The knowledge-Based Approach and Organizational Economics: How Much Do They Really Differ? And How Does It Matter?

Kirsten Foss and Nicolai Foss ()

No 99-1, IVS/CBS Working Papers from Department of Industrial Economics and Strategy, Copenhagen Business School

Abstract: The knowledge-based approach and organizational economics are usually seen as offering opposing approaches to the explanation of organizational phenomena. Relying on a taxonomic framework from the philosophy of science, we argue that many differences between these approaches are more apparent than real. Thus, many insights associated with the knowledge-based approach can be reduced to organizational economics insights. However, not everything can be thus reduced. There is an important residual, comprising differential cognition, learning, and bounded rationality.

Keywords: economic organization; firm strategy (search for similar items in EconPapers)
JEL-codes: L21 L22 M2 (search for similar items in EconPapers)
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