It is possible to find common ground between approaches to firm growth that look at costs of coordinating economic organization (such as transaction cost economics) and those that build on foundations for resource-based economics built by Edith Penrose. The complications created by attempts to...

This paper considers reasons for the existence of firms and concludes that traditional perspectives provided by economics may be unsatisfactory and incomplete. It suggests that there has been an overemphasis on the role of contractual relations in economic organization, and argues instead that...