Economic Foundations of Strategy

Books

Joseph T. Mahoney

  • Citations
  • Add to My List
  • Text Size

  • Chapters
  • Front Matter
  • Back Matter
  • Subject Index
  • Foundations for Organizational Science: A SAGE Publications Series

    Series Editor

    David Whetten, Brigham Young University

    Editors

    Anne S. Huff, University of Colorado and Cranfield University (UK)

    Benjamin Schneider, University of Maryland

    M. Susan Taylor, University of Maryland

    The FOUNDATIONS FOR ORGANIZATIONAL SCIENCE series supports the development of students, faculty, and prospective organizational science professionals through the publication of texts authored by leading organizational scientists. Each volume provides a highly personal, hands-on introduction to a core topic or theory and challenges the reader to explore promising avenues for future theory development and empirical application.

    Books in This Series

    PUBLISHING IN THE ORGANIZATIONAL SCIENCES, 2nd Edition

    Edited by L. L. Cummings and Peter J. Frost

    SENSEMAKING IN ORGANIZATIONS

    Karl E. Weick

    INSTITUTIONS AND ORGANIZATIONS

    W. Richard Scott

    RHYTHMS OF ACADEMIC LIFE

    Peter J. Frost and M. Susan Taylor

    RESEARCHERS HOOKED ON TEACHING:

    Noted Scholars Discuss the Synergies of Teaching and Research

    Rae André and Peter J. Frost

    THE PSYCHOLOGY OF DECISION MAKING: People in Organizations

    Lee Roy Beach

    ORGANIZATIONAL JUSTICE AND HUMAN RESOURCE MANAGEMENT

    Robert Folger and Russell Cropanzano

    RECRUITING EMPLOYEES: Individual and Organizational Perspectives

    Alison E. Barber

    ATTITUDES IN AND AROUND ORGANIZATIONS

    Arthur P. Brief

    IDENTITY IN ORGANIZATIONS: Building Theory Through Conversations

    Edited by David Whetten and Paul Godfrey

    PERSONNEL SELECTION: A Theoretical Approach

    Neal Schmitt and David Chan

    BUILDING STRATEGY FROM THE MIDDLE: Reconceptualizing Strategy Process

    Steven W. Floyd and Bill Wooldridge

    MISSING ORGANIZATIONAL LINKAGES: Tools for Cross-Level Research

    Paul S. Goodman

    THE CONTINGENCY THEORY OF ORGANIZATIONS

    Lex Donaldson

    ORGANIZATIONAL STRESS: A Review and Critique of Theory, Research, and Applications

    Cary L. Cooper, Philip J. Dewe, and Michael P. O'Driscoll

    INSTITUTIONS AND ORGANIZATIONS, Second Edition

    W. Richard Scott

    ORGANIZATIONAL CULTURE: Mapping the Terrain

    Joanne Martin

    PERSONALITY IN WORK ORGANIZATIONS

    Lawrence R. James and Michelle D. Mazerolle

    CAREERS IN AND OUT OF ORGANIZATIONS

    Douglas T. Hall

    ORGANIZATION CHANGE: Theory and Practice

    W. Warner Burke

    COMPENSATION: Theory, Evidence, and Strategic Implication

    Barry Gerhart and Sara L. Rynes

    SERVICE QUALITY: Research Perspectives

    Benjamin Schenieder and Susan S. White

    ECONOMIC FOUNDATIONS OF STRATEGY

    Joseph T Mahoney

    Copyright

    View Copyright Page

    Editor's Introduction

    One sign of increasing maturity in the strategy field is an increasing attention to cumulative, rather than individual, theory development. Our research journals are requesting clearer theoretical foundations and demanding more significant theoretical contributions. We are systematizing and taking more seriously our sources in economics, sociology, psychology, and other fields. As a result, we are clarifying the nature of the academic discipline. We are better prepared to contribute to practice. And I believe we are in a position to begin giving something back to the base disciplines from which we draw.

    The Foundations of Strategy series contributes to this important development by reviewing the foundations of the strategy field in economics, the behavioral sciences, and psychology. One objective is to specify the most important sources in each tradition for the use of students and for those who are more distant from the field but who have an interest in our subject matter. But a more pressing purpose is to provide the tools for active involvement in theory development. It is our hope, and belief, that the sophistication and standards of the best work from the past will inspire and support the best work for the future.

    In this volume, Joe Mahoney identifies five theories of particular importance to the strategy field and outlines the contributions of particularly influential works in each area. As Oliver Williamson notes in his foreword, these authors provide alternative theories of the firm. To some extent they are complementary accounts, but they also propose alternatives with somewhat different purposes in mind. This book can be used to understand the key issues for strategy raised by theorists taking an economics perspective and, ideally, to further advance answers to five important questions:

    • How can organizations operate efficiently (the basic question of Chapter 1, “Behavioral Theory of the Firm”)?
    • How can firms minimize costs (the basic question of Chapter 2, “Transaction Costs Theory”)?
    • How can firms create and allocate wealth (the basic question of Chapter 3, “Property Rights Theory”)?
    • How can firms align individual self-interest (“the basic question of Chapter 4, “Agency Theory”)?
    • How can resources be acquired, developed, and deployed to improve the likelihood of survival and profitable growth (the basic question of Chapter 5, “Resource-Based Theory, Dynamic Capabilities, and Real Options”)?

    These are big questions, still only partially answered, and the theory of the firm is of contemporary interest as an organized way to answer them. The questions asked also articulate some of the most basic concerns of managers. As Joe notes in his concluding chapter, the works cited here provide important building blocks for new theoretical developments in the field. Thus, our Foundations title applies.

    Anne S.Huff

    Foreword

    An economics of organization has been taking shape over the past 30 years, the origins of which go back at least to the 1930s. As the name suggests, and as described by Joseph Mahoney, much of the economics of organization is interdisciplinary—drawing, as it does, on contributions from economics, organization theory (broadly conceived to include sociology, political science, and social psychology), cognitive psychology, and aspects of the law, especially property and contract law.

    In large measure, the economics of organization arose in response to perceived limitations in the neoclassical theory of the firm, which described a firm as a production function that transformed inputs into outputs according to the laws of technology. Useful as this construction was (and is) for the study of prices and output (and, more generally, of resource allocation), this theory was less useful for understanding the modern corporation and for the making of public policy. The seeds of discontent were planted by Adolph Berle and Gardiner Means (1932), in relation to the separation of ownership from control; by Ronald Coase (1937), with reference to the puzzle of vertical integration and the theory of the firm; by Chester Barnard (1938), who featured adaptation of a cooperative kind accomplished through hierarchy (as opposed to adaptation through the market in response to changes in relative prices); by the marginalist controversy of the 1940s; and by Armen Alchian's (1950) appeal to evolutionary arguments to explain observed economic regularities.

    The short of it is that too much was being asked of the neoclassical theory of the firm. As Harold Demsetz (1988) put it, it is a “mistake to confuse the firm of [orthodox] economic theory with its real world namesake. The chief mission of neoclassical economics is to understand how the price system coordinates the use of resources, not the inner workings of real firms” (1988, p. 189). Efforts to use the neoclassical theory of the firm in an all-purpose way nevertheless persisted. Strange and convoluted interpretations of nonstandard and unfamiliar contracting practices and organizational structures often resulted, and interpretations were sometimes responsible for public policy error.

    A new theory of the firm was evidently needed. But as Mahoney makes clear, what we have is not a new theory (singular) but new theories (plural). The five new theories of the firm (more generally, of economic organization, in that the firm is not a stand-alone entity but is to be examined in relation to the market and other modes of organizing economic activity) described by Mahoney are the behavioral theory of the firm, transaction costs theory, property rights theory, agency theory, and resource-based/dynamic capabilities. In many respects these are complementary in that they illuminate different issues. But sometimes they collide by providing rival explanations for the same phenomena. Ways have nevertheless been found to join parts of these, and more of this is in prospect. As matters stand presently, the study of economic organization is at a preunified state of development.

    Readers of this book will want to ask themselves, as they work their way through successive chapters, what are the strengths and weaknesses of each proposed perspective? What phenomena does each illuminate? What predictions? What is the implied empirical research agenda? Does the theory scale up from the simple (often two-actor) model to complex (many actor) economic organization? What public policy ramifications accrue?

    The new theories of the economics of organization that have taken shape over the past 30 years have vastly expanded the research agenda in both economic theory and organization theory as well as in the applied fields to which Mahoney makes reference: strategic management, agricultural economics, industrial organization, international business, and marketing. Indeed, applications to business and economic history, economic development, transition economics, positive political theory, and the law have also been made and are in progress. The economics of organization is an idea whose time has come. Lucky are the students of economic organization who seize upon the opportunity to run with this proliferation of good ideas.

    Oliver E.Williamson, January 2003

    Acknowledgments

    I have many people to thank on my journey to writing this book. I begin with my mother, who advised me to “be kind.” My father advised me that “no matter what happens to you in life, no one can take your education from you.” My younger sister, Rose, taught me courage, and my younger brother, Jim, whom in many ways I looked up to during our childhood days, taught me caring and thoughtful reflection.

    In terms of education, I first thank all of my grade school and high school teachers who showed dedication to their chosen profession. Studying undergraduate economics in the Faculty of Arts and Sciences at the University of Pennsylvania provided a wonderful foundation that has influenced my thinking, and I especially thank Professors Jacques Cremer, Robert Inman, Irving Kravis, Laurence Seidman, and Sidney Weintraub. In particular, Sidney Weintraub's passion for ideas has had a lasting influence on my life.

    In graduate school, in the study of business economics at the Wharton School of Business of the University of Pennsylvania, I thank Professors Robert Pollak and Harbir Singh for teaching me microeconomic theory and corporate strategy, respectively. I thank Professors Claudia Goldin, Bruce Kogut, and Gordon Walker for serving on my doctoral committee. My dissertation advisor, Professor Almarin Phillips, provided encouragement and guidance. Professor Ned Bowman not only served on my dissertation committee but also was a source of inspiration for me both personally and professionally. Support from the Reginald Jones Center, under Ned's guidance, is gratefully acknowledged. I thank Professor Richard Marston, who gave me wise counsel to work for Ned Bowman at Wharton.

    At the University of Illinois at Urbana-Champaign I thank my numerous colleagues over the past 15 years. I especially thank Irene Duhaime, Anne Huff, and Ravi Madhavan for their friendship and support. I also thank the excellent doctoral students I have worked with over the years, such as Bill Bogner, Jongwook Kim, Yasemin Kor, Sung Min Kim, Chamu Sundaramurthy, and Danchi Tan, among others.

    Finally, I owe so much to my wife, Jeanne Marie Connell, who has been there in good times and in bad. She has been a guiding force and a source of constant love and compassion. To her I dedicate this book. Thank you, Jeanne.

    Overview

    While writing this research book on the economic foundations of strategy, I kept two issues in mind. Suppose readers (at various levels of previous training) wanted to learn about organizational economics, especially from the perspective of strategic management: What significant themes best capture the directional tendencies of organizational economics today? How did current positions evolve? Suppose readers wanted to develop their own capacity to theorize and carry out research within the tradition of the economics of organization: What unresolved issues in this field are especially relevant to modern strategy research? What concepts are key building blocks? Where is additional empirical evidence needed?

    Organizational economics has been informed by many great minds in social science research, including Nobel Prize recipients in economics, such as Kenneth Arrow, Ronald Coase, Douglass North, and Herbert Simon, and potential future recipients, such as Oliver Hart (for property rights theory) and Oliver Williamson (for transaction costs theory). In addition, research contributions by business school professors such as Alfred Chandler, James March, and Sidney Winter provide a wealth of insights based on business experiences. It is an important field taking a central place in the study of strategy, though of course it has also been useful for policy and other purposes, such as agricultural economics, international business studies, management information systems, marketing, organization theory, and so on.

    In this book, organizational economics includes the following five interrelated theories: (1) a behavioral theory of the firm, (2) transaction costs theory, (3) property rights theory, (4) agency theory, and (5) (evolutionary) resource-based theory. In each area I have summarized my view of the critical observations of a few authors who have shaped the theory. Their work is presented in the present tense—even though a number of contributors unfortunately are no longer alive—because the work itself is very much alive. These books are worthy of careful attention. Not only are these books widely cited, but they also exemplify the way theories are constructed by individual authors and the way the conversation among authors develops over time to create complex and compelling answers to important questions.

    In the conclusion, I discuss complementarities among the theories outlined in this book, while recognizing their distinctive features. Most important, I outline some key questions for the ongoing economic study of organization that draws on these resources. I have written this book because the seminal works cited here are the foundations for so much current research. Key contributions of each author, in my view, are emphasized in italics. It may surprise some readers to find how current these observations sound, and some links to other research literatures are discussed here. But that discussion is limited to accommodate the wide variety of directions these foundational works can support. I hope that many different readers will be as inspired as I am by this classic literature. By understanding and emulating the best of our predecessors we can make more significant contributions today.

    Joseph T.Mahoney, November 2003
  • References

    Adner, R., & Helfat, C. E. (2003). Corporate effects and dynamic managerial capabilities. Strategic Management Journal, 24, 1011–1025. http://dx.doi.org/10.1002/smj.331
    Afuah, A. (2001). Dynamic boundaries of the firm: Are firms better off being vertically integrated in the face of a technological change?Academy of Management Journal, 44(6), 1211–1228. http://dx.doi.org/10.2307/3069397
    Afuah, A. (2002). Mapping technological capabilities into product markets and competitive advantage: The case of cholesterol drugs. Strategic Management Journal, 23, 171–179. http://dx.doi.org/10.1002/smj.221
    Ahuja, G., & Katila, R. (2001). Technological acquisitions and the innovation performance by acquiring firms: A longitudinal study. Strategic Management Journal, 22, 197–220. http://dx.doi.org/10.1002/%28ISSN%291097-0266
    Akerlof, G. A. (1970). The market for “lemons”: Qualitative uncertainty and the market mechanism. Quarterly Journal of Economics, 84, 488–500. http://dx.doi.org/10.2307/1879431
    Alchian, A. A. (1950). Uncertainty, evolution, and economic theory. Journal of Political Economy, 58, 211–222. http://dx.doi.org/10.1086/256940
    Alchian, A. A. (1965). Some economics of property rights. Il Politco, 30, 816–829.
    Alchian, A. A., & Demsetz, H. (1972). Production, information costs, and economic organization. American Economic Review, 62, 777–795.
    Alchian, A. A., & Demsetz, H. (1973). The property right paradigm. Journal of Economic History, 33, 16–27. http://dx.doi.org/10.1017/S0022050700076403
    Allison, G. T. (1971). Essence of decision. Boston: Little, Brown.
    Amit, R., & Schoemaker, P. J. H. (1993). Strategic assets and organizational rent. Strategic Management Journal, 14, 33–46. http://dx.doi.org/10.1002/smj.4250140105
    Anand, J., & Delios, A. (2002). Absolute and relative resources as determinants of international acquisitions. Strategic Management Journal, 23, 119–134. http://dx.doi.org/10.1002/smj.215
    Anand, J., & Singh, H. (1997). Asset redeployment, acquisitions and corporate strategy in declining industries. Strategic Management Journal, 18, 99–118. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199707%2918:1+%3C99::AID-SMJ928%3E3.3.CO;2-2
    Andersen, B. (2001). Technological change and the evolution of corporate innovation: The structure of patenting 1890–1990. Northampton, MA: Edward Elgar.
    Anderson, E. (1985). The salesperson as outside agent or employee: A transaction cost analysis. Marketing Science, 4(3), 234–254. http://dx.doi.org/10.1287/mksc.4.3.234
    Anderson, E., & Schmittlein, D. (1984). Integration of the sales force: An empirical examination. Rand Journal of Economics, 15, 385–395. http://dx.doi.org/10.2307/2555446
    Andrews, K. R. (1980). The concept of corporate strategy. Homewood, IL: Irwin.
    Ansoff, H. I. (1965). Corporate strategy: An analytical approach to business policy for growth and expansionNew York: McGraw-Hill.
    Argote, L. (1999). Organizational learning: Creating, retaining and transferring knowledge. Boston: Kluwer.
    Argyres, N. S. (1996). Evidence on the role of firm capabilities in vertical integration decisions. Strategic Management Journal, 17, 129–150. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199602%2917:2%3C129::AID-SMJ798%3E3.0.CO;2-H
    Argyres, N. S., & Liebeskind, J. P. (1999). Contractual commitments, bargaining power, and governance inseparability: Incorporating history into transaction cost theory. Academy of Management Review, 24(1), 49–63.
    Argyris, C., & Schon, D. (1978). Organizational learning: A theory of action perspective. Reading, MA: Addison-Wesley.
    Armour, H. O., & Teece, D. J. (1978). Organizational structure and economic performance: A test of the multidi visional hypothesis. Bell Journal of Economics, 9, 106–122. http://dx.doi.org/10.2307/3003615
    Arora, A., Fosfuri, A., & Gambardella, A. (2001). Markets for technology: The economics of innovation and corporate strategyCambridge, MA: MIT Press.
    Arrow, K. J. (1971). Essays in the theory of risk-bearing. New York: North-Holland.
    Arrow, K. J. (1974). The limits of organization. New York: W. W. Norton.
    Arrow, K. J. (1985). The economics of agency. In J. W.Pratt & R. J.Zeckhauser (Eds.), Principals and agents: The structure of business (pp. 37–51). Cambridge, MA: Harvard Business School Press.
    Arthur, W. B. (1994). Increasing returns and path dependence in the economy. Ann Arbor: University of Michigan Press.
    Bain, J. S. (1968). Industrial organization. New York: John Wiley & Sons.
    Balakrishnan, S., & Wernerfelt, B. (1986). Technical change, competition and vertical integration. Strategic Management Journal, 7, 347–359. http://dx.doi.org/10.1002/smj.4250070405
    Baldwin, C. Y., & Clark, K. B. (2000). Design rules: The power of modularity. Cambridge, MA: MIT Press.
    Barnard, C. I. (1938). The functions of the executive. Cambridge, MA: Harvard University Press.
    Barnard, C. I. (1948). Organization and management: Selected papers. Cambridge, MA: Harvard University Press.
    Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. http://dx.doi.org/10.1177/014920639101700108
    Barney, J. B., & Ouchi, W.G. (Eds.). (1986). Organizational economics: A new paradigm for understanding and studying organizations. San Francisco: Jossey-Bass.
    Baron, J. N., & Kreps, D. M. (1999). Strategic human resources: Frameworks for general managers. New York: John Wiley & Sons.
    Barzel, Y. (1982). Measurement cost and the organization of markets. Journal of Law and Economics, 25, 27–48. http://dx.doi.org/10.1086/467005
    Barzel, Y. (1989). An economic analysis of property rights. Cambridge, UK: Cambridge University Press.
    Baumol, W. J., Panzar, J. C, & Willig, R. D. (1982). Contestable markets and the theory of industrial structure. New York: Harcourt Brace Jovanovich.
    Becker, G. S. (1964). Human capital: A theoretical and empirical analysis, with special reference to education. New York: Columbia University Press.
    Bensaou, B. M., & Anderson, E. (1999). Buyer-supplier relations in industrial markets: When do buyers risk making idiosyncratic investments. Organization Science, 10(4), 460–481. http://dx.doi.org/10.1287/orsc.10.4.460
    Berle, A. A., & Means, G. C. (1932). The modern corporation and private property. New York: Macmillan.
    Blair, R. D., & Kaserman, D. L. (1983). Law and economics of vertical integration and control. New York: Academic Press.
    Blaug, M. (1980). The methodology of economics. Cambridge, UK: Cambridge University Press.
    Bogner, W. C., Mahoney, J. T., & Thomas, H. (1998). Paradigm shift: The parallel origin, evolution, and function of strategic group analysis with the resource-based theory of the firm. Advances in Strategic Management, 15, 63–102.
    Boulding, K. E. (1950). A reconstruction of economics. New York: John Wiley & Sons.
    Bowman, E. H., & Helfat, C. E. (2001). Does corporate strategy matter? Strategic Management Journal, 22, 1–23. http://dx.doi.org/10.1002/1097-0266%28200101%2922:1%3C1::AID-SMJ143%3E3.0.CO;2-T
    Bowman, E. H., & Hurry, D. (1993). Strategy through the options lens: An integrated view of resource investments and the incremental-choice process. Academy of Management Review, 18(4), 760–782.
    Bowman, E. H., & Kogut, B. M. (Eds.). (1995). Redesigning the firm. New York: Oxford University Press.
    Brush, T. H., & Artz, K. W. (1999). Toward a contingent resource-based theory: The impact of information asymmetry on the value of capabilities in veterinary medicine. Strategic Management Journal, 20, 223–250. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199903%2920:3%3C223::AID-SMJ14%3E3.0.CO;2-M
    Brynjolfsson, E. (1994). Information assets, technology, and organization. Management Science, 40(12), 1645–1662. http://dx.doi.org/10.1287/mnsc.40.12.1645
    Caldwell, B. (1984). Appraisal and criticism in economics. Boston: Allen and Unwin.
    Camerer, C. (1985). Redirecting research in business policy and strategy. Strategic Management Journal, 6, 1–15. http://dx.doi.org/10.1002/smj.4250060102
    Carney, M., & Gedajlovic, E. (1991). Vertical integration in franchise systems: Agency theory and resource explanations. Strategic Management Journal, 12, 607–629. http://dx.doi.org/10.1002/smj.4250120804
    Castanias, R. P., & Helfat, C. E. (1991). Managerial resources and rents. Journal of Management, 17, 155–171. http://dx.doi.org/10.1177/014920639101700110
    Caves, R. E., & Bradburd, R. M. (1988). The empirical determinants of vertical integration. Journal of Economic Behavior and Organization, 9, 265–279. http://dx.doi.org/10.1016/0167-2681%2888%2990037-6
    Caves, R. E., & Murphy, W. F. (1976). Franchising, firms, markets, and intangible assets. Southern Economic Journal, 42, 572–586. http://dx.doi.org/10.2307/1056250
    Chandler, A. D. (1962). Strategy and structure. Cambridge, MA: MIT Press.
    Chandler, A. D. (1977). The visible hand: The managerial revolution in American business. Cambridge, MA: Harvard University Press.
    Chandler, A. D. (1990). Scale and scope: The dynamics of capitalism. Cambridge, MA: Harvard University Press.
    Chandler, A. D. (1992). Organizational capabilities and the economic history of the industrial enterprise. Journal of Economic Perspectives, 6(3), 79–100. http://dx.doi.org/10.1257/jep.6.3.79
    Chatterjee, S., & Wernerfelt, B. (1991). The link between resources and type of diversification: Theory and evidence. Strategic Management Journal, 12, 33–48. http://dx.doi.org/10.1002/smj.4250120104
    Cheung, S. S. (1969). The theory of share tenancy. Chicago: Chicago University Press.
    Cheung, S. S. (1973). The fable of the bees: An economic investigation. Journal of Law and Economics, 16, 11–34. http://dx.doi.org/10.1086/466753
    Chi, T. (1994). Trading in strategic resources: Necessary conditions, transaction cost problems, and choice of exchange structure. Strategic Management Journal, 15, 271–290. http://dx.doi.org/10.1002/smj.4250150403
    Chi, T. (2000). Option to acquire or divest a joint venture. Strategic Management Journal, 21, 665–687. http://dx.doi.org/10.1002/%28SICI%291097-0266%28200006%2921:6%3C665::AID-SMJ109%3E3.0.CO;2-0
    Clark, K. B., & Fujimoto, T (1991). Product development performance: Strategy, organization, and management in the world auto industry. Cambridge, MA: Harvard Business School Press.
    Coase, R. H. (1937). The nature of the firm. Economica, 4, 386–405. http://dx.doi.org/10.1111/j.1468-0335.1937.tb00002.x
    Coase, R. H. (1960). The problem of social cost. Journal of Law and Economics, 3, 1–44. http://dx.doi.org/10.1086/466560
    Coase, R. H. (1988). The firm, the market and the law. Chicago: University of Chicago Press.
    Coff, R. W. (2002). Human capital, shared expertise, and the likelihood of impasse in corporate acquisitions. Journal of Management, 28(1), 107–128. http://dx.doi.org/10.1177/014920630202800107
    Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35, 128–152. http://dx.doi.org/10.2307/2393553
    Coles, J. W., & Hesterly, W. S. (1998). The impact of firm-specific assets and the interaction of uncertainty: An examination of make or buy decisions on public and private hospitals. Journal of Economic Behavior and Organization, 36(3), 383–409. http://dx.doi.org/10.1016/S0167-2681%2898%2900102-4
    Collis, D. J. (1994). How valuable are organizational capabilities?Strategic Management Journal, 15, 143–152. http://dx.doi.org/10.1002/smj.4250150910
    Commons, J. R. (1924). Legal foundations of capitalism. New York: Macmillan.
    Commons, J. R. (1934). Institutional economics: Its place in political economy. New York: Macmillan.
    Conner, K. R. (1991). A historical comparison of resource-based theory and five schools of thought within industrial organization economics: Do we have a new theory of the firm?Journal of Management, 17(1), 121–154. http://dx.doi.org/10.1177/014920639101700109
    Crocker, K. J., & Masten, S. E. (1988). Mitigating contractual hazards: Unilateral options and contract length. Rand Journal of Economics, 19, 327–343. http://dx.doi.org/10.2307/2555660
    Crocker, K. J., & Reynolds, K. J. (1993). The efficiency of incomplete contracts: An empirical analysis of air force engine procurement. Rand Journal of Economics, 24(1), 126–146. http://dx.doi.org/10.2307/2555956
    Cyert, R. M., & March, J. G. (1963). A behavioral theory of the firm. Englewood Cliffs, NJ: Prentice Hall.
    Davis, L. E., & North, D. C. (1971). Institutional change and American economic growth. Cambridge, UK: Cambridge University Press. http://dx.doi.org/10.1017/CBO9780511561078
    Demsetz, H. (1967). Toward a theory of property rights. American Economic Review, 57, 347–359.
    Demsetz, H. (1973). Industry structure, market rivalry, and public policy. Journal of Law and Economics, 16, 1–9. http://dx.doi.org/10.1086/466752
    Demsetz, H. (1988). Ownership, control, and the firm. Oxford, UK: Basil Blackwell.
    Demsetz, H. (1995). The economics of the business firm. New York: Cambridge University Press. http://dx.doi.org/10.1017/CBO9780511582356
    Dierickx, I., & Cool, K. (1989). Asset stock accumulation and sustainability of competitive advantage. Management Science, 35(12), 1504–1511. http://dx.doi.org/10.1287/mnsc.35.12.1504
    Dixit, A., & Nalebuff, B. J. (1991). Thinking strategically. New York: W. W. Norton.
    Dixit, A., & Pindyck, R. S. (1994). Investment under uncertainty. Princeton, NJ: Princeton University Press.
    Dosi, G., Nelson, R. R., & Winter, S. G. (Eds.). (2000). The nature and dynamics of organizational capabilities. New York: Oxford University Press.
    Duhaime, I. M., & Schwenk, C. R. (1985). Conjectures on cognitive simplification in acquisition and divestment decision making. Academy of Management Review, 10, 287–295.
    Dyer, J. H. (1996). Specialized supplier networks as a source of competitive advantage: Evidence from the auto industry. Strategic Management Journal, 17, 271–291. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199604%2917:4%3C271::AID-SMJ807%3E3.0.CO;2-Y
    Dyer, J. H. (1997). Effective interfirm collaboration: How firms minimize transaction costs and maximize transaction value. Strategic Management Journal, 18(7), 535–556. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199708%2918:7%3C535::AID-SMJ885%3E3.0.CO;2-Z
    Earl, P. E. (2001). The legacy of Herbert Simon in economic analysis. Cheltenham, UK: Edward Elgar.
    Eggertsson, T. (1990). Economic behavior and institutions. Cambridge, UK: Cambridge University Press. http://dx.doi.org/10.1017/CBO9780511609404
    Eisenhardt, K. M. (1985). Control: Organizational and economic approaches. Management Science, 31(2), 134–149. http://dx.doi.org/10.1287/mnsc.31.2.134
    Eisenhardt, K. M. (1988). Agency- and institutional-theory explanations: The case of retail sales compensation. Academy of Management Journal, 31, 488–511. http://dx.doi.org/10.2307/256457
    Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), 57–74.
    Evered, R., & Louis, M. R. (1981). Alternative perspectives in the organizational sciences: “Inquiry from the inside” and “inquiry from the outside.”Academy of Management Review, 6, 385–395.
    Fama, E. F. (1980). Agency problems and the theory of the firm. Journal of Political Economy, 88(2), 288–307. http://dx.doi.org/10.1086/260866
    Fama, E. F., & Jensen, M. C. (1983a). Separation of ownership and control. Journal of Law and Economics, 26, 301–325. http://dx.doi.org/10.1086/467037
    Fama, E. F., & Jensen, M. C. (1983b). Agency problems and residual claims. Journal of Law and Economics, 26, 327–349. http://dx.doi.org/10.1086/467038
    Farjoun, M. (1994). Beyond industry boundaries: Human expertise, diversification and resourcerelated industry groups. Organization Science, 5(2), 185–199. http://dx.doi.org/10.1287/orsc.5.2.185
    Farjoun, M. (1998). The independent and joint effects of the skill and physical bases of relatedness in diversification. Strategic Management Journal, 19, 611–630. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199807%2919:7%3C611::AID-SMJ962%3E3.0.CO;2-E
    Fiol, C. M., & Lyles, M. A. (1985). Organizational learning. Academy of Management Review, 10, 803–813.
    Folta, T. B. (1998). Governance and uncertainty: The trade-off between administrative control and commitment. Strategic Management Journal, 19, 1007–1028. http://dx.doi.org/10.1002/%28SICI%291097-0266%281998110%2919:11%3C1007::AID-SMJ999%3E3.0.CO;2-8
    Folta, T. B., & Miller, K. D. (2002). Real options in equity partnerships. Strategic Management Journal, 23, 77–88. http://dx.doi.org/10.1002/smj.209
    Foss, N. J. (1996). Knowledge-based approaches to the theory of the firm: Some critical comments. Organization Science, 7(5), 470–476. http://dx.doi.org/10.1287/orsc.7.5.470
    Foss, N. J. (Ed.). (1997). Resources, firms and strategies: A reader in the resource-based perspective. New York: Oxford University Press.
    Friedman, M. (1953). Essays in positive economics. Chicago: University of Chicago Press.
    Fromm, E. (1941). Escape from freedom. New York: Rinehart.
    Furubotn, E., & Pejovich, S. (1972). Property rights and economic theory: A survey of recentliterature. Journal of Economic Literature, 10, 1137–1162.
    Garud, R., & Kumaraswamy A. (1995). Technological and organizational designs for realizing economies of substitution. Strategic Management Journal, 16, 93–109. http://dx.doi.org/10.1002/smj.4250160919
    Garud, R., Kumaraswamy, A., & Langlois, R. N. (Eds.). (2003). Managing in the Modular age: Architectures, networks and organizations. New York: Basil Blackwell.
    Ghemawat, P. (1991). Commitment: The dynamic of strategy. New York: Free Press.
    Ghemawat, P. (1997). Games businesses play: Cases and models. Cambridge, MA: MIT Press.
    Gimeno, J., Folta, T. B., Cooper, A. C, & Woo, C. Y. (1997). Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms. Administrative Science Quarterly, 42, 750–783. http://dx.doi.org/10.2307/2393656
    Godfrey, P. C., & Hill, C. W. (1995). The problem of unobservables in strategic management research. Strategic Management Journal, 16, 519–533. http://dx.doi.org/10.1002/smj.4250160703
    Goldberg, V. P., & Erickson, J. R. (1987). Quantity and price adjustment in long-term contracts: A case study of petroleum coke. Journal of Law and Economics, 30, 369–398. http://dx.doi.org/10.1086/467141
    Gort, M. (1962). Diversification and integration in American industry. Princeton, NJ: Princeton University Press.
    Granovetter, M. (1985). Economic action and social structure: The problem of embeddedness. American Journal of Sociology, 3, 481–510. http://dx.doi.org/10.1086/228311
    Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17, 109–122. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199602%2917:2%3C109::AID-SMJ796%3E3.0.CO;2-P
    Grossman, S. J., & Hart, O. D. (1986). The costs and benefits of ownership: A theory of vertical and lateral integration. Journal of Political Economy, 94, 691–719. http://dx.doi.org/10.1086/261404
    Harrigan, K. R. (1984). Formulating vertical integration strategies. Academy of Management Review, 9(4), 638–652.
    Hart, O. (1989). An economist's perspective on the theory of the firm. Columbia Law Review, 89(7), 1757–1774. http://dx.doi.org/10.2307/1122818
    Hart, O. (1995). Firms, contracts, and financial structure. Oxford, UK: Clarendon Press. http://dx.doi.org/10.1093/0198288816.001.0001
    Hart, O., & Moore, J. (1990). Property rights and the nature of the firm. Journal of Political Economy, 98, 1119–1158. http://dx.doi.org/10.1086/261729
    Hayek, F. A. (1945). The uses of knowledge in society. American Economic Review, 35, 519–530.
    Hayek, F. A. (1948). Individualism and economic order. Chicago: Henry.
    Hayek, F. A. (1978). New studies in philosophy, politics, economics and the history of ideas. London, UK: Routledge & Kegan Paul.
    Heene, A., & Sanchez, R. (Eds.). (1997). Competence-based strategic management. New York: John Wiley & Sons.
    Heide, J. B., & Miner, M. S. (1992). The shadow of the future: Effects of anticipated interaction and frequency of contract on buyer-supplier cooperation. Academy of Management Journal, 35(2), 265–291. http://dx.doi.org/10.2307/256374
    Helfat, C. E. (1997). Know-how and asset complementarity and dynamic capability accumulation: The case of R&D. Strategic Management Journal, 18(5), 339–360. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199705%2918:5%3C339::AID-SMJ883%3E3.0.CO;2-7
    Helfat, C. E., & Peteraf, M. A. (2003). The dynamic resource-based view: Capability lifecycles. Strategic Management Journal, 24, 997–1010. http://dx.doi.org/10.1002/smj.332
    Henderson, R. M., & Clark, K. (1990). Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms. Administrative Science Quarterly, 35, 9–30. http://dx.doi.org/10.2307/2393549
    Henderson, R. M., & Cockburn, I. (1994). Measuring competence? Exploring firm effects in pharmaceutical research. Strategic Management Journal, 15, 63–84. http://dx.doi.org/10.1002/smj.4250150906
    Hennart, J.-F. (1982). A theory of the multinational enterprise. Ann Arbor: University of Michigan Press.
    Hennart, J.-F. (1988a). A transaction costs theory of equity joint ventures. Strategic Management Journal, 9, 361–374. http://dx.doi.org/10.1002/smj.4250090406
    Hennart, J.-F. (1988b). Upstream vertical integration in the aluminum and tin industries: A comparative study of the choice between market and intrafirm coordination. Journal of Economic Behavior and Organization, 9, 281–299. http://dx.doi.org/10.1016/0167-2681%2888%2990038-8
    Hennart, J.-F. (1993). Explaining the swollen middle: Why most transactions are a mix of “market” and “hierarchy.”Organization Science, 4(4), 529–547. http://dx.doi.org/10.1287/orsc.4.4.529
    Hirschman, A. A. (1970). Exit, voice, and loyalty: Responses to decline in firms, organizations, and states. Cambridge, MA: Harvard University Press.
    Holmstrom, B. (1979). Moral hazard and observability. Bell Journal of Economics, 10, 74–91. http://dx.doi.org/10.2307/3003320
    Holmstrom, B., & Roberts, J. (1998). The boundaries of the firm revisited. Journal of Economic Perspectives, 12(4), 73–94. http://dx.doi.org/10.1257/jep.12.4.73
    Hoopes, D. G., Madsen, T. L., & Walker, G. (2003). Why is there a resource-based view? Toward a theory of competitive heterogeneity. Strategic Management Journal, 24, 889–902. http://dx.doi.org/10.1002/smj.356
    Huff, A. S. (1981). Multilectic methods of inquiry. Human Systems Management, 2, 83–94.
    Huff, A. S. (2000). Changes in organizational knowledge production. Academy of Management Review, 25(2), 288–293.
    Itami, H., & Roehl, T. L. (1987). Mobilizing invisible assets. Cambridge, MA: Harvard University Press.
    Jaffe, J., & Mahoney, J. M. (1999). The performance of investment newsletters. Journal of Financial Economics, 53(2), 289–307. http://dx.doi.org/10.1016/S0304-405X%2899%2900023-9
    Jensen, M. (1983). Organization theory and methodology. Accounting Review, 50, 319–339.
    Jensen, M., & Meckling, W (1976). Theory of the firm: Managerial behavior, agency costs, and capital structure. Journal of Financial Economics, 3, 305–360. http://dx.doi.org/10.1016/0304-405X%2876%2990026-X
    John, G., & Weitz, B. A. (1988). Forward integration into distribution: An empirical test of transaction cost analysis. Journal of Law, Economics and Organization, 4(2), 337–355.
    Joskow, P. L. (1985). Vertical integration and long-term contracts: The case of coal-burning electric generating plants. Journal of Law, Economics, and Organization, 1(1), 33–80.
    Joskow, P. L. (1987). Contract duration and relationship-specific investments: Empirical evidence from coal markets. American Economic Review, 77(1), 1–25.
    Kahneman, D., Slovic, P., & Tversky, A. (1982). Judgment under uncertainty: Heuristics and biases. Cambridge, UK: Cambridge University Press.
    Kaplan, A. (1964). The conduct of inquiry: Methodology for behavioral science. San Francisco: Chandler Publishing.
    Kim, J., & Mahoney, J. T. (2002). Resource-based and property rights perspectives on value creation: The case of oil field unitization. Managerial and Decision Economics, 23(4), 225–245. http://dx.doi.org/10.1002/mde.1063
    Klein, B., Crawford, R. A., & Alchian, A. A. (1978). Vertical integration, appropriable rents, and the competitive contracting process. Journal of Law and Economics, 21, 297–326. http://dx.doi.org/10.1086/466922
    Klein, B., & Leffler, K. B. (1981). The role of market forces in assuring contractual performance. Journal of Political Economy, 89(4), 615–641. http://dx.doi.org/10.1086/260996
    Knight, F. H. (1921). Risk, uncertainty and profit. Boston: Houghton Mifflin.
    Knott, A. M. (2003a). The organizational routines factor market paradox. Strategic Management Journal, 24: 929–943. http://dx.doi.org/10.1002/smj.315
    Knott, A. M. (2003b). Persistent heterogeneity and sustainable innovation. Strategic Management Journal, (24), 687–705. http://dx.doi.org/10.1002/smj.326
    Kogut, B. (1991). Joint ventures and the option to expand and acquire. Management Science, 37(1), 19–33. http://dx.doi.org/10.1287/mnsc.37.1.19
    Koja, B., & Prescott, J. E. (2002). Strategic alliances as social capital: A multidimensional view. Strategic Management Journal, 23, 795–816. http://dx.doi.org/10.1002/smj.252
    Kor, Y. Y., & Mahoney, J. T. (2000). Penrose's resource-based approach: The process and product of research activity. Journal of Management Studies, 37(1), 109–139.
    Kor, Y. Y., & Mahoney, J. T. (2004). Edith Penrose's (1959) contributions to the resource-based view of strategic management. Journal of Management Studies, 41(1), 183–191. http://dx.doi.org/10.1111/j.1467-6486.2004.00427.x
    Kosnik, R. D. (1987). Greenmail: A study of board performance in corporate governance. Administrative Science Quarterly, 32, 163–185. http://dx.doi.org/10.2307/2393124
    Kuhn, T. S. (1970). The structure of scientific revolutions. Chicago: University of Chicago Press.
    Ladd, G. W. (1987). Imagination in research. Ames: Iowa State Press.
    Lafontaine, F., & Shaw, K. L. (1999). The dynamics of franchise contracting: Evidence from panel data. Journal of Political Economy, 107(5), 1041–1080. http://dx.doi.org/10.1086/250090
    Lajili, K., Barry, P. J., Sonka, S. T., & Mahoney, J. T. (1997). Farmer's preferences for crop contracts. Journal of Agricultural and Resource Economics, 22(2), 264–280.
    Langlois, R. N. (1986). Economics as a process: Essays in the new institutional economics. Cambridge, UK: Cambridge University Press.
    Langlois, R. N. (2002). Modularity in technology and organization. Journal of Economic Organization, 49(1), 19–37. http://dx.doi.org/10.1016/S0167-2681%2802%2900056-2
    Langlois, R. N., & Robertson, P. L. (1995). Firms, markets and economic change. London: Routledge. http://dx.doi.org/10.4324/9780203199237
    Langlois, R. N., Yu, T. F., & Robertson, P. L. (Eds.). (2002). Alternative theories of the firm. Northampton, MA: Edward Elgar.
    Leiblein, M. J., & Miller, D. J. (2003). An empirical examination of transaction- and firm-level influences on the vertical boundaries of the firm. Strategic Management Journal, 24, 839–859. http://dx.doi.org/10.1002/smj.340
    Leiblein, M. J., Reuer, J. J., & Dalsace, F. (2002). Do make or buy decisions matter? The influence of organizational governance on technological performance. Strategic Management Journal, 23, 817–833. http://dx.doi.org/10.1002/smj.259
    Leonard-Barton, D. (1992). Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management Journal, 13, 111–125. http://dx.doi.org/10.1002/smj.4250131009
    Leonard-Barton, D. (1995). Wellsprings of knowledge: Building and sustaining the sources of innovation. Cambridge, MA: Harvard Business School Press.
    Levinthal, D. (1988). A survey of agency models of organizations. Journal of Economic Behavior and Organization, 9, 153–185. http://dx.doi.org/10.1016/0167-2681%2888%2990071-6
    Levy, D. T. (1985). The transactions cost approach to vertical integration: An empirical examination. Review of Economics and Statistics, 67, 438–445. http://dx.doi.org/10.2307/1925972
    Libecap, G. D. (1989). Contracting for property rights. Cambridge, UK: Cambridge University Press.
    Libecap, G. D., & Wiggins, S. N. (1985). The influence of private contractual failure on regulation: The case of oil field unitization. Journal of Political Economy, 93, 690–714. http://dx.doi.org/10.1086/261326
    Lieberman, M. B. (1987). The learning curve, diffusion, and competitive strategy. Strategic Management Journal, 8, 441–452. http://dx.doi.org/10.1002/smj.4250080504
    Lieberman, M. B. (1991). Determinants of vertical integration: An empirical test. Journal of Industrial Economics, 39(5), 451–466. http://dx.doi.org/10.2307/2098455
    Lieberman, M. B., & Montgomery, D. B. (1988). First-mover advantages. Strategic Management Journal, 9, 41–58. http://dx.doi.org/10.1002/smj.4250090706
    Lieberman, M. B., & Montgomery, D. B. (1998). First-mover (dis)advantages: Retrospective and link with the resource-based view. Strategic Management Journal, 19, 1111–1125. http://dx.doi.org/10.1002/%28SICI%291097-0266%281998120%2919:12%3C1111::AID-SMJ21%3E3.0.CO;2-W
    Liebeskind, J. P. (1996). Knowledge, strategy, and the theory of the firm. Strategic Management Journal, 17, 93–107.
    Lippman, S. A., & Rumelt, R. P. (1982). Uncertain imitability: An analysis of interfirm differences in efficiency under competition. Bell Journal of Economics, 13, 418–438. http://dx.doi.org/10.2307/3003464
    Lippman, S. A., & Rumelt, R. P. (2003). The payments perspective: Micro-foundations of resource analysis. Strategic Management Journal, 24, 903–927. http://dx.doi.org/10.1002/smj.346
    Lyons, B. R. (1994). Contracts and specific investment: An empirical test of transaction costs theory. Journal of Economics and Management Strategy, 3(2), 257–278. http://dx.doi.org/10.1111/j.1430-9134.1994.00257.x
    Machlup, F. (1967). Essays in economic semantics. New York: W. W. Norton.
    MacKinlay, A. C. (1997). Event studies in economics and finance. Journal of Economic Literature, 35, 13–39.
    Macneil, I. R. (1980). The new social contract: An inquiry into modern contractual relations. New Haven, CT: Yale University Press.
    Madhok, A. (2002). Reassessing the fundamentals and beyond: Ronald Coase, the transaction cost and resource-based theories of the firm and the institutional structure of production. Strategic Management Journal, 23, 535–550. http://dx.doi.org/10.1002/smj.247
    Mahoney, J. M., & MahoneyJ. T. (1993). An empirical investigation of the effect of corporate charter antitakeover amendments on stockholder wealth. Strategic Management Journal, 14, 17–31. http://dx.doi.org/10.1002/smj.4250140104
    Mahoney, J. M., SundaramurthyC, & MahoneyJ. T. (1996). The differential impact on stockholder wealth of various antitakeover provisions. Managerial and Decision Economics, 17, 531–549. http://dx.doi.org/10.1002/%28SICI%291099-1468%28199611%2917:6%3C531::AID-MDE756%3E3.0.CO;2-A
    Mahoney, J. M., SundaramurthyC, & Mahoney, J. T. (1997). The effects of corporate antitakeover provisions on long-term investment: Empirical evidence. Managerial and Decision Economics, 18, 349–365. http://dx.doi.org/10.1002/%28SICI%291099-1468%28199708%2918:5%3C349::AID-MDE835%3E3.0.CO;2-P
    Mahoney, J. T. (1992a). The adoption of the multidivisional form of organization: A contingency model. Journal of Management Studies, 29(1), 49–72. http://dx.doi.org/10.1111/j.1467-6486.1992.tb00652.x
    Mahoney, J. T. (1992b). The choice of organizational form: Vertical financial ownership versus other methods of vertical integration. Strategic Management Journal, 13, 559–584. http://dx.doi.org/10.1002/smj.4250130802
    Mahoney, J. T. (1992c). Organizational economics within the conversation of strategic management. Advances in Strategic Management, 8, 103–155.
    Mahoney, J. T. (1993). Strategic management and determinism: Sustaining the conversation. Journal of Management Studies, 30(1), 173–191. http://dx.doi.org/10.1111/j.1467-6486.1993.tb00300.x
    Mahoney, J. T. (1995). The management of resources and the resource of management. Journal of Business Research, 33, 91–101. http://dx.doi.org/10.1016/0148-2963%2894%2900060-R
    Mahoney, J. T. (2001). A resource-based theory of sustainable rents. Journal of Management, 27, 651–660. http://dx.doi.org/10.1177/014920630102700603
    Mahoney, J. T. (2002). The relevance of Chester I. Barnard's teachings to contemporary management education: Communicating the aesthetics of management. International Journal of Organization Theory and Behavior, 5(1), 159–172. http://dx.doi.org/10.1081/OTB-120004243
    Mahoney, J. T., & Crank, D. A. (1995). Vertical coordination: The choice of organizational form. In K.Coaldrake, S. T.Sonka, D.Sudharshan, & F. W.Winter (Eds.), New industries and strategic alliances in agriculture: Concepts and cases (pp. 89–126). Champaign, IL: Stipes.
    Mahoney, J. T., Huff, A. S., & Huff, J. O. (1994a). Management's search for balance. Journal of Management Inquiry, 3(2), 173–174. http://dx.doi.org/10.1177/105649269432007
    Mahoney, J. T., Huff, A. S., & Huff, J. O. (1994b). Toward a new social contract theory in organization science. Journal of'Management Inquiry, 3(2), 153–168. http://dx.doi.org/10.1177/105649269432005
    Mahoney, J. T., & Pandian, J. R. (1992). The resource-based view within the conversation of strategic management. Strategic Management Journal, 13, 363–380. http://dx.doi.org/10.1002/smj.4250130505
    Mahoney, J. T., & Sanchez, R. (1997). Competence theory building: Reconnecting management research and management practice. In A.Heene & R.Sanchez (Eds.), Competence-based strategic management (pp. 45–64). Chichester, UK: John Wiley & Sons.
    Mahoney, J. T., & Sanchez, R. (2004). Building new management theory by integrating process and product of thought. Journal of Management Inquiry, 13, 34–47. http://dx.doi.org/10.1177/1056492603260658
    Makadok, R. (2001). Toward a synthesis of the resource-based and dynamic-capability views of rent creation. Strategic Management Journal, 22, 387–401. http://dx.doi.org/10.1002/smj.158
    Makadok, R. (2003). Doing the right thing and knowing the right thing to do: Why the whole is greater than the sum of the parts. Strategic Management Journal, 24, 1043–1055. http://dx.doi.org/10.1002/smj.313
    Malmgren, H. B. (1961). Information, expectations and the theory of the firm. Quarterly Journal of Economics, 75, 399–421. http://dx.doi.org/10.2307/1885131
    March, J. G. (1988). Decisions and organizations. Oxford, UK: Basil Blackwell.
    March, J. G. (1999). The pursuit of organizational intelligence. Oxford, UK: Basil Blackwell.
    March, J. G., & Simon, H. A. (1958). Organizations. New York: John Wiley & Sons.
    Marris, R. (1964). The economic theory of “managerial” capitalism. New York: Macmillan.
    Marschak, J. (1968). Economics of inquiring, communicating, deciding. American Economic Review, 58, 1–18.
    Marshall, A. (1920). Principles of economics. London: Macmillan.
    Masten, S. E. (1984). The organization of production: Evidence from the aerospace industry. Journal of Law and Economics, 27, 403–418. http://dx.doi.org/10.1086/467071
    Masten, S. E. (1988). A legal basis for the firm. Journal of Law, Economics and Organization, 4, 181–198.
    Masten, S. E., & Crocker, K. J. (1985). Efficient adaptation in long-term contracts: Take-or-pay provision for natural gas. American Economic Review, 75, 1083–1093.
    Masten, S. E., Meehan, J. W., & Snyder, E. A. (1989). Vertical integration in the U.S. auto industry: A note on the influence of transaction specific assets. Journal of Economic Behavior and Organization, 12, 265–273. http://dx.doi.org/10.1016/0167-2681%2889%2990059-0
    Masten, S. E., Meehan, J. W., & Snyder, E. A. (1991). The costs of organization. Journal of Law Economics and Organization, 7(1), 1–25.
    McCloskey, D. (1983). The rhetoric of economics. Journal of Economic Literature, 21, 481–517.
    McCloskey, D. (1998). The rhetoric of economics. Madison: University of Wisconsin Press.
    McCloskey, D., & Ziliak, S. T. (1996). The standard error of regressions. Journal of Economic Literature, 34, 97–114.
    McGrath, R. G. (1997). A real options logic for initiating technology positioning investments. Academy of Management Review, 22(4), 974–996.
    McGrath, R. G. (1999). Falling forward: Real options reasoning and entrepreneurial failure. Academy of Management Review, 24(1), 13–30. http://dx.doi.org/10.2307/259034
    McMillan, J. (1992). Games, strategies, and managers. New York: Oxford University Press.
    Michael, S. C. (2000). Investments to create bargaining power: The case of franchising. Strategic Management Journal, 21, 497–514. http://dx.doi.org/10.1002/%28SICI%291097-0266%28200004%2921:4%3C497::AID-SMJ87%3E3.0.CO;2-#
    Milgrom, P., & Roberts, J. (1992). Economics, organization and management. Englewood Cliffs, NJ: Prentice Hall.
    Miller, D., & Shamsie, J. (1996). The resource-based view of the firm in two environments: The Hollywood film studios from 1936 to 1965. Academy of Management Journal, 39(3), 519–534. http://dx.doi.org/10.2307/256654
    Miller, G.J. (1992). Managerial dilemmas: The political economy of hierarchy. New York: Cambridge University Press. http://dx.doi.org/10.1017/CBO9781139173742
    Miller, K. D. (2002). Knowledge inventories and managerial myopia. Strategic Management Journal, 23, 689–706. http://dx.doi.org/10.1002/smj.245
    Miller, K. D., & Folta, T. B. (2002). Option value and entry timing. Strategic Management Journal, 23, 655–665. http://dx.doi.org/10.1002/smj.244
    Monteverde, K. (1995). Technical dialog as an incentive for vertical integration in the semiconductor industry. Management Science, 41(10), 1624–1638. http://dx.doi.org/10.1287/mnsc.41.10.1624
    Monteverde, K., & Teece, D. (1982). Supplier switching costs and vertical integration in the automobile industry. Bell Journal of Economics, 13, 206–213. http://dx.doi.org/10.2307/3003441
    Montgomery, C. A., & Hariharan, S. (1991). Diversified expansion by large established firms. Journal of Economic Behavior and Organization, 15, 71–89. http://dx.doi.org/10.1016/0167-2681%2891%2990005-I
    Montgomery, C. A., & Wernerfelt, B. (1988). Diversification, Ricardian rents, and Tobin's q. Rand Journal of Economics, 19(4), 623–632. http://dx.doi.org/10.2307/2555461
    Montgomery, C. A., Wernerfelt, B., & Balakrishnan, S. (1989). Strategy content and the research process. Strategic Management Journal, 10, 189–197. http://dx.doi.org/10.1002/smj.4250100208
    Mosakowski, E. (1993). A resource-based perspective on the dynamic strategy-performance relationship: An empirical examination of the focus and differentiation strategies in entrepreneurial firms. Journal of Management, 19(4), 819–839.
    Mowery, D. C., Oxley, J. E., & Silverman, B. S. (1996). Strategic alliances and interfirm knowledge transfer. Strategic Management Journal, 17, 77–91.
    Nelson, R. R. (1996). The sources of economic growth. Cambridge, MA: Harvard University Press.
    Nelson, R. R., & Winter, S. G. (1982). An evolutionary theory of economic change. Cambridge, MA: Harvard University Press.
    Nelson, R. R., & Winter, S. G. (2002). Evolutionary theorizing in economics. Journal of Economic Perspectives, 16(2), 23–46. http://dx.doi.org/10.1257/0895330027247
    Nichols, N. A. (1994, January/February). Scientific management at Merck: An interview with CFO Judy Lewent. Harvard Business Review, 89–99.
    Nickerson, J. A., Hamilton, B. H., & Wada, T. (2001). Market position, resource profile, and governance: Linking Porter and Williamson in the context of international courier and small package services in Japan. Strategic Management Journal, 22, 251–273. http://dx.doi.org/10.1002/smj.159
    Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company. Oxford, UK: Oxford University Press.
    North, D. (1981). Structure and change in economic history. New York: W. W. Norton.
    North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge, UK: Cambridge University Press. http://dx.doi.org/10.1017/CBO9780511808678
    North, D. C., & Thomas, R. P. (1973). The rise of the Western world: A new economic history. Cambridge, UK: Cambridge University Press. http://dx.doi.org/10.1017/CBO9780511819438
    Norton, S. W. (1988). Franchising, brand name capital, and the entrepreneurial capacity problem. Strategic Management Journal, 9, 105–114. http://dx.doi.org/10.1002/smj.4250090711
    Novak, S., & Eppinger, S. D. (2001). Sourcing by design: Product complexity and the supply chain. Management Science, 47(1), 189–204. http://dx.doi.org/10.1287/mnsc.47.1.189.10662
    O'Driscoll, G. P., & Rizzo, M. J. (1985). The economics of time and ignorance. New York: Basil Blackwell.
    Oliver, C. (1997). Sustainable competitive advantage: Combining institutional and resource-based views. Strategic Management Journal, 18, 697–713. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199710%2918:9%3C697::AID-SMJ909%3E3.0.CO;2-C
    Ouchi, W. G. (1979). A conceptual framework for the design of organizational control mechanisms. Management Science, 25(9), 833–848. http://dx.doi.org/10.1287/mnsc.25.9.833
    Oviatt, B. M. (1988). Agency and transaction cost perspectives on the manager-shareholder relationship: Incentives for congruent interests. Academy of Management Review, 13, 214–225.
    Palay, T. M. (1984). Comparative institutional economics: The governance of rail freight contracting. Journal of Legal Studies, 13, 265–287. http://dx.doi.org/10.1086/467741
    Palay, T. M. (1985). Avoiding regulatory constraints: The use of informal contracts. Journal of Law, Economics, and Organization, 1, 155–175.
    Palmer, D., Friedland, R., Jennings, P. D., & Powers, M. E. (1987). The economics and politics of structure: The multidivisional form and the large U.S. corporation. Administrative Science Quarterly, 32, 25–48. http://dx.doi.org/10.2307/2392741
    Peng, M. W. (2001). The resource-based view and international business. Journal of Management, 27, 803–829. http://dx.doi.org/10.1177/014920630102700611
    Penrose, E. T. (1955). Limits to the growth of the firm. American Economic Review, 45(2), 531–543.
    Penrose, E. T. (1959). The theory of the growth of the firm. New York: John Wiley & Sons.
    Penrose, E. T. (1960). The growth of the firm: A case study: The Hercules Powder Company. Business History Review, 34, 1–23. http://dx.doi.org/10.2307/3111776
    Peteraf, M. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14, 179–191. http://dx.doi.org/10.1002/smj.4250140303
    Pettus, M. (2001). The resource-based view as a developmental growth process: Evidence from the deregulated trucking industry. Academy of Management Journal, 44(4), 878–896. http://dx.doi.org/10.2307/3069420
    Phillips, A., & Mahoney, J. (1985). Unreasonable rules and rules of reason: Economic aspects of vertical price-fixing. Antitrust Bulletin, 30(1), 99–115.
    Pirrong, S. C. (1993). Contracting practices in bulk shipping markets: A transaction costs explanation. Journal of Law and Economics, 36, 937–976. http://dx.doi.org/10.1086/467303
    Pisano, G. P. (1989). Using equity participation to support exchange: Evidence from the biotechnology industry. Journal of Law, Economics and Organization, 5(1), 109–126.
    Pitelis, C. (Ed.) (2002). The growth of the firm: The legacy of Edith Penrose. New York: Oxford University Press.
    Polanyi, M. (1962). Personal knowledge. Chicago: University of Chicago Press.
    Popper, K. R. (1970). Normal science and its dangers. In L.Lakatos & A.Musgrave (Eds.), Criticism and the growth of knowledge (pp. 51–58). Cambridge, UK: Cambridge University Press.
    Poppo, L., & Zenger, T. (1998). Testing alternative theories of the firm: Transaction cost, knowledgebased, and measurement explanations for make-or-buy-decisions in information services. Strategic Management Journal, 19, 853–877. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199809%2919:9%3C853::AID-SMJ977%3E3.0.CO;2-B
    Poppo, L., & Zenger, T. (2002). Do formal contracts and relational governance function as substitutes or complements?Strategic Management Journal, 23, 707–725. http://dx.doi.org/10.1002/smj.249
    Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York: Free Press.
    Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. New York: Free Press.
    Porter, M. E. (1991). Towards a dynamic theory of strategy. Strategic Management Journal, 12, 95–117. http://dx.doi.org/10.1002/smj.4250121008
    Powell, T. C, & Dent-Micallef, A. (1997). Information technology as competitive advantage: The role of human, business, and technology resources. Strategic Management Journal, 18(5), 375–405. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199705%2918:5%3C375::AID-SMJ876%3E3.0.CO;2-7
    Pratt, J. W., & Zeckhauser, R. J. (1985). Principals and agents: An overview. In J. W.Pratt & R. J.Zeckhauser (Eds.), Principals and agents: The structure of business (pp. 1–35). Cambridge, MA: Harvard Business School Press.
    Rasmusen, E. (1989). Games and information. Cambridge, UK: Basil Blackwell.
    Rediker, K. J., & Seth, A. (1995). Boards of directors and substitution effects of alternative governance mechanisms. Strategic Management Journal, 16(2), 85–99. http://dx.doi.org/10.1002/smj.4250160202
    Redman, D.A. (1993). Economics and the philosophy ofscience. New York: Oxford University Press.
    Reed, R., & DeFillippi, R. J. (1990). Causal ambiguity, barriers to imitation and sustainable competitive advantage. Academy of Management Review, 15(1), 88–102.
    Ricardo, D. (1817). Principles of political economy and taxation. London: J. Murray.
    Richardson, G. B. (1960). Information and investment. Oxford, UK: Oxford University Press.
    Richardson, G. B. (1972). The organization of industry. Economic Journal, 82, 883–896. http://dx.doi.org/10.2307/2230256
    Richardson, J. (1993). Parallel sourcing and supplier performance in the Japanese automobile industry. Strategic Management Journal, 14, 339–350. http://dx.doi.org/10.1002/smj.4250140503
    Riordan, M., & Williamson, O. E. (1985). Asset specificity and economic organization. International Journal of Industrial Organization, 3, 365–378. http://dx.doi.org/10.1016/0167-7187%2885%2990030-X
    Robertson, T. S., & Gatignon, H. (1998). Technology development mode: A transaction cost conceptualization. Strategic Management Journal, 19, 515–531. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199806%2919:6%3C515::AID-SMJ960%3E3.0.CO;2-F
    Rubin, P. H. (1973). The expansion of firms. Journal of Political Economy, 81, 936–949. http://dx.doi.org/10.1086/260089
    Rubin, P. H. (1978). The theory of the firm and the structure of the franchise contract. Journal of Law and Economics, 21, 223–233. http://dx.doi.org/10.1086/466918
    Rugman, A. M., & Verbeke, A. (2002). Edith Penrose's contribution to the resource-based view of strategic management. Strategic Management Journal, 23, 769–780. http://dx.doi.org/10.1002/smj.240
    Rumelt, R. P. (1974). Strategy, structure, and economic performance. Cambridge, MA: Harvard Business School Press.
    Rumelt, R. P. (1984). Toward a strategic theory of the firm. In R.Lamb (Ed.), Competitive strategic management (pp. 556–570). Englewood Cliffs, NJ: Prentice Hall.
    Rumelt, R. P., Schendel, D. E., & Teece, D. J. (Eds.). (1994). Fundamental issues in strategy. Cambridge, MA: Harvard University Press.
    Saloner, G. (1991). Modeling, game theory, and strategic management. Strategic Management Journal, 12, 119–136. http://dx.doi.org/10.1002/smj.4250121009
    Sanchez, R. (1993). Strategic flexibility, firm organization, and managerial work in dynamic markets: A strategic options perspective. Advances in Strategic Management, 9, 251–291.
    Sanchez, R. (2003). Integrating transaction costs theory and real options theory. Managerial and Decision Economics, 24, 267–282. http://dx.doi.org/10.1002/mde.1124
    Sanchez, R., & Mahoney, J. T. (1996). Modularity, flexibility, and knowledge management in product and organization design. Strategic Management Journal, 17, 63–76.
    Sanchez, R., & Mahoney, J. T. (2001). Modularity and dynamic capabilities. In H.Volberda & T.Elfring, (Eds.), Rethinking strategy (pp. 158–171). Thousand Oaks, CA: Sage. http://dx.doi.org/10.4135/9781446217818
    Schelling, T. C. (1960). The strategy of conflict. Cambridge, MA: Harvard University Press.
    Scherer, F. M., & Ross, D. (1990). Industrial market structure and economic performance. Boston: Houghton Mifflin.
    Schilling, M. A. (2000). Toward a general modular systems theory and its application to interfirm product modularity. Academy of Management Review, 25(2), 312–334.
    Schoemaker, P. J. H. (1990). Strategy, complexity and economic rent. Management Science, 36, 1178–1192. http://dx.doi.org/10.1287/mnsc.36.10.1178
    Schumpeter, J. A. (1934). The theory of economic development. Cambridge, MA: Harvard University Press.
    Schumpeter, J. A. (1950). Capitalism, socialism, and democracy. New York: Harper & Brothers.
    Schwartz, E. S., & Trigeorgis, L. (Eds.). (2001). Real options and investment under uncertainty: Classical readings and recent contributions. Cambridge, MA: MIT Press.
    Scott, W. R. (1987). Organizations: Rational, natural, and open systems. Englewood Cliffs, NJ: Prentice Hall.
    Scott, W. R. (1995). Institutions and organizations. Thousand Oaks, CA: Sage.
    Selznick, P. (1957). Leadership in administration. Berkeley: University of California Press.
    Seth, A. (1990). Sources of value creation in acquisitions: An empirical investigation. Strategic Management Journal, 11, 431–446. http://dx.doi.org/10.1002/smj.4250110603
    Seth, A., & Thomas, H. (1994). Theories of the firm: Implications for strategy research. Journal of Management Studies, 31(2), 165–191. http://dx.doi.org/10.1111/j.1467-6486.1994.tb00770.x
    Seth, A., & Zinkhan, G. (1991). Strategy and the research process: A comment. Strategic Management Journal, 12, 75–82. http://dx.doi.org/10.1002/smj.4250120107
    Shane, S. (1996). Hybrid organizational arrangements and their implications for firm growth and survival: A study of new franchisers. Academy of Management Journal, 39(1), 216–234. http://dx.doi.org/10.2307/256637
    Shapiro, C., & Varian, H. R. (1999). Information rules: A strategic guide to the network economy. Cambridge, MA: Harvard Business School Press.
    Silverman, B. S. (1999). Technological resources and the direction of corporate diversification: Toward an integration of the resource-based view and transaction cost economics. Management Science, 45, 1109–1124. http://dx.doi.org/10.1287/mnsc.45.8.1109
    Simon, H. A. (1947). Administrative behavior. New York: Macmillan.
    Simon, H. A. (1957). Models of man: Social and rational. New York: John Wiley & Sons.
    Simon, H. A. (1962). The architecture of complexity. Proceedings of the American Philosophical Society, 106, 467–482.
    Simon, H. A. (1982). Models of bounded rationality: Behavioral economics and business organization. Cambridge, MA: MIT Press.
    Simon, H. A. (1996). The sciences of the artificial. Cambridge, MA: MIT Press.
    Slater, M. (1980). The managerial limitations to the growth of firm. Economic Journal, 90, 520–528. http://dx.doi.org/10.2307/2231924
    Smith, A. (1937). The wealth of nations. New York: Methuen. (Original work published 1776)
    Sorenson, O., & Sorensen, J. B. (2001). Finding the right mix: Franchising, organizational learning, and chain performance. Strategic Management Journal, 22, 713–724. http://dx.doi.org/10.1002/smj.185
    Spender, J.-C. (1996). Making knowledge the basis of a dynamic theory of the firm. Strategic Management Journal, 17, 45–62.
    Stigler, G. J. (1968). The organization of industry. Homewood, IL: Irwin.
    Stuckey, J. (1983). Vertical integration and joint ventures in the aluminum industry. Cambridge, MA: Harvard University Press.
    Subramani, M. R., & Venkatraman, N. (2003). Safeguarding investments in asymmetric interorganizational relationships: Theory and evidence. Academy of Management Journal, 46(1), 46–62. http://dx.doi.org/10.2307/30040675
    Sundaramurthy, C., & Lewis, M. (2003). Control and collaboration: Paradoxes of governance. Academy of Management Review, 28(3), 397–415.
    Sundaramurthy, C, Mahoney, J. M., & Mahoney, J. T. (1997). The effects of corporate antitakeover provisions on long-term investment: Empirical evidence. Strategic Management Journal, 18(3), 231–245. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199703%2918:3%3C231::AID-SMJ877%3E3.0.CO;2-V
    Sutton, J. (1992). Sunk costs and market structure: Price competition, advertising, and the evolution of concentration. Cambridge, MA: MIT Press.
    Szulanski, G. (1996). Exploring internal stickiness: Impediments to the transfer of best practice within the firm. Strategic Management Journal, 17, 27–43.
    Szulanski, G. (2003). Sticky knowledge: Barriers to knowing in the firm. Thousand Oaks, CA: Sage. http://dx.doi.org/10.4135/9781446218761
    Tan, D. (2003). The limits to the growth of multinational firms in a foreign market. Managerial and Decision Economics, 24, 569–582. http://dx.doi.org/10.1002/mde.1129
    Tan, D., & Mahoney, J. T. (2003). Explaining the utilization of managerial expatriates from the perspectives of resource-based, agency, and transaction costs theories. Advances in International Management, 15, 179–205. http://dx.doi.org/10.1016/S0747-7929%2803%2915009-3
    Tan, D., & Mahoney, J. T. (in press). Examining the Penrose effect in an international business context: The dynamics of Japanese growth in U.S. industries. Managerial and Decision Economics.
    Teece, D. J. (1980). Economies of scope and the scope of the enterprise. Journal of Economic Behavior and Organization, 1, 223–245. http://dx.doi.org/10.1016/0167-2681%2880%2990002-5
    Teece, D. J. (1982). Towards an economic theory of the multiproduct firm. Journal of Economic Behavior and Organization, 3, 39–63. http://dx.doi.org/10.1016/0167-2681%2882%2990003-8
    Teece, D. J. (2000). Managing intellectual capital: Organizational, strategic and policy dimensions. New York: Oxford University Press.
    Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199708%2918:7%3C509::AID-SMJ882%3E3.0.CO;2-Z
    Telser, L. G. (1980). A theory of self-enforcing agreements. Journal of Business, 53, 27–44. http://dx.doi.org/10.1086/296069
    Thomke, S., & Kuemmerle, W. (2002). Asset accumulation, interdependence and technological change: Evidence from pharmaceutical drug discovery. Strategic Management Journal, 23, 619–635. http://dx.doi.org/10.1002/smj.242
    Thompson, J. D. (1967). Organizations in action. New York: McGraw-Hill.
    Tirole, J. (1988). The theory of industrial organization. Cambridge, MA: MIT Press.
    Trigeorgis, L. (1996). Real options: Managerial flexibility and strategy in resource allocation. Cambridge, MA: MIT Press.
    Tripsas, M. (1997). Unraveling the process of creative destruction: Complementary assets and incumbent survival in the typesetter industry. Strategic Management Journal, 18, 119–142. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199707%2918:1+%3C119::AID-SMJ921%3E3.3.CO;2-S
    Volberda, H. W., & Elfring, T (Eds.). (2001). Rethinking strategy. Thousand Oaks, CA: Sage. http://dx.doi.org/10.4135/9781446217818
    Walker, G., & Poppo, L. (1991). Profit centers, single-source suppliers, and transaction costs. Administrative Science Quarterly, 36, 66–87. http://dx.doi.org/10.2307/2393430
    Walker, G., & Weber, D. (1984). A transaction cost approach to make-or-buy decisions. Administrative Science Quarterly, 29, 373–391. http://dx.doi.org/10.2307/2393030
    Walker, G., & Weber, D. (1987). Supplier competition, uncertainty and make-or-buy decisions. Academy of Management Journal, 30, 589–596. http://dx.doi.org/10.2307/256017
    Walsh, J. P., & Seward, J. K. (1990). On the efficiency of internal and external corporate control mechanisms. Academy of Management Review, 15(3), 421–458.
    Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5, 171–180. http://dx.doi.org/10.1002/smj.4250050207
    Wernerfelt, B. (1995). The resource-based view of the firm: Ten years after. Strategic Management Journal, 16, 171–174. http://dx.doi.org/10.1002/smj.4250160303
    Whetten, D. A. (1989). What constitutes a theoretical contribution?Academy of Management Review, 14(4), 490–495.
    Williamson, O. E. (1971). The vertical integration of production: Market failure considerations. American Economic Review, 61, 112–123.
    Williamson, O. E. (1975). Markets and hierarchies: Analysis and antitrust implications. New York: Free Press.
    Williamson, O. E. (1979). Transaction cost economics: The governance of contractual relations. Journal of Law and Economics, 22, 233–261. http://dx.doi.org/10.1086/466942
    Williamson, O. E. (1985). The economic institutions of capitalism: Firms, markets, relational contracting. New York: Free Press.
    Williamson, O. E. (1991). Strategizing, economizing, and economic organization. Strategic Management Journal, 12, 75–94. http://dx.doi.org/10.1002/smj.4250121007
    Williamson, O. E. (Ed.). (1995). Organization theory: From Chester Barnard to the present and beyond. Oxford, UK: Oxford University Press.
    Williamson, O. E. (1996). The mechanisms of governance. New York: Oxford University Press.
    Williamson, O. E. (1999). Strategy research: Governance and competence perspectives. Strategic Management Journal, 20, 1087–1108. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199912%2920:12%3C1087::AID-SMJ71%3E3.0.CO;2-Z
    Williamson, O. E. (2000). The new institutional economics: Taking stock and looking ahead. Journal of Economic Literature, 38, 596–613. http://dx.doi.org/10.1257/jel.38.3.595
    Williamson, O. E., & Masten, S. E. (Eds.). (1999). The economics of transaction costs. Northampton, MA: Elgar.
    Williamson, O. E., & Winter, S. G. (Eds.). (1991). The nature of the firm: Origin, evolution, development. New York: Oxford University Press.
    Wolfson, M. A. (1985). Empirical evidence of incentive problems and their mitigation in oil and gas shelter programs. In J. W.Pratt & R. J.Zeckhauser (Eds.), Principals and agents (pp. 101–125). Cambridge, MA: Harvard Business School Press.
    Worren, N., Moore, K., & Cardona, P. (2002). Modularity, strategic flexibility, and firm performance: A study of the home appliance industry. Strategic Management Journal, 23, 1123–1140. http://dx.doi.org/10.1002/smj.276
    Yao, D. A. (1988). Beyond the reach of the invisible hand: Impediments to economic activity, market failures and profitability. Strategic Management Journal, 9, 59–70. http://dx.doi.org/10.1002/smj.4250090707
    Yeoh, PL., & Roth, K. (1999). An empirical analysis of sustained advantage in the U.S. pharmaceutical industry: Impact of firm resources and capabilities. Strategic Management Journal, 20, 637–653. http://dx.doi.org/10.1002/%28SICI%291097-0266%28199907%2920:7%3C637::AID-SMJ42%3E3.0.CO;2-Z
    Zander, U., & Kogut, B. (1995). Knowledge and the speed of the transfer and imitation of organizational capabilities: An empirical test. Organization Science, 6(1), 76–92. http://dx.doi.org/10.1287/orsc.6.1.76
    Zenger, T. R. (1994). Explaining organizational diseconomies of scale in R&D: Agency problems and the allocation of engineering talent, ideas, and effort by firm size. Management Science, 40(6), 708–729. http://dx.doi.org/10.1287/mnsc.40.6.708
    Zingales, L. (2000). In search of new foundations. Journal of Finance, 55, 1623–1653. http://dx.doi.org/10.1111/0022-1082.00262

    About the Author

    Joseph T. Mahoney received his BA in economics at the University of Pennsylvania in 1980, his MA in 1984, and his PhD in 1989 in business economics at the Wharton School of Business at the University of Pennsylvania. Joe joined the faculty of the Department of Business Administration at the College of Business at the University of Illinois at Urbana-Champaign in January 1988. Joe was promoted to Associate Professor in 1995, and he was promoted to Full Professor in 2003. Currently, Joe is on the editorial board of Academy of Management Review, Journal of Management Studies, and Strategic Management Journal. From 2000 to 2002, he was the book review editor of Academy of Management Review. He has published in Academy of Management Review, Journal of Business Research, Journal of Management, Journal of Management Inquiry, Journal of Management Studies, Managerial and Decision Economics, and Strategic Management Journal, among others. Joe currently serves on the editorial boards of Academy of Management Review, Journal of Management Studies, and Strategic Management Journal.


    • Loading...
Back to Top

Copy and paste the following HTML into your website