A market‐process approach to corporate coherence

Nicolai J. Foss · Jens Frøslev Christensen

72 citations0/0 files storedManagerial and Decision Economics

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Innovation and Knowledge Management Economic Theory and Institutions Organizational Management and Leadership

Abstract

Abstract We address the notion ofcorporate coherencerecently made prominent by Teeceet al.(1994. Understanding corporate coherence: theory and evidence.Journal of Economic Behavior and Organization23: 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 adynamicunderstanding 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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1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 1984A resource‐based view of the firm 1937The Nature of the Firm 1991Exploration and Exploitation in Organizational Learning 1983An Evolutionary Theory of Economic Change.1995The Knowledge-Creating Company 1998The Knowledge-Creating Company

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