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More Critical Comments on Knowledge-Based Theories of the Firm

Author

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  • Nicolai J. Foss

    (Department of Industrial Economics and Strategy, Copenhagen Business School, Nansensgade 19.6, DK-1366 Copenhagen K, Denmark)

Abstract

This paper continues the critique of knowledge-based theories of the firm that was undertaken in Foss (Foss, N. J. 1996a. Knowledge-based approaches to the theory of the firm: Some critical comments. Organ. Sci. 7 (5) 470--476.), specifically criticizing the reasoning in Kogut and Zander (Kogut, B., U. Zander. 1996. What firms do? Coordination, identity, and learning. Organ. Sci. 7 (5) 502--518.) and Conner and Prahalad (Conner, K. R., C. K. Prahalad. 1996. A resource-based theory of the firm: Knowledge versus opportunism. Organ. Sci. 7 (5) 477--501.). I argue that Kogut and Zander (Kogut, B., U. Zander. 1996. What firms do? Coordination, identity, and learning. Organ. Sci. 7 (5) 502--518.) attempt to explain firm organization in terms of a preference for such organization---a distinctly non-economic mode of explanation---and that Conner and Prahalad fail to sufficiently characterize the nature of the firm, because they identify firm organization with the employment contract and neglect asset-ownership.

Suggested Citation

  • Nicolai J. Foss, 1996. "More Critical Comments on Knowledge-Based Theories of the Firm," Organization Science, INFORMS, vol. 7(5), pages 519-523, October.
    • Handle: RePEc:inm:ororsc:v:7:y:1996:i:5:p:519-523
    DOI: 10.1287/orsc.7.5.519
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    Citations

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    Cited by:

    1. Richard N. Langlois, 2002. "Modularity in Technology and Organization," Chapters, in: Nicolai J. Foss & Peter G. Klein (ed.), Entrepreneurship and the Firm, chapter 2, Edward Elgar Publishing.
    2. Nicolai J. Foss, 1996. "Firms, Incomplete Contracts and Organizational Learning," DRUID Working Papers 96-2, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    3. Kannan Srikanth & Phanish Puranam, 2014. "The Firm as a Coordination System: Evidence from Software Services Offshoring," Organization Science, INFORMS, vol. 25(4), pages 1253-1271, August.
    4. Zeng, Jing & Khan, Zaheer & De Silva, Muthu, 2019. "The emergence of multi-sided platform MNEs: Internalization theory and networks," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    5. Joanne Oxley & Tetsuo Wada, 2009. "Alliance Structure and the Scope of Knowledge Transfer: Evidence from U.S.-Japan Agreements," Management Science, INFORMS, vol. 55(4), pages 635-649, April.
    6. Klaus Heine & Maximilian Kerk, 2017. "Conflict resolution in meta-organizations: the peculiar role of arbitration," Journal of Organization Design, Springer;Organizational Design Community, vol. 6(1), pages 1-20, December.
    7. Paija, Laura, 2003. "Distribution of Intellectual Property Rights and the Development of Technology Suppliers," Discussion Papers 844, The Research Institute of the Finnish Economy.
    8. Bruce Heiman & Jack Nickerson, 2002. "Towards Reconciling Transaction Cost Economics and the Knowledge-based View of the Firm: The Context of Interfirm Collaborations," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 9(1), pages 97-116.
    9. Getie Andualem Imiru, 2022. "Exploring the Relationship among Export Resources, Exporting Capability & Exporter-Foreign Distributers relationship on Export Performance: In the Case of Exporting Companies in Ethiop," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 14(1), pages 1-60, December.
    10. Akira Takeishi, 2002. "Knowledge Partitioning in the Interfirm Division of Labor: The Case of Automotive Product Development," Organization Science, INFORMS, vol. 13(3), pages 321-338, June.
    11. Robert Grant, 2013. "Reflections on knowledge-based approaches to the organization of production," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(3), pages 541-558, August.
    12. Jack A. Nickerson & Todd R. Zenger, 2004. "A Knowledge-Based Theory of the Firm—The Problem-Solving Perspective," Organization Science, INFORMS, vol. 15(6), pages 617-632, December.
    13. Paul Walker, 2010. "The (Non)Theory Of The Knowledge Firm," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(1), pages 1-32, February.
    14. Ya-Feng CHANG, 2017. "A critical account of intra -and inter- organizational knowledge management: Diversity, relationship making, and paradoxes," Turkish Economic Review, KSP Journals, vol. 4(4), pages 429-436, December.
    15. Todd Zenger, 2002. "Crafting Internal Hybrids: Complementarities, Common Change Initiatives, and the Team-Based Organization," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 9(1), pages 79-95.
    16. Alex Eapen & Rekha Krishnan, 2019. "Transferring Tacit Know-How: Do Opportunism Safeguards Matter for Firm Boundary Decisions?," Organization Science, INFORMS, vol. 30(4), pages 715-734, July.
    17. Young, Greg & Sapienza, Harry & Baumer, David, 2003. "The influence of flexibility in buyer-seller relationships on the productivity of knowledge," Journal of Business Research, Elsevier, vol. 56(6), pages 443-451, June.

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