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The economic modeling of strategy process: ‘clean models’ and ‘dirty hands’

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  • Tarun Khanna
  • Ranjay Gulati
  • Nitin Nohria

Abstract

We argue that our model of learning in alliances (Khanna, Gulati and Nohria, 1998) is an economic model of strategy process. We discuss implications of this view for the strategy process vs. content debate, for the appropriate testing of models of strategy process, and for the role of economics in helping understand strategy process. We propose that the ‘clean models’ from economics and ‘dirty hands’ of traditional process inquiries offer research designs that are complementary rather than incompatible (Hirsch, Michaels and Friedman, 1987). Copyright © 2000 John Wiley & Sons, Ltd.

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  • Tarun Khanna & Ranjay Gulati & Nitin Nohria, 2000. "The economic modeling of strategy process: ‘clean models’ and ‘dirty hands’," Strategic Management Journal, Wiley Blackwell, vol. 21(7), pages 781-790, July.
    • Handle: RePEc:bla:stratm:v:21:y:2000:i:7:p:781-790
    DOI: 10.1002/1097-0266(200007)21:73.0.CO;2-2
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