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The Programmable Firm: From Coordination to Coherent Evolution

Year: 2026

Type: preprint

Abstract: As coordination costs decline, specialization deepens and the speed of change accelerates. This shifts the economic role of the firm from coordinating activities to maintaining coherence amid continuously evolving specialization. Building on transaction cost economics, dynamic capabilities theory, and modularity research, this article proposes the programmable firm as a cumulative extension of the theory of the firm. It argues that as coordination becomes less constraining, coherence becomes the primary economic challenge. Structural optionality enables firms to evolve without repeated structural redesign, increasing the adaptive potential of both organizations and committed capital. AI is an amplifier of this transition.

Source: Zenodo (CERN European Organization for Nuclear Research)

DOI: 10.5281/zenodo.20713383

Author: Podymov, Petr

Institutions: Lomonosov Moscow State University, Moscow Polytechnic University

Language: English

Topic: Innovation and Knowledge Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W7164901878

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