In this important and timely book, Bart Nooteboom develops and applies a social cognitive theory of firms and organizations with a focus on learning and innovation. Why explore a cognitive theory of the firm? This enlightening study explains that a cognitive theory of the firm is required in order to lend more substance and analysis to current vague and unconnected ad hoc notions in the literature, such as entrepreneurial vision, absorptive capacity, and variety and dispersion of knowledge. The author explores the notion of differential cognition, drawing together the work of Hayek, Schumpeter and Penrose to shed light on the sources of innovation. This interdisciplinary book connects ideas from specific branches of economics, management and organization, cognitive science, social psychology and sociology and will be invaluable to students and scholars interested in a new perspective on the firm.

Trust is an elusive concept, meaning different things to different people, and so needs to be clearly defined. By focusing on relations within and between firms, Bart Nooteboom undertakes to produce a clearer definition of trust and its role in the economy. Trust deals with a range of questions such as: what are the roles of trust? What can we trust in? Can trust serve as an instrument for the governance of relations? Is trust a substitute, a precondition or an outcome of contracts? The author then goes on to analyse what trust is based on, what its limits are, how it grows and how it can also break down. The role of intermediaries is also discussed. Bart Nooteboom argues that trust goes beyond calculative self-interest and that blind, unconditional trust is unwise. He then examines the paradox of how trust can be non-calculative and yet, not blind. The book also reveals ways to measure and model trust, its antecedents and its consequences.

This book provides a scathing antidote to the standard propositions made by economists about how wonderful market organization is. At the same time the criticism is balanced and recognizes well the advantages of market organization for certain kinds of goods and services. Bart Nooteboom is one of the broadest, and sharpest, social scientists writing today, and this book is vintage Nooteboom' - Richard R. Nelson, Columbia University, USIn this thought-provoking book, Bart Nooteboom offers a radical critique of the principal intellectual and moral assumptions underlying economic science, unravelling the notion of markets: how they work and fail, and how they may be redirected to better serve us. Initially, the inadequacy of economic science in the wake of recent financial and economic crises is outlined. Few economists predicted the crises and subsequent economic thought has been nebulous, failing to apprize guidance, understanding and prevention for the future. Established practices in finance and business continue regardless, and confusion has bred among policy makers, the public, and even economists on what markets actually are. Bart Nooteboom employs an Aristotelian virtue ethic, with a view to multiple dimensions of 'the good life', upturning the utilitarian ethic that dominates economic science and modern politics. The critique makes a corrective-turn, transforming economic thought into an integrative, ethical and interdisciplinary behavioral science of markets. Nooteboom's interdisciplinary approach makes this book an appealing read to economists, sociologists and political scientists with an interest in market processes. People concerned about how markets are developing and policy makers will welcome this topical work to gain fresh insights into collaborative and ethical market policy. This timely book will vitalize debate about markets, what they do and how they may work better. Contents: 1. Introduction 2. Foundations of markets 3. How markets work and fail 4. Variety of industries 5. Hybrids and examples 6. Alternatives Index

Much-needed in the face of present political upheavals, including the rise of populism and re-emergence of nationalism and authoritarian regimes, this book is radical in both its critique and proposals for a new economics. Taking an interdisciplinary approach, Bart Nooteboom offers insights from economics, sociology, cognitive science, social psychology and philosophy. Exploring ways in which economics is developing, the book investigates how new economics has moved away from considering individuals as autonomous and instead studies their involvement and interactions with each other. The book discusses a new relational economics: less contractual, hierarchical and controlled, and more based on trust and mutual adjustment. Nooteboom proposes a shift from utility ethics to the virtue ethics of prudence, courage, moderation and justice. A provocative read for economics students, this work is especially pertinent to those interested in rethinking the subject and expanding upon heterodox theories. It will also prove a useful read to critical economists and sociologists looking to better understand a way forward in our current economic climate.

This authoritative collection provides a wide-ranging survey of the most significant previously published papers on knowledge and learning within organizations. It explores beyond economics into the fields of cognitive science and sociology. The first volume investigates cognition in general and contains a number of classic articles which furnish the fundamentals of 'embodied cognition', the social basis of cognition and categorization. The second volume explores the application of these fundamentals to organizations and includes key papers on organizational, as opposed to individual, cognition and on the related themes of unity and diversity, stability and change. The editor has written an authoritative introduction which provides explanatory information and points the way for future work in this area.

Much-needed in the face of present political upheavals, including the rise of populism and re-emergence of nationalism and authoritarian regimes, this book is radical in both its critique and proposals for a new economics. Taking an interdisciplinary approach, Bart Nooteboom offers insights from economics, sociology, cognitive science, social psychology and philosophy. Exploring ways in which economics is developing, the book investigates how new economics has moved away from considering individuals as autonomous and instead studies their involvement and interactions with each other. The book discusses a new relational economics: less contractual, hierarchical and controlled, and more based on trust and mutual adjustment. Nooteboom proposes a shift from utility ethics to the virtue ethics of prudence, courage, moderation and justice. A provocative read for economics students, this work is especially pertinent to those interested in rethinking the subject and expanding upon heterodox theories. It will also prove a useful read to critical economists and sociologists looking to better understand a way forward in our current economic climate.

Inter-firm relations are not new. But fast developments in technology and globalization have led to increased opportunities for international alliances, and an upsurge in the interest in inter-organizational relations. With the time ripe for a unified theory of collaboration, Inter-firm Collaboration, Learning and Networks surveys the current field, connects differing perspectives and answers questions about who should collaborate, why, and how.

Emphasizing learning and innovation, this book offers an integrated account of the key issues in the design and management of inter-firm relations and networks. It takes a uniquely interdisciplinary approach, bringing together perspectives from economics, sociology and management to offer a new kind of book on this subject. Supporting theory, the book includes illustrative case examples taken from a variety of firm, network and industry types.

Coherent and wide-reaching, Inter-firm Collaboration, Learning and Networks provides students and academics in economics, business, sociology, social psychology and economic geography with the tools required to understand this topical and highly relevant subject.

Inter-firm relations are not new. But fast developments in technology and globalization have led to increased opportunities for international alliances, and an upsurge in the interest in inter-organizational relations. With the time ripe for a unified theory of collaboration, Inter-firm Collaboration, Learning and Networks surveys the current field, connects differing perspectives and answers questions about who should collaborate, why, and how. Emphasizing learning and innovation, this book offers an integrated account of the key issues in the design and management of inter-firm relations and networks. It takes a uniquely interdisciplinary approach, bringing together perspectives from economics, sociology and management to offer a new kind of book on this subject. Supporting theory, the book includes illustrative case examples taken from a variety of firm, network and industry types. Coherent and wide-reaching, Inter-firm Collaboration, Learning and Networks provides students and academics in economics, business, sociology, social psychology and economic geography with the tools required to understand this topical and highly relevant subject.

Author Biography:
Bart Nooteboom is Professor of Industrial Organisation in the Faculty of Management and Organisation, Groningen University, The Netherlands. He has published widely in the fields of industrial and business economics.

Challenging the current flood of mergers and acquisitions this book presents an alternative, more efficient strategy of inter-firm alliances. In the context of recent developments in international business, the discussion takes in alliances between buyers and suppliers, between competitors and between firms in different industries. This theory is illustrated and elaborated with empirical detail from a variety of international case-studies. These studies include the car industry in the US, Europe and Japan, the Dutch photocopier industry and ten European electronic suppliers ... Inter-firm Alliances combines resource-based views, transaction-cost analysis and institutional economics to develop an original and comprehensive theory of inter-firm alliances and a coherent method for managing them.

Trust is an elusive concept, meaning different things to different people, and so needs to be clearly defined. By focusing on relations within and between firms, Bart Nooteboom undertakes to produce a clearer definition of trust and its role in the economy. Trust deals with a range of questions such as: what are the roles of trust? What can we trust in? Can trust serve as an instrument for the governance of relations? Is trust a substitute, a precondition or an outcome of contracts? The author then goes on to analyse what trust is based on, what its limits are, how it grows and how it can also break down. The role of intermediaries is also discussed. Bart Nooteboom argues that trust goes beyond calculative self-interest and that blind, unconditional trust is unwise. He then examines the paradox of how trust can be non-calculative and yet, not blind. The book also reveals ways to measure and model trust, its antecedents and its consequences.

This book provides a scathing antidote to the standard propositions made by economists about how wonderful market organization is. At the same time the criticism is balanced and recognizes well the advantages of market organization for certain kinds of goods and services. Bart Nooteboom is one of the broadest, and sharpest, social scientists writing today, and this book is vintage Nooteboom' - Richard R. Nelson, Columbia University, USIn this thought-provoking book, Bart Nooteboom offers a radical critique of the principal intellectual and moral assumptions underlying economic science, unravelling the notion of markets: how they work and fail, and how they may be redirected to better serve us. Initially, the inadequacy of economic science in the wake of recent financial and economic crises is outlined. Few economists predicted the crises and subsequent economic thought has been nebulous, failing to apprize guidance, understanding and prevention for the future. Established practices in finance and business continue regardless, and confusion has bred among policy makers, the public, and even economists on what markets actually are. Bart Nooteboom employs an Aristotelian virtue ethic, with a view to multiple dimensions of 'the good life', upturning the utilitarian ethic that dominates economic science and modern politics. The critique makes a corrective-turn, transforming economic thought into an integrative, ethical and interdisciplinary behavioral science of markets. Nooteboom's interdisciplinary approach makes this book an appealing read to economists, sociologists and political scientists with an interest in market processes. People concerned about how markets are developing and policy makers will welcome this topical work to gain fresh insights into collaborative and ethical market policy. This timely book will vitalize debate about markets, what they do and how they may work better. Contents: 1. Introduction 2. Foundations of markets 3. How markets work and fail 4. Variety of industries 5. Hybrids and examples 6. Alternatives Index

In this important and timely book, Bart Nooteboom develops and applies a social cognitive theory of firms and organizations with a focus on learning and innovation. Why explore a cognitive theory of the firm? This enlightening study explains that a cognitive theory of the firm is required in order to lend more substance and analysis to current vague and unconnected ad hoc notions in the literature, such as entrepreneurial vision, absorptive capacity, and variety and dispersion of knowledge. The author explores the notion of differential cognition, drawing together the work of Hayek, Schumpeter and Penrose to shed light on the sources of innovation. This interdisciplinary book connects ideas from specific branches of economics, management and organization, cognitive science, social psychology and sociology and will be invaluable to students and scholars interested in a new perspective on the firm.

Long-term supply relationships are of crucial importance in industrial organization. The present (r)evolution in information and communication technology such as e-business is proof of the increasingly dynamic environment in which firms operate. As a result, firms have to focus on their core competencies and obtain complementary ones from partner firms to be able to survive. This can hardly be realized without having long-term supply relationships. In the past decades, research on strategic alliances -the class of interfirm arrangements to which long-term supply relationships belong mushroomed. Many ofthe (empirical) studies in the alliance literature focus on a single variable that is then explained by a set of independent variables. For example, for international joint ventures the level of commitment, interdependence, asymmetry, and dedicated investments explains the development of trust. By itself there is nothing wrong in this approach. On the contrary, because of all these studies we now have some knowledge about the reasons why firms enter in alliances and why some alliances are more successful than others. In fact, one of our first studies also belonged to this research-tradition.

Technology and knowledge are two of the most important factors for maintaining a competitive advantage in today's global economy. This book examines recent trends in the analysis of knowledge and technology from an evolutionary perspective.Technology and Knowledge emphasizes the importance of knowledge in the creation of technological change and innovation. The authors examine the role of knowledge underlying innovation, and the flows of knowledge and other interactions between and within firms. Combining empirical work with simulations to solve models which are too complex to be understood analytically, the book presents a balanced and complementary approach to an area that is critically important for economic growth and international competitiveness. This book will be warmly welcomed by academics working in the fields of technological change, innovation, knowledge and industrial organization.

Today, industrial organization can hardly be imagined without long-term supply relationships. Firms use this specific type of alliance to acquire or develop (complementary) competencies. These are necessary to be able to survive and be successful in an increasingly dynamic environment. Rather than studying particular features in isolation, this book analyzes the overall, underlying causal structure of long-term supply relationships. De Jong and Nooteboom develop an encompassing theoretical model that brings together important firm- and relation-specific characteristics such as trust, commitment, dependence, uncertainty, dedicated investments, and the exchange of information. The relationships between these main characteristics build the overall, underlying causal structure and determine the nature of long-term supply relationships. The model is based on an extended theory of transactions that includes trust next to opportunism and the development of competencies. The model is tested in the automobile industries of the United States, Japan and Europe. The empirical evidence indicates that there are strong similarities between the three regions in the underlying causal structure. There are differences but these differences seem small, particularly relative to the expectations one may have on the basis of perceived views of systemic differences between Japanese' and Western' contracting. Thus, if indeed there were large differences between the Triad's regions, there now appears to be considerable convergence towards a common underlying logic' of long-term supply relationships. The Causal Structure of Long-Term Supply Relationships is a primary source for scholars and students who want tolearn about industrial organizations in an international perspective. It reviews the main theories, defines many concepts, offers an overview of literature on alliances, and provides insights into the statistical techniques of LISREL. Little background knowledge is required, since concepts are developed as the book progresses.

The development of salient ideas and publications on dynamic capabilities is given, extended by ideas outside the literature of strategic management. Dynamic capability is presented as an interdisciplinary subject to which knowledge is central. Diversity of knowledge is treated in terms of cognitive distance, limited through organisational focus. To deal with diversity, development and uncertainty, evolutionary theory and the notion of entropy are used. The relation between individual and organisational knowledge is modelled with the notion of a script and linguistic ideas. The governance of collaborative relations for innovation is discussed, including trust, which are also dynamic capabilities.

This book explores a range of theories used to explain the phenomenon of innovation and learning in individual thought, organizations, industries, and economies. The author draws on insights and perspectives from management and organization studies, economics, and cognitive science, bringing these together in a unifying framework for an analysis of innovation systems and the management of learning.

This book explores a range of theories used to explain the phenomenon of innovation and learning in individual thought, organizations, industries, and economies. The author draws on insights and perspectives from management and organization studies, economics, and cognitive science, bringing these together in a unifying framework for an analysis of innovation systems and the management of learning.