Capabilities and Governance: The Rebirth of Production in the Theory of Economic Organization

Richard N. Langlois, Nicolai J. Foss

    Research output: Working paperResearch

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    Abstract

    We argue that since Coase’s seminal 1937 paper on “The Nature of the Firm,” there has been an odd and unjustified separation between price theory and the economics of organization. For example, matters of production has been the domain of the former exclusively. However, a new approach to economic organization, here called “the capabilities approach,” that places production
    center-stage in the explanation of economic organization, is now emerging. We discuss the sources of this approach and its relation to the mainstream economics of organization.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherDRUID - Danish Research Unit for Industrial Dynamics
    Number of pages44
    ISBN (Print)8778730201
    Publication statusPublished - 1997
    SeriesDRUID Working Paper
    Number97-2

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