Coase and the nature of the firm

Ronal Coase described how integration works in terms of transaction costs, in his famous on the Nature of the Firm:

“The existence of high transaction costs outside firms led to the emergence of the firm as we know it, and management as we know it….The reverse side of Coase’s argument is as important: If the (transaction) costs of exchanging value in the society at large go down drastically as is happening today, the form and logic of economic and organizational entities necessarily need to change! The core firm should now be small and agile, with a large network.”

technology and new business models have enabled a new disrupting ways to create firms.

Tim O’really Networks and the Nature of the Firm

Esko Kilppi The Future of Firms. Is There an App for That?


Albert Wenger Networks, Firms and Markets