Working Paper Series, Department of Industrial Economics & Strategy, Copenhagen Business School
Frédéric E. Sautet and Nicolai J. Foss
The Organization of Large, Complex Firms: An Austrian View.
Abstract: We argue that the discovery process perspective, developed
in the context of Austrian economics, is helpful for understanding the
organization of large complex firms, even though the perspective has
traditionally been applied to the analysis of market activities. The stress
put in the perspective on genuine uncertainty, dispersed, tacit and
subjectively held knowledge, rules, and entrepreneurial alertness to
hitherto unnoticed opportunities provides new insights that are not
captured by contemporary agency, transaction cost, rent-seeking, etc.
models. We illustrate our reasoning by focusing on the case of the M-form
Keywords: entrepreneurial discovery; the theory of the firm; (follow links to similar papers)
JEL-Codes: D23; D82; D83; M13; (follow links to similar papers)
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