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- W29724852 abstract "Post Keynesian theory poses the prospect of an investment function independent of the savings level. We can extend this to consider an individual firm able, in some degree, to operate in isolation from general market or macroeconomic constraints. The precondition for such autonomy seems to be the combination of large size with a significant degree of diversification. But if increases in size and diversity further the cause of corporate autonomy, they also may be shown to increase the probability that a firm will outstrip the rationalizing capabilities of modem management science. Should it do so, any increases in size and diversity will be accompanied by successively more serious administrative diseconomies of scale. These, viewed as instances of X-inefficiency, erode the firm's rate of return and impose a penalty on the general economic system. Moreover, because the autonomous firm is shielded against the market pressures normally thought to accompany inefficiency, this penalty may continue to be exacted until a structural change is introduced into our basic economic configuration." @default.
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- W29724852 date "1980-07-01" @default.
- W29724852 modified "2023-10-18" @default.
- W29724852 title "Corporate Autonomy and X-Inefficiency" @default.
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- W29724852 doi "https://doi.org/10.1080/01603477.1980.11489184" @default.
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