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In Ho Kim
Professor, Korea (South)
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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. . (...) Read more? Sign up for free
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Jaap de Jonge
Editor, Netherlands
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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.
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In Ho Kim
Professor, Korea (South)
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About the Very Purpose of the Firm
The very purpose of the firm must be to earn profi (...)
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Jaap de Jonge
Editor, Netherlands
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Value Based Management
IF we accept your idea that profit or bette (...)
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In Ho Kim
Professor, Korea (South)
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Profit-seeker Rather Than Value Creator
If we accept that profit can be earned through val (...)
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Jaap de Jonge
Editor, Netherlands
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Profit versus Value
In my view,
- Profit is an accounting word, short (...)
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In Ho Kim
Professor, Korea (South)
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Profit is More Important than Creating Value
Value can be created/added by transforming somethi (...)
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In Ho Kim
Professor, Korea (South)
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Understanding the Concepts of Value & Profit
Precisely speaking, value covers revenue and consu (...)
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Robert Gerth
Project Manager, Sweden
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Understanding the Concepts of Value and Profit
In Ho Kim, I think you have a point considering th (...)
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In Ho Kim
Professor, Korea (South)
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Earning Profit Through Value Creation
Mr. Robert
I'd like you to think what the real pu (...)
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