A note on Cyert and March (1963) and Penrose (1959): A case for synergy
Christos Pitelis
MPRA Paper from University Library of Munich, Germany
Abstract:
Cyert and March’s 1963 seminal book is one of the two major economics-based theories of the firm that goes inside the ‘black box’ (the firm) – the other being the contribution of Edith Penrose. The two theories have differences, but also similarities, and substantial scope for cross-fertilisation that have gone unnoticed in the literature. In this note we try to integrate important ideas in both books, paying particular attention to the issue of ‘excess resources’ /slack, and (intra-firm) conflict. We then build on the integrated framework by delving into the nature of intra-firm conflict, the degree of intra-firm rivalry and the relationship between firm performance and ‘productive opportunity’. We derive propositions common to the two theories, but also new ones, of import to our understanding of organisational growth and change.
Keywords: Behavioral theory of the firm; Edith Penrose; excess resources; slack; conflict; innovation (search for similar items in EconPapers)
JEL-codes: M21 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/23939/1/MPRA_paper_23939.pdf original version (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:23939
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().