Garzarelli, Giampaolo (2006): The Organizational Approach of Capability Theory: A Review Essay.
Download (76kB) | Preview
Richard Langlois, Tony Yu & Paul Robertson have assembled a collection of previously published papers that move beyond textbook production theory. This essay discusses work by Frank Knight and Hendrik Houthakker not reproduced in LYR in relation to the capability theory of economic organization. Knight identified the problem of organization as the search for and the coordination of different dispersed capabilities. Houthakker helps us to see more clearly that the benefits of specialization are not brought at zero cost; whatever is the governance structure employed, there will inevitably be coordination costs due to differences in capabilities.
|Item Type:||MPRA Paper|
|Institution:||School of Economic and Business Sciences, University of the Witwatersrand|
|Original Title:||The Organizational Approach of Capability Theory: A Review Essay|
|Keywords:||Capabilities; Coordination Costs; Division of Labor; Economic Organization; Extent of the Market|
|Subjects:||L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L23 - Organization of Production
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness
D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory
D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity
|Depositing User:||Giampaolo Garzarelli|
|Date Deposited:||08. Aug 2007|
|Last Modified:||12. Feb 2013 19:20|
Brusoni, S., Prencipe, A. & Pavitt, K. (2001) Knowledge specialization, organisational coupling, and the boundaries of the firm: why do firms know more than they make?, Administrative Science Quarterly, 46, pp. 597–621. Coase, R. H. (1937) The Nature of the Firm, Economica, N.S., 4, pp. 386–405. Dahlman, C. J. (1980) The Open Field System and Beyond. A Property Rights Analysis of an Economic Institution (Cambridge: Cambridge University Press). Dietrich, M. (1991) Firms, markets and transaction cost economics, Scottish Journal of Political Economy, 38, pp. 41–57. Dosi, G. & Marengo, L. (1994) Some elements of an evolutionary theory of organizational competences, in: R. W. England (Ed.), Evolutionary Concepts in Contemporary Economics Ann Arbor: University of Michigan Press). Fourie, F. C. v. N. (1989) The nature of firms and markets: do transaction approaches help? South African Journal of Economics, 57, pp. 142–160. Garzarelli, G. (2006) Cognition, incentives and public governance: laboratory federalism from the organizational viewpoint, Public Finance Review, 34, pp. 235–257. Heiner, R. A. (1983) The origin of predictable behavior, American Economic Review, 73, pp. 560–595. Holmström, B. & Roberts, R. (1998) The boundaries of the firm revisited, Journal of Economic Perspectives, 12, pp. 73–94. Houthakker, H. S. (1956) Economics and biology: specialization and speciation, Kyklos, 9, pp. 181–189. Jensen, M. C. & Meckling, W. H. (1992) Specific and general knowledge, and organizational structure, in: L. Werin & H. Wijkander (Eds) Contract Economics (Oxford: Basil Blackwell). Knight, F. H. (1933a) Risk, Uncertainty and Profit (with an additional introductory essay hitherto unpublished). London: London School of Economics and Political Science (Re–issue No. 16 in a Series of Reprints of Scarce Tracts in Economics and Political Science). First published 1921. Knight, F. H. (1933b) The Economic Organization (New York: A. M. Kelley, 1951). Langlois, R. N. (1988) Economic change and the boundaries of the firm, Journal of Institutional and Theoretical Economics 144, pp. 635–657. Langlois, R. N. (1995) Do firms plan?, Constitutional Political Economy 6, pp. 247–261. Langlois, R. N. & Foss, N. J. (1999) Capabilities and governance: the rebirth of production in the theory of economic organization, Kyklos 52, pp. 201–218. Langlois, R. N. & Robertson, P. L. (1993) Business organization as a coordination problem: towards a dynamic theory of the boundaries of the firm, Business and Economic History 22, pp. 31–41. Leibenstein, H. (1966) Allocative Efficiency vs. ‘X–efficiency’, American Economic Review 57, pp. 1–33. Nelson, R. R. & Winter, S. G. (1982) An Evolutionary Theory of Economic Change (Cambridge, MA: The Belknap Pres of Harvard University Press). Penrose, E. (1959) The Theory of the Growth of the Firm (Oxford: Oxford University Press, 1995). Phelan, S. E. & Lewin, P. (2000) Arriving at a strategic theory of the firm, International Journal of Management Reviews 2, pp. 305–323. Polanyi, M. (1958) Personal Knowledge: Towards a Post–critical Philosophy (London: Routledge & Kegan Paul). Radner, R. (1992) Hierarchy: The economics of managing, Journal of Economic Literature 30, pp. 1382–1415. Richardson, G. B. (1972) The organization of industry, Economic Journal, 82, pp. 883–896. Sen, A. K. (1994) Well–being, capability and public policy, Giornale degli Economisti e Annali di Economia, N.S., 53, pp. 333–347. Silver, M. (1984) Enterprise and the Scope of the Firm (Oxford: Martin Robertson). Teece, D. J. (1980) Economies of scope and the scope of the enterprise, Journal of Economic Behavior and Organization, 1, pp. 223–247. Teece, D. J. (1986) Profiting from technological innovation: implications for integration, collaboration, licensing and public policy, Research Policy, 15, pp. 285–305. Teece, D. J. (1988) Technological change and the nature of the firm, in: G. Dosi, C. Freeman, R. Nelson, G. Silverberg & L. Soete (Eds) Technical Change and Economic Theory (London: Pinter). Teece, D. J., Pisano, G. & Shuen, A. (1997) Dynamic capabilities and strategic management, Strategic Management Journal, 18, pp. 509–533. Williamson, O. E. (1979) Transaction cost economics: the governance of contractual relations, Journal of Law and Economics, 22, pp. 233–261. Williamson, O. E. (1984) The economics of governance: framework and implications, Journal of Institutional and Theoretical Economics, 140, pp. 691–719. Young, A. A. (1928) Increasing returns and the economic progress, Economic Journal, 38, pp. 527–542. Yu, T. F. L. (2001) Firms, Governments and Economic Change: An Entrepreneurial Perspective (Cheltenham: Edward Elgar).