ABSTRACT
Our principal objective in this chapter is to critically examine an organizational theory of the firm in received economic theory and then to develop such a theory in light of the process model of Islamic political economy. This organizational process is termed the Shuratic Process. It will be substantively explained in terms of global interactions, meaning strong and pervasive interactions across systems, and on which organizational theory will be shown to be premised (Smith 1992). Finally, from the above two vantage points of this chapter, we will develop limited number of applications (because of limitation of space) of the Shuratic Process toward formulating the firm's objective criterion, its problem of resource allocation, pricing and equilibrium. We will then also discuss the nature of market interactions amidst which the firm is situated using the Shuratic Process as an interactive knowledge-forming process.
