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Research in the Strategic Theory of the Firm: ‘Isolationism’ and ‘Integrationism’
Author(s) -
Foss Nicolai
Publication year - 1999
Publication title -
journal of management studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.398
H-Index - 184
eISSN - 1467-6486
pISSN - 0022-2380
DOI - 10.1111/1467-6486.00156
Subject(s) - isolationism , competitive advantage , theory of the firm , neoclassical economics , economics , strategic management , industrial organization , positive economics , sociology , management science , business , management , political science , foreign policy , politics , law
It has been increasingly often argued that strategy research should aim for a ‘strategic theory of the firm’, that is, a theory explains the existence, boundaries, organization and competitive advantage of the firm within a unified theoretical framework. This paper discusses two archetypal strategies in research in the strategic theory of the firm, namely ‘isolationism’ and ‘integrationism’. While the former is representative of the positions that either the knowledge‐based view or the modern economics of organization can develop into full‐blown strategic theories of the firm, the integrationist strategy stresses that progress is more likely to emerge from a combination of insights and research procedures from both the knowledge‐based view and the modern economics of organization. The paper argues in favour of integrationism. In addition, the paper presents some novel criticisms of both the knowledge‐based view and the modern economics of organization.