Taxonomy of Operations, Costs and Benefits Relevant to the Creation, Existence, Evolution and Growth of Firms

E. Sanidas ()
Additional contact information
E. Sanidas: University of Wollongong, http://business.uow.edu.au/econ/who/index.html

Economics Working Papers from School of Economics, University of Wollongong, NSW, Australia

Abstract: Most of the standard economic analyses of the firm utilize only the capital (including the human one) and labor factors, and a term called technology to embrace all the remaining elements. The introduction of the transaction costs (TCs) by Coase (1937) has generated a new stream of complementary theory of the firm as developed mainly by Williamson (1985 etc). Then, a crit ique on TCs has lead to the recognition of other factors such as internal capabilities, information and know-how, routines, strategies, and so on. However, it seems that there is still a gap in economic theory or management theory as to the exact nature of all types of costs (besides transaction and production costs) involved in the creation, existence, and evolution of firms. According to my findings, all the activities and practices of firms can be split into 5 interdependent groups of processes of operations, namely those of movement, of factors, of contracts, of wisdom, and of strategies. In turn, each one of these processes is related to kinetic, physical, transaction, wisdom, and strategic costs respectively. Then, for each group I assign several essential characteristics that fully describe it. The implications of this paper are also briefly discussed.

Keywords: firm operations; transaction, factor, wisdom, strategic, and kinetic costs; growth of firms, benefits, process, creation, existence, evolution, movements, capabilities, production (search for similar items in EconPapers)
Pages: 24 pages
Date: 2001
New Economics Papers: this item is included in nep-ent
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.uow.edu.au/content/groups/public/@web/@ ... ts/doc/uow012115.pdf (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:uow:depec1:wp01-12

Access Statistics for this paper

More papers in Economics Working Papers from School of Economics, University of Wollongong, NSW, Australia School of Economics, University of Wollongong, Northfields Avenue, Wollongong NSW 2522 Australia. Contact information at EDIRC.
Bibliographic data for series maintained by Peter Siminski ( this e-mail address is bad, please contact ).