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The Theory of the Firm and Alternative Theories of Firm Behaviour: A Critique

International Journal of Applied Institutional Governance (ISSN: 1747-6259) Volume 1 Issue 1

Kenny Crossan
PhD Candidate Anglia University and Senior Lecturer Napier University.

Introduction

The aim of this paper is to review the theoretical and quantitative literature which underpins the Theory of the Firm and alternative theories of firm behaviour.

In the first part of the study classical, managerial and behavioural theories of the firm are discussed and evaluated from a theoretical perspective.

The second part of the study comprises a review and a critique of the quantitative research undertaken in this area. Through the combination of the theoretical literature and the research literature, an attempt is made to evaluate the validity of each theory.

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