Ramalingam, Abhijit; Rauh, Michael T. - In: Management Science 56 (2010) 12, pp. 2191-2206
Why do firms exist? What is their function? What do managers do? What is the role, if any, of social motivation in the market? In this paper, we address these questions with a new theory of the firm, which unites some major themes in management, principal-agent theory, and economic sociology. We...