The paper examines of the division of labor within firms. It provides an explanation of the pervasive observed changes in work organisation away from the traditional functional departments and towards multi-tasking and job rotation. Whereas the exsisting literature on the division of labour...

This paper presents a new approach to the theory of the firm by identifying factor complementarities as central to the determination of the firm's boundaries. The factor complementarities, as well as economies of scale and scope. We examine the tradeoff between the gains froom these...