A Relationship-based Theory of the Firm: A Chinese Perspective

    Publikation: Working paperForskning

    Resumé

    In this paper, I argue that all the existing theories of the firm, i.e., the transaction cost, knowledge-based, and entrepreneurial theories, are insightful yet partial since they only deal with one or another possible situation in which the first ever firm came to exist. In addition, all of them have a common problem of buyer/entrepreneur/firm-centrism because they all ignore the role of employees in the formation of the firm. I argue, since they are complementary to each other, a new, comprehensive and integrative theory of the firm must be able to unify them with a consideration of employees. I propose a relationship-based theory of the firm (R’BT) as such a candidate theory. The R’BT places the employer-employee (or broader, firm-stakeholder) relationships at the centre of its whole theoretical framework and argues that the notion of relationship harmony is fundamental in explaining the nature of the firm.
    OriginalsprogEngelsk
    Udgivelses stedFrederiksberg
    UdgiverDepartment of International Economics and Management, Copenhagen Business School
    Antal sider20
    StatusUdgivet - 2010
    NavnWorking Paper / Department of International Economics and Management, Copenhagen Business School
    Nummer1-2010

    Emneord

    • Theory of the firm
    • Relationship
    • Harmony
    • Transaction cost
    • Entrepreneurship
    • Knowledge

    Citer dette

    Li, X. (2010). A Relationship-based Theory of the Firm: A Chinese Perspective. Frederiksberg: Department of International Economics and Management, Copenhagen Business School. Working Paper / Department of International Economics and Management, Copenhagen Business School, Nr. 1-2010
    Li, Xin. / A Relationship-based Theory of the Firm : A Chinese Perspective. Frederiksberg : Department of International Economics and Management, Copenhagen Business School, 2010. (Working Paper / Department of International Economics and Management, Copenhagen Business School; Nr. 1-2010).
    @techreport{c13fce406d5b11df958f000ea68e967b,
    title = "A Relationship-based Theory of the Firm: A Chinese Perspective",
    abstract = "In this paper, I argue that all the existing theories of the firm, i.e., the transaction cost, knowledge-based, and entrepreneurial theories, are insightful yet partial since they only deal with one or another possible situation in which the first ever firm came to exist. In addition, all of them have a common problem of buyer/entrepreneur/firm-centrism because they all ignore the role of employees in the formation of the firm. I argue, since they are complementary to each other, a new, comprehensive and integrative theory of the firm must be able to unify them with a consideration of employees. I propose a relationship-based theory of the firm (R’BT) as such a candidate theory. The R’BT places the employer-employee (or broader, firm-stakeholder) relationships at the centre of its whole theoretical framework and argues that the notion of relationship harmony is fundamental in explaining the nature of the firm.",
    keywords = "Theory of the Firm, Relationship, Harmony, Transaction cost, Entrepreneurship, Knowledge, Theory of the firm, Relationship, Harmony, Transaction cost, Entrepreneurship, Knowledge",
    author = "Xin Li",
    year = "2010",
    language = "English",
    series = "Working Paper / Department of International Economics and Management, Copenhagen Business School",
    publisher = "Department of International Economics and Management, Copenhagen Business School",
    number = "1-2010",
    type = "WorkingPaper",
    institution = "Department of International Economics and Management, Copenhagen Business School",

    }

    Li, X 2010 'A Relationship-based Theory of the Firm: A Chinese Perspective' Department of International Economics and Management, Copenhagen Business School, Frederiksberg.

    A Relationship-based Theory of the Firm : A Chinese Perspective. / Li, Xin.

    Frederiksberg : Department of International Economics and Management, Copenhagen Business School, 2010.

    Publikation: Working paperForskning

    TY - UNPB

    T1 - A Relationship-based Theory of the Firm

    T2 - A Chinese Perspective

    AU - Li, Xin

    PY - 2010

    Y1 - 2010

    N2 - In this paper, I argue that all the existing theories of the firm, i.e., the transaction cost, knowledge-based, and entrepreneurial theories, are insightful yet partial since they only deal with one or another possible situation in which the first ever firm came to exist. In addition, all of them have a common problem of buyer/entrepreneur/firm-centrism because they all ignore the role of employees in the formation of the firm. I argue, since they are complementary to each other, a new, comprehensive and integrative theory of the firm must be able to unify them with a consideration of employees. I propose a relationship-based theory of the firm (R’BT) as such a candidate theory. The R’BT places the employer-employee (or broader, firm-stakeholder) relationships at the centre of its whole theoretical framework and argues that the notion of relationship harmony is fundamental in explaining the nature of the firm.

    AB - In this paper, I argue that all the existing theories of the firm, i.e., the transaction cost, knowledge-based, and entrepreneurial theories, are insightful yet partial since they only deal with one or another possible situation in which the first ever firm came to exist. In addition, all of them have a common problem of buyer/entrepreneur/firm-centrism because they all ignore the role of employees in the formation of the firm. I argue, since they are complementary to each other, a new, comprehensive and integrative theory of the firm must be able to unify them with a consideration of employees. I propose a relationship-based theory of the firm (R’BT) as such a candidate theory. The R’BT places the employer-employee (or broader, firm-stakeholder) relationships at the centre of its whole theoretical framework and argues that the notion of relationship harmony is fundamental in explaining the nature of the firm.

    KW - Theory of the Firm

    KW - Relationship

    KW - Harmony

    KW - Transaction cost

    KW - Entrepreneurship

    KW - Knowledge

    KW - Theory of the firm

    KW - Relationship

    KW - Harmony

    KW - Transaction cost

    KW - Entrepreneurship

    KW - Knowledge

    M3 - Working paper

    T3 - Working Paper / Department of International Economics and Management, Copenhagen Business School

    BT - A Relationship-based Theory of the Firm

    PB - Department of International Economics and Management, Copenhagen Business School

    CY - Frederiksberg

    ER -

    Li X. A Relationship-based Theory of the Firm: A Chinese Perspective. Frederiksberg: Department of International Economics and Management, Copenhagen Business School. 2010.