1. The Information Society
Companies as drivers of change
Competition and strategy
ICT and Strategy
ICT
acceptance
Competitive advantage
Transaction costs, value chain
The New Capitalism

2. Drivers of change

12. Explaining companies Theory of the firm Transaction cost economics
Value chain

13. Theory of the firm (Ronald Coase, 1937)
Why do firms exist
Why not the market (companies of 1)
Why not planning (one big company)

14. Transaction costs economics (Williamson)
Bounded rationality
Opportunism
Asset specificity
(Information asymmetry)

15. Bounded rationality (Simon, 1957)
The capacity of the human mind for formulating and solving complex problems is very small compared with the size of the problems whose solution is required for objectively rational behavior in the real world – or even for a reasonable approximation to such objective rationality

16. The size of the company Vertical integration Horizontal integration
Economies of scale
Economies of scope
Fixed costs
Variable costs
Transaction costs

17. Market or hierarchy Government Division structure (General Motors)
Profit centres
Wikipedia, Linux
Information

19. Value chain (Porter 1985)

20. Value chain
Does ICT (the Internet) effect the size of the company?