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THE ‘COMPARATIVE INSTITUTIONAL’ THEORY OF THE FIRM: SOME IMPLICATIONS FOR CORPORATE STRATEGY *
Author(s) -
Hennart JeanFranois
Publication year - 1994
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/j.1467-6486.1994.tb00771.x
Subject(s) - economic rent , transaction cost , industrial organization , business , theory of the firm , strategic management , database transaction , institutional theory , microeconomics , economics , marketing , management , finance , computer science , programming language
This article outlines a rationale for the existence of firms and derives its implications for corporate strategy. It argues that one important source of sustainable rents is the ability of firms to reduce the costs they experience in organizing both internal and external transaction below those of their rivals.