We propose a new theory of the firm based on the premise that ‘the firm’ characterizes a factor-integrative form of doing business that is often the most effective and efficient structure for doing well by doing bad. We define the terms and requirements involved for such a theory, and fulfill those requirements by explaining what it is ‘to do bad’, and why and when the firm form is especially fitted to that. We do so by building upon basic premises about ‘bad-ness’ and by leveraging the logic of market failures. From this base, we argue a new reason for the firm form to exist and yet be limited in its growth. This leads to six related propositions regarding the relationships between ‘bad’ firms, tolerant contexts and realized social harms. We discuss how to test the ideas, and what the implications are for research on the firm, strategy and entrepreneurship.

中文翻译：

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邪恶的等级制度：企业的另一种新理论

我们提出了一种新的企业理论，其前提是“企业”是经营活动的要素整合形式，通常是最有效，最有效的做坏事的结构。。我们定义了这种理论涉及的术语和要求，并通过解释“做错了什么”以及为什么和何时特别适合这种形式来满足这些要求。我们通过建立有关“不良”的基本前提并利用市场失灵的逻辑来做到这一点。从这个基础上，我们认为企业形式存在而又受其发展限制的新原因。这导致了关于“不良”公司，宽容环境和已实现的社会危害之间的关系的六个相关命题。我们讨论了如何验证这些想法，以及对公司，战略和企业家精神的研究有何意义。