The Nature of the Firm
Abstract
Economic theory has suffered in the past from a failure to state clearly its assumptions. Economists in building up a theory have often omitted to examine the foundations on which it was erected. This examination is, however, essential not only to prevent the misunderstanding and needless controversy which arise from a lack of knowledge of the assumptions on which a theory is based, but also because of the extreme importance for economics of good judgment in choosing between rival sets of assumptions. For instance, it is suggested that the use of the word “firm” in economics may be different from the use of the term by the “plain man.” Since there is apparently a trend in economic theory towards starting analysis with the individual firm and not with the industry, it is all the more necessary not only that a clear definition of the word “firm” should be given but that its difference from a firm in the “real world,” if it exists, should be made clear. Mrs. Robinson has said that “the two questions to be asked of a set of assumptions in economics are: Are they tractable? and: Do they correspond with the real world?” Though, as Mrs. Robinson points out, “more often one set will be manageable and the other realistic,” yet there may well be branches of theory where assumptions may be both manageable and realistic.
... L'étude du concept gouvernance, publique et privée, trouve ses origines dans un référentiel solide regroupant différentes théories. Il s'agit notamment de la théorie des coûts de transaction (Coase, 1937 ;Williamson, 1985Williamson, , 1996 qui explique les phénomènes de partenariats et qui permet de comprendre les formes de gouvernance des transactions. Dans le même ordre d'idées, la théorie de l'agence (Hill & Jones ,1992), ne manque pas d'impotence et constitue une base pour analyser les relations des parties prenantes qui ne partagent pas forcément les mêmes intérêts. ...
... Selon cet auteur, le concept de gouvernance a été tout d'abord emprunté du champ des sciences politiques pour caractériser les modalités de gouvernement régissant les agglomérations et par extension, l'action publique territoriale. L'analyse de la revue de littérature révèle que ce concept a été mobilisé par la théorie des coûts de transaction développée par (Coase, 1937). Tout en rejetant l'idée selon laquelle le prix du marché est le seul agent de régulation des échanges, (Coase, 1937) raisonne plutôt en termes des coûts de transaction pour désigner la nature des coordinations entre individuels et collectifs (Leloup et al., 2005). ...
... L'analyse de la revue de littérature révèle que ce concept a été mobilisé par la théorie des coûts de transaction développée par (Coase, 1937). Tout en rejetant l'idée selon laquelle le prix du marché est le seul agent de régulation des échanges, (Coase, 1937) raisonne plutôt en termes des coûts de transaction pour désigner la nature des coordinations entre individuels et collectifs (Leloup et al., 2005). Dans cette perspective, la gouvernance correspond aux procédés par lesquels la firme s'organise pour parvenir à des actions plus efficaces (Lorrain, 1998). ...
Le présent article interroge la gouvernance des collectivités territoriales (CT) au Maroc. Celle-ci a évolué suite aux réformes initiées au Maroc durant les dernières années et qui ont visé à améliorer la performance de l’administration publique en général et des CT en particulier. A l’instar de la plupart des pays occidentaux, ces réformes placent la performance au centre des préoccupations des décideurs publics au niveau central mais également territorial (Khulmann,2010 ; Wollmann, 2004)
En adoptant une démarche méthodologique qui s’appuie sur une analyse documentaire de la littérature existante et en faisant appel à un benchmarking international des principales puissances en matière de la gestion publique locale, ce papier a pour objectif de traiter la problématique relative à la prospective de la gouvernance des CT dans le contexte marocain à la lumière des expériences internationales.
L’étude révèle que le socle commun de la plupart des réformes réside dans l’application des principes du Nouveau Management Public et l’adoption de la décentralisation comme système politico-administratif selon une logique plus au moins pragmatique qui tient compte des particularités de chaque pays. Au Maroc, la gestion publique s’inspire du modèle français dans la mesure où les structures de l’Etat sont contraintes de mettre en place une démarche de performance formalisée. Cependant, les CT jouissent encore d’une marge de liberté dans l’adoption d’un modèle de gestion qui pend en considération le particularisme qui caractérise ce type d’organisation.
... Esta sección expone las políticas de incentivos, costes de transacción y ventaja competitiva que sirve de base para el análisis de los datos presentados más adelante. Las políticas de incentivos industriales de los gobiernos y los costes de transacción (Coase, 1937;Williamson, 1975,) influyen en la decisión de traslado de actividades de una empresa multinacional. Las políticas de incentivos industriales forman parte de la estrategia de promoción para la inversión extranjera directa y el desarrollo económico de los países, e inciden en la decisión del establecimiento o la permanencia de una empresa multinacional (Wells y Wint, 1990;Wint y Williams, 2002). ...
... Las políticas de incentivos industriales forman parte de la estrategia de promoción para la inversión extranjera directa y el desarrollo económico de los países, e inciden en la decisión del establecimiento o la permanencia de una empresa multinacional (Wells y Wint, 1990;Wint y Williams, 2002). Según Coase (1937;1972), el movimiento de los precios directos de la producción es coordinado a través de una serie de intercambios de transacciones en el mercado. La forma en que la industria es organizada depende de la relación entre los costes de las transacciones y los costes de organizar las operaciones. ...
... In the market equilibrium approach of neoclassical economics there is little need for government intervention in economic life as individuals exchange goods and services for cash in open markets. Neoclassical assumptions undervalued the institutional determinants of individual behavior and the costs arising from transactions in pure markets (Coase, 1937). Individuals could be treated as autonomous, rationally maximizing agents, with perfect information, perfect cognitive abilities, and very little opportunistic behavior. ...
... Classical institutional theorists such as Veblen (1899), Hamilton (1919), andCommons (1931) recognized that 1) institutions had profound effects on the psychology of individuals, and 2) there were indeed significant costs to transacting in "pure" markets. Following (Coase, 1937), if individuals are rational and markets are efficient, why do we even need bureaucratic organizations? Why shouldn't the economy just be one gigantic aggregation of spot transactions between individuals in an unregulated open market? ...
The discipline of public administration has grappled with concepts regarding the public for well over a century. Scholars from public choice, public value(s), and publicness have analyzed myriad elements of administration related to the public. However, detailed explorations of this fundamental term remain relatively sparse, disparate, and under-theorized. In this essay, an ontology and intellectual history of the public is developed, starting with John Dewey's classic work The Public and its Problems. Dewey's social-interaction-consequence view of the public, referred to here as the pragmatic public is evaluated through multiple theories in public administration. Finally, theories of social networks and complexity science are unified with the pragmatic public, recentering and reinvigorating the theory in the context of network governance. 2
... La teoría de la firma basada en los costos de transacción (Williamson 1975, y Klein et al., 1978 introduce nuevos elementos a la teoría original de Coase (1937). Así es como mientras Coase se ocupaba de los costos de transacción que surgen ex ante, tales como los de búsqueda de la contraparte y de la negociación de los contratos, estos autores se enfocaron en los costos de transacción que surgen ex post, producto de la dificultad de firmar contratos completos y de obligar al cumplimiento de cualquier tipo de contrato. ...
... Seguidamente, la teoría de los derechos de propiedad extiende la aplicación y alcance de la teoría de la firma basada en los costos de transacción (Coase, 1937;Williamson, 1975Williamson, , 1988Williamson, , 1985. Esta literatura, que comienza con Grossman y Hart (1986), Hart y Moore (1990) y Hart (1995), parte de la premisa de que la propiedad de un activo otorga el control sobre los flujos residuales que éste genere, lo que incentiva a su dueño a esforzarse para destinar el activo hacia aquellas actividades que maximicen su valor. ...
La ley 27.191 de Régimen de Fomento Nacional para el uso de Fuentes Renovables de Energía, se manifiesta como un instrumento disuasivo a los efectos del cumplimiento de las obligaciones ambientales que se reclama a las empresas, los ejes propuestos por la nueva ley que incidió en el proceso de toma de decisiones, incluyo importantes incentivos fiscales para los productores independientes de energía y para la cadena de valor de producción local, el objetivo del presente trabajo es analizar la conexión entre el esfuerzo ambiental de las organizaciones y la incidencia de los incentivos fiscales, para ello se utilizan los datos de las empresas adjudicatarias de la licitación del renovar durante 2015-2021 y se aplica el modelo logit de datos panel, así como el modelo EVA a los efectos de analizar si las empresas que invierten en pos del mediambiente, incrementan el valor de la empresa.
... De este modo, una estrategia empresaria orientada a la venta de bebidas endulzadas, como en cualquier cadena productiva, se basa en la estructuración coordinada de eslabonamientos que constituyen el nexo de contratos (Coase, 1937) entre los distintos pasos productivos hasta llegar al consumidor. ...
... Originally, Coase (1937) in a national context and Hymer (1976) in an international context established this theory. Then the theory was further developed by Buckley and Casson (1976) and then by Hennart (1982). ...
The role of Foreign Direct Investment (FDI) inflows in a developing country, can be recognized as a major influence on the economy or the productivity of the host country. A country must have the ability to create numerous ways and means to attract FDI inflows to the country, since it is acting as a major channel for the development of the host country by creating a great platform for higher productivity of the host country's economy. Domestic firms can learn and uplift their competitiveness with the help of FDI which is carried out by multinational enterprises. This research will be an attempt to examine whether the FDI inflows impact the productivity of domestic firms in the Sri Lankan manufacturing sector. Further, it explored the long-run relationship between FDI inflows and the productivity of domestic firms in Sri Lankan manufacturing industries. Data were collected from 2010 to 2019 and they were analyzed using a panel data regression model to achieve the major objective of the study. A fixed effect model was selected as the fitted model for the study and it revealed a significant positive impact of FDI on the output. A panel cointegration model is used to explore the long-run relationship and it is evidenced that there is no long-run relationship among variables.
... However, the study's limited focus on the sample was mainly manufacturing companies and the lack of long-term debt data.According to Adesina et al. (2015), Transaction cost economics or theory the concept of transaction costs was first introduced by Ronald Cose in 1937, published in The study titled "The Nature of the Firm" laid the foundation for the theory of transaction costs, which was later perfected and developed by Williamson (1987), while also clarifying the forms of transaction management. Transactions and different forms of transaction organization affect firm size (Coase, 1995). According to Cose (1937), firm size is limited by the number of transactions that can be efficiently executed. ...
Purpose: The aim of this study is to examine the relationship between capital structure and performance of securities brokerage firms. Theoretical framework: The study inherits previous studies on the relationship between capital structure and performance to reason, test and determine the optimal capital structure. Design/methodology/approach: Using Qualitative Research (Synthetic Methods; Statistical methods, description; Inductive and interpretive methods) and quantitative research methods (linear regression methods). Findings: The results identified an inherent structure that significantly affects performance through the variables: (1) Financial leverage of a stockbroker (FL) and (2) Brokerage company size (Siz). Research, Practical & Social implications: The study provides a number of discussions and evaluations on the important role of decision making on optimal capital structure for securities brokerage service companies, in addition to recommendations on financial solutions to improve operational efficiency for companies. Originality/value: Through the study of 105 securities brokerage companies, corresponding to 1,314 observations in the period 2003 - 2021.
... Bunlara örnek mahiyetinde bazı kuramlar açısından değerlendirmeye gidilmiştir. Kaynak tahsisi sürecinin işlem maliyetleri kuramına göre ele alındığı durumlarda, işlem maliyetleri düşük ise pazarda, işlem maliyeti yüksek ise işletmede yapılması kararı noktasında önem arz etmektedir (Coase, 1937;Williamson, 1981). Kaynak tahsis kararlarını firmalar açısından aşırı uzmanlaşma veya aşırı ölçeklendirmeye yol açabilecek bir bağlama yol açabilecek bir husus olarak ele almak gerekmektedir. ...
Çalışma toplam dokuz bölümden oluşmaktadır. Kitap sırasıyla; Stratejik Bilgi Yönetimi, Stratejik Enformasyon Sistemi ve Stratejik Karar Verme, Örgütsel Ustalık, Sağlık Yönetiminde Stratejik Araç: Kıyaslama, Sürdürülebilir Sağlık Hizmetleri için Stratejik Maliyet Yönetimi Stratejik Yönetimin Dikkat Temelli Görüşü: Neredeyiz? Nereye Gidiyoruz?, Kümelenme Gerekli mi? Stratejik Faydaları Nelerdir? ve Finansal Olmayan Kaynak Tahsis Sürecini Etkileyen Unsurlar bölümlerinden oluşmaktadır.
... Ronald H. Coase, (1937). The Nature of the Firm, Economica, New Series, Vol. 4, No. 16, PP. 386-405; see alsoWilliamson, O. E., (1985). ...
... Schumpeter (1942, p. 83) introduced the notion of creative destruction, arguing that innovation leads to the emergence of firms with significant market power that are replaced over time by new innovations. Coase (1937) emphasized that firms may engage in multiple, sometimes sequential, activities and that firms choose whether to engage in multiple stages of their product's supply chain. Williamson (1981) emphasized the importance of transaction costs in determining the structure of organizations, such as firms and corporations, which leads to various types David Zilberman -9781800372054 Downloaded from PubFactory at 02/01/2023 04:51:56PM via free access of institutional arrangements and market power. ...
... While the later Nobel laureate Ronald Coase was able to publish his two pathbreaking unconventional articles in journals not belonging to the "top five" (Coase, 1937;Coase, 1960) it took a long time before they were appreciated in the profession and cited. Citations to Coase's works have continued to grow at a substantial rate in each successive decade, even though Coase has published very few works in the past 15 years. ...
... Innovation is a driver of sustained economic growth and plays a crucial role in gaining a lasting competitive advantage (Filatotchev et al., 2009). In the separation of powers, management controls the firm's resources and holds the most important innovative investment decisions, which has a decisive role in the firm's business development (Coase, 1937). The influence of managers on innovation investment behavior has long received extensive attention, and many results have emerged (Carson et al., 2022;Shleifer & Vishny, 1989;Simsek, 2007). ...
Based on upper echelons theory, this study empirically investigates the relationship between CEO-TMT (i.e., the CEO interacts with other members of the TMT) overseas experience diferences and innovation investment. Moreover, we analyze the moderating efects of marketization process and ownership nature on the above relationship. Our results show that the inverted U-shaped hypothesis is more helpful to explain the relationship between CEO-TMT overseas experience diferences and innovation investment in Chinese manufacturing listed companies than the linear relationship. We fnd that a high marketization process is more likely to enhance the efect of the above relationship; CEO-TMT overseas experience diferences on innovation investment are greater in the non-state-owned enterprise group. Further analysis shows that CEO-TMT overseas experience diferences are signifcantly positively related to innovation investment at [0, 0.5279] and negatively related at [0.5279, 1]. CEO overseas experience has a positive efect on innovation investment, while TMT overseas experience also shows an inverted U-shaped relationship with innovation investment that rises frst and then falls.
... Governança no contexto empresarial significa um conjunto de princípios que buscam aumentar a efetividade de controle por parte de seus diversos usuários sobre organizações privadas (Secchi, 2009). Estudos seminais no campo da governança foram desenvolvidos por Coase (1991) e aperfeiçoados por Williamson (1975), de acordo com esses autores, a governança, designaria os dispositivos operacionalizados pela empresa para conduzir coordenações eficazes em relação a dois registros: os protocolos internos, quando a firma desenvolve suas redes e questiona as hierarquias internas; e os contratos e as aplicações de normas, quando ela se abre à terceirização (Matias-Pereira, 2010). Para as empresas a governança é classificada como Governança Corporativa (Raquel, 2012). ...
Objetivo: Caracterizar o estado da arte sobre a aplicação da governança a entes do setor público. Método: Foi realizada uma análise da produção científica nacional e internacional, levantada a partir de uma revisão sistemática da literatura, por meio da plataforma Web of Science com o descritor de busca “public governance”. Não foram estabelecidas limitações de ano e idioma da publicação. Foram selecionados e analisados sistematicamente quatorze artigos. Originalidade/Relevância: Entende-se que o levantamento da literatura sobre a governança aplicada a entes públicos de forma sistemática é tema pouco explorado, e é importante conhecer os resultados das pesquisas científicas, bem como as possibilidades de pesquisa na área. Resultados: Com base nos resultados levantados dos artigos selecionados a partir da revisão sistemática, pôde-se perceber que, de forma geral, os entes públicos estão preocupados com o atendimento de aspectos legais e, a estes, falta conhecimento acerca dos conceitos de governança pública. As pesquisas demonstraram, também, que a implementação de princípios de governança é um dos principais determinantes do crescimento econômico sustentável e pode trazer resultados que vão além da gestão das instituições públicas, podendo melhorar a qualidade dos serviços públicos. Contribuições teóricas/metodológicas: A pesquisa gera contribuição tanto teórica quanto prática, uma vez que auxilia tanto pesquisadores, no levantamento de pontos a serem explorados em futuras pesquisas, quanto profissionais, fornecendo uma visão geral sobre a realidade dos entes públicos.
... Bunlara örnek mahiyetinde bazı kuramlar açısından değerlendirmeye gidilmiştir. Kaynak tahsisi sürecinin işlem maliyetleri kuramına göre ele alındığı durumlarda, işlem maliyetleri düşük ise pazarda, işlem maliyeti yüksek ise işletmede yapılması kararı noktasında önem arz etmektedir (Coase, 1937;Williamson, 1981). Kaynak tahsis kararlarını firmalar açısından aşırı uzmanlaşma veya aşırı ölçeklendirmeye yol açabilecek bir bağlama yol açabilecek bir husus olarak ele almak gerekmektedir. ...
... From the perspective of demand, the American psychologist Maslow summarized human needs from low to high into five levels, namely physiological, safety, social, respect, and selfrealization needs [19] . A high level of demand requires increased personalization. ...
Human society is evolving toward the future network information society. In this paper, we identify the interconnected level as the key factor driving the evolution of human society and incorporate it into our proposed evolutionary model of social formation. We show the entire process of social formation evolution at the interconnected level through theoretical analysis and simulation. Our result is consistent with what human beings have gone through. By contrast, the result presents the following four characteristics of the future network information society: the personalization of goods or services, the downsizing of enterprises or organizations, the decentralization of production or life, and the sharing of production or living tools. We regard the future network information society as a deeply interconnected “Primitive Society”.
... An isolated firm comprised of a single actor also eliminates both coordination costs and transaction costs resulting from guile (Williamson, 1975) or differences in perception (Ghoshal & Moran, 1996), as there is one producer and one consumer who are both the same person. This precludes the threat of competitor expropriation as well as myriad governance and institutional concerns (e.g., Coase, 1995;North, 1990;Williamson, 1975). Moreover, the model assumes the economy consists of a single firm, such that the costs of resources are not in flux due to others' actions (c.f., Holcombe, 2003;Kirzner, 1997). ...
Building on ecological economics and the firm growth literature, I propose a model of real growth through entrepreneurial resourcefulness to determine whether an isolated firm can grow if it can capture only the value it creates. I then use Andy Weir’s bestseller The Martian to illustrate my arguments. The model contributes to the entrepreneurial resourcefulness literature by explaining how and under which conditions resourceful behavior can lead to real firm growth, positing that entrepreneurs can create ecosystems that enhance the marginal productivity of resources by leveraging the productive capacity and entropy-mitigating properties of human capital and natural capital. The model also contributes to the sustainable and innovative entrepreneurship literatures by recognizing limitations on the substitutability of resources, noting that even highly efficient allocation of resources cannot immunize actors from scarcity if production consumes critical capital or exceeds the rate of resource renewal. Finally, the model contributes to the entrepreneurial action literature by shedding light on our understanding of profit opportunities, noting that entrepreneurs are neither exclusively “world makers” nor “world takers”, but akin to chefs using new production recipes to maximize the ingredients available. Such experimentation emphasizes that entrepreneurship is a process of resource transformation, not just customer discovery.
... An isolated firm comprised of a single actor also eliminates both coordination costs and transaction costs resulting from guile (Williamson, 1975) or differences in perception (Ghoshal & Moran, 1996), as there is one producer and one consumer who are both the same person. This precludes the threat of competitor expropriation as well as myriad governance and institutional concerns (e.g., Coase, 1995;North, 1990;Williamson, 1975). Moreover, the model assumes the economy consists of a single firm, such that the costs of resources are not in flux due to others' actions (c.f., Holcombe, 2003;Kirzner, 1997). ...
Objectif :Etant donnée les difficultés d’accès aux financements long terme pour la PME. Cette analyse vise à expliquer les effets des facteurs liés aux PME camerounaises sur le comportement du financement d’exploitation et du financement bancaire court terme. Méthodes :Pour y parvenir nous avons grâce à un échantillon de 150 PME camerounaises observé sur la période 2010 à 2014, issue d’une base fournie par l’INS ; effectuer deux régressions de MCG. Une sur le financement d’exploitation et l’autre sur le financement bancaire court terme. Résultats : La régression par le financement d’exploitation ressort une relation inverse avec l’endettement long terme ; de même la régression par le financement bancaire court terme relève une relation négative avec l’endettement long terme et le financement d’exploitation. Cette absence de complémentarité entre ces variables définissant les sources de financement traduit la pertinence de ce travail. Originalité / Pertinence : La prédominance du financement d’exploitation dans la structure financière des PMEexpose les difficultés qu’éprouvent la PME camerounaiseset celle d’Afrique subsaharienne pour l’accès aux concours bancaires et à l’endettement financier. Cependant une relation positive aurait favorisé leurs dévouements d’où la nécessité ; d'améliorer la relation banque-PME ; de recapitaliser la Banque Camerounaise des PME, tout comme la Banque de Développement de l’Afrique Centrale (BDEAC) qui agit à l’échelle sous régionale. La bourse des valeurs mobilières d’Afrique centrale (BVMAC) doit également se capitaliser ; afin que la PME puisse bénéficier du financement adéquat.
This critical survey examines the role of cooperation in production and exchange, the relationship between the organisation of production and markets, and, more generally, the nature and functioning of productive systems. It traces ideas about the relationship between markets, industrial organisation, and power, from Adam Smith and Karl Marx to the early neo-classical economists, before turning to the evolution of liberal economic thinking that accompanied the emergence and growth of large organisations with market power. This is then confronted with Alfred Marshall’s methodological and theoretical contributions to both economics and industrial organisation and development, and his attempt to reconcile the neo-classical economic dilemma of increasing returns in production and competition in markets. During the inter-war years, and especially after his death in 1924, Marshall’s ideas were strongly challenged—and ultimately abandoned—by neo-classical economists. However, this debate re-emerged nearly a half century later, when the Fordist mass production model faced growing competition from more cooperative forms of industrial organisation. Based on solid empirical research into contemporary industrial districts and localised productive systems, there was a re-discovery of the importance of cooperation in production, and an acknowledgement of the significance of Marshall’s earlier contributions. Inspired by these developments, Frank Wilkinson’s ‘productive systems’ approach brings together the threads running through Smith’s, Marx’s, and Marshall’s analysis of the dynamics of cooperation in production and exchange, to explore the implications of the mutual and conflicting interests inherent to production, industrial organisation, and economic development.
The aim of this article is to make an overall assessment of Andreas George Papandreou’s theoretical contributions during his American academic career, from the perspective of the history of economic thought. Papandreou contributed to the postwar development of economic thought in competition theory and experimental testing of consumer theory. In developing competition theory, he introduced a new method of evaluating the monopolistic power of a firm through a coefficient measuring the firm’s penetration in the market. Furthermore, he suggested a way of experimentally testing whether individual preferences satisfy the axiom of transitivity. He actively participated in the methodological controversies on the realisticness of economic assumptions that took place between 1946 and 1953, and on the empirical meaning of economics in 1963, between Milton Friedman, Paul Samuelson, Fritz Machlup, Herbert Simon, and others.
The financial crisis of 2007–2008 revealed that centralized finance (CeFi), which relies on large, interconnected financial institutions, is easily destabilized. Since the crisis, significant regulatory tightening, monetary easing, and new competitors (e.g., fintechs) have created significant pressure on profit margins and CeFi business models. Recently, a new form of financial intermediation that functions independently of centralized intermediaries has emerged, namely decentralized finance (DeFi). DeFi relies on public, permissionless blockchains and uses so-called smart contracts to perform financial services such as borrowing, lending, and trading in a transparent and automated fashion. This paper gives an overview of DeFi and discusses its advantages and disadvantages compared to CeFi. In it, we analyze different scenarios pertaining to the future paths of CeFi and DeFi, and conclude that a convergence scenario is the most likely.
This paper explores the impact of e-commerce on profit margin from the perspective of scale using nation-level survey data from China. The results show that e-commerce can increase the profit margin of cooperatives, and that a higher proportion of sales via e-commerce strengthens profitability. Secondly, the effects of agri-e-commerce on cooperative profit margin is highly dependent on young talents with rich experience and high education level; in particular, female leaders have a significantly stronger effect on improving profit margins by using e-commerce than male leaders. Thirdly, the operating scale of cooperatives does not have a direct impact on the profit margins, but a bigger operating scale can significantly enhance the effect of e-commerce on profit margins. Lastly, a higher degree of standardization of cooperatives and products more clearly evidences the role played by e-commerce, including the number of brands and certification. Overall, this research provides a micro-foundation for cooperatives to better incorporate the key role of e-commerce under the background of platform monopoly and sheds light on how the government can formulate relevant policies to better support China’s e-commerce development.
This Chapter, Economic PlanningEconomic planning in Various Settings, provides an overview of the varieties of modern economic systems in terms of ownership forms and decision-making mechanisms. Not all capitalismsCapitalismor socialismsSocialism are alike across countries and over time. It is now a cliché that really-existing economies are varying admixtures of plan-led and market-led resource allocation and distribution mechanisms. Therefore, we need to identify the factors that underlie the institutional diversity of economic systems, especially the prominent three in the twentieth century.
Anti‐corruption is highlighted as one of the key institutional principles by the United Nations, as corruption hinders the progress in achieving sustainable development goals. However, the extant literature on how private firms' efficiency is influenced by corruption prevailing in regulatory agencies across economies has been inconclusive. Analyzing the World Bank Enterprise Survey data across 45,121 firms from 80 countries, this study finds that bribe payments to corrupt public officials by firms causes bureaucratic delays. Employing an instrumental variable Tobit framework to address the issue of endogeneity inherited with observational data, this study demonstrates that an increase in the magnitude of bribes and depth of corruption by one percentage point separately expands the firm managers' time being spent on regulatory requirements by 2.78 percentage points and 2.47 percentage points, respectively. The findings are robust to different specifications. The results imply the importance of promoting anti‐corruption measures across countries to create a conducive environment for firms to enhance efficiency, and thereby to achieve sustainable development goals successfully.
Die französische „economie des conventions“ (engl.: “economics of convention”, kurz EC) – auch Konventionentheorie genannt – hat sich seit den 1980er-Jahren im Raum Paris formiert und sich in den letzten zehn Jahren international etabliert. Die EC ist ein transdisziplinärer institutionentheoretischer Ansatz, der mit dem Konzept der „Konvention“ Koordinations- und Bewertungslogiken bezeichnet, die die Koordination, Interpretation und (E)Valuation im Rahmen ökonomischer Situationen der Produktion, Distribution und Rezeption strukturieren. Die EC vermittelt insgesamt in spezifischer Weise die beiden sozialwissenschaftlichen Megaparadigmen Strukturalismus und Pragmatismus in neuer Weise miteinander.
A importância de se proceder à análise dos principais desafios jurídicos que a economia colaborativa coloca – pelas implicações que as mudanças de paradigma dos modelos de negócios e dos sujeitos envolvidos suscitam − é indiscutível, correspondendo à necessidade de se fomentar a segurança jurídica destas práticas, potenciadoras de crescimento económico e bem-estar social. O Centro de Investigação em Justiça e Governação (JusGov) constituiu uma equipa multidisciplinar que, além de juristas, integra investigadores de outras áreas, como a economia e a gestão, dos vários grupos do JusGov – embora com especial participação dos investigadores que integram o grupo E-TEC (Estado, Empresa e Tecnologia) – e de outras prestigiadas instituições nacionais e internacionais, para desenvolver um projeto neste domínio, com o objetivo de identificar os problemas jurídicos que a economia colaborativa suscita e avaliar se já existem soluções para aqueles, refletindo igualmente sobre a conveniência de serem introduzidas alterações ou se será mesmo necessário criar nova regulamentação. O resultado desta investigação é apresentado nesta obra, com o que se pretende fomentar a continuação do debate sobre este tema.
The student will be able to:
develop a strategic operations model format for a business or collection of business partners;
identify the value chain alternatives available to the organisation.
KeywordsCore CompetencyHarvard Business ReviewBalance ScorecardResource MarketRetail CustomerThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
Make-or-buy decisions represent an area of enquiry in several fields: economics, organizations, strategy and the law. Although early empirical and theoretical efforts focused on make-or-buy decisions, that is, the decision by a firm to either vertically integrate or use a supplier, transaction cost research has moved well beyond this initial problem of economic organization. This article provides a brief summary of the development of the theory, highlights key insights and offers an assessment of recent developments.
This article examines the new conditions created by the Brazilian Automotive Regime since the second semester of 1995. First, it discusses the main controversies surrounding the implementation of a new modality of industrial policy on the part of the federal government and the incentives granted by the state governments to the companies of the automobile sector in Brazil. Second, this article sketches a picture of the situation of this industrial sector, with emphasis on the changes that are happening in the relationships between assembling industry and auto parts industry. ln the context of the new climate of competition created by the tendencies towards globalization of markets and by the new guidelines of the industrial politics in place, this article shows that new modes of governance in the relations between the local “montadoras” and their providers are replacing the old competitive strategies.
KEYWORDS:
Industrial policy; Brazilian automotive regime; automotive sector
In diesem Kapitel lernt der Leser, aus der Analyse von internen und externen Faktoren mithilfe der SWOT-Matrix entsprechende Strategien abzuleiten, grundlegende Fragestellungen zu strategischen Ziele sowie zur Rolle übergreifender Konzepte wie einer Mission, Werten und einer Vision zu beantworten, das strategische Handeln aus den Perspektiven Market-based View und Resource-based View zu betrachten, eine differenzierte Marktbearbeitung im B2B-Umfeld durch grundlegende strategische Überlegungen vorzubereiten und strategische Geschäftsfelder und strategische Geschäftseinheiten voneinander abzugrenzen.
A partir do método científico hipotético-dedutivo e do referencial teórico na Análise Econômica do Direito, decidiu-se o estudo dos Contratos Inteligentes inseridos na tecnologia blockchain. A partir das considerações tecidas sobre tais institutos, o presente artigo constiste em analisar a viabilidade e a segurança jurídica na utilização dos smart contratcts, utilizando-se de uma abordagem interdisciplinar por meio de conceitos econômicos. Conclui-se que maior autonomia, segurança jurídica e liberdade contratual, alinhado a uma intervenção mínima do Estado nas relações comerciais, poderá ser proporcionada por meio de instrumentos eficazes como os smart contracts, utilizando a tecnologia como meio de celebração de instrumentos contratuais, desde que respeitado as regras gerais do Direito Civil e Contratual.
The sociology of organization, as has been shown, does not have a uniform understanding of organization. However, a concept of organization can be outlined idealtypically on the basis of various organizational sociological definitions and the history of concepts, which seems to underlie all the approaches considered more or less clearly. According to this, organizations are social systems that are based on consciously planned and implemented positive orders oriented on rational models or “myths” – although these do not, of course, guide all factual action. By conforming to the widespread rational models, organizational orders appear to be reasonable and insofar legitimate, which is why, at least within organizations, one can also count on receiving “voluntary” obedience for orders of certain content – i.e. exercising rule in Weber’s sense.
This article introduces the Normative Representativeness Requirement (NRR) on any moral objection to a decentralized, profit-oriented system of political economy. I develop and defend the NRR and then show why the most important recent critique of the profit system—which I call The Moderate Critique (developed by, for instance, Elizabeth Anderson)—fails to meet the NRR. This article also defends the radical claim that no objection to the profit system itself, rather than just key aspects or salient instances of it, succeeds in meeting the NRR. Critics of the profit system should not seek an alternative to the profit system, but, at most, an alternative within it.
Over the past 40 years of reform and opening up, China has attracted a large number of foreign investment. However, because of China's weak intellectual property protection environment, it is difficult to protect the intellectual assets of transnational enterprises, which will affect their investment decisions to some extent. In order to optimize the intellectual property system and improve the intellectual property environment, national intellectual property demonstration city policy was proposed in 2012 to improve the institutional environment. To explore the impact of national intellectual property demonstration city policy on foreign capital inflow, we explore the relationship between national intellectual property demonstration city and foreign direct investment (FDI) using the multi‐period differences‐in‐differences (DID) method based on city panel data of China from 2003 to 2019. Results shows the following: (1) Compared with non‐demonstration cities, national intellectual property demonstration cities are profit to FDI promotion. If a city is rated as a national intellectual property demonstration city, local FDI will increase by 5% on average. After a series of robustness tests, the conclusion is still tenable. (2) We find that the national intellectual property demonstration city policy has obvious urban heterogeneity. The effect of national intellectual property demonstration city policy on the increase in FDI is more significant in central cities, western cities, and key cities. (3) The mechanism test shows that national intellectual property demonstration city policies have a positive effect on FDI through increasing the government's strategic expenditure on intellectual property, improving urban technology innovation capacity, optimizing human capital structure, and promoting the marketization of cities. Therefore, China should continue to implement the policy of national intellectual property demonstration city, especially increasing the number of national intellectual property demonstration city in key cities, central cities, and western cities. On the one hand, these findings can help government evaluate the attractiveness of demonstration cities for FDI. On the other hand, it also provides relevant policy enlightenment for the Chinese government to select appropriate demonstration cities and further refine and implement the national intellectual property demonstration city policies.
According to Nobel Laureate Edmund Phelps (2013, p. 123), Mises's critique of economic calculation under socialism renders him the originator of the economic analysis of property rights. This paper also suggests that implicit to Mises's impossibility theorem was also the origins of the theory of transaction costs. This raises the following question: what is the relationship, if any, between the process of economic calculation and the concept of transaction costs? Filtered through a Misesian lens, we argue that transaction costs are the costs of engaging in economic calculation. We illustrate our theoretical point utilizing the case of airline oversales auction system first proposed by Julian Simon (1968). In doing so, we reframe the problem of airline oversales from a transaction‐cost approach, one in which property rights in airline seats are initially poorly defined. By doing so, we illustrate that resources expended to discover the valuable attributes of a good (in this case airline seats), the terms of exchange between potential trading partners, as well as enforcing the terms of an exchange, all of which are transaction costs, are also, by definition, the costs of calculating the exchange value of goods. Thus, the airlines oversales auction system is illustrative of an institutional solution to the problem of economic calculation via a reduction of transaction costs.
The definition and regulation of related-party transactions (RPTs) depend mainly on the conceptual framework underlying the interpretation of such a phenomenon. While the conflict of interests hypothesis focuses on opportunistic behaviours, the efficient transaction hypothesis suggests that RPTs lead to more efficient. In such a scenario, instead of providing opposite interpretations, the contingency hypothesis considers the potential risks and benefits associated with specific RPTs, i.e. other contex- tual factors and corporate governance mechanisms. Among the latter, independent di- rectors, empowered by the majority of national legislations worldwide, should play a crucial role in spotlighting opportunistic behaviours to the detriment of minorities. However, in light of the many corporate scandals that have stressed the RPTs' issues, practitioners and academics have questioned their effectiveness, especially in contexts characterized by high ownership concentration, while leaving room for the so-called minority directors, i.e. independent directors appointed by minority shareholders. On this matter, aiming to analyse the potential impact of minority directors on the level of procedural compliance for the RPTs' implementation, this empirical study, based on a data set, shows that they represent a more effective tool for the full and strict adoption of the current RPTs regulation, while independent directors fail in their monitoring role and are ineffective in bolstering corporate transparency with regard to RPTs.
Strategic alliances in the biotechnology sector are key to achieving the sustainable development goals of the Agenda 2030 and to boosting technology transfer, value creation and firms’ survival. This paper focuses on a momentum that has scarcely been analysed in the literature; from the moment a firm decides to form an alliance, to the moment the contract is signed. There are many combinations of antecedents that may influence the pre-alliance phase and lead either to the final signing of the alliance or to its cancellation. We base on the transaction cost theory and analyse how different combinations of possible impediments and firm-specific attributes affect the final contract signature. We use a qualitative comparative analysis on 69 firms in the Spanish biotechnology sector that belong to the Spanish Bioindustry Association (AseBio). The results help to identify and understand the different scenarios that may lead biotech firms to sign the strategic alliance contract.
La gouvernance territoriale nécessite de manière permanente
l’implication des acteurs locaux dans les dynamiques de développement
de leurs capacités à se mobiliser et à se prendre en charge. Cette étude a
pour objectif de montrer que la gouvernance territoriale fiscale contribue
à la performance fiscale des collectivités territoriales décentralisées au
Cameroun. Pour y parvenir, une enquête exploratoire auprès des
communes du département du Wouri et Moungo. Les résultats obtenus par
l’approche multi-acteur montrent que la gouvernance territoriale fiscale
contribue significativement à la performance fiscale des collectivités
territoriales décentralisées par une véritable organisation territoriale, une
réelle coordination des acteurs de la chaîne fiscale et le développement des
infrastructures et activités génératrices des revenus par les collectivités
territoriales décentralisées.
Mots-clés : Gouvernance territoriale fiscale, gouvernance territoriale,
performance fiscale, activités génératrices des revenus, approche multi-
acteur.
Modern project finance is understood as a method of finance, whereby the borrower is generally a standalone corporate entity, often a special purpose vehicle and, therefore, a single‐project enterprise. The advent of large‐scale securitisation of project finance debt instruments helped to attract significant institutional capital, which had shied away from infrastructure debt because of the risk/return profile. This chapter argues that despite what some economic theory might predict, the manner in which a project is financed imposes formal ‘constraining and enabling’ conditions at all phases of the built‐asset lifecycle. Successful project organisation and delivery depends upon an adequate understanding of these dynamics. Project governance should also ensure that there is a system of a detailed post‐project evaluation of costs and benefits. The need for new public infrastructure in the twenty‐first century is growing at a time when public finances are constrained.
Projections of Spanish Jesuit Scholasticism on British Thought. New Horizons in Politics, Law, and Rights, edited by Leopoldo J. Prieto López and José Luis Cendejas Bueno (Leiden-Boston, Brill, 2023).
Spanish Jesuits such as Francisco Suárez (1548–1617), José de Acosta (1540–1600), Pedro de Ribadeneira (1526–1611) and Juan de Mariana (1536–1624) had a powerful impact on English thinkers of the magnitude of John Locke (1632–1704), Francis Bacon (1561–1626), Robert Persons (1546–1610), Algernon Sidney (1623–1683), and later, William Robertson (1721–1793), Thomas De Quincey (1785–1859) and Hilaire Belloc (1870–1953). An influence that was sometimes hidden and always controversial.
This work highlights the importance of this influence regarding thought on politics, law and natural rights. A constitutionalist understanding of political power, the recognition and promotion of innate rights and the necessary subjection of rulers to the law, all form part of the important legacy of these scholastic doctors for European intellectual heritage.
Contributors include: Rafael Alé Ruiz, Francisco T. Baciero Ruiz, Francisco Castilla Urbano, José Luis Cendejas Bueno, Alfonso Díaz Vera, Francisco Javier Gómez Díez, Cecilia Font de Villanueva, León M. Gómez Rivas, Fermín del Pino Díaz, Leopoldo J. Prieto López, Daniel Schwartz, Lorena Velasco Guerrero, and María Idoya Zorroza.
Leopoldo J. Prieto López, Ph. D. (Philosophy, 1999, Ateneo Pontificio Regina Apostolorum in Rome, with university degrees in Law and Theology), is Professor of Philosophy at the Universidad Francisco de Vitoria. His main research interests are the history of modern philosophy and the history and philosophy of science.
José Luis Cendejas Bueno, Ph. D. (Economics, 2001, Universidad Autónoma de Madrid), is lecturer and researcher at the Universidad Francisco de Vitoria. He has published on the economic thought of Spanish Scholasticism and its influence on later European thought.
Editor-in-chief: Robert A. Maryks
brill.com/js | issn 2214-3289 | isbn 978 90 04 51607 6
For decades, the suppliers of fed cattle have complained about monopsonistic exploitation by the dominant meatpackers. Recently, a group of ranchers and feedlot operators joined forces to build their own meatpacking plant in an effort to avoid such exploitation. In this context, we show that forward vertical integration by the suppliers of fed cattle will increase their profits while increasing output and lowering prices for consumers. In addition, we show that vertical integration improves both consumer welfare and social welfare. We also examine the use of a joint sales agency, which is an economically equivalent alternative to vertical integration.
Negative externalities in global value chains (GVCs) create challenges for regulation. We establish conditions under which firms are more likely to adapt their GVCs to rectify negative externalities that occur at global scale. Firms in GVCs vary in relation to their active involvement in attending to negative externalities in a predictable way, according to their awareness (A) of these externalities, motivation (M) to address them, and the capability (C) to do so. Firms in GVCs can self‐correct imperfections by strategy changes, or new firms can be recruited into the GVC with the awareness, motivation, and the capability to attend to negative externalities. National governments may find these externalities to be a significant policy challenge, particularly when they extend across national jurisdictions. Private mechanisms, through firm strategy or new entrants into an industry, can address negative externalities created in GVCs. The agency of GVC members is crucial in self‐correction via awareness, driven by GVC integration; motivation to act, driven by GVC accountability; and the capability to implement the necessary changes, driven by GVC leadership. GVCs with more exchanges of knowledge and information among members will be more aware of the costs they generate on third parties. GVCs with members who are more involved with stakeholders and who prioritize CSR will have greater motivation to attend to their externalities, and larger GVCs that span national borders, dominated by a strong member, may be more capable of having greater influence on the externalities the GVC creates.
Zusammenfassung
Die deutschen Genossenschaftsbanken befinden sich seit rund einem Jahrhundert in einem Konzentrationsprozess, der sowohl von organischem Wachstum als auch von Fusionen getragen wird. In diesem Beitrag wird die Motivation für Fusionen im Allgemeinen sowie für solche von Genossenschaftsbanken im Besonderen dargestellt und anknüpfend an bisherige Forschungserkenntnisse die Konzentration im Genossenschaftssektor untersucht. Es zeigt sich, dass der Konzentrationsprozess überwiegend von Fusionen getragen wird, der sich in einer gestiegenen absoluten und auch relativen Konzentration ausdrückt.
To advance the academic debates and respond to the recent “calls from practice” (see Chap. 2), in this section I develop a theoretical framework that provides a systematic perspective on the causal pillars that are constitutive for the Need Knowledge-Driven Organization, that is, an organization that leverages knowledge about stakeholder needs in order to yield responsible behavior and sustainable outcomes. To provide a profound understanding of its defining pillars, the framework is informed by both theoretical insights from reviews of the relevant bodies of literature and empirical findings from an interview study with top-level and senior managers in Central Europe.
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