• Summary
  • Contents
  • Subject index

Economic Foundations of Strategy provides not only the essential basic tenets of strategy, it also shows the inter-relationships of five major theories of the firm: the behavioral theory; transaction costs theory; property rights theory; agency theory; and dynamic resource-based theory.  Even though technological, organizational and institutional change advances breathlessly, the theories of the firm provided in this research book are durable principles that have stood, and the author maintains will continue to stand, the test of time.  Economic Foundations of Strategy emphasizes the complementarities among these five theories of organization, and the potential for integrating these theories in the evolving science of organization. Applications of these theories to business practice are emphasized throughout the book.  

Resource-Based Theory, Dynamic Capabilities, and Real Options
Resource-based theory, dynamic capabilities, and real options

Although early contributions to resource-based theory and dynamic capabilities came from the discipline of economics (e.g., Demsetz, 1973; Gort, 1962; Marris, 1964; Penrose, 1959; Richardson, 1960, 1972; Rubin, 1973; Slater, 1980), during the last 20 years the business field of strategic management has made significant contributions to resource-based theory and dynamic capabilities (e.g., Foss, 1997; Heene & Sanchez, 1997; Volberda & Elfring, 2001). Logic dictates that (organizational) economic theory will continue to play an important role in the study of economic value creation and sustainable competitive advantage. After all, sustainable competitive advantage requires an understanding of market frictions, and there is a large and well-developed economics research literature on market failures that ...

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