This paper examines the nature of genuine uncertainty and rule-following behaviour and
suggests some implications for the theory of the firm. The firm is seen here as emerging
as a means to manage some of the experienced uncertainty. The nature of the firm is
perceived as an evolving institution creating predictability both inside the firm and in
the market. But because of the spontaneous nature of life-world, social processes remain
open-ended. This subjectivist perspective cannot assign any particular premeditated
purpose to the spontaneous order which emerges through the market process. The
process is not kaleidic but nor is it considered to be moving toward increasing efficiency
either. Rules and institutions provide predictability to the extent that novelties can be
introduced to the process. Discoveries do not, however, only introduce new outcomes in
the market process, they also change the rules of the game.