Economic Foundations of Strategy

The theoretical foundations of management strategy are identified and outlined in this text. Five theories are considered in the light of questions about how organizations operate efficiently, cost minimization, wealth creation, individual self-interest and continued growth.

"Economic Foundations of Strategy uniquely contributes to the strategic management discipline by discussing and integrating the most important theoretical approaches in strategic management research. The book articulates the essence of these theories creatively and eloquently. Currently, our field lacks a scholarly book that brings together these theoretical building blocks of strategic management research.  Mahoney′s book is a superb guide for doctoral students and scholars who are entering the discipline of strategic management.  I conjecture that this book will become a must-have guide for seasoned strategy researchers as well... scholars from related disciplines such as industrial organization economics, international business and organization would also want to have a copy of this phenomenal guide… It was a pleasure to read this book." -- Yasemin Y. Kor, University of Delaware

Economic Foundations of Strategy provides not only the essential basic tenets of strategy, it also shows the inter-relationships of five major theories of the firm: the behavioral theory; transaction costs theory; property rights theory; agency theory; and dynamic resource-based theory.  Even though technological, organizational and institutional change advances breathlessly, the theories of the firm provided in this research book are durable principles that have stood, and the author maintains will continue to stand, the test of time.  Economic Foundations of Strategy emphasizes the complementarities among these five theories of organization, and the potential for integrating these theories in the evolving science of organization.  Applications of these theories to business practice are emphasized throughout the book.  

Key Features:   • Provides an integrative approach -Covers economics (e.g., transaction costs, property rights and agency theory); -Covers finance (e.g., real options theory) -Covers organization theory (e.g., the behavioral theory of the firm); and -Covers modern strategic management theory (e.g., dynamic resource-based theory).   • Connects "Know-why" and "Know-how" -Covers the theoretical material deeply enough to be of use to advanced students -Connects this research to business applications to be of use to those interested in business practice