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The network as knowledge: generative rules and the emergence of structure
Author(s) -
Kogut Bruce
Publication year - 2000
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/(sici)1097-0266(200003)21:3<405::aid-smj103>3.0.co;2-5
Subject(s) - economic rent , generative grammar , opposition (politics) , industrial organization , microeconomics , value (mathematics) , business , network structure , imputation (statistics) , value network , economics , computer science , marketing , artificial intelligence , business model , law , machine learning , politics , political science , missing data
Abstract The imputation problem is how to account for the sources of the value of the firm. I propose that part of the value of the firm derives from its participation in a network that emerges from the operation of generative rules that instruct the decision to cooperate. Whereas the value of firm‐level capabilities is coincidental with the firm as the unit of accrual, ownership claims to the value of coordination in a network pit firms potentially in opposition with one another. We analyze the work on network structure to suggest two types of mechanisms by which rents are distributed. This approach is applied to an analysis of the Toyota Production System to show how a network emerged, the rents were divided to support network capabilities, and capabilities were transferred to the United States. Copyright © 2000 John Wiley & Sons, Ltd.