Theories of Economic Organization: The Case for Realism and Balance

Peter Moran · Sumantra Ghoshal

180 citations0/0 files storedAcademy of Management Review

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Outsourcing and Supply Chain Management Economic Theory and Institutions Management Theory and Practice

Abstract

The article reports on the economic theory of industrial organization. The authors focus on responding to a criticism of their article “Bad for Practice: A Critique of Transaction Cost Theory.” They go on to suggest that markets and industrial organizations feature a vastly different set of dynamics. It is suggested that managers cannot run business enterprises or corporations based on transactional cost economics (TCE) because that particular theory is meant to decipher market situations. The authors endeavor to provide a realistic and balanced view of organizational behavior.

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References

1983The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields 1990Institutions, Institutional Change and Economic Performance 2004The iron cage revisited institutional isomorphism and collective rationality in organizational fields 1991Institutions, Institutional Change and Economic Performance 1937The Nature of the Firm 1986The Economic Institutions of Capitalism 1996Production, Information Costs and Economic Organization 1977The Population Ecology of Organizations

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