In 1937, Ronald Case published a seminal article titled "The Nature of the Firm." In it he posed a couple of deceptively simple questions:
* Why do successful firms grow larger?
* Why does the growth in size of a successful firm at some point level out?
He answered both of these questions with a theory of transaction costs. In this context, he pointed out that doing any kind of non-core work outside the firm has the advantages of leveraging someone else's capital investment and expertise, but...