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.

Publication information

Original languageEnglish
Place of PublicationFrederiksberg
PublisherDepartment of International Economics and Management, Copenhagen Business School
Number of pages20
StatePublished - 2011

ID: 32717221