Browsing Centres by Author "Foss, Nicolai J."
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Abstract: Organizational routines and capabilities have become key constructs not only in evolutionary economics, but more recently also in business administration, specifically strategic management. In this chapter we explicate some of the underlying theoretical problems of these concepts, and discuss the need for micro-foundations. Specifically, we focus on some of the explanatory problems of collective-level theorizing, and what we think are tenuous assumptions about human beings. We argue that individual-level considerations deserve significantly more consideration, and that evolutionary economics and strategic management would be well served by building on methodological individualism. URI: http://hdl.handle.net/10398/7891 Files in this item: 1
DRUID_04_13.pdf (346.0Kb) -
The Role of FirmsFoss, Nicolai J.; Foss, Kirsten (Frederiksberg, 1999)[More information][Less information]
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On Behavioral Assumptions in the Theory of the FirmFoss, Nicolai J. (Frederiksberg, 2001)[More information][Less information]
Abstract: I discuss and compare alternative approaches to integrating bounded rationality with the theory of economic organization, concentrating on the organizational capabilities approach, which is strongly influenced by the works of Nelson and Winter, organizational economics, particularly transaction cost economics, and, finally, a small subset of the literature on biases to judgment and cognition. I argue that, contrary to the conventional view, both the organizational capabilities approach and transaction cost economics treat bounded rationality rather “thinly,” the former being in actuality more taken up with organizational routines than individual boundedly rational behavior, the latter only invoking bounded rationality to the extent that it helps explaining incompleteness of contracting. The rich literature on cognitive biases, etc. suggests a “thick” approach to bounded rationality that may be helpful with respect to furthering the theory of economic organization. Examples pertaining to the internal organization of firms are provided. URI: http://hdl.handle.net/10398/7895 Files in this item: 1
DRUID_01_15.pdf (134.9Kb) -
Foss, Nicolai J.; Frøslev Christensen, Jens (Frederiksberg, 1996)[More information][Less information]
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An Assessment and Diagnosis of ProblemsFoss, Nicolai J. (Frederiksberg, 1997)[More information][Less information]
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Interpreting and Learning from the Rise and Decline of the Oticon Spaghetti OrganizationFoss, Nicolai J. (Frederiksberg, 2001)[More information][Less information]
Abstract: Infusing hierarchies with elements of market control has become a much-used way of simultaneously increasing entrepreneurialism and motivation in firms. However, this paper argues that such “internal hybrids,” particularly in their radical forms, are inherently hard to successfully design and implement, because of fundamental credibility problems related to managerial promises to not intervene in delegated decision-making ¾ an incentive problem that is often referred to as the “problem of selective intervention.” This theoretical theme is developed and illustrated, using the case of the world-leading Danish hearing aids producer, Oticon. In the beginning of the 1990s, Oticon became famous for its radical internal hybrid, the ”spaghetti organization.” Recent work has interpreted the spaghetti organization as a radical attempt to foster dynamic capabilities by imposing loose coupling on the organization, neglecting, however, that about a decade later, the spaghetti organization has given way to a more traditional matrix organization. This paper presents an organizational economics interpretation of organizational changes in Oticon, and argues that a strong liability of the spaghetti organization was the above incentive problem. Motivation in Oticon was strongly harmed by selective intervention on the part of top-management Changing the organizational structure was one means of repairing these motivational problems. Refutable implications are developed, both for the understanding of efficient design of internal hybrids, and for the more general issue of the distinction between firms and markets, as well as the choice between internal and external hybrids. URI: http://hdl.handle.net/10398/7894 Files in this item: 1
DRUID_01_16.pdf (186.7Kb) -
Mahnke, Volker; Foss, Nicolai J. (Frederiksberg, 1998)[More information][Less information]
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A Stocktaking and AssessmentFoss, Nicolai J.; Klein, Peter G. (Frederiksberg, 2005)[More information][Less information]
Abstract: Ever since its emergence in the 1970s the modern economic or Coasian theory of the firm has been discussed and challenged by sociologists, heterodox economists, management scholars, and other critics. This chapter reviews and assesses these critiques, focusing on behavioral issues (bounded rationality and motivation), process (including path dependence and the selection argument), entrepreneurship, and the challenge from knowledge-based theories of the firm. URI: http://hdl.handle.net/10398/7890 Files in this item: 1
DRUID_05_03.pdf (363.9Kb) -
Precursor of The Competence-Based Approach to The FirmFoss, Nicolai J. (Frederiksberg, 1996)[More information][Less information]
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Insights from Austrian Capital and Entrepreneurship TheoryFoss, Nicolai J.; Ishikawa, Ibuki (Frederiksberg, 2006)[More information][Less information]
Abstract: Over the last two decades the resource-based view (“RBV”) has become dominant in the strategic management field. It has often been observed that the RBV is lacking in the dynamic dimension. For example, processes of building competitive advantages by means of combining existing complementary resources in novel ways are not inquired into. We argue that the RBV may profitably draw on insights in entrepreneurship and capital theory, drawn from Austrian economists as well as Frank Knight, in order to strengthen its dynamic dimension. We link the RBV and Austrian ideas in the context of the theory of complex systems pioneered by Herbert Simon. We draw a number of implications for strategic management from this synthesis, notably into resource value and sustainability of competitive advantage. URI: http://hdl.handle.net/10398/7877 Files in this item: 1
DRUID_06_16.pdf (174.5Kb) -
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Residual Rights Of Control and Appropriable Control RightsFoss, Nicolai J.; Foss, Kirsten (Frederiksberg, 1999)[More information][Less information]
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