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The Theory Of The Firm Revisited From A Power Perspective

Author

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  • Virgile Chassagnon

    (UGA [2016-2019] - Université Grenoble Alpes [2016-2019])

Abstract

Economists have traditionally repudiated power from the theorization of the firm, shedding light on the amorphous and tautological character of this concept. Therefore, power could not contribute to the productive efficiency of an economic organization. Power is supposed to result exclusively from contract failures. On the contrary, we think that economists have to revisit the theory of the firm from a power perspective. In this article, the objective is triple. First of all, an original theoretical framework of power relationships, which takes into account organization theory, is proposed in order to fill the conceptual vacuum left by the theorists of the firm. Then, it is argued that power represents the methodological key needed by economists to analyze the emergence of intra-firm cooperation and collective social identity. Lastly, the focus is on the analysis of inter-firm cooperation to put forward the cohesive role of power in the genesis of the network-firm.

Suggested Citation

  • Virgile Chassagnon, 2009. "The Theory Of The Firm Revisited From A Power Perspective," Post-Print halshs-01371863, HAL.
    • Handle: RePEc:hal:journl:halshs-01371863
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    Cited by:

    1. Bernard Baudry & Virgile Chassagnon, 2012. "The vertical network organization as a specific governance structure: what are the challenges for incomplete contracts theories and what are the theoretical implications for the boundaries of the (hub," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(2), pages 285-303, May.
    2. Virgile Chassagnon & Marilyne Audran, 2011. "The Impact Of Interpersonal Networks On The Innovativeness Of Inventors: From Theory To Empirical Evidence," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 15(05), pages 931-958.
    3. Hong Bo & Ciaran Driver, 2012. "Agency Theory, Corporate Governance and Finance," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 11, Edward Elgar Publishing.

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