The Theory of the Firm and its Critics: A Stocktaking and Assessment
25 Pages Posted: 31 Mar 2005
Date Written: March 30, 2005
Since its emergence in the 1970s the modern economic or Coasian theory of the firm has been discussed and challenged by sociologists, heterodox economists, management scholars, and other critics. This chapter reviews and assesses these critiques, focusing on behavioral issues (bounded rationality and motivation), process (including path dependence and the selection argument), entrepreneurship, and the challenge from knowledge-based theories of the firm.
Keywords: theory of the firm, cognition, bounded rationality, motivation, capabilities, entrepreneurship, path dependence
JEL Classification: B4, D23, L14, L22
Suggested Citation: Suggested Citation