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Revisiting the nature of the firm after 75 years.

Added over 1 year ago | As appeared first on bbvaopenmind.com
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...
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