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Author:Araujo, L.
Dubois, A.
Gadde, L.-E.
Title:The Multiple Boundaries of the Firm
Journal:Journal of Management Studies
2003 : JUL, VOL. 40:5, p. 1255-1278
Index terms:COMPANIES
VERTICAL INTEGRATION
COMPANY FORMATION
BUSINESS ENVIRONMENT
COMPANY FORMATION
Language:eng
Abstract:In this paper, the authors attempt to develop a different approach to the problem of vertical firm boundaries, based on recent advances in the capabilities view of the firm. The arguments rely on the pioneering insights of Penrose, Richardson and Loasby to elaborate a view of the boundaries determined by the interaction of the firm's direct and indirect capabilities with other actors. The authors develop the notion of indirect capabilities to highlight how firm boundaries respond to the distribution of capabilities in the economy as well as the modes of access to complementary and external capabilities. The authors conclude that the evolution of firm boundaries must be understood in the context of decisions on how the firm relates to other actors in its environment.
SCIMA record nr: 252362
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