Production and Organizational Capabilities

B. Versaevel

Economics Working Papers from European University Institute

Abstract: Technological knowledge and organizational knowledge are distinguished in order to define economic competence formally. This definition is made operational in the simplest possible linear model of production. Productivity gains are shown to originate from changes in organizational capabilities that are made effective by changes in the assignment of complementary input factors. They have no connection with economies of scale or scope. A numerical application illustrates the role internal organization as a source of productivity in the operation of unchanged quantities of inputs combined in fixed production.

Keywords: PRODUCTION (search for similar items in EconPapers)
JEL-codes: C6 L00 (search for similar items in EconPapers)
Pages: 28 pages
Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:eui:euiwps:eco97/19

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