Capabilities, Confusion, and the Costs of Coordination On Some Problems in Recent Research On Inter-Firm Relations

Nicolai Foss ()

No 99-7, DRUID Working Papers from DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies

Abstract: The arguably dominant approaches to the study of interfirm relations are the capabilities and organizational economics perspectives. This paper discusses their merits and weaknesses, concentrating on the capabilities perspective, which is argued to rest on rather weak foundations, particularly as a theory of economic organization (including interfirm relations). However, it is suggested that both perspectives may be seen as part of an overarching bargaining approach to economic organization (yet to be developed). Both perspectives have identified impediments to efficient bargaining.

Keywords: Interfirm relations; capabilities; organizational economics; research methodology (search for similar items in EconPapers)
JEL-codes: D23 L22 M10 (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (5)

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