Theories of the Firm - or Frameworks ? JC Spender LUSEM & ESADE.
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Transcript of Theories of the Firm - or Frameworks ? JC Spender LUSEM & ESADE.
Theories of the Firm - or Frameworks ?
JC SpenderLUSEM & ESADE
questions• what are organizations ? why do they exist ? • what do managers do ?
• unelected - to be held responsible as citizens ? • management education & research methods ?• ‘horses for courses’
• several possible discourses– functional– power, capitalist ethos, professionalization– emancipation, opportunity, human flourishing – economic functioning - orgs/markets– K-generative/value chain, endogenous,
entrepreneurship– ......
18-May-2010 Lund ToF Seminar 2
uncertainty - agency - rhetoric - responsibility
• Knightian uncertainty• Lockean model of the individual (MoI)
– reason + imagination
• rationality vs agency• methodology issues - theory vs framework• framing the agentic space
• Barnard• Porter• PAT
• constrained maximization - Bentham• theory of the employment situation
– subordination & manipulation
• responsibility, business ethics
18-May-2010 Lund ToF Seminar 3
theories of employment
18-May-2010 Lund ToF Seminar 4
tyranny oath market“employment”
Coase - subordination
principal-agent theory
rational-expectations
Barnard - executive contribution
(Etzioni) coercive cultural calculative
nexus of contracts
transaction cost - governance
Simon - docility
theories of the firm - or are they frameworks ?
• bureaucracy• system• organism• culture• psychic prison• CMS
• resource dependence• new institutional theory• population ecology• self-organizing
• principal-agent• transaction cost• team production, property rights• IO / 5-forces / RBV
18-May-2010 Lund ToF Seminar 5
people things
elements PAT RBV/IO/5F
entities TCE TP/PR
Penrose 1959
decomposable systemsSimon (PAPS 1962)
Barnardian framework
18-May-2010 Lund ToF Seminar 6
personalpersonal
social physical
executive function“organizational system” - meta-discourse
Porterian - framework
18-May-2010 Lund ToF Seminar 7
competitors
customers
suppliers
new entrants
substitutes
value chain /rent stream
confidence level
methodological illustrationbases of mkt power in strategic groupmanagerial choice
principal-agent ... NOT agency
Jensen & Meckling
• agency costs– monitoring– bonding– residual loss
• single period - time-less• single dimension/resource• incentive design• Rational Man• determinative• BUT - logical error **
Mitnick, Fama, White
• ‘managing’ - versus - ‘risk bearing’• risks distributed• ex-post & reputational measures• multiple periods - time-full• multiple dimensions (financial, social
and human capital)• Learning & Trusting MoI• non-determinative
18-May-2010 Lund ToF Seminar 8
determined vs agentic action
18-May-2010 Lund ToF Seminar 9
independent & dependent variablesprimacy of analysis
I1
I2 I3
D managing causes to control effects
interactive / under-determinedopen space action
non-objective constraintsprimacy of Q = agency/experience
D = f (I1-n) + ε
O = f (C1-n) * QSchumpeter, agent as cause
C1
C2
C3
(a) selecting field of action (b) put in motion
ToF as Framework
sole entrepreneur
• factor Q• all one can say - without a
theory of judgment
distributed agency
• what managers cannot do for themselves
• co-option and mutuality• Tarde, Bales• Penrose ‘mgt team’
• managing - the rhetorical shaping of others’ agentic action - docility (Simon, Freud)
• Organization Man (Whyte 1956)• Balanced Scorecard• casework• empirical research
18-May-2010 Lund ToF Seminar 10
post-Enlightenment theory of the self - my MoI
18-May-2010 Lund ToF Seminar 11
individuality
sociability
imaginationrationality
docilitymemoryemotionlearning
methodology & managing
theory - positivist
• finding a theory• discovery of facts• analysis• rational decision-making• control & measurement• objective & irresponsible
framework - agentic
• managerial choice• in-the-world of experienced
contingent constraints• judging possibilities, augenblick• promoting watchful & learning
activity• responsibility• case-work & historical method
18-May-2010 Lund ToF Seminar 12
deductive inductive
agentic evolutionary
18-May-2010 Lund ToF Seminar 13
18-May-2010 Lund ToF Seminar 14
agentic/open instrumental/closed
elements PAT RBV
entities TCE/5F TP/PR