The Nature of the Unfirm

Way back in 1930's Ronald Coase published a scholarly paper The Nature of Firm  and explained why business firms are formed although all the resources required for building business are always available in the market. Coase's analysis proceeds by considering the conditions under which it makes sense for an entrepreneur to seek hired help instead of contracting out for some particular task. It also points out the nature and scope of business firm change as new technologies emerge - for instance the advent of telephone helped business firm to expand over geo-spatial areas. Since then new technologies have created new businesses, built and  transformed them and often have undone them.  In 1964, Peter Drucker stated that the most important realities of business- resources, knowledge and  results are always outside of it. And it makes little sense to build a big firm to produce products- and smaller the firm better it is for serving the environment

The advent of the Web has created a new stream of floating fund of resources- both for constructing firms and building products and services. The traditional approach for hiring resources - either material or men is not needed at all. In fact now there is need for developing another approach for building business firm. In this new form of firms- there is not business activity inside the firm- either procurement or production or anything. Everything happens at the interface and nothing inside of the firm. To denote this new reality I use the term - Unfirm and may start developing on the new  The Nature of the Unfirm