Posts

Showing posts from July, 2007

DeConstructing the Corporation with Web 2.0

Why do companies exist ? Since companies consist of individuals who have the skills for which the market is willing to pay .. why is it that companies do not disintegrate ( or rather deconstruct ? ) into its constituent components ? Ronald Coase was the first to ask this question in 1937 in his essay on “The Nature of the Firm” and his answer was simple : The cost of doing a certain transaction – that adds value – is less inside company than it is outside. What he meant was that doing business by assembling all the right people and support services inside an establishment was more efficient than trying to find and coordinate the same things in the world at large. This answer was good enough for him to win the Nobel Prize because people saw for themselves how individual craftsmen in the cottage industry could not compete in cost and lost out to the mega corporation. But unfortunately, or perhaps fortunately for many of us, this was not the last word on the subject. Jacques Derrida coine...