KNOWLEDGE-BASED APPROACHES TO THE THEORY OF THE FIRM - SOME CRITICAL COMMENTS

It is argued that Kogut and Zander (1992) and Conner (1991) erred in t he specific way in which they claimed that a distinct theory of the mu lti-person firm can be constructed on the basis of a theory of organiz ational knowledge or from resource-based insights. It is not possible to tell very much of a story about why there should be firms in lieu o f notions such as ''opportunism'' or ''moral hazard.'' However, proper ly interpreted, knowledge-based theories may help shed light on issues relating to the boundaries and internal organization of the firm.