Scandinavian Working Papers in Economics
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Department of Industrial Economics & Strategy, Copenhagen Business School Working Paper Series, Department of Industrial Economics & Strategy, Copenhagen Business School

No 99-1:
The knowledge-Based Approach and Organizational Economics: How Much Do They Really Differ? And How Does It Matter?

Kirsten Foss and Nicolai Foss

Abstract: The knowledge-based approach and organizational economics are usually seen as offering opposing approaches to the explanation of organizational phenomena. Relying on a taxonomic framework from the philosophy of science, we argue that many differences between these approaches are more apparent than real. Thus, many insights associated with the knowledge-based approach can be reduced to organizational economics insights. However, not everything can be thus reduced. There is an important residual, comprising differential cognition, learning, and bounded rationality.

Keywords: economic organization; firm strategy; (follow links to similar papers)

JEL-Codes: L21; L22; M2; (follow links to similar papers)

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