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The nature of the firm reconsidered: information synthesis and entrepreneurial organisation.(International Business Theory: The Nature of the Firm and the Role of Management)
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Rival theories of the firm are integrated using the concepts of intermediation, synthesis, volatility and information cost. The firm is perceived as an institutionalized extension of the personality of an entrepreneur. The role of the entrepreneur is to monitor a volatile environment for shocks of two types: transitory and persistent. Shocks emanate from both supply and demand, and information on both needs to be synthesized in a special way in order to optimize the firm's response to them. Persistent shocks generate new opportunities for intermediation. Intermediation calls for routine ...
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