This work investigates how the distribution and processing of information within a firm determine its optimal size, structure, and internal efficiency. Mark Casson, an economist specializing in international business and entrepreneurship, utilizes transaction cost economics and information theory to challenge traditional neoclassical models. He argues that the firm exists primarily as a mechanism to economize on the costs of acquiring and processing information, rather than merely as a production unit.

Economists and organizational theorists frequently cite this text as a foundational contribution to the information-based theory of the firm. Readers often note the high level of academic density and the rigorous analytical approach required to fully grasp the author's arguments.