The Nature of the Firm – Static versus Developmental Interpretations

Klaus Rathe () and Ulrich Witt

Journal of Management & Governance, 2001, vol. 5, issue 3, 351 pages

Abstract: Different from the prevailing staticperspective in the theory of the firm, adevelopmental approach focuses on processes ofchange in firm organizations (rather than onstates and their properties). Although businesshistory provides ample evidence for systematicorganizational change, few contributions in theliterature take a developmental viewpoint andoffer explanations for the endogenous processesof change. To contrast static and developmentalinterpretations, the paper identifies threeparadigmatic questions for each of them. Theircomparison sheds some new light on the theoryof the firm and draws attention to theneglected entrepreneurial role inorganizational change. Copyright Kluwer Academic Publishers 2001

Date: 2001
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DOI: 10.1023/A:1014051112548

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