The Firm as an Institution for Product Design and Value Web Orchestration
(2013) In Business and Economics Journal 4(BEJ 2013, 4:085). p.1-14- Abstract
- Institutional theory of the firm focuses on firm boundaries and the activities firms internalize within their
hierarchies. However, an examination of disintegrated firms that influences activities beyond the scope of their
hierarchies suggests that firms also perform other economic functions. By analysing these functions, the aim of
this paper is to suggest a theory of the firm that goes beyond internalization. Sometimes firms specialize in the
economic functions of product design and value web orchestration. With large markets, complex and composite
goods and complementarities among producers, firms reap advantages of skill and scale by pooling demand
and realizing complementary... (More) - Institutional theory of the firm focuses on firm boundaries and the activities firms internalize within their
hierarchies. However, an examination of disintegrated firms that influences activities beyond the scope of their
hierarchies suggests that firms also perform other economic functions. By analysing these functions, the aim of
this paper is to suggest a theory of the firm that goes beyond internalization. Sometimes firms specialize in the
economic functions of product design and value web orchestration. With large markets, complex and composite
goods and complementarities among producers, firms reap advantages of skill and scale by pooling demand
and realizing complementary positive externalities. Hence, firms are able to make products that customers
never knew they would demand and that suppliers never knew they would be part of supplying, and that is
more efficient than if customers and individual suppliers performed these functions. Case material from Nike,
a large and highly disintegrated firm, illustrates the analysis (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/4178573
- author
- Pihl, Håkan LU
- organization
- publishing date
- 2013
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- New institutional economics, comparative institutional analysis, theory of the firm, disintegrated brand-name firm, product design, value web orchestration, pooling advantages, combinatorial benefits.
- in
- Business and Economics Journal
- volume
- 4
- issue
- BEJ 2013, 4:085
- pages
- 1 - 14
- publisher
- OMICS Publishing Group
- ISSN
- 2151-6219
- language
- English
- LU publication?
- yes
- id
- e9e0cfab-7065-4237-8366-d9da1fc2b459 (old id 4178573)
- alternative location
- http://www.omicsonline.com/open-access/archive-business-and-economics-journal-open-access.php
- date added to LUP
- 2016-04-01 14:38:31
- date last changed
- 2018-11-21 20:28:38
@article{e9e0cfab-7065-4237-8366-d9da1fc2b459,
abstract = {{Institutional theory of the firm focuses on firm boundaries and the activities firms internalize within their<br/><br>
hierarchies. However, an examination of disintegrated firms that influences activities beyond the scope of their<br/><br>
hierarchies suggests that firms also perform other economic functions. By analysing these functions, the aim of<br/><br>
this paper is to suggest a theory of the firm that goes beyond internalization. Sometimes firms specialize in the<br/><br>
economic functions of product design and value web orchestration. With large markets, complex and composite<br/><br>
goods and complementarities among producers, firms reap advantages of skill and scale by pooling demand<br/><br>
and realizing complementary positive externalities. Hence, firms are able to make products that customers<br/><br>
never knew they would demand and that suppliers never knew they would be part of supplying, and that is<br/><br>
more efficient than if customers and individual suppliers performed these functions. Case material from Nike,<br/><br>
a large and highly disintegrated firm, illustrates the analysis}},
author = {{Pihl, Håkan}},
issn = {{2151-6219}},
keywords = {{New institutional economics; comparative institutional analysis; theory of the firm; disintegrated brand-name firm; product design; value web orchestration; pooling advantages; combinatorial benefits.}},
language = {{eng}},
number = {{BEJ 2013, 4:085}},
pages = {{1--14}},
publisher = {{OMICS Publishing Group}},
series = {{Business and Economics Journal}},
title = {{The Firm as an Institution for Product Design and Value Web Orchestration}},
url = {{http://www.omicsonline.com/open-access/archive-business-and-economics-journal-open-access.php}},
volume = {{4}},
year = {{2013}},
}