Abstract
The firm boundary unites two opposing functions: separation and permeability. It simultaneously isolates the firm from and connects it with the environment. Focusing on resource flows across the firm boundary, this paper proposes two mechanisms, which aim to explain how resource transport across the firm boundary works and how it alters the internal resource configuration of the firm. The mechanisms of ‘focused’ and ‘bundled’ resource transport are developed by conceptualizing the firm boundary as semi-permeable membrane. Insights from the cell biology help to characterize the key attributes of the mechanisms, and to emphasize the resource protection function of the firm boundary.
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