The General Concept of a Neo-Institutional Causal Sphere in Company Management
The General Concept of a Neo-Institutional Causal Sphere in Company Management

Summary/Abstract: Background. The general concept of a neo‑institutional causal sphere was developed in response to the question about what company management, understood as practice, is from the perspective of dynamic changes taking place in a broadly defined coherent causal sphere. A critical analysis of the literature on new institutional economics, psychology, and sociology, observation of the socio‑economic reality, and the author’s long experience in managing companies became the prime movers behind the formulation of the concept presented in this paper. Research aims. As a result of the search for answers to the key question, two hypotheses emerged. The first one concerns understanding a company as a collection of activities in the form of socio‑economic phenomena, whereas the other is related to human activity within a company, which shapes the neo‑institutional manufacturing system. It is a process of the direct achievement of the organization’s objectives using appropriate tools. However, the most important subject here is the contracting man. In this context, the author of the article proposes a thesis according to which company management practice, as defined by the neo‑institutional perspective, should be oriented towards broad‑aspect determinism of a coherent causal sphere. Methodology. In order to support his thesis, the author first presents issues concerning a company from the neo‑institutional perspective, providing a background for the concept of a coherent causal sphere. The second part of the paper discusses a coherent causal sphere identified with the dynamic environment of a company. And finally, the author defines functions of company management in the context of a coherent causal sphere, which have a chance of forming a new direction in modern company management. Key findings. The main conclusions include three elements. The first concerns the concept of the company in a neo‑institutional approach. The second conclusion speaks of the existence of a coherent causal sphere, which is a reflection of the holistic environment of enterprises, in a neo‑institutional approach. The most important conclusion comes down to the statement. The practice of managing a company in the neo‑institutional sense should be oriented towards the broad‑aspect determinism of the coherent causal sphere.

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