Theories of the Firm. Issue 1 (2nd January 2018)

• Record Type: Journal Article
• Authors: Kay, John
• Is Part Of: International journal of the economics of business. Volume 25:Issue 1(2018)
• Page Start: 11
• Page End: 17
• Publication Date: 2018-01-02
• Subjects: Theory of Firm -- Contracts -- Corporation; Resource-Based Theory -- Capabilities; L21 -- L22 -- L24; Economics -- Periodicals; Business -- Periodicals; 338.5024658
• DOI: 10.1080/13571516.2017.1402468
• Languages: English
• ISSNs: 1357-1516

Abstract

Abstract: Since the seminal contributions of Coase, Williamson, Jensen and Meckling, and Easterbrook and Fischel, the characterisation of the firm as a nexus of contracts, its boundaries determined by the relative costs of markets and hierarchical organisation, has dominated the economic theory of the firm. The capabilities-based approach of Penrose, largely ignored by economists but developed in the resource-based theory of business strategy, provides a more illuminating perspective on a globalised and evolving business environment.