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 the specific way in which they claimed that a distinct theory of the multi-person firm can be constructed on the basis of a theory of organizational 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 of notions such as ''opportunism'' or ''moral hazard.'' However, properly interpreted, knowledge-based theories may help shed light on issues relating to the boundaries and internal organization of the firm.