The Organizational Approach of Capability Theory: A Review Essay

Giampaolo Garzarelli

MPRA Paper from University Library of Munich, Germany

Abstract: Richard Langlois, Tony Yu & Paul Robertson have assembled a collection of previously published papers that move beyond textbook production theory. This essay discusses work by Frank Knight and Hendrik Houthakker not reproduced in LYR in relation to the capability theory of economic organization. Knight identified the problem of organization as the search for and the coordination of different dispersed capabilities. Houthakker helps us to see more clearly that the benefits of specialization are not brought at zero cost; whatever is the governance structure employed, there will inevitably be coordination costs due to differences in capabilities.

Keywords: Capabilities; Coordination Costs; Division of Labor; Economic Organization; Extent of the Market (search for similar items in EconPapers)
JEL-codes: D21 D24 D83 L23 (search for similar items in EconPapers)
Date: 2006-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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