Chester Barnard’s “executive” and the knowledge‐based firm

Abstract

Chester Barnard’s 1938 bookThe Functions of the Executiveis re‐examined in the context of the emerging knowledge‐based dynamic theory of the firm. The key constructs and the underlying principles for Barnard’s functions of the “executive” and organization as a cooperative open‐system are reassessed for the evolving knowledge‐driven firm competing in the twenty‐first century global economy. Surprisingly, after more than six decades, Barnard’s cooperative “executive,” well‐versed in the logical‐rational and the non‐logical‐intuitive decision‐making processes, still seems quite competent to effectively lead the knowledge‐driven e‐business enterprise evolving in the twenty‐first century. The Barnardian “executive,” however, must evolve by acquiring and integrating the newly available knowledge‐related technologies and other adaptive competencies to help develop new drivers of global competitiveness.

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