This explorative report proposes that the main problem of economic organization is adaptation to unforeseen contingencies. Nevertheless, flexibility is a fairly ignored issue in the theory of economic organization. This contrasts with much organization theory, where the seeking and processing of information about the organization’s key uncertainties is viewed as a determinant of organizational form. …
I discuss and compare alternative approaches to integrating bounded rationality with the theory of economic organization, concentrating on the organizational capabilities approach, which is strongly influenced by the works of Nelson and Winter..
Knowledge management has emerged as one of the most influential organization practice. Surprisingly, however, organizational economics (i.e., transaction cost economics, agency theory, team theory and property rights theory) has played no role in the development of knowledge management. This paper argues that organizational economics insights can further the theory and practice of knowledge management in several …