Unveiling the Systemic Nature of the Firm using a Grammar of Social Processes

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This paper proposes a meta-theoretical framework to explain all forms of economic coordination with a computational complexity approach, taking into consideration the contractual (or transaction costs-based), the competence-based and the relational views of the firm. A mathematical model of the sequences of decision-making events of either individual action or social interaction like that from Generative Grammar Theory makes a clear distinction between the market and all other coordination structures, including the firm. Finally, the contribution mechanism of this kind of systemic view of the firm as an extension of the social processes of competence development and inter-organizational relationship is presented.

Posted for comments on 22 Apr 2021, 8:45 am.

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