Pattern in Corporate Evolution

by Neil M. Kay

Questions relating to the existence and nature of firms have become major issues in economics in recent years. The agenda in this area has been largely set by transaction cost economics. This approach has provided a basis for explaining the boundaries and structure of the firm in a variety of contexts. Neil Kay follows the agenda set by transaction cost economics, but he is unique in providing improved explanations of individual phenomena as well as a more general framework for analyzing the nature and behaviour of firms. Graphical analysis of firm strategy and structure forms an integral part of the analysis. The book develops a resource-based perspective of the firm. This in turn provides the foundations for the analysis of the firm as a complex system, in which links composed of shared resources constitute basic building blocks. The evolution of the firm from simple beginnings to complex system is then studied in a number of areas, including vertical integration, diversification, mu