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  

Richard N. Langlois

University of Connecticut

Nicolai J. Foss

Copenhagen Business School - Department of Strategic Management and Globalization

Multiple version iconThere are 2 versions of this paper

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

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

Richard N. Langlois (Contact Author)

University of Connecticut ( email )

304 Oak Hall
Unit 1063
Storrs, CT 06269-1063
United States
860-486-3472 (Phone)
860-486-4463 (Fax)

HOME PAGE: http://langlois.uconn.edu/

Nicolai J. Foss

Copenhagen Business School - Department of Strategic Management and Globalization ( email )

Porcelænshaven 24
Frederiksberg, 2000
Denmark
+45 3815 3030 (Phone)
+45 3815 3035 (Fax)

HOME PAGE: http://www.cbs.dk/staff/nicolai_foss

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