Governing knowledge and the scope of the firm

Purpose – The paper aims to investigate how failure of markets for commercially useful knowledge can lead to the broadening of the scope of a firm. Design/methodology/approach – Design: case study methodology: selective literature review as relating to the findings of the case study approach: theoretical as built on the case study and literature review. Findings – Failure in the market between firms for new commercial knowledge led the case study firm to broaden the scope of its operations. Creation of special corporate culture to govern team performance was crucial for this process. Originality/value – Originality lies in: the case study, theoretically linking failure in the markets for knowledge to broadening of the scope of the firm. Identifying the firm's corporate culture as a team motivational and cost control device making broadening of scope of the firm cost efficient.