A Possible Micro-Foundation for the RBV and its Implications
Name
Wernerfelt.pdf
Description
Accepted version
Size
361.45 KB
Format
Unknown
Checksum (MD5)
571ad50dc651df093ae99142667963f1
Author(s)
Wernerfelt, Birger
Date Issued
2020
Journal
Strategic Management Review
Publisher
Now Publishers
Version
Author's final manuscript
Abstract
A central question in strategy asks in which markets and segments a given firm should compete. Any answer to this question is based on an implicit theory of the scope of the firm, and any theory of the firm implies an answer. The economics literature contains several slightly different theories of the firm, and we here focus on one which is based on advantages of specialization and what could be described as “increasing returns to scale” in negotiations. We outline the theory and show how its recommendations are very similar to those of the RBV. There are, however, subtle differences and we highlight several of those.
MIT Department
Sloan School of Management
Terms of Use
Creative Commons Attribution-Noncommercial-Share Alike
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1561/111.00000003
