ABSTRACT
Do firms have boundaries? In one sense, the answer is: not really. Nations, states, and backyards have boundaries, the skin is more or less the boundary of the body, but no one ever sees or touches or steps across the boundaries of a firm. The phrase "the boundaries of the firm" does appear in many articles and books, but only in a loose, figurative way. It simply conveys the commonsense notion that government bodies, competitors, and markets are somehow "outside" a firm, while managers, employees, equipment, and inventory are more or less "inside" it.
