Browsing Departments by Subject "Transaction cost"
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Li, Xin (Frederiksberg, 2013)[More information][Less information]
Abstract: All of the three major theories of the firm, i.e., the transaction cost theory, knowledge-based theory and the entrepreneurship theory, offer some insightful analyses of the nature of the firm. However, they all have limitations and weaknesses in answering the fundamental question of the existence of the firm. In addition, they are all partial due to their particular focus on the multifaceted phenomenon of the firm. We argue that it is necessary and sufficient to develop a comprehensive yet integrative theory of the firm that combines the three competing yet complementary logics. Toward this end, we propose an aspirational community theory of the firm (ACT) as a candidate theory by conceptualizing the firm as an aspirational community, the core of which is a group of like-minded people sharing similar or same aspiration/vision. To explain the comparative advantage of the firm vis-à-vis market, we make a distinction between contractual labor and aspirational labor, the former being defined as services provided by a laborer in fulfillment of a contract while the latter as services provided by a laborer in pursuit of an aspiration; and argue that firms exist because while the market may be effective and efficient for allocating contractual labor it is less effective and efficient than the firms for allocating aspirational labor. URI: http://hdl.handle.net/10398/8767 Files in this item: 1
Xin Li - AOM 2013.pdf (702.8Kb) -
Li, Xin (Frederiksberg, 2011)[More information][Less information]
Abstract: All of the three major theories of the firm, i.e., the transaction cost theory, knowledge-based theory and the entrepreneurship theory, offer some insightful analyses of the nature of the firm. However, they all have limitations and weaknesses in answering the fundamental question of the existence of the firm. In addition, they are all partial due to their particular focus on the multifaceted phenomenon of the firm. We argue that it is necessary and sufficient to develop a comprehensive yet integrative theory of the firm that combines the three competing yet complementary logics. Toward this end, we propose an aspirational community theory of the firm (ACT) as a candidate theory by conceptualizing the firm as an aspirational community, the core of which is a group of like-minded people sharing similar or same aspiration/vision. To explain the existence of the firm, we make a distinction between contractual labor and aspirational labor, the former being defined as services provided by a laborer in fulfillment of a contract while the latter as services provided by a laborer in pursuit of an aspiration; and argue that firms exist because while the market may be effective and efficient for allocating contractual labor it is less effective and efficient than the firms for allocating aspirational labor. URI: http://hdl.handle.net/10398/8382 Files in this item: 1
Xin Li_INT working paper wp2-2011-xl.pdf (433.7Kb) -
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Abstract: This paper is intended to propose a relationship-based theory of the firm (R’BT), an alternative to the transaction cost theory. The R’BT takes relationship disharmony (rather than transaction costs) as its basic unit of analysis of the nature of the firm, and argues relationship disharmony derives from conflict of interests, a problem faced by any human organizations; to reduce the conflict of interests, the best way is to harmonize relationships by mutually accommodating or internalizing the other party’s interests into its own consideration; the degree of harmony or disharmony in the relationships will in turn determine the performance of the organization in question. This paper provides a completely different explanation from the transaction cost economics when addressing issues such like the existence, boundary and internal organization of the firm. Also discussed are its implications for organizational management and economy. URI: http://hdl.handle.net/10398/7828 Files in this item: 1
wp3-2009-xl.pdf (160.1Kb) -
A Relationship-based ApproachLi, Xin (Frederiksberg, 2011)[More information][Less information]
Abstract: This paper argues that the existing four major theories of the firm, i.e., the transaction cost theory, resource-based view, the entrepreneurial theory, and the stakeholder theory, are all insightful yet partial because each of them has a particular focus on the phenomenon of the firm. To better understand the nature and behaviors of the firm, we need a comprehensive yet integrative theory. Toward this end, this paper proposes a relationship-based theory of the firm (R’BT) which claims that it is the relationships between the entrepreneur and other individuals or firms that determine the existence, boundary, internal organization and competitive advantage of the firm. URI: http://hdl.handle.net/10398/8361 Files in this item: 1
Xin_Li_INT_2011.pdf (275.3Kb)
Now showing items 1-4 of 4