Boundaries of the firm

This theme investigates the role of a firm's internal capabilities—specifically technological and transactional—in shaping the scope and limits of organizational boundaries. It challenges traditional views that focus narrowly on transaction cost economics by integrating capability-driven perspectives to explain why and how firms expand or contract their boundaries. Understanding these dynamics is key for firms to strategically manage make-or-buy decisions and to optimize their innovation and competitive performance across different technological intensities.

This theme explores the theoretical foundations underlying the definition and interpretation of firm boundaries. It traces the evolution from classical transaction cost theories and property rights views centered on holdup problems and asset specificity, towards more nuanced understandings incorporating behavioral, managerial, and institutional perspectives. It also examines emerging organizational forms and governance structures that challenge traditional dichotomies of market versus hierarchy, highlighting the ongoing redefinition of firm boundaries in contemporary organizational theory.

This theme focuses on the rise of new organizational forms such as the Möbius firm and digital servitization ecosystems that challenge conventional notions of firm boundaries. It covers how digital technologies enable boundary spanners and resource co-optation that transcend traditional market or hierarchical governance. These complex multi-actor ecosystems and platform-mediated organizational designs necessitate reconsideration of how firms define their scope, manage collaborations, and govern shared resources in a digital age.