The Evolving Firm: Strategy and Structure in Industrial by Neil M. Kay

By Neil M. Kay

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Extra resources for The Evolving Firm: Strategy and Structure in Industrial Organization

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Ansoff identifies four types of synergy. 1, together with their possible sources. 75-6). The crucial aspect as far as each type of synergy is concerned is that it depends on the existence of some common factor between constituent elements (or product markets); for example whether it is a shared consumer (sales synergy), a shared raw material (operating synergy) or shared technology (investment synergy), there is an identifiable link in each case between the elements composing the firm. 1 as constituents and employ them in developing a more micro-analytic interpretation of the firm than is presently provided by neoclassical theory.

The possibility of such extensive synchronic relations between elements may have significant implications for analysis in economics just as it has had for investigations carried out in the other social sciences. If the social sciences were a democracy, structuralism would be a major party in the constituencies of each discipline - except Systems and Structure 25 economics. The disposition of the economics electorate has been such that in the event of any election, structuralist candidates would surely lose their deposits.

Levi-Strauss has applied structuralist analysis to anthropological problems with interesting results. In doing so he distinguishes between diachronic analysis, which is concerned with relations in time between elements in a system, and synchronic analysis, which is concerned with relations between elements at a specific point in time. 5 However they are richer than the economic terms in so far as they imply the existence of relation between elements; as we have seen this is not necessarily the case in the use of the corresponding economic terms.

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