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A market-process approach to corporate coherence

✍ Scribed by Nicolai J Foss; Jens Frøslev Christensen

Publisher
John Wiley and Sons
Year
2001
Tongue
English
Weight
111 KB
Volume
22
Category
Article
ISSN
0143-6570

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✦ Synopsis

Abstract

We address the notion of corporate coherence recently made prominent by Teece et al. (1994. Understanding corporate coherence: theory and evidence. Journal of Economic Behavior and Organization 23: 1–30). We argue that the literature is confused on the meaning of this notion (and similar notions) along a number of dimensions. Drawing on insights from market‐process theories, we propose a dynamic understanding of corporate coherence, an understanding that involves the corporate capacity to strike a favorable balance between the production and exploitation of new knowledge. This argument is elaborated drawing on Austrian economics, evolutionary economics, and post‐Marshallian economics. Copyright © 2001 John Wiley & Sons, Ltd.

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