to the forumCoordinators:
Michael Dietrich
University of Sheffield
Email: M.Dietrich@sheffield.ac.uk
Erik Stam
Utrecht University / University of Cambridge
Email: f.c.stam@uu.nl
This research area focuses on a key actor/institution in economics: the firm. The theory of the firm has been hotly debated in the last two decades. Although we talk about the theory of the firm, there is a plurality of theories of the firm ranging from the neoclassical theory of the firm to recent knowledge based theories of the firm.
Traditionally the theory of the firm has sought to answer the questions (Holmström and Tirole 1989; Foss 2000):
1- Why do firms exist?
2- What factors determine their boundaries relative to markets?
3- What determines the firms’ internal organization?
According to the evolutionary economics’ dictum – “dynamics first” (cf. Dosi, 1997; Hodgson, 2000) - we aim to answer also the more dynamic versions of these questions, namely (Rathe and Witt 2001):
I- What guides the creation of a firm organization?
II- How do firms, and the markets in which they operate, co-evolve, and how is the boundary between them affected?
III- What regular paths of internal, organizational development can be identified, and what contingencies determine which of the paths is likely to be taken?
We are thus interested in the emergence, development, but also the exit of the firm. In order to conceptualise the firm, a multidisciplinary perspective offers rich insights: next to economics, business administration, law, sociology, psychology, and cognitive science can make valuable contributions here. The economics of the firm can therefore function as a bridge between economics and these other disciplines. We are also open for interdisciplinary approaches like complexity studies. A proper theory of the firm is needed in order to analyse the development of industries and economic development in general.
At the annual conference a number of sessions will be organised around the theme of this research area, and other initiatives will be supported (like workshops, seminars, courses, special issues, books), possibly in collaboration with other platforms like EMAEE, ENEF and ISS.