The Organizational Economics of Organizational Capability and Heterogeneity: A Research Agenda
37 Pages Posted: 18 Mar 2012
Date Written: February 23, 2012
For decades, the literatures on firm capabilities and organizational economics have been at odds with each other, specifically relative to explaining organizational boundaries and heterogeneity. We briefly trace the history of the relationship between the capabilities literature and organizational economics and point to the dominance of a “capabilities first” logic in this relationship. We argue that capabilities considerations are inherently intertwined with questions about organizational boundaries and internal organization, and use this point to respond to the prevalent “capabilities first” logic. We offer an integrative research agenda that focuses, first, on the governance of capabilities and, second, on the capability of governance.
Keywords: Organizational economics, theory of the firm, heterogeneity, capabilities
JEL Classification: D23, D86, L14
Suggested Citation: Suggested Citation