The Problem of Production A new theory of the firm
The theory of the firm has been fertile ground for economists. Bylund proposes a new theory, rooted in Austrian economics, which examines the firm as a part of the market, and not as a free-standing entity. In this integrated view, a theory is offered which incorporates entrepreneurship, production, market process and economic development.
Introduction 1. What We Know and What We Don’t Know about the Firm 2. The Extent of the Market Process 3. The ‘Specialisation Deadlock’ 4. Entrepreneurship and Integration 5. Authority and Hierarchy 6. The Volatile Character of the Firm 7. Financing, Ownership and Boundaries of the Firm 8 The Firm as a Market Institution 9 The Nature of the Market Process 10 Policy Implications 11 What the Future Holds
"The author succeeds in spotlighting the economic function provided by the firm—in place of the traditional view of starting with the conception of a firm —by first looking at the market and its limitations to production. Consequentially, this theory development adds an interesting twist to the attempts to understand the existence of firms." - Erik Markin and Vishal Gupta, Organization Management Journal
"After reading The Problem of Production: A New Theory of the Firm, one no longer is inclined to ask the question about firm’s existence. A more proper question should be "Why do markets exist?" Bylund has made a compelling Austrian argument that makes the firm’s appearance even more fundamental than the market...So far, the most important Austrian contributions to the theory of the firm were made in significant articles in Klein and Foss (2012), where authors are building bridges by finding enlightening and eloquently Austrian themes in competing theories. Bylund’s book structure takes a more sweeping approach and builds his theory from scratch on Austrian foundations." - Mateusz Machaj, Quarterly Journal of Austrian Economics
"I thoroughly enjoyed the book. I find it a fresh, coherent and consistent perspective in the idea of the firm and entrepreneurship. The main strength of Bylund’s book is the integration of theories of entrepreneurship, innovation, the firm, and the market processes...Overall, I consider Bylund’s monograph enlightening and would recommend it to people interested in economic theory but also managerial and strategic thinking. I also believe that it can be used as introduction into the topic." - Henrique Schneider, The Review of Austrian Economics