"The important innovation of the modern firm was to internalize activities by bringing many discrete entities under one roof and under one system of coordination. The multi-unit business corporation replaced the small, single-unit enterprise because administrative coordination enabled greater productivity through lower (transaction) costs per task than was possible before.Trechos retirados de "One Theory to Rule them All"
Managers essentially carried out the functions formerly handled by price and market mechanisms.
The practices and procedures that were invented at the dawn of industrialism have become a standard operating system and are still taught in business schools. The existence of this managerial system is not questioned. It is the defining characteristic of the business enterprise.
aiming to become a platform requires a vision that extends beyond one’s firm and aims to build and sustain an ecosystem that benefits from more partners joining the network.
The big shift is from market transactions to network interactions. The world of business looks very different when we change the way we look at things from transaction cost economics to network effect economics."