Capabilities and Governance: The Rebirth of Production in the Theory of Economic Organization

Langlois, Richard N.; Foss, Nicolai J.

doi:10.2139/ssrn.77668

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Capabilities and Governance: The Rebirth of Production in the Theory of Economic Organization

Druid Working Paper No. 97-2

44 Pages Posted: 19 Apr 1998

See all articles by Richard N. Langlois

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation

Date Written: January 1997

Abstract

We argue that since Coase?s seminal 1937 paper on "The Nature of the Firm," there has been an odd and unjustified separation between price theory and the economics of organization. For example, matters of production has been the domain of the former exclusively. However, a new approach to economic organization, here called "the capabilities approach," that places production center-stage in the explanation of economic organization, is now emerging. We discuss the sources of this approach and its relation to the mainstream economics of organization.

JEL Classification: D23, D40, D83

Suggested Citation: Suggested Citation

Langlois, Richard N. and Foss, Nicolai J., Capabilities and Governance: The Rebirth of Production in the Theory of Economic Organization (January 1997). Druid Working Paper No. 97-2, Available at SSRN: https://ssrn.com/abstract=77668 or http://dx.doi.org/10.2139/ssrn.77668