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For an example see Machlup, cited in Reference 1.
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R. Rumelt, Towards a strategic theory of the firm, in R. B. Lamb (ed.), Competitive Strategic Management, Prentice- Hall, Englewood Cliffs, NJ (1984); S. A. Lippman and R. P. Rumelt, Uncertain imitability: an analysis of inter-firm differences under competition, Bell Journal of Economics, 13, 418-438 (1982).
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Compare with the intermediator for goods: "His comparative advantage lies not in his knowledge of the use to which the good will be put, but his knowledge of who is the best person to put it to that use". M. Casson, The nature of the firm reconsidered: information synthesis and entrepreneurial organisation, Management International Review, 36 (Special Issue 1), 61 (1996).
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85037501638
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cited in Reference 6
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Compare with Demsetz's suggestion that the boundaries between firms are a way of economising on knowledge costs. AU that firms need to exchange are the product itself and appropriate instructions for use. Detailed knowledge of its production does not need to be communicated. See Demsetz, cited in Reference 6.
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Demsetz1
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O. Williamson, The modern corporation, in The Economic Institutions of Capitalism, cited in Reference 9; R. Grant, Towards a knowledge-based theory of the firm, Strategic Management Journal, 17, 109-122 (1966).
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The authors are grateful to Mr Rahul G. Joshi for valuable assistance in conducting the Devonian case study
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The authors are grateful to Mr Rahul G. Joshi for valuable assistance in conducting the Devonian case study.
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