Strategy Research and the Market Process Perspective

Nicolai J. Foss, Volker Mahnke

Research output: Working paperResearch

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We argue that strategizing fundamentally concerns disequilibrium phenomena, such as discovery, innovation, resource-combination, imagination − in short, entrepreneurship. Therefore, the understanding of strategizing is likely to be led astray by drawing too heavily on equilibrium theories. Arguably, the three dominant economic approaches to strategy − the Porter industry analysis approach, the new industrial organization, and the ressourcebased approach − are characterized precisely by their strong reliance on equilibrium methodology. We argue that the market process approach in its Austrian version offers much inspiration for bringing process issues to bear on strategy issues.
Original languageEnglish
Place of PublicationFrederiksberg
PublisherDRUID - Danish Research Unit for Industrial Dynamics
Number of pages40
ISBN (Print)8778730686
Publication statusPublished - 1998
SeriesDRUID Working Paper

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