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Capabilities and the Theory of the Firm

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  • Nicolai J. Foss

Abstract

[eng] The recent decade has witnessed a strong expansion of work on the firm, both from a capabilities perspective and from a contractual perspective. These two bodies of theories are often thought to be fundamentally different, because their domains of applications are different (knowledge-accumulation vs contracts and incentives). However, we need to integrate propositions from both perspectives, because only a more unified theory will allow us to understand such issues as the dynamics of the modern corporation. I discuss the relations between these two bodies of theories. It is possible to argue in favor of a relation of complementarity between the two. However, it is also possible two daim that they are rivals. The capabilities perspective contains propositions that are not to be found within the modern Coasian approach and may be seen as a distinct emerging perspective on economic organization. [fre] La décennie écoulée a permis d'observer une forte expansion de travaux sur la firme, à la fois dans une perspective de compétences et dans une perspective contractuelle. Ces deux corps de théories sont généralement considérés comme étant fondamentalement différents, parce que leurs domaines d'application sont différents (accumulation de connaissances versus contrats et incitations). Cependant il est nécessaire de combiner ces deux perspectives, car seule une théorie plus unifiée nous permettra d'appréhender des réalités telles que la dynamique de l'entreprise moderne. Je discute les relations entre ces deux corps de théories. On peut avancer l'idée qu'ils sont complémentaires. On peut cependant aussi prétendre qu'ils sont rivaux. Les développements sur les compétences contiennent certaines propositions que l'on ne trouve pas dans l'approche Coasienne moderne et qui peuvent par conséquent être considérés comme ouvrant des perspectives nouvelles en matière d'organisation.

Suggested Citation

  • Nicolai J. Foss, 1996. "Capabilities and the Theory of the Firm," Revue d'Économie Industrielle, Programme National Persée, vol. 77(1), pages 7-28.
  • Handle: RePEc:prs:recind:rei_0154-3229_1996_num_77_1_1633
    DOI: 10.3406/rei.1996.1633
    Note: DOI:10.3406/rei.1996.1633
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    More about this item

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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