Strategizing, Disequilibrium, and ProfitThis book starts from the proposition that frameworks used in business strategy lack realism because they are built on equilibrium-based foundations carried over from the domain of neoclassical economics. Mathews proposes instead a conceptual framework consistent with the turbulence found in real economies, and brings strategizing into conformity with such phenomena as innovation and technological change, network formation, capture of substitution effects in modular systems, and many other interesting features of modern economies that are passed over by mainstream equilibrium-based analysis. This new framework is based on the way firms assemble resources into a distinctive bundle, then build activities out of these resources to generate revenue, and link the resources to the activities through routines created and administered by management. |
Contents
Introduction | 1 |
Capitalism Is Not and Never Can Be a Stationary | 26 |
Entrepreneurial Profits Can Only Be Earned | 46 |
Strategizing Is Carried Out by Penrosean | 73 |
Strategizing in Networks | 98 |
7 | 105 |
Entrepreneurial Industrial and Evolutionary | 120 |
Dynamic versus | 152 |
Toward a Unified Theory of Management | 167 |
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Common terms and phrases
activities approach assets assumptions Audretsch Barney capital capture cluster comparative static competence competitive forces concept cost create creative destruction Darwinian processes defined differential discussion disequilibrium setting dynamic capabilities earned elaboration entrepreneurial dynamics entrepreneurial initiative entrepreneurial profits entrepreneurship equilibrium-based evolutionary dynamics evolutionary economics example exposition external factors factors of production firm's firms strategize flat panel display focus framework IKEA increasing returns incumbents industrial dynamics innovation inputs insights interfirm involved issue Kirzner Knight Langlois learning Li & Fung linked Mathews microeconomics modular needed neoclassical economics nomic notion operating organizational outputs perfectly competitive perfectly competitive equilibrium Porter position production function provides reconfiguration rents resource-based resource-based view Ricardian Ricardian rents routines Schoemaker Schumpeter Schumpeter's sense sources strategic choice strategic goals Strategic Management Journal strategizing behavior strategizing firm strategizing perspective structure suppliers Teece TFT-LCD theory of profits tion value chain