Comparative economic organization of support services: shared services versus government agencies
The internal structure of the firm does not play a significant role in neoclassical theory. In the theory’s core model, perfect competition, firms are the places in which production occurs. The firm is considered a mere production function that transforms inputs, such as raw materials and labor into output, such as goods and (back office) services. The production function is a technological relation. Institutional arrangements or internal organizational form bear no relevance to the output.
KeywordsTransaction Cost Government Agency Comparative Advantage Public Sector Employee Shared Service
Unable to display preview. Download preview PDF.