Strategizing, Disequilibrium, and Profit

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Stanford University Press, 2006 - Business & Economics - 265 pages
This 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
A Case
181
Notes
189
15
221
References
225
55
243
38
252
98
259
Copyright

Toward a Unified Theory of Management
167

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About the author (2006)

John A. Mathews is Professor of Strategy and Management at Macquarie Graduate School of Management, Sydney. He is the author of many studies of strategy emanating from emerging markets, including Dragon Multinational: A New Model of Global Growth (2002) and Tiger Technology: The Creation of a Semiconductor Industry in East Asia (2000).

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