University of Hertfordshire Research Archive

        JavaScript is disabled for your browser. Some features of this site may not work without it.

        Browse

        All of UHRABy Issue DateAuthorsTitlesThis CollectionBy Issue DateAuthorsTitles

        Arkivum Files

        My Downloads
        View Item 
        • UHRA Home
        • University of Hertfordshire
        • Research publications
        • View Item
        • UHRA Home
        • University of Hertfordshire
        • Research publications
        • View Item

        The Legal Nature of the Firm and the Myth of the Firm-Market Hybrid

        View/Open
        102900.pdf (PDF, 174Kb)
        Author
        Hodgson, G.
        Attention
        2299/409
        Abstract
        Many past economists drew a sharp conceptual distinction between the firm and the market. For example, Smith and Marshall recognised the legal nature and structure of the firm, and saw it as having important economic consequences. However, since the 1970s, many economists and sociologists have argued that the boundaries of the firm are indistinct. Ideas emerged of ‘internal markets’ within firms, of the ‘quasifirm’, of ‘hybrid firms’ and of firms as ‘quasi-markets’. This article re-examines the formal, legal conception of the firm. It is argued that there is no good reason to abandon this conception, even in the light of relational contracting, networking, subcontracting and other developments. To avoid confusion, additional terms should be used such as ‘supplier network’ or ‘conglomerate’ to describe these phenomena, rather than abandoning a legally-based definition of the firm. With this clarified definition, ‘internal markets’ and ‘hybrid firms’ disappear from view.
        Publication date
        2002-02
        Published in
        International Journal of the Economics of Business
        Published version
        https://doi.org/10.1080/13571510110102967
        Other links
        http://hdl.handle.net/2299/409
        Metadata
        Show full item record
        Keep in touch

        © 2019 University of Hertfordshire

        I want to...

        • Apply for a course
        • Download a Prospectus
        • Find a job at the University
        • Make a complaint
        • Contact the Press Office

        Go to...

        • Accommodation booking
        • Your student record
        • Bayfordbury
        • KASPAR
        • UH Arts

        The small print

        • Terms of use
        • Privacy and cookies
        • Criminal Finances Act 2017
        • Modern Slavery Act 2015
        • Sitemap

        Find/Contact us

        • T: +44 (0)1707 284000
        • E: ask@herts.ac.uk
        • Where to find us
        • Parking
        • hr
        • qaa
        • stonewall
        • AMBA
        • ECU Race Charter
        • disability confident
        • AthenaSwan