Abstract
Definitions of the “New Economy” frequently refer to particular industries — such as the bio-technology, computer, and ICT industries — in which technological innovations spark off the foundation of new firms. However, there also exists an organizational economics perspective concerning the structural similarities of such New Economy firms. This view emphasizes two common features. First, within these industries production appears to be characterized by positive externalities between specialized tasks. Second, employees are exposed to incentive schemes which induce ownership-like income claims. Thus, in corporate firms employees are typically motivated by offering stock or stock option plans.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Audretsch DB, Thurik AR (2001) What’s New About the New Economy? Sources of Growth in the Managed and the Entrepreneurial Economies. Industrial and Corporate Change 10: 267–315
Bhidé AV (2000) The Origin and Evolution of New Businesses. Oxford University Press, New York
Fabel 0 (2002) Spin-Offs of Entrepreneurial Finns: The O-Ring Approach. Discussion Paper Series I - 314, rev. version (first version entitled: The Emergence of a New Economy: An O-Ring Approach), Department of Economics, University of Konstanz
Holderness CG, Krosner RS, Sheehan DP (1999) Were the Good Old Days That Good? Changes in the Managerial Stock Ownership Since the Great Depression. Journal of Finance 54: 435–470
Kremer M (1993) The O-Ring Theory of Economic Development. Quarterly Journal of Economics 108: 551–575
Prat A (2002) Should a Team Be Homogeneous? European Economic Review 46: 1187–1207
Rajan RG, Zingales L (2000) The Governance of the New Enterprise. In: Vives X (ed.) Corporate Governance: Theoretical and Empirical Perspective. Cambridge University Press, Cambridge, pp 201–227
Rajan RG, Zingales L (2001a) The Influence of the Financial Revolution on the Nature of Finns. American Economic Review 91: 206–211
Rajan RG, Zingales L (2001b) The Finn as a Dedicated Hierarchy: A Theory of the Origin and Growth of Finns. Quarterly Journal of Economics 116: 805–851
Weinberg CR (2001) Reward Strategies for Dot.Corp Organizations: Lessons from the Front. Compensation and Benefit Review 33: 6–14
Zingheim PK, Schuster JR (2000) Total Rewards for New and Old Economy Companies. Compensation and Benefit Review 32: 20–33
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2004 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Fabel, O. (2004). Firm Foundations and Human Capital Investments: The O-Ring Approach to Organizational Equilibrium in an Emerging Industry. In: Fandel, G., Backes-Gellner, U., Schlüter, M., Staufenbiel, J.E. (eds) Modern Concepts of the Theory of the Firm. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-08799-2_20
Download citation
DOI: https://doi.org/10.1007/978-3-662-08799-2_20
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-07349-6
Online ISBN: 978-3-662-08799-2
eBook Packages: Springer Book Archive