Abstract
This chapter outlines the theoretical background for a conceptualization of organizational learning as relational governance. Relational economics theory forms the theoretical background for such a conceptualization. Accordingly, this chapter elaborates on the nature of organization in relational economics and its implications for organizational learning. Of particular importance to the conceptualization of organizational learning as relational governance is the concept of the organization as a nexus of resources and interests of stakeholders who bring different rationalities to organizational transactions, as well as the concept of the organization as an entity in its own right. Based on these conceptual elucidations, a definition for organizational learning in relational economics is derived: Organizational learning as a process for the relationalization of rationalities for enabling the completion of multicontextual transactions in the context of organizations intended as entities in their own right. This definition may apply to all types of organizations (not just firms), although different organizations may have different success criteria for assessing learning. Following systems theory, the concept of the guiding difference of organizations operating in different systems is applied to conceptualize the success criteria of different organizations.
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
Notes
- 1.
On his elaborations on the nature of the firm, Josef Wieland´s theory is placed into the theoretical framework of the theory of the firm. For an overview of some of the most relevant theoretical contributions to the theory of the firm, see Coase (1937), Machlup (1967), Richardson (1972), Alchian & Demsetz (1972), Jensen & Meckling (1976), Pensore (1997), Williamson (2005).
- 2.
Rendtorff (2021) interpreted this passage in Wieland´s theory as firms as entities that can be “rented” by stakeholders to conduct transactions.
- 3.
Davis used the metaphor of a bowl of oatmeal to highlight how blurred organizational boundaries are. In particular, he argues that, at least in some sectors, “to distinguish between separate organizations is like trying to separate out distinct lumps in a bowl of oatmeal” (Davis, 2006: 480).
- 4.
For the debate on the ontology of the organization, see Chap. 5.
- 5.
In his interpretation of the nature of the firm in Wieland´s relational economics, Rendtorff (2021) highlights the cosmopolitan dimension of the firm as a nexus of stakeholders´ resources. It is cosmopolitan because this is a view of the firm that takes into consideration rationalities of different stakeholders involved in the transactions, both regional and international, which reflects the complexity of the operating of firms in the global economy. The firm would be embedded in networks which may include stakeholders from different systems and for creating value these different rationalities are to be relationalized. Josef Wieland has, to the best of my knowledge, never used the term “cosmopolitan” while elaborating on the firm as a nexus of stakeholders.
References
Alchian, A. A., & Demsetzt, H. (1972). Production, information costs, and economic organization. The American Economic Review, 62(5), 777–795.
Biggiero, L., de Jongh, D., Priddat, B., Wieland, J., Zicari, A., & Fischer, D. (2022). The relational view of economics. Springer.
Coase, R. H. (1937). The nature of the firm. Economica, 4(16), 386–405.
Commons, J. R. (1934). Institutional economics: Its place in political economy. MacMillan.
Davis, R. J. (2006). Firms and environments. In: N.J. Smelser, R. Swedberg (Eds.), Handbook of economic sociology (pp. 478–502). Princeton University Press & Russell Sage Foundation.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behaviror, agency costs and ownership structure. Journal of Finance Economics, 3, 305–360.
Luhmann, N. (1987). Soziale Systeme: Grundriß einer Allgemeinen Theorie. Suhrkamp.
Machlup, F. (1967). Theories of the firm: Marginalist, behavioral, managerial. The American Economic Review, 57(1), 1–33.
Möhrer, M. (2022). Shared value statement: New perspectives on measuring business value creation. In L. Biggiero, D. de Jongh, B. Priddat, J. Wieland, A. Zicari, & D. Fischer (Eds.), The relational view of economics (pp. 111–132). Springer.
Penrose, E. (1997). The theory of the growth of the firm. In N. J. Foss (Ed.), Resources, firms, and strategies (pp. 29–38). Oxford University Press.
Rendtorff, J. D. (2021). Relational economics as polycontextual business ethics: Towards conceptualizing of new conditions of business legitimacy in cosmopolitan society. In: J. Baumann Montecinos, D. Fischer, & A.E.H. Heck (Eds.), Kooperation, governance, Wertschöpfung: Perspektiven auf eine Relationale Ökonomie (pp. 97–110). Metropolis.
Richardson, G. B. (1972). The organization of industry. The Economic Journal, 82(327), 883–896.
Scott, W. R., & Davis, G. F. (2016). Organizations and organizing. Routledge.
Wieland, J. (2014a). The firm as a nexus of stakeholders. In J. Wieland (Ed.), Governance ethics: Global value creation, economic organizations and normativity: Ethical economy 48 (pp. 105–120). Springer International.
Wieland, J. (2014b). The firm as a cooperative project of society. In J. Wieland (Ed.), Governance ethics: Global value creation, economic organizations and normativity: Ethical economy 48 (pp. 121–141), Springer International.
Wieland, J. (2020). Relational economics. Springer.
Wieland, J. (2022). Relational economics: Theoretical framework and managerial implications—A short introduction. In L. Biggiero, D. De Jongh, J. Wieland, A. Zicari, & D. Fischer (Eds.), The relational view of economics (pp. 17–41). Springer.
Williamson, O. E. (2005). The economics of governance. American Economic Review, 95(2), 1–18.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Geraldo Schwengber, J. (2024). The Nature of Organization and Its Implications for Organizational Learning. In: Organizational Learning as Relational Governance. Relational Economics and Organization Governance. Springer, Cham. https://doi.org/10.1007/978-3-031-52015-0_2
Download citation
DOI: https://doi.org/10.1007/978-3-031-52015-0_2
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-52014-3
Online ISBN: 978-3-031-52015-0
eBook Packages: Economics and FinanceEconomics and Finance (R0)