Theories of the Firm and the Relationship between Different Perspectives on the Division of Labour

Russell Smyth and Dic Lo

Review of Political Economy, 2000, vol. 12, issue 3, 333-349

Abstract: This paper explores the tension between the organisational learning, market and hierarchies rationales for the firm. It is not clear, from the organisational learning and market-hierarchies literatures, what role exists for the different approaches. The paper suggests that this reflects the fact that each paradigm is premised on a particular notion of the division of labour but, at the same time, does not recognise that the division of labour is multifaceted. The paper suggests one possible approach to reconcile the various rationales for the firm. To do this, the different paradigms are placed in the context of different growth patterns that support different conceptions of the division of labour.

Date: 2000
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DOI: 10.1080/09538250050127490

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