than efficient allocation of given resources.
Neuroeconomics and the Firm by Angela A. Stanton,Mellani Day,Isabell M. Welpe Summary
Do people with high testosterone levels make decisions the same way as people with lower testosterone? Do men change their behavior when a pretty woman enters the office? Do women change their behavior when a handsome man enters the office? Do men and women affect each other within the firm to the detriment or the benefit of the firm? In some ways, the questions this edited volume addresses are questions that we are all familiar with and have asked for many years. It suggests looking for answers in places that that we have never thought of before. Some of the chapters will surprise you with their ingenious, simple answers and propositions; some will perhaps make you feel awkward with their straight-forward way of presenting what we all suspected but felt uncomfortable to talk about. From the foreword by David B. Audretsch This volume brings together leading researchers from a variety of fields to investigate the concept of the firm from new perspectives arising from neuroeconomics. The traditional theory of the firm has focused on the strategic, operational and resource management objectives of the firm as an organization. This timely and informative book explores new horizons in the biology of human decision-making and behavior, including uncertainty, entrepreneurship and ethics as it affects the functioning of the organization. The fascinating chapters cover a wide range of research fields, drawing on both the conscious and the unconscious mind, and how common hormonal cycles in the female and testosterone variations in the male affect each other in the workplace and its affect on the firm as an organization. The topics of entrepreneurship and the recent global financial crisis are discussed from the perspective of hormonal forces and the implications of those forces in the future. It is an enlightening selection of articles that scholars, students, business leaders, and managers will find a valuable read. Vernon L. Smith, 2002 Nobel Laureate in Economics The ideal firm has been studied over several centuries, yet little is known about what makes one successful and another fail. This pioneering book brings together leading researchers investigating the concept of the firm from a neuroscientific perspective. From the viewpoint of economics, the firm's purpose is to maximize shareholders' wealth; resources are commodities, each with its particular supply and demand curve that can be manipulated by the firm to its own benefit. Traditionally, the firm is focused on the strategic, operational and resource management objectives. The editors instead suggest that the objective of the firm is equal to the objectives of its workers. The definition and function of risk in decision-making, ethics, trust and the global financial crisis are all discussed. They are analyzed from the perspective of human bio-physiology, using scanning and hormonal analysis tools, with a focus on the implications for the bottom line of the firm. With experimental as well as theoretical and applied contributions, this book will benefit scholars and students of economics, business management, finance, organizational behavior, entrepreneurship, psychology, neuroscience and law. Practitioners of management, entrepreneurship and law firms will also find this book to be a captivating read.
Economic Performance and the Theory of the Firm by David J. Teece Summary
These papers by Teece cover the theory of the firm and its implications for economic performance, as they concern managers and policy-makers. Key topics addressed include: the nature of the firm and dynamic capabilities; diversification and vertical integration; and joint ventures.
A Theory of the Firm by Michael C. Jensen Summary
This collection examines the forces, both external and internal, that lead corporations to behave efficiently and to create wealth. Corporations vest control rights in shareholders, the author argues, because they are the constituency that bear business risk and therefore have the appropriate incentives to maximize corporate value. Assigning control to any other group would be tantamount to allowing that group to play poker with someone else's money, and would create inefficiencies. The implicit denial of this proposition is the fallacy of the so-called stakeholder theory of the corporation, which argues that corporations should be run in the interests of all stakeholders. This theory offers no account of how conflicts between different stakeholders are to be resolved, and gives managers no principle on which to base decisions, except to follow their own preferences. In practice, shareholders delegate their control rights to a board of directors, who hire, fire, and set the compensation of the chief officers of the firm. However, because agents have different incentives than the principals they represent, they can destroy corporate value unless closely monitored. This happened in the 1960s and led to hostile takeovers in the market for corporate control in the 1970s and 1980s. The author argues that the takeover movement generated increases in corporate efficiency that exceeded $1.5 trillion and helped to lay the foundation for the great economic boom of the 1990s.
Redesigning the Firm by Edward H. Bowman,Bruce M. Kogut Summary
The rapidly changing nature of the modern industrial world has helped spark a radical rethinking of the design of corporations, changes no less revolutionary than the wave of innovations associated with the names of Frederick Taylor and Henry Ford at the dawn of this century. In Redesigning the Firm, nineteen experts from one of the nation's premier business schools, the Wharton School at the University of Pennsylvania, take an informed look based on their own research at various aspects of this revolution, offering managers a host of insights and powerful tools for orchestrating change in their firm. Redesigning the Firm illuminates many of the challenges that confront the executive, approaching the issue from a wide variety of perspectives. The book considers, for instance, whether the firm's stockholders, directors, and managers should reevaluate how they distribute power and share information, and it explores why external board members often fail to exercise a strong voice in governance. It looks at the changing boundary of the firm, as partnerships and alliances have become more important, examining this new development in three types of market: emerging markets such as Eastern Europe, markets where economies of scale provide a critical advantage, and dynamic markets where speed is essential. It examines the use of suppliers in Japanese, American, and European firms, and finds the former to be more efficient. Some of the essays are quite eye-opening. For instance, one chapter demonstrates that firms can increase product variety at no extra cost, revealing how a study of the automotive industry shows that investing in training, in flexible manufacturing processes, and in better operations management will increase variety without compromising productivity or lowering quality. And one chapter sounds a strong note of dissent, contending that the design of organizations matters little to a global competitor--what matters is how managers think about the world, and how the operating procedures they use guide decision-making and behavior. In the final section, editors Bowman and Kogut reflect on two outstanding issues concerning the design of the firm: how much of what managers used to believe was critical to their success can they place outside their ownership boundaries; and how to deal with the complex challenges that modular design presents. The editors apply their conclusions to the Wharton School itself, making the book particularly valuable for anyone concerned with the quality and future of business education in America. Here then is the best thinking by leading experts in corporate design, who examine the best ways to generate speed, variety, and flexibility, to expand the firm over time and over national boundaries, and to prepare a corporation for the next century.