Results 1 - 10 of 217

Trust, Opportunism and Governance: A Process and Control Model

by Bart Nooteboom - Organization Studies , 1996
"... The article develops a process and control model for the analysis and design of inter-firm relations, in which both opportunism and trust play a role. Its aim is to develop a tool which helps to analyze combinations, balances and imbalances of trust and opportunism, formal and informal forms of gove ..."
Abstract - Cited by 85 (13 self) - Add to MetaCart
The article develops a process and control model for the analysis and design of inter-firm relations, in which both opportunism and trust play a role. Its aim is to develop a tool which helps to analyze combinations, balances and imbalances of trust and opportunism, formal and informal forms of governance, and viable sequences of strategies of governance, depending on different conditions. It employs both transaction cost economics and social exchange theory. 1
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2001a) “Best practice? Geography, learning and the institutional limits to strong convergence

by Meric S. Gertler, Norma Rantisi, Sue Ruddick, Tod Rutherford, Graham Sewell, Adam Tickell, David Wolfe - Journal of Economic Geography
"... According to many, we live in an age in which convergence between formerly distinct national ‘models ’ is taking place. Central to this process is a learning dynamic in which best practices originating from within one model – Japan in the 1980s, United States in the 1990s – are supposedly adopted by ..."
Abstract - Cited by 45 (1 self) - Add to MetaCart
According to many, we live in an age in which convergence between formerly distinct national ‘models ’ is taking place. Central to this process is a learning dynamic in which best practices originating from within one model – Japan in the 1980s, United States in the 1990s – are supposedly adopted by firms elsewhere. This paper addresses two key questions concerning this process which have not hitherto received sufficient attention. First, what are the actual mechanisms or processes through which this learning-driven convergence might occur? Second, what role do institutions play in shaping, influencing, or constraining firms ’ choice of practices and their ability to ‘learn’? Which institutions matter, and at what spatial scale? The paper examines eight specific channels of convergence representing a continuum of opportunities for learning-through-interacting. It then assesses critically a range of competing arguments about the role of institutional influences at three different scales: the region (the learning region hypothesis and the concept of regional embeddedness), the nation-state (national innovation systems, national business systems) and the firm (actor-network theory, corporate strategy, absorptive capacity, resource/capability/competence based theories, communities of practice). It concludes that while regional and firm-level arguments, on their own,
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Alternative models of individual behaviour and implications for environmental policy

by Ada Ferrer-i-carbonell - Ecological Economics , 2000
"... Most insights of environmental economics are in line with the standard neoclassical economic model of rational behaviour, formulated in terms of maximization of utility in general, or profits in particular. The standard theory of environmental policy is a case in point. However, the maximization hyp ..."
Abstract - Cited by 33 (2 self) - Add to MetaCart
Most insights of environmental economics are in line with the standard neoclassical economic model of rational behaviour, formulated in terms of maximization of utility in general, or profits in particular. The standard theory of environmental policy is a case in point. However, the maximization hypothesis and its methodological foundation have been criticized on many grounds, related to a lack of either logical or empirical content. Moreover, over the years a great many alternative models of behaviour have been proposed. Both criticism and alternatives are surveyed here. In the context of environmental economics behavioural assumptions have been most significant for the development of economic valuation theory and environmental policy theory. The focus here will be on environmental policy theory. 1.
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The Theory of the Firm: The Austrians as Precursors and Critics of Contemporary Theory

by Nicolai Juul Foss - Review of Austrian Economics , 1994
"... ore than one commentator has observed that a distinct theory of the firm is conspicuously missing from the main body of Austrian economics (e.g., Langlois 1991, p. 2; Minkler 1991, p. 8). As two Austrian economists observed some years ago: "there is no subjectivist or Austrian theory of the ..."
Abstract - Cited by 31 (11 self) - Add to MetaCart
ore than one commentator has observed that a distinct theory of the firm is conspicuously missing from the main body of Austrian economics (e.g., Langlois 1991, p. 2; Minkler 1991, p. 8). As two Austrian economists observed some years ago: "there is no subjectivist or Austrian theory of the firm " (O'Dris-coll and Rizzo 1985, p. 123). That is still the situation. With the term "theory of the firm, " I shall set forth a theory that has something to say about the existence, the boundaries and the internal organization of the institution known as the business firm. And with the term "firm, " I shall describe an organization that is planned with the express purpose of earning profit. In Hayekian terms (Hayek 1973), the firm is a "planned order, " an aspect of "taxis." That social institutions have always occupied center stage in Austrian economics is a proposition that commands widespread agreement today (Hodgson 1988; Langlois 1986,1991). Many econo-mists recognize the distinctiveness of, for example, the Mengerian theory of the origin of a medium of exchange (Menger 1871, chap. 8), and probably even more economists are familiar with the Hayekian account of the information providing function of the price system (Hayek 1945). Many economists also know that Hayek's insight stemmed from his involvement in the socialist calculation debate, preeminently a debate about the organization of economic activities.
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The “close but adversarial model” of supplier relations in the US auto industry

by Ram Mudambi, Susan Helper - Strategic Management Journal , 1998
"... While cooperative buyer–supplier relations are an important source of sustainable competitive advantage, noncooperative behavior persists widely. This paper tests a model incorporating noncooperative behavior within a context of formal commitment, using data from the U.S. auto industry. This ‘close, ..."
Abstract - Cited by 30 (1 self) - Add to MetaCart
While cooperative buyer–supplier relations are an important source of sustainable competitive advantage, noncooperative behavior persists widely. This paper tests a model incorporating noncooperative behavior within a context of formal commitment, using data from the U.S. auto industry. This ‘close, but adversarial ’ model appears to be reasonably well supported by the data, suggesting that even within professed cooperative buyer–supplier relationships adversarial behavior persists. In contrast, a small but significant minority of the relationships were found to be characterized by high levels of trust as well as informal commitment. The results suggest specific strategies for developing cooperative supplier relations. Ó 1998 John Wiley & Sons, Ltd.

Endogenizing Institutions and Institutional Changes

by Masahiko Aoki - Journal of Institutional Economics , 2007
"... This paper proposes an analytical-cum-conceptual framework for understanding the nature of institutions as well as their changes. First, it proposes a new definition of institution based on the notion of common knowledge regarding self-sustaining features of social interactions with a hope to integ ..."
Abstract - Cited by 27 (0 self) - Add to MetaCart
This paper proposes an analytical-cum-conceptual framework for understanding the nature of institutions as well as their changes. First, it proposes a new definition of institution based on the notion of common knowledge regarding self-sustaining features of social interactions with a hope to integrate various disciplinary approaches to institutions and their changes. Second, it specifies some generic mechanisms of institutional coherence and change-- overlapping social embeddedness, Schumpeterian innovation in bundling games and dynamic institutional complementarities -- useful for understanding the dynamic interactions of economic, political, social, organizational and cognitive factors.

2007a), Meanings of Methodological Individualism

by Geoffrey M. Hodgson, Key Words, Methodological Individualism, Social Relations, Social Structures, Joseph Schumpeter - Journal of Economic Methodology
"... Advocacy of ‘methodological individualism ’ is a widespread, especially among economists. However, the term is rarely defined with adequate precision and some crucial ambiguities are explored in this article. Among these is the commonplace ambivalence over whether explanations should be in terms of ..."
Abstract - Cited by 27 (5 self) - Add to MetaCart
Advocacy of ‘methodological individualism ’ is a widespread, especially among economists. However, the term is rarely defined with adequate precision and some crucial ambiguities are explored in this article. Among these is the commonplace ambivalence over whether explanations should be in terms of individuals alone, or in terms of individuals plus relations between them. It is shown that a great deal hinges on this subtle and often overlooked distinction in explanantia. In particular, explanations in terms of individuals alone have never, as yet, been achieved. Furthermore, the more feasible version of explanations in terms of individuals plus relations between them amount to the introduction of social structure alongside individuals in the explanantia. Serious questions remain whether this version warrants the one-sided emphasis on individuals in the term ‘methodological individualism’. 1.
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2001), "Bounded rationality, institutions, and uncertainty

by David Dequech, Texto Para Discussão Ie/unicamp, David Dequech - Journal of Economic Issues
"... This paper assesses the usefulness and limitations of the notion of bounded rationality for a theory of economic behavior and institutions under uncertainty, in particular if this theory emphasizes institutions. The paper distinguishes the lack of knowledge caused by complexity from fundamental unce ..."
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This paper assesses the usefulness and limitations of the notion of bounded rationality for a theory of economic behavior and institutions under uncertainty, in particular if this theory emphasizes institutions. The paper distinguishes the lack of knowledge caused by complexity from fundamental uncertainty, as well as from less strong notions of uncertainty. Next, the relation between bounded rationality and institutions is discussed. With qualifications, the paper criticizes Simon’s theory for focusing on rules of thumb that may be strictly individual and for not paying enough attention to the social context, to habits and to the tacit aspects of institutions. A theory of bounded rationality revised in the light of these criticisms would still be inadequate to study behavior under fundamental uncertainty. The paper then incorporates this type of uncertainty into a discussion of rationality and institutions. It argues against neglecting the connection between innovation and rationality or implying that innovation is not rational. People may use their knowledge to be partly unconventional. Animal spirits and creativity determine whether behavior breaks with the usual way of doing things or not.

2002a) The Local Innovation System as a Source of Variety: Openness and Adaptability

by Norma M. Rantisi - in New York City's Garment District, Regional Studies 36(6
"... RANTISI N. M. (2002) The local innovation system as a source of ‘variety’: openness and adaptability in New York City’s Garment District, Reg. Studies 36, 587–602. Employing an evolutionary economics framework, this paper investigates the innovation process in the New York City Garment District’s wo ..."
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RANTISI N. M. (2002) The local innovation system as a source of ‘variety’: openness and adaptability in New York City’s Garment District, Reg. Studies 36, 587–602. Employing an evolutionary economics framework, this paper investigates the innovation process in the New York City Garment District’s women’s wear industry. It analyses the ways in which Garment District designers have been able to exploit innovative ideas from an emerging design cluster on the Lower East Side of Manhattan, and the role that the District’s institutional infrastructure plays in facilitating this process. The paper argues that the variety as well as the economic coherence provided by the District’s design innovation system underlies its ability to adapt to shifting competitive pressures.
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Evolutionary and Competence-Based Theories of the Firm

by Geoffrey M. Hodgson - Journal of Economic Studies , 1998
"... theories 25 This essay explores evolutionary and competence-based theories of the firm. “Evolutionary ” approaches to the theory of the firm often invoke the biological metaphor of natural selection[1]. The classic example here is the seminal work by Richard Nelson and Sidney Winter: An Evolutionary ..."
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theories 25 This essay explores evolutionary and competence-based theories of the firm. “Evolutionary ” approaches to the theory of the firm often invoke the biological metaphor of natural selection[1]. The classic example here is the seminal work by Richard Nelson and Sidney Winter: An Evolutionary Theory of Economic Change (1982). Exponents of evolutionary approaches argue that they provide better theoretical tools to understand technological and organizational change within the firm, especially when compared to the more static, equilibriumoriented approaches of neoclassical economic theory[2]. Evolutionary theories can be regarded as a subset of a wider class of theories, variously described as “capabilities”, “resource-based”, or “competence-based” theories of the firm. We shall use the latter term here, although the other terms are common in the literature[3]. The competence-based perspective sees the existence, structure and boundaries of the firm as explained in some way by the associated existence of individual or team competences – such as skills and tacit knowledge – which are in some way fostered and maintained by that organization. Early precursors to this view include Adam Smith and Karl Marx, who saw the division and management of labour as crucial to the developments of skills and providing a key rationale for the firm. But there is a variety of twentieth-century exponents, notably including Frank Knight (1921), Edith Penrose (1959), George Richardson (1972), as well as Richard Nelson and Sidney Winter (1982). The central idea of competences provides the basis for evolutionary and non-equilibrium theories of industrial competition and development. Within this group there is a diversity of views, particularly over the nature of (tacit) knowledge, the units and methodology of analysis, and the application of the evolutionary analogy (see Chandler, 1990; Kogut, 1991;
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