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Toward an Organizational Economics of Heterogeneous Capabilities

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  • Nicolai J. Foss

Abstract

The notion of "capability" has long been influential in management research as an approach to address firm-level heterogeneity and heterogeneity in competitive outcomes. I discuss how recent advances in economics may allow for a more rigorous understanding and measurement of capability that take organizational practices into account. However, economists may also learn from work on capabilities in management research.

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  • Nicolai J. Foss, 2014. "Toward an Organizational Economics of Heterogeneous Capabilities," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 21(1), pages 15-19, February.
    • Handle: RePEc:taf:ijecbs:v:21:y:2014:i:1:p:15-19
    DOI: 10.1080/13571516.2013.864117
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    References listed on IDEAS

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    5. Robert Gibbons & Rebecca Henderson, 2012. "Relational Contracts and Organizational Capabilities," Organization Science, INFORMS, vol. 23(5), pages 1350-1364, October.
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    7. Paul Milgrom & John Roberts, 1988. "Economic Theories of the Firm: Past, Present, and Future," Canadian Journal of Economics, Canadian Economics Association, vol. 21(3), pages 444-458, August.
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