In this article, we present a history-friendly model of the changing vertical scope of computer firms during the evolution of the computer and semiconductor industries. The model is "history-friendly," in that it attempts at replicating some basic, stylized qualitative features of the evolution...

David J. Teece discusses with Sidney G. Winter some of the major contributions of Alfred D. Chandler, Jr. Topics discussed include path dependence and the organizational embeddedness of competences and capabilities, the recent financial crisis, and the electronic century in terms of Chandler's...

In some economics textbooks production theory is developed axiomatically. The “divisibility axiom” presents a bold affront to realism. It distorts the static theory and forecloses some potential encounters with technological change. The article reviews propositions about geometrical scaling...

Organizational routines are considered basic components of organizational behavior and repositories of organizational capabilities (Nelson & Winter, 1982). They do, therefore, hold one of the keys to understanding organizational change. The article focuses on how the concept of organizational...

This article offers a sketch of what an economic theory of the firm would look like if it were founded on the thought of Joseph Schumpeter, particularly on Chapters 1 and 2 of his Theory of Economic Development. Schumpeterian analysis requires an intuitively appealing and realistic...