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Organizational Economics of Capability and Heterogeneity

Publication: Research - peer-reviewJournal article

For decades, the literatures on firm capabilities and organizational economics have been at odds with each other, specifically relative to explaining organizational boundaries and heterogeneity. We briefly trace the history of the relationship between the capabilities literature and organizational economics, and we point to the dominance of a “capabilities first” logic in this relationship. We argue that capabilities considerations are inherently intertwined with questions about organizational boundaries and internal organization, and we use this point to respond to the prevalent capabilities first logic. We offer an integrative research agenda that focuses first on the governance of capabilities and then on the capability of governance.

Publication information

Original languageEnglish
JournalOrganization Science
Volume23
Issue number5
Pages (from-to)1213-1226
ISSN1047-7039
DOIs
StatePublished - 2012

    Keywords

  • Organizational Economics, Theory of the Firm, Heterogeneity, Capabilities

ID: 37237209