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Corporate Strategy and the Theory of the Firm in the Digital Age

Author

Listed:
  • Markus Menz
  • Sven Kunisch
  • Julian Birkinshaw
  • David J. Collis
  • Nicolai J. Foss
  • Robert E. Hoskisson
  • John E. Prescott

Abstract

The purpose of this article is to reinvigorate research in the intersection of corporate strategy and the theory of the firm in light of the rapid advancement of digital technologies. Using the theory of the firm as an interpretive lens, we focus our analysis on the implications of the emerging digital age for three broad domains of corporate strategy: (1) corporate (competitive) advantage, (2) firm scale, scope, and boundaries, and (3) internal structure and design. Recognizing that digitalization exacerbates ambiguity and paradoxes, we sketch foundational strategies for future research. We suggest that there is a need to develop knowledge that accounts for the new realities of the digital age, depending on whether the corporate strategy phenomena under investigation and the theories of the firm used to explain them, are existing or new. The article serves also as introduction to the Journal of Management Studies Special Issue on the topic.

Suggested Citation

  • Markus Menz & Sven Kunisch & Julian Birkinshaw & David J. Collis & Nicolai J. Foss & Robert E. Hoskisson & John E. Prescott, 2021. "Corporate Strategy and the Theory of the Firm in the Digital Age," Journal of Management Studies, Wiley Blackwell, vol. 58(7), pages 1695-1720, November.
    • Handle: RePEc:bla:jomstd:v:58:y:2021:i:7:p:1695-1720
    DOI: 10.1111/joms.12760
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    2. Deemah Alzaid & Suad Dukhaykh, 2023. "Employer Branding and Employee Retention in the Banking Sector in Saudi Arabia: Mediating Effect of Relational Psychological Contracts," Sustainability, MDPI, vol. 15(7), pages 1-14, April.
    3. Tianyi Zhu & Xue Li & Haoqiang Wu & Ziyu Chu, 2023. "Does the Collaboration of Digitalization Foster Regional Green Development?," Sustainability, MDPI, vol. 15(20), pages 1-18, October.
    4. Rong (Ratchel) Zeng & Birgitte Grøgaard & Ingmar Björkman, 2023. "Navigating MNE control and coordination: A critical review and directions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(9), pages 1599-1622, December.
    5. Zhou, Zhongsheng & Li, Zhuo, 2023. "Corporate digital transformation and trade credit financing," Journal of Business Research, Elsevier, vol. 160(C).
    6. Shah, Tushar R., 2022. "Can big data analytics help organisations achieve sustainable competitive advantage? A developmental enquiry," Technology in Society, Elsevier, vol. 68(C).
    7. Yasushi Ueki & Masatsugu Tsuji & Nuchjarin Intalar & Somrote Komolavanij, 2023. "Effects of Quality Control Activities and Customers’ ICT Investment on Digitalization in Manufacturing Firms in Southeast Asia," The Review of Socionetwork Strategies, Springer, vol. 17(1), pages 25-53, April.
    8. Simon Bruhn & Johanna Deperi, 2022. "The Contribution of Digital Firms to Productivity Growth in the Manufacturing Sector: A Decomposition Approach," GREDEG Working Papers 2022-42, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    9. Nieto, María Jesús & Santamaria, Luis & Bammens, Yannick, 2023. "Digitalization as a facilitator of open innovation: Are family firms different?," Technovation, Elsevier, vol. 128(C).
    10. Lihua Chen & Yilang Chen, 2023. "A Metaorganizations Perspective on Digital Innovation and Corporate Social Responsibility: Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-19, July.
    11. Mortati, Marzia & Magistretti, Stefano & Cautela, Cabirio & Dell’Era, Claudio, 2023. "Data in design: How big data and thick data inform design thinking projects," Technovation, Elsevier, vol. 122(C).

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