The Nature of the Firm—75 Years Later

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Geoffrey Moore looks at Case’s influential 1937 article “The Nature of the Firm” and applies it to business leaders in 2014 looking to shape the future of their firms. Among many findings he sees profound changes in the structure of the firm itself, as in the digital economy most of the resources will be contractors working outside the firm. This will be deeply disruptive to the hierarchical management structures that provided middle-management, middle-class jobs for most of the twentieth century. As a result, more generally middle-class employment will shift from an economy dominated by its largest institutions to one where smaller, more agile firms will take up more of the burden; subsequently governments will struggle to deal with the impact caused by this new geometry.