A General Theory of Competition develops a ground-breaking new theory of competition - `resource-advantage theory'. Recent thinking on competition has assumed the premises, structure and implications of the theory of perfect competition. In his long-awaited book Shelby Hunt draws on economics, management, marketing and sociology to articulate resource-advantage theory. The author proceeds to illustrate how and why his theory may be used to explain and predict economic phenomena with great accuracy. This volume is extremely well-referenced, with detailed source notes.
Chapter 4: Antecedents and Affinities: Business Strategy and Institutional Theory
Antecedents and Affinities: Business Strategy and Institutional Theory
This chapter continues our discussion of the theories, research programs, and traditions that resource-advantage theory draws on and shares affinities with. Here, the focus is on business strategy and institutional theory. Again, I review only those portions that are directly relevant to R-A theory and point readers toward more comprehensive reviews.
Modern business strategy traces to the works on administrative policy of Kenneth Andrews and his colleagues at Harvard (Andrews 1971/1980/1987; Christensen et al. 1982; Learned et al. 1965). Viewing business strategy as the match a business makes between its internal resources and skills and the opportunities and risks created by its external environment, they developed the SWOT framework: Strengths, ...