The Firm as an Entity

Book excerpt: The book enhances current economic understanding of the firm as an institution and an organization, looking beyond the narrow boundaries of neoclassical economics to an interdisciplinary approach based on accounting and law as well as economics itself. It represents the first synthesis of the authors' research work on the subject and provides the groundwork for the development of a comprehensive framework centred on the firm as an entity. The volume starts with a synthesis and a critique of the current state of the different economic theories of the firm and further develops them through new insights and neglected lessons from different traditions of thought. The economic theory and analysis of the firm is given new life here by looking at the firm as a whole: as an institution and an organization, which has special functions and a distinct role in the economy and society.