Firms versus Plants: a Closer Examination of their Different Behaviour in the Face of Structural Change
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5.1.1 In principle, the division of labour may take place both inside the firm and among firms. In fact, this passage from one of these two different ways of organizing productive activity to the other is exactly the process that industrial countries have experienced in the course of the two different phases of post-war industrial development that we have dealt with in previous chapters. As we have argued in particular in chapter 2, this passage is precisely what economic theory should be able to explain: that is, why in different external contexts firms opt for different organizational structures.
KeywordsFirm Size Large Firm Business Unit Previous Chapter Employment Share
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