Searching for the General Theory of the Firm

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Searching for the General Theory of the Firm
Is it not possible to set up the general theory of the firm?
The reason why I raise this question is that there are so many methods, models and theories in dealing with business management, both theoretically and practically.
As we all know, a firm is a social institution to earn profit in a dynamical environment through value creation in which a firm should contribute positively to the society it belongs.
If we recognize the profit-seeking formula in addition to the things mentioned above in terms of the indicators of expected revenue and cost, then we are able to set up the general theory that will be applicable to any firm in any industry at anytime. .

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		Jaap de Jonge Editor, Netherlands
	2 General Theory of the Firm? I'm afraid firms are quite complex social phenomena, so it may never be possible to capture them in a single theory or model. Your definition of the (purpose) of the firm is far from universally agreed, there is considerable difference in what people people believe should be the purpose of firms. See shareholder value perspective, stakeholder value perspective, Porter's Shared Value and Mourkogianni's Moral Purpose for the most important views on this.

		In Ho Kim, Republic Of Korea
	0 About the Very Purpose of the Firm The very purpose of the firm must be to earn profit, taking into account so many aspects that will affect on profit-seeking. It does mean that the first thing we have to have is profit-seeking formula. And then we also need a value creation dynamic model to deal with a firm's behaviors to adapt to needs evolution/industry evolution with the standpoints of holism, synthesis, dynamism based on a stronger rationale. Because profit just depends on the output of what and how a firm would do during a given period of time based on a firm's core competence at a given starting point in time.

		Jaap de Jonge Editor, Netherlands
	1 Value Based Management IF we accept your idea that profit or better: "long term value creation" is or at least should be the first aim/purpose of any firm, then the value based management-philosophy comes to mind as a poten (...)

		In Ho Kim, Republic Of Korea
	0 Profit-seeker Rather Than Value Creator If we accept that profit can be earned through value creation, before taking into account value creation, how about setting up the equaton, expected profit=expected revenue-expected cost. What we hav (...)

		Jaap de Jonge Editor, Netherlands
	3 Profit versus Value In my view, - Profit is an accounting word, short-term and only includes financial value. - Value is a strategic word, long term and more inclusive for multiple types of value. If there is one thin (...)

		In Ho Kim, Republic Of Korea
	-1 Profit is More Important than Creating Value Value can be created/added by transforming something into somethng else more valuable through manufacturing/operations, and can be allocated to the stakeholders according to what each one has contribu (...)

		In Ho Kim, Republic Of Korea
	0 Understanding the Concepts of Value & Profit Precisely speaking, value covers revenue and consumer surplus and producer surplus, and for revenue -cost = profit, revenue = cost + profit. Therefore, Value = Cost + Profit + Consumer Surplus + Produ (...)

		Robert Gerth Project Manager, Sweden
	2 Understanding the Concepts of Value and Profit In Ho Kim, I think you have a point considering that organization can earn profit through value creation. But in practice an exclusive focus on profit seems to limit the perception of time (long term (...)

		In Ho Kim, Republic Of Korea
	0 Earning Profit Through Value Creation Mr. Robert I'd like you to think what the real purpose of the firm is? Basically, a firm can earn a profit by creating value, while it does do the business in a positive sum-industry, not zero-sum o (...)

		Richard Platt Business Consultant, United States
	1 Minimum Winning Game Theory: The General Theory of the Firm (for Aviation, Aerospace, Defense, High-Tech Electronics and Semiconductors) Searched for years on what the "General Theory of the Firm" would be for my old firm, Intel Corporation, as our former CEO Andy Grove was always looking for it. Eventually, it was Professor Robert Bur (...)