Searching for the General Theory of the Firm

Organization and Change

Organization and Change > Forum

New Topic

In Ho Kim
Professor, Korea (South)
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

  Jaap de Jonge
Editor, Netherlands

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
Professor, Korea (South)

About the Very Purpose of the Firm

The very purpose of the firm must be to earn profi (...)

  Jaap de Jonge
Editor, Netherlands

Value Based Management

IF we accept your idea that profit or bette (...)

  In Ho Kim
Professor, Korea (South)

Profit-seeker Rather Than Value Creator

If we accept that profit can be earned through val (...)

  Jaap de Jonge
Editor, Netherlands

Profit versus Value

In my view, - Profit is an accounting word, short (...)

  In Ho Kim
Professor, Korea (South)

Profit is More Important than Creating Value

Value can be created/added by transforming somethi (...)

  In Ho Kim
Professor, Korea (South)

Understanding the Concepts of Value & Profit

Precisely speaking, value covers revenue and consu (...)

  Robert Gerth
Project Manager, Sweden

Understanding the Concepts of Value and Profit

In Ho Kim, I think you have a point considering th (...)

  In Ho Kim
Professor, Korea (South)

Earning Profit Through Value Creation

Mr. Robert I'd like you to think what the real pu (...)


More on Organization and Change
Key Issues of Change Management (at the Executive Level)
What is the McKinsey Approach?
What is an Organization?
🔥Pondy's Model of Organizational Conflict
Searching for the General Theory of the Firm
Reframing Organizations (Bolman and Deal)
Best Practices
Checklist of Organizational Problem Areas
Levels of Organisation Diagnostic Models
Change: A Challenge and a Necessity
Loops and Mutual Causality in Organizational Change
Organizational model for International Operations
Change: the Only Constant for Leaders
Can Organizational Change Lead to Extinction?
Can Change be in the DNA of an Organization?
People Need Some Constancy (Besides Change)
Why do Organizations Change?
Relevance of Change Management Theories?
Change is a Natural Process
Total Management Framework
Governance Models for Community Sustainability
Change Management Perception
Change Management: Theory versus Practice
Agriculture - poor financial modelling
Are we Managing Change or the Perceptions about Change?
Evolution Theory in Organisations?
Organisational Ambidexterity
Management Theory: So Much To Discover
Books on Change Management Theories
The Role of Conflicts in an Organisation
Change Needs Dyadic Mapping
3 Factors for Successful Change
Change in a University
Change Management Factors in Technology Transformation
Change Management in the Realty Industry
Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this discussion

Copy this HTML code to your web site:

Organization and Change


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.7 - Last updated: 28-1-2021. All names of their owners.