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.
|Place of Publication||København|
|Publisher||Institut for Industriøkonomi og Virksomhedsstrategi, Handelshøjskolen i København|
|Number of pages||33|
|Publication status||Published - 1999|
|Series||Working Paper / Department of Industrial Economics and Strategy. Copenhagen Business School|