System or Process? A Meta-theoretical Reflection on the Nature of the Firm

Abstract

The paper revisits the fundamental question of the nature of the firm by contrasting two philosophic worldviews suggested by process philosophy and the Luhmannian systems theory. Whereas the former worldview takes reality to be internally related, the latter ones underscores the tendency of social systems, such as firms, to disregard much of this interrelatedness. The productive tension between these worldviews suggests that the firm provides a context where systemic imperatives meet the rich concrete reality of human life. The role of the firm is to house those aspects of this reality that are too organic to be accommodated by the abstract “language of prices” corresponding, in institutional economics terms, to the reliance on market governance. The major examples of these aspects explored in the paper are dynamic capabilities and business ethics, both of which hold the potential to improve the firm’s sustainability, both economic and social. The proposed contrast between the process-philosophic and systems-theoretic worldviews thus illuminates not only the nature of the firm but also the managerial relevance of corporate sustainability instruments.

Legality of Agricultural Products Weight Cutting as a Cost of Risk in Trade

“…Meanwhile, according to Ronaghi, the application of business ethics and corporate governance makes a positive contribution to social sustainability or the company's ability to achieve business goals and long-term improvements. This is in line with Valentino's opinion (Valentinov, 2022). He said that empathy for social life provides a positive image for the company because it can provide a positive response to employees' personal lives, as well as a sense of full responsibility towards the company (Valentinov, 2022).…”

From play to pay: a multifunctional approach to the role of culture in post-merger integration

“…, 2017; Schoeneborn et al. , 2014; Seidl and Becker, 2006, Sundgren and Styhre, 2006; Valentinov, 2021; Valentinov and Pérez-Valls, 2021). In this paper, we draw in particular on contributions to organization theory founded on Luhmann's integration of theories of communication, functional differentiation and organizational decision-making (see Ahrne et al.…”

“…Theoretical framework: applying social systems theory to the process of PMI In recent years, Luhmann's (1994Luhmann's ( , 2012Luhmann's ( , 2013Luhmann's ( , 2018 theory of social systems has gained considerable attention in organization and management research (Cooren and Seidl, 2020;Czarniawska, 2017;Deroy and Clegg, 2015;Roth, 2021a, b;Schneider et al, 2017;Schoeneborn et al, 2014;Becker, 2006, Sundgren andStyhre, 2006;Valentinov, 2021;Valentinov and P erez-Valls, 2021). In this paper, we draw in particular on contributions to organization theory founded on Luhmann's integration of theories of communication, functional differentiation and organizational decision-making (see Ahrne et al, 2016;Apelt et al, MD 60,7 2017;Besio and Pronzini, 2014;Gregory, 2006;, 2020Martens, 2006;Schoeneborn et al, 2014;Thompson and Valentinov, 2017;Valentinov and Thompson, 2019;Valentinov et al, 2020;Will et al, 2018).…”

Capítulo 31. Diferencia generacional en la gestión de la mype des de un enfoque de análisis sistémico.

“…Entender a la micro y pequeña empresa desde una perspectiva sistémica, permite visualizar la organización como un ente abierto, que interactúa con su entorno, que influencia y se influencia por el mismo, es entonces la mype un sistema social (Valentinov, V., 2022).…”