Organizational Economics: An Impending Revolution in Organization Theory?

William S. Hesterly · Julia Porter Liebeskind · Todd R. Zenger

95 citations0/0 files storedAcademy of Management Review

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Economic Theory and Institutions Management Theory and Practice Management and Organizational Studies

Abstract

Organizational economics (OE) is purported to offer a potential revolution in organization theory. This paper assesses the value of organizational economics for organization theorists. The conclusions are that OE is useful in extending theory building and empirical research in organization theory, but for OE to realize its full potential, it must draw upon organization theory to refine theory building and expand its scope.

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1976Theory of the firm: Managerial behavior, agency costs and ownership structure 1983The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields 1985Economic Action and Social Structure: The Problem of Embeddedness 1977Institutionalized Organizations: Formal Structure as Myth and Ceremony 2004The iron cage revisited institutional isomorphism and collective rationality in organizational fields 1937The Nature of the Firm 1983Separation of Ownership and Control 1987The Economic Institutions of Capitalism

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