The Organization of Large, Complex Firms: An Austrian view

Frédéric E. Sautet, Nicolai Juul Foss

    Research output: Working paperResearch

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    Abstract

    We argue that the discovery process perspective, developed in the context of Austrian economics, is helpful for understanding the organization of large complex firms, even though the perspective has traditionally been applied to the analysis of market activities. The stress put in the perspective on genuine uncertainty, dispersed, tacit and subjectively held knowledge, rules, and entrepreneurial alertness to hitherto unnoticed opportunities provides new insights that are not captured by contemporary agency, transaction cost, rent-seeking, etc. models. We illustrate our reasoning by focusing on the case of the M-form corporation.
    Original languageDanish
    Place of PublicationKøbenhavn
    PublisherInstitut for Industriøkonomi og Virksomhedsstrategi, Handelshøjskolen i København
    Number of pages33
    ISBN (Print)8778690420
    Publication statusPublished - 1999
    SeriesWorking Paper / Department of Industrial Economics and Strategy. Copenhagen Business School
    Number99-7
    ISSN1398-7461

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