'Coase vs Hayek': Economic organization and the knowledge economy

International Journal of the Economics of Business

Volumn 9, Issue 1, 2002, Pages 9-35

  Foss, Nicolai J ^a  

^a Department of International Economics and Management   (Denmark)

Author keywords

Authority; Firms' Boundaries; Internal Organization; The Knowledge Economy

Indexed keywords

EID: 0038257079     PISSN: 13571516     EISSN: 14661829     Source Type: Journal    
DOI: 10.1080/13571510110102958     Document Type: Article

References (109)

1. Aghion, P., and Tirole, J., 1997. "Formal and Real Authority in Organization". Journal of Political Economy, 105: 1–29.
2. Alchian, A.A., and Demsetz, H., 1977. "Production, Information Costs, and Economic Organization" ”. In Economic Forces at Work, Edited by: Alchian, Armen A., Indianapolis: Liberty Press. originally published in 1972
3. Badaracco, J.L., 1991. "The Boundaries of Firms" ”. In Socio-Economics: Toward a New Synthesis, Edited by: Etzioni, Amitai, and Lawrence, Paul R., Armonk: M. E. Sharpe.
4. Baker, G., Gibbons, R., and Murphy, K.J., 1999. "Informal Authority in Organizations". Journal of Law, Economics and Organization, 15: 56–73.
5. Baker, G., Gibbons, R., and Murphy, K.J., 2000. "Relational Contracts and the Theory of the Firm" ”. unpublished manuscript
6. Boisot, M., 1998. Knowledge Assets: Securing Competitive Advantage in the Information Economy, Oxford: Oxford University Press.
7. Bolton, P., and Farrell, J., 1998. "Decentralization, Duplication, and Delay". Journal of Political Economy, 98: 803–26.
8. Brass, D. J., 1984. "Being in the Right Place: A Structural Analysis of Individual Influence in an Organization". Administrative Science Quarterly, 29: 518–39.
9. Brown, S.L., and Eisenhardt, K.M., 1998. Competing on the Edge: Strategy as Structured Chaos, Boston: Harvard Business School Press.
10. Brynjolfsson, E., 1994. "Information Assets, Technology, and Organization". Management Science, 40: 1645–62.
11. Burns, T., and Stalker, G.M., 1961. The Management of Innovation, London: Tavistock.
12. Cappelli, P., and Neumark, D., 2001. "Do 'High-Performance'Work Practices Improve Establishment-Level Outcomes?". Industrial and Labor Relations Review, 54(4): 737–75.
13. Casson, M. 1994. "Why are Firms Hierarchical?". International Journal of the Economics of Business, 1: 47–76.
14. Cheung, S.N.S., 1983. "The Contractual Nature of the Firm". Journal of Law and Economics, 26: 1–22.
15. Coase, R.H., 1999. "The Nature of the Firm" ”. In The Theory of the Firm: Critical Perspectives in Business and Management, Edited by: Foss, Nicolai J., Vol II, London: Routledge. originally published 1937
16. Coff, R.W., 1999. "When Competitive Advantage Doesn't Lead to Performance: The Ressource-Based View and Shareholder Bargaining Power". Organization Science, 10: 119–134.
17. Conner, K.R., and Prahalad, C.K., 1996. "A Resource-Based Theory of the Firm". Organization Science, 7: 477–501.
18. Coombs, R., and Metcalfe, S., 2000. "Organizing for Innovation: Co-ordinating Distributed Innovation Capabilities" ”. In Competence, Governance, and Entrepreneurship, Edited by: Foss, Nicolai J., and Mahnke, Volker. Oxford: Oxford University Press.
19. Cowen, T., and Parker, D., 1997. Markets in the Firm: A Market Process Approach to Management, London: The Institute of Economic Affairs.
20. Daft, R., and Lewin, A., 1993. "Where Are the Theories of the 'New'Organizational Forms?". Organization Science, 4: i–iv.
21. D'Aveni, R., 1994. Hypercompetition: The Dynamics of Strategic Maneuvering, New York: Basic Books.
22. Demsetz, H., 1988. "The Theory of the Firm Revisited". Journal of Law, Economics, and Organization, 4: 141–61.
23. Fama, E., and Jensen, M.C., 1983. "Separation of Ownership and Control". Journal of Law and Economics, 26: 301–25.
24. Foss, K., 2001. "Organizing Technological Interdependencies: A Coordination Perspective on the Firm". Industrial and Corporate Change, 10: 151–78.
25. Foss, K., and Foss, N.J., 2001. "Assets, Attributes and Ownership". International Journal of the Economics of Business, 8: 19–37.
26. Foss, K., and Foss, N.J., 2002. "Economic Organization and the Trade-Offs Between Productive and Destructive Entrepreneurship" ”. In Entrepreneurship and the Firm: Austrian Perspectives on Economic Organization, Edited by: Foss, Nicolai J., and Klein, Peter G., Aldershot: Edward Elgar. forthcoming
27. Foss, N.J., 1999. "The Use of Knowledge in Firms". Journal of Institutional and Theoretical Economics, 155: 458–86.
28. Foss, N.J., 2000. "Internal Disaggregation in Oticon: Interpreting and Learning from the Rise and Decline of the Spaghetti Organization" ”. Department of Industrial Economics and Strategy, Copenhagen Business School. Working Paper
29. Foss, N.J., "Leadership, Beliefs and Coordination". Industrial and Corporate Change, 10357–88.
30. Frey, B., 1997. Not Just for the Money: An Economic Theory of Personal Motivation, Cheltenham: Edward Elgar.
31. Galbraith, J.R., 1974. "Organization Design: An Information Processing View". Interfaces, 4(3): 28–36.
32. Ghoshal, S., Moran, P., and Almeida-Costa, L., 1995. "The Essence of the Megacorporation: Shared Context, not Structural Hierarchy". Journal of Institutional and Theoretical Economics, 151: 748–59.
33. Gr andori, A., 1997. "Governance Structures, Coordination Mechanisms and Cognitive Models". Journal of Management and Governance, 1: 29–42.
34. Gr andori, A., 2002. Organizations and Economic Behavior, London: Routledge.
35. Grant, R.M., 1996. "Prospering in Dynamically-Competitive Environments: Organizational Capability as Knowledge Integration". Organization Science, 7: 375–87.
36. Grossman, S., and Hart, O., 1986. "The Costs and Benefits of Ownership: A Theory of Vertical Integration". Journal of Political Economy, 94: 691–719.
37. Halal, W.E., and Taylor, K.B., 1998. Twenty-First Century Economics: Perspectives of Socioeconomics for a Changing World, New York: St. Martin's Press.
38. Harryson, S.J., 2000. Managing Know-Who Based Companies, Cheltenham: Edward Elgar.
39. Hart, O., 1995. Firms, Contracts, and Financial Structure, Oxford: Oxford University Press.
40. Hart, O., 1996. "An Economist's View of Authority". Rationality and Society, 8: 371–86.
41. Hart, O., and Moore, J., 1990. "Property Rights and the Nature of the Firm". Journal of Political Economy, 98: 1119–58.
42. Hayek, F.A.V., 1948. "Economics and Knowledge", originally published 1937 in Individualism and Economic Order, Chicago: University of Chicago Press.
43. Hayek, F.A.V., 1948. "The Use of Knowledge in Society", originally published 1945 in idem., Individualism and Economic Order, Chicago: University of Chicago Press.
44. Hayek, F.A.V., 1973. Law, Legislation, and Liberty, Vol. 1: Rules and Order, Chicago: University of Chicago Press.
45. Hayek, F.A.V., 1978. "The Theory of Complex Phenomena", in idem., Studies in Philosophy, Economics, and Politics, London: Routledge and Kegan Paul.
46. Helper, S., MacDuffie, J.P., and Sabel, C., 2000. "Pragmatic Collaborations: Advancing Knowledge While Controlling Opportunism". Industrial and Corporate Change, 9: 443–87.
47. Hermalin, B., 1999. "The Firm as a Non-Economy: Some Comments on Holmstrom". Journal of Law, Economics and Organization, 15: 103–5.
48. Hodgson, G., 1998a. Economics and Utopia, London: Routledge.
49. Hodgson, G., 1998b. "The Coasean Tangle: The Nature of the Firm and the Problem of Historical Specificity" ”. In Coasean Economics: Law and Economics and the New Institutional Economics, Edited by: Medema, S.G., Boston: Kluwer Academic Publishers.
50. Hodgson, G., 2002. "The Legal Nature of the Firm and the Myth of the Firm-Market Dichotomy". International Journal of the Economics of Business, this issue
51. HolmstrEom, B., 1979. "Moral Hazard and Observability". Bell Journal of Economics, 10: 74–91.
52. HolmstrEom, B., 1999. "The Firm as a Subeconomy". Journal of Law, Economics, and Organization, 15: 74–102.
53. HolmstrEom, B., and Milgrom, P., 1991. "Multitask Principal-Agent Analysis: Incentive Contracts, Asset Ownership and Job Design". Journal of Law, Economics and Organization, 7: 24–54.
54. HolmstrEom, B., and Milgrom, P., 1994. "The Firm as an Incentive System". American Economic Review, 84: 972–91.
55. HolmstrEom, B., and Roberts, J., 1998. "The Boundaries of the Firm Revisited". Journal of Economic Perspectives, 12: 73–94.
56. Ichniowski, C., Kochan, T. A., Levine, D., Olson, C, and Strauss, G., 1996. "What Works at Work: Overview and Assessment". Industrial Relations, 35: 299–333.
57. Jensen, M.C., and Meckling, W.H., 1992. "Specific and General Knowledge and Organizational Structure" ”. In Contract Economics, Edited by: Werin, L., and Wijkander, H., Oxford: Blackwell.
58. Jensen, M.C., and Wruck, K., 1998. "Science, Specific Knowledge and Total Quality Management" ”. In Foundations of Organizational Strategy, Edited by: Jensen, M. C., Cambridge: Harvard University Press. originally published 1994
59. Kirzner, I.M., 1997. "Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach". Journal of Economic Literature, 35: 60–85.
60. Kogut, B., and Zauder, U., 1992. "Knowledge of the Firm, Combinative Capabilities, and the Raptication of Technology. ". Organization Science, 3: 383–97.
61. Langlois, R.N., 1992. "Transaction-Cost Economics in Real Time". Industrial and Corporate Change, 1: 99–127. 34
62. Foss, N.J., Langlois, R.N., and Foss, Nicolai J., 1999. "Capabilities and Governance: the Rebirth of Production in the Theory of Economic Organization". KYKLOS, 52: 201–18.
63. Laursen, K., 2002. "The Importance of Sectoral Differences in the Application of (Complementary) HRM Practices for Innovation Performance". International Journal of the Economics of Business, this issue
64. Laursen, K., and Foss, N.J., 2002. "New HRM Practices, Complementarities, and the Impact on Innovation Performance". Cambridge Journal of Economics, forthcoming
65. Liebeskind, J. P., 1997. "Keeping Organizational Secrets: Protective Institutional Mechanisms and their Costs". Industrial and Corporate Change, 6: 623–63.
66. Liebeskind, J.P., Oliver, A.L., Zucker, L.G., and Brewer, M.B., 1995. Social Networks, Learning, and Flexibility: Sourcing Scientific Knowledge in New Biotechnology Firms, NBER Working Paper No. W5320 Cambridge
67. Mahnke, V., 2002. The Economic Organization of Intellectual Production, Oxford: Oxford University Press.
68. Marglin, S.A., 1974. "What Do Bosses Do?", The Origins and Functions of Hierarchy in Capitalist Production". Review of Radical Political Economy, 6: 33–60.
69. Masten, S., 1991. "A Legal Basis for the Firm" ”. In The Nature of the Firm: Origins, Evolution, and Development, Edited by: Williamson, O.E., and Winter, S.G., Oxford: Oxford University Press.
70. Matusik, S.F., and Hill, C.W.L., 1998. "The Utilization of Contingent Work, Knowledge Creation, and Competitive Advantage". Academy of Management Review, 23: 680–97.
71. Mendelsson, H., and Pillai, R.R., 1999. "Information Age Organizations, Dynamics, and Performance". Journal of Economic Behavior and Organization, 38: 253–81.
72. Meyer, C., 1994. "How the Right Measures Help Teams Excel". Harvard Business Review, May-June: 95–103.
73. Miles, R.E., and Snow, C.C., 1992. "Causes of Failure in Network Organizations". California Management Review,: 53–72.
74. Miles, R.E., Snow, C.C., Mathews, J.A., Miles, G., and Coleman, H.J., Jr. 1997. "Organizing in the Knowledge Age: Anticipating the Cellular Form". Academy of Management Executive, 11: 7–20.
75. Miles, R.E., Miles, G., and Snow, Charles C., 1998. "Good for Practice: An Integrated Theory of the Value of Alternative Organizational Forms" ”. In Strategic Flexibility: Managing in a Turbulent Environment, Edited by: Hamel, G., Prahalad, C.K., Thomas, H., and O'Neal, D., New York: John Wiley.
76. Milgrom, P., 1988. "Employment Contracts, Influence Activities and Efficient Organization Design". Journal of Political Economy, 96: 42–60.
77. Milgrom, P., and Roberts, J., 1990. "The Economics of Modern Manufacturing: Technology, Strategy and Organization". American Economic Review, 80: 511–28.
78. Minkler, A.P., 1993. "Knowledge and Internal Organization". Journal of Economic Behavior and Organization, 21: 17–30.
79. Mises, L.V., 1949. Human Action, London: William Hodge.
80. Monteverde, K., 1995. "Technical Dialog as an Incentive for Vertical Integration in the Semiconductor Industry". Management Science, 41: 1624–38.
81. Munro, Don., 2000. "The Knowledge Economy". Journal of Australian Political Economy, 45: 5–17.
82. Myers, P.S., ed. 1996. Knowledge Management and Organizational Design, Boston: Butterworth-Heinemann.
83. Neef, D., ed. 1998. The Knowledge Economy, Boston: Butterworth-Heinemann.
84. Nickerson, J., and Zenger, T., 2000. "Being Efficiently Fickle: A Dynamic Theory of Organizational Choice" ”. unpublished manuscript
85. Nonaka, I., and Takeuchi, I., 1995. The Knowledge-Creating Company, Oxford: Oxford University Press.
86. Osterloh, M., Frost, J., and Frey, B., 2002. "The Dynamics of Motivation in New Organizational Forms". International Journal of the Economics of Business, 9 this issue
87. Powell, W., 1990. "Neither Market, Nor Hierarchy: Network Forms of Organization". Research in Organizational Behavior, 12: 295–336.
88. Prendergast, C., 1999. "The Tenuous Tradeoff of Risk and Incentives" ”. working paper
89. Prusac, L., 1998. "Introduction to Series-Why Knowledge, Why Now?" ”. In The Knowledge Economy, Edited by: Neef, D., Boston: Butterworth-Heinemann.
90. Putterman, L., 1995. "Markets, Hierarchies and Information: On a Paradox in the Economics of Organization". Journal of Economic Behavior and Organization, 26: 373–90.
91. Rajan, R.G., and Zingales, L., 1998. "Power in a Theory of the Firm". Quarterly Journal at Economics, 113: 387–432.
92. Semler, R., 1989. "Managing Without Managers". Harvard Business Review, Sept.-Oct: 76–84.
93. Simon, H.A., 1982. "A Formal Theory of the Employment Relationship", in idem., Models of Bounded Rationality, Cambridge: MIT Press.
94. Simon, H. A., 1991. "Organizations and Markets". Journal of Economic Perspectives, 5: 25–44.
95. Rabin, M., 1993. "Information and the Control of Productive Assets". Journal of Law, Economics andOrganization, 9: 51–76.
96. Tapscott, D., ed. 1999. Creating Value in the Network Economy, Boston: Harvard Business School Press.
97. Teece, D.J., 1987. "Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing and Public Policy", in The Competitive Challenge, Cambridge: Ballinger Publ. Comp.
98. Thompson, J.D., 1967. Organizations in Action, New York: McGraw-Hill.
99. Tomlinson, M., 1999. "The Learning Economy and Embodied Knowledge Flows in Great Britain". Journal of Evolutionary Economics, 9: 431–51.
100. V andenberghe, A.-S., and Siegers, J., 2000. "Employees versus Independent Contractors for the Exchange of Labor Services: Authority as Distinguishing Characteristic?". Paper for the 17th Annual Conference on the European Association of Law and Economics. September2000, Gent. pp. 14–16.
101. Ven, A.H.V.D., Delbecq, A.L., and Koenig, R., Jr. 1976. "Determinants of Coordination Modes Within Organizations". American Sociological Review, 41 April: 322–38.
102. Wernerfelt, B., 1997. "On the Nature and Scope of the Firm: An Adjustment Cost Theory". Journal of Business, 70: 489–514.
103. Williamson, O.E., 1975. Markets and Hierarchies, New York: Free Press.
104. Williamson, O.E., 1985. The Economic Institutions of Capitalism, New York: The Free Press.
105. Williamson, O.E., 1996. The Mechanisms of Governance, Oxford: Oxford University Press.
106. Zenger, T., 2002. "Crafting Internal Hybrids: Complementarities, Common Change Initiatives, and the Team-Based Organization". International Journal of the Economics of Business, this issue
107. Zenger, T., and Hesterly, W.S., 1997. "The Disaggregation of Corporations: Selective Intervention, High-Powered Incentives, and Molecular Units". Organization Science, 8: 209–22.
108. Zingales, L., "In Search of New Foundations". Journal of Finance, forthcoming
109. Zucker, L., 1991. "Markets for Bureaucratic Authority and Control: Information Quality in Professions and Services". Research in the Sociology of Organizations, 8: 157–90.