modern compensation theory, but has not been extended to organization theory. The idea is developed by starting from … Williamson's discussion of idiosyncratic exchange. The perspective sheds new light on several topics in the theory of the firm … of incentives, or the role of routines. It implies a "perceptional" theory of the firm that is "realistic" in the sense …

We propose a new theory of the firm based on the premise that "the firm" characterizes a factor-integrative form of … requirements involved for such a theory, and fulfill those requirements by explaining what it is "to do bad", and why and when the …