Handbook of Economic Organization
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Handbook of Economic Organization

Integrating Economic and Organization Theory

Edited by Anna Grandori

This comprehensive and groundbreaking Handbook integrates economic and organization theories to help elucidate the design and evolution of economic organization. Economic organization is regarded both as a subject of inquiry and as an emerging disciplinary field in its own right, integrating insights from economics, organization theory, strategy and management, economic sociology and congnitive psychology. The contributors, who share this integrated approach, are distinguished scholars at the productive peak in their fields. Each original, state-of-the art chapter not only addresses foundational issues, but also identifies key issues for future research.
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Chapter 4: Knowledge governance: meaning, origins and implications

Nicolai J. Foss

Extract

This chapter addresses the distinctiveness of knowledge governance as an emerging field in economic organization. Specifically, it is only rather recently that organizational economists and organizational scholars have begun to systematically treat knowledge as more than just an additional constraint on the maximization problem. Knowledge can be subject to transacting, organizing and governing and can be influenced in terms of its growth, change, composition, and so on by the deployment of governance structures and mechanisms. The various ways in which knowledge and organization are intertwined are discussed, and it is suggested that a key explanatory purpose of knowledge governance is the explanation of heterogeneous firm-level capabilities. Other frontier issues, notably the inclusion of the governance of beliefs and cognitions in the knowledge governance project, are also discussed.

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