Showing papers by "Mie Augier published in 2008"
TL;DR: In this paper, the authors discuss the intellectual roots of the dynamic capabilities framework and draw on insights from Edith Penrose as well as others in order to help explain the essence of the business enterprise, and how it can escape the zero profit trap.
Abstract: This paper discusses the intellectual roots of the dynamic capabilities framework. We draw on insights from Edith Penrose as well as others in order to help explain the essence of the business enterprise, and how it can escape the zero profit trap. We see the business enterprise as being in part a product of its own history, but not completely so. Managers can shape outcomes and are not completely trapped by prior decisions and investments. We call this `evolution with design', leaving room for both evolutionary processes as well as intentional design. This conclusion is consistent with Penrose's contributions to the theory of the firm.
228 citations
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01 Jan 2008
TL;DR: In this paper, the authors discuss some of the implications of Penrose's work as well as its limitations, and briefly discuss the usefulness of adopting a "Penrose an" capability perspective in multinational enterprise (MNE) strategy analysis.
Abstract: Penrose's legacy is a curious one. Much cited, but little read, her work is recognized as one of the main intellectual foundations for modem resource based theories of business strategy and theories of organizational routines and capabilities.However, Penrose did not aim to contribute to the field of strategy; her goal was to advance understanding of the nature of the firm and its growth. Nevertheless, there are important insights in Penrose's work that have implications for international business and for strategy.We discuss some of the implications of Penrose's work as well as its limitations. We also briefly discuss the usefulness of adopting a “Penrose an” capability perspective in multinational enterprise (MNE) strategy analysis.The dynamic capabilities framework puts entrepreneurial management into the theory of multinational enterprise, a task Penrose left untouched.
196 citations
TL;DR: Cyert as discussed by the authors proposed the introduction of a few more realistic behavioral assumptions into the economic theory of the firm and examined some aspects of the history of the ideas found in the book, extend and elaborate the ideas in the context of current research, and indicate possible directions for future research in the behavioral tradition.
Abstract: The papers in this special issue focus on ideas associated with a book published 45 years ago, A Behavioral Theory of the Firm (Cyert, R.M., March, J.G., 1963. A Behavioral Theory of the Firm. Endlewood Cliffs. Prentice Hall, NJ). The book proposed the introduction of a few more realistic behavioral assumptions into the economic theory of the firm. The papers presented here examine some aspects of the history of the ideas found in the book, extend and elaborate the ideas in the context of current research, and indicate possible directions for future research in the behavioral tradition. We will not attempt to summarize the papers, but will try to locate them gently in their historical and intellectual context.
58 citations
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TL;DR: The following sections are included:IntroductionOrganizing Research and Development and Knowledge Production ActivitiesThe Economics of Knowledge: Some Historical RootsAntecedentsInnovation and Economic GrowthFirm-Level DevelopmentsCentral Concepts in the Economics of knowledge and Intellectual PropertyThe Nature of KnowledgeReplicability, Imitability, and Appropriability of KnowledgeCapturing Value from Intellectual CapitalMeasurement Issues: Accounting and Market Metrics (Tobin'Q)Stock Market ValuationsGross MarginsPatent and Patent Citation CountsInnovative CountsOrganizational Capital
Abstract: The following sections are included:IntroductionOrganizing Research and Development and Knowledge Production ActivitiesThe Economics of Knowledge: Some Historical RootsAntecedentsInnovation and Economic GrowthFirm-Level DevelopmentsCentral Concepts in the Economics of Knowledge and Intellectual PropertyThe Nature of KnowledgeReplicability, Imitability, and Appropriability of KnowledgeCapturing Value from Intellectual CapitalMeasurement Issues: Accounting and Market Metrics (Tobin'Q)Stock Market ValuationsGross MarginsPatent and Patent Citation CountsInnovation CountsOrganizational CapitalConclusionReferences
26 citations
TL;DR: The correspondence between Herbert Simon and Oliver Williamson reveals a history of disagreement ultimately resolved by a reinstatement of mutual respect and agreement as mentioned in this paper, and the disagreements concern questions about the appropriate trade-offs between realism and comprehension in economic theory, on the extent to which the theory should be based on realistic behavioral assumptions.
Abstract: The correspondence between Herbert Simon and Oliver Williamson reveals a history of disagreement ultimately resolved by a reinstatement of mutual respect and agreement. On the surface, the disagreements concern questions about the appropriate trade-offs between realism and comprehension in economic theory, on the extent to which the theory should be based on realistic behavioral assumptions. At another level, however, the disagreements expose a different issue: Whether the sacrifices of realism involved in seeking comprehensible theory are to be experienced as unfortunate but necessary costs or as agonizing falls from grace that may be forgiven but only if accompanied with pain and contrition.
14 citations
01 Jan 2008
TL;DR: In this article, a legal basis for the firm costly and bounded rationality in individual and team decision-making is discussed, as well as the role of investment in entry deterrence.
Abstract: Volume One Economic Analysis and Strategic Management - D J Teece The Nature of the Firm - R Coase Rational Decision Making in Business Organizations - Herbert A. Simon Organizational Behavior - James G March and Herbert A Simon Transaction-Cost Economics: The Governance of Contractual Relations - Oliver E. Williamson Production, Information Costs and Economic Organization - A Alchian and H Demsetz Four Formal(izable) Theories of the Firm? - Robert Gibbons Evolutionary Theorizing in Economics - Richard R. Nelson and Sidney G. Winter An Epilogue - Richard M Cyert and James G March Research on the Business Firm Limits to the Growth and Size of Firms - Edith Penrose A Legal Basis for the Firm Costly and Bounded Rationality in Individual and Team Decision-Making - Roy Radner Team Theory, Garbage Cans and Real Organizations: Some History and Prospects of Economic Research on Decision-Making in Organizations - Robert Gibbons Organizations and Markets - Herbert A. Simon The Great Opportunity - I - Alfred P. Sloan, Jr. The Beginnings of "Big Business" in American Industry - Alfred D. Chandler, Jr. Business Objectives and Survival Needs: Notes on a Discipline of Business Enterprise - Peter F. Drucker Volume Two The Enduring Logic of Industrial Success - Alfred D Chandler Jr The Dynamics of Industrial Capitalism - David J Teece Strategy and Organizational Evolution - Herbert A Simon The Evolution of Evolution - James G March What Is Strategy? - Michael E Porter Perspectives on Alfred Chandler's Scale and Scope Organizations and Markets - Herbert A Simon Strategizing, Economizing and Economic Organization - Oliver E Williamson 'Introduction' and 'Fundamental Issues in Strategy' - Richard P Rumelt, Dan E Schendel and David J Teece Evolutionary Theorizing in Economics - R Nelson and S Winter Team Theory, Garbage Cans and Real Organizations - Robert Gibbons Some History and Prospects of Economic Research on Decision-Making in Organizations PART TWO: INDUSTRY ANALYSIS AND COMPETITIVE STRATEGY Relation of Profit Rate to Industry Concentration - Joe S Bain American Manufacturing, 1936-1940 The Role of Investment in Entry Deterrence - Avinash Dixit Uncertain Imitability - S A Lippman and R P Rumelt An Analysis of Interfirm Differences in Efficiency under Competition Volume Three Do Markets Differ Much? - Richard Schmalensee Sustainable Advantage - Pankaj Ghemawat Reputation and Strategy - Keith Weigelt and Colin Camerer A Review of Recent Theory and Implications Performance Differences among Strategic Groups - Karel Cool and Dan Schendel The Theory of Business Strategy - Carl Shapiro The Economics of Modern Manufacturing - Paul Milgrom and John Roberts Technology, Strategy and Organization Does Strategy Research Need Game Theory? - Colin F Camerer How Much Does Industry Matter? - Richard P Rumelt Game Theory and Strategic Management - Garth Saloner Applications, Contributions and Limitations The Right Game - Adam M Brandenburger and Barry J Nalebuf Use Game Theory to Shape Strategy The Meaning of Monopoly - David J Teece and Mary Coleman Antitrust Analysis in High-Technology Industries PART THREE: THE RESOURCE COMPETENCES-BASED APPROACH TO STRATEGY Towards an Economic Theory of the Multiproduct Firm - David J Teece A Resource-Based View of the Firm - Birger Wernerfelt Strategic Factor Markets - Jay B Barney Volume Four Determinants of Firm Performance - Gary S Hansen and Birger Wernerfelt The Relative Importance of Economic and Organizational Factors Firm Resources and Sustained Competitive Advantage - Jay Barney Why Do Firms Differ and How Much Does It Matter? - Richard R Nelson Strategic Assets and Organizational Rent - Raphael Amit and Paul J H Schoemaker A Sociological Perspective on Why Firms Differ - Glenn R Carroll The Cornerstones of Competitive Advantage - Margaret A Peteraf A Resource-Based Approach Sustainable Competitive Advantage - Christine Oliver Combining Institutional and Resource-Based Views Is the Resource-Based 'View' a Useful Perspective for Strategic Management Research? - Richard L Priem and John E Butler The Bargaining Perspective - Steven A Lippman and Richard P Rumelt The Payments Perspective - Steven A Lippman and Richard P Rumelt Micro-Foundations of Resource Analysis The Resource-Based Tangle - Nicolai J Foss and Thorbjorn Knudsen Towards a Sustainable Explanation of Competitive Advantage Dynamic Capabilities and the Multinational Enterprise - Mie Augier and David J Teece Competing on Resources - David J Collis and Cynthia Montgomory PART FOUR: DYNAMIC CAPABILITIES APPROACH Research Note - David J Collis How Valuable Are Organizational Capabilities? Volume Five Dynamic Capabilities and Strategic Management - David J Teece, Gary Pisano and Amy Shuen Introduction - Giovanni Dosi, Richard R Nelson and Sidney G Winter The Nature and Dynamics of Organizational Capabilities Structural Inertia and Organizational Change - Michael T Hannan and John Freeman Absorptive Capacity - Wesley M Cohen and Daniel A Levinthal A New Perspective in Learning and Innovation Exploration and Exploitation in Organizational Learning - James G March The Myopia of Learning - Daniel A Levinthal and James G March The Red Queen in Organizational Evolution - William P Barnett and Morten T Hansen The Satisfying Principle in Capability Learning - Sidney G Winter Deliberate Learning and the Evolution of Dynamic Capabilities - Maurizio Zollo and Sidney G Winter Cognitive Simplification Processes in Strategic Decision-Making - Charles R Schwenk The Psychological Context of Strategic Decisions - Thomas S Bateman and Carl P Zeithaml A Model and Convergent Experimental Findings The Attention-Based View of the Firm - William Ocasio Getting to Know You - Margaret Peteraf and Mark Shanley A Theory of Strategic Group Identity Volume Six Timid Choice and Bold Forecasts - Daniel Kahneman and Dan Lovallo Integrating Evolution, Cognition and Design - Mie Augier and Saras D Sarasvarthy Extending Simonian Perspectives to Strategic Organization Transactions-Cost Economics in Real Time - Richard Langlois Measuring Competences? Exploring Firm Effects in Pharmaceutical Research - Rebecca Henderson and Iain Cockburn Strategy Research - Oliver E Williamson Governance and Competence Perspectives Dynamic Capabilities - Kathleen M Eisenhardt and Jeffrey A Martin What Are They? The Economics of Strategic Opportunity - Jerker Denrell, Christina Fang and Sidney G Winter The Dynamic Resource-Based View - Constance E Helfat and Margaret A Peterof Capability Lifecycles Understanding Dynamic Capabilities - Sidney G Winter Rationality, Foolishness and Intelligence - James G March The Co-Evolution of Capabilities and Transaction Costs - Michael G Jacobides and Sidney G Winter Explaining the Institutional Structure of Production Explicating Dynamic Capabilities - David J Teece Nature, Microfoundations and Long-Run Enterprise Performance
7 citations
01 Jan 2008
TL;DR: The correspondence between Herbert Simon and Oliver Williamson reveals a history of disagreement ultimately resolved by a reinstatement of mutual respect and agreement as discussed by the authors, and the disagreements concern questions about the appropriate trade-offs between realism and comprehension in economic theory, on the extent to which the theory should be based on realistic behavioral assumptions.
Abstract: The correspondence between Herbert Simon and Oliver Williamson reveals a history of disagreement ultimately resolved by a reinstatement of mutual respect and agreement. On the surface, the disagreements concern questions about the appropriate trade-offs between realism and comprehension in economic theory, on the extent to which the theory should be based on realistic behavioral assumptions. At another level, however, the disagreements expose a different issue: Whether the sacrifices of realism involved in seeking comprehensible theory are to be experienced as unfortunate but necessary costs or as agonizing falls from grace that may be forgiven but only if accompanied with pain and contrition.
4 citations
Posted Content•
TL;DR: The authors identify core ideas and contentions Sidney Winter helped put on the research agenda for scholars interested in complex business organization and point out that Winter's early contentions have implications for strategic thinking (in both business and military contexts) and a promising research agenda lies in the further development of notions of organizational capability.
Abstract: This article begins with some notes on the intellectual climate in which the article of (Winter 1968, Towards a Neo-Schumpeterian Theory of the Firm, The RAND Corporation; 2006, Industrial and Corporate Change, 15, 1) was first written. It identifies core ideas and contentions Sidney Winter helped put on the research agenda for scholars interested in complex business organization. We point out that Winter's early contentions have implications for strategic thinking (in both business and military contexts) and that a promising research agenda lies in the further development of notions of organizational capability.
1 citations