Methodological Foundations of Institutional-Evolutionary Theory of the Firm

The article briefly outlines the outcomes of devising key tenets of the institutional-evolutionary theory of the firm based on the author's long-term research efforts. To ensure the possibility of accumulating new knowledge about the subject-object area under consideration, it is first necessary to establish a scientific methodology for its study. Defining an institutions as rules accompanied by an enforcement mechanism raises questions regarding their effectiveness and efficiency, which can serve as methodological categories for creating tools of microeconomic analysis. Drawing on accumulated practices, trends, patterns of firms' development, and achievements in organizational development theories, management, and institutional theory of the firm, definitions are proposed for components of the research methodology of institutions at the micro-level, namely: the substantive-object domain, interpretation of norms, rules, routines, institutions taking into account approaches from institutional and evolutionary theory, as well as institutional effectiveness-efficiency for supra-firm, inter-firm, and intra-firm levels. Theoretical problems in interpreting microlevel institutions have been identified, and a concept of institutional-evolutionary methodology for studying the firm has been developed. Based on the substantive-object domain as a complex of declared institutions and implemented routines that form the structure of socio-economic relations between economic agents, it is suggested to decompose institutions, develop methods of measurement, and evaluate the effectiveness-efficiency consequences of their implementation.