The Organizational Economics of Organizational Capability and Heterogeneity: A Research Agenda

Nicholas Argyres, Teppo Felin, Nicolai J. Foss, Todd Zenger

    Research output: Working paperResearch

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    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 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 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, second, on the capability of governance.
    Original languageEnglish
    Place of PublicationFrederiksberg
    PublisherInstitut for Strategic Management and Globalization
    Number of pages36
    ISBN (Electronic)9788791815775
    Publication statusPublished - Feb 2012
    SeriesSMG Working Paper


    • Organizational economics
    • Theory of the firm
    • Heterogeneity
    • Capabilities

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