2017
DOI: 10.1007/s41463-016-0017-z
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Grounding a Theory of Firms in the Natural Sciences

Abstract: This paper grounds the theory of any type of firm in the science of control and communication described as cybernetics. It is also grounded in the physiological and neurological limitations of humans to receive, store, process and act upon data to coordinate their activities. To overcome limitations in the market failure theory of the firm identified by leading scholars, Transaction Byte Analysis (TBA) is introduced. TBA is based on economising bytes rather than costs and is applicable to all types of organisa… Show more

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Cited by 7 publications
(5 citation statements)
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“…However, these considerations diverge from the conflict resolution hypothesis (Jo & Harjoto, 2012), which is rooted in stakeholder theory (Freeman, 1984). In particular, consistent with a humanistic governance paradigm (Turnbull, 2017a), CER is component of corporate responsibility, and CG is thus a vehicle for encouraging management to increasingly incorporate practices that address environmental issues (Jain & Jamali, 2016; Jamali et al, 2008; Tan et al, 2017). On that point, Turnbull (2017b) argues that the wellbeing of firms depends on the good governance of stakeholder relationships, including reliable self‐regulation and the integration of CER into organizational governance.…”
Section: Theoretical Background and Hypothesesmentioning
confidence: 99%
“…However, these considerations diverge from the conflict resolution hypothesis (Jo & Harjoto, 2012), which is rooted in stakeholder theory (Freeman, 1984). In particular, consistent with a humanistic governance paradigm (Turnbull, 2017a), CER is component of corporate responsibility, and CG is thus a vehicle for encouraging management to increasingly incorporate practices that address environmental issues (Jain & Jamali, 2016; Jamali et al, 2008; Tan et al, 2017). On that point, Turnbull (2017b) argues that the wellbeing of firms depends on the good governance of stakeholder relationships, including reliable self‐regulation and the integration of CER into organizational governance.…”
Section: Theoretical Background and Hypothesesmentioning
confidence: 99%
“…Through their human and technology resources, organizations gather unstructured data from their environment; structure these data by making them readable and comprehensible; turn them into information by adding meaning and perspective; and, over time, produce knowledge by making information useful and valuable (Sproull & Kiesler, 1991; Turnbull, 2017). The process involves coordinating communications among the organization’s human agents (e.g.…”
Section: A Simple Distinction Between Decentralization and Distributionmentioning
confidence: 99%
“…I show that organizations can be distributed without being decentralized (and vice versa) and that the presence of managers directly affects only distribution, not decentralization. I then argue that design choices (Puranam, Raveendran, & Knudsen, 2012) around decentralization and distribution imply leveraging different core technologies (Woodward, 1965) that shape the process whereby platforms structure data, turn it into information, and eventually into knowledge (Turnbull, 2017). That process, in turn, determines the sources of communication and decision-making that are trusted within the organization, as well as how platform growth unfolds and what regulations can suitably oversee such growth for the benefit of society.…”
mentioning
confidence: 99%
“…), a lo que se denomina Stakeholders Panels. Este mecanismo permite regular el funcionamiento, la toma de decisiones de la compañía y el flujo de información desde todas las partes de la organización, además de facilitar que los individuos utilicen su capacidad de procesamiento, lo que evita la saturación de los mismos [62].…”
Section: Redes De Libre Escala Y De Mundo Pequeñounclassified