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Research in the Strategic Theory of the Firm: ‘Isolationism’ and ‘Integrationism’

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  • Nicolai Foss

Abstract

It has been increasingly often argued that strategy research should aim for a ‘strategic theory of the firm’, that is, a theory explains the existence, boundaries, organization and competitive advantage of the firm within a unified theoretical framework. This paper discusses two archetypal strategies in research in the strategic theory of the firm, namely ‘isolationism’ and ‘integrationism’. While the former is representative of the positions that either the knowledge‐based view or the modern economics of organization can develop into full‐blown strategic theories of the firm, the integrationist strategy stresses that progress is more likely to emerge from a combination of insights and research procedures from both the knowledge‐based view and the modern economics of organization. The paper argues in favour of integrationism. In addition, the paper presents some novel criticisms of both the knowledge‐based view and the modern economics of organization.

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  • Nicolai Foss, 1999. "Research in the Strategic Theory of the Firm: ‘Isolationism’ and ‘Integrationism’," Journal of Management Studies, Wiley Blackwell, vol. 36(6), pages 725-755, November.
    • Handle: RePEc:bla:jomstd:v:36:y:1999:i:6:p:725-755
    DOI: 10.1111/1467-6486.00156
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    Cited by:

    1. Soufiane Mezzourh & Walid A Nakara, 2009. "Governance and innovation : A Knowledge-based approach [La gouvernance de l'innovation : une approche par la connaissance]," Post-Print halshs-01955966, HAL.
    2. Klyver, Kim & Nielsen, Suna Løwe, 2021. "Which crisis strategies are (expectedly) effective among SMEs during COVID-19?," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    3. Nicolai J. Foss, 2002. "The Strategy and Transaction Cost Nexus Past Debates, Central Questions, and Future Research Possibilities," DRUID Working Papers 02-04, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    4. Frédéric, DALSACE & Nicola C., DRAGONETTI & Karel, COOL, 2003. "A comparative Test of the Efficiency, focus and Learning Perspectives of Outsourcing," HEC Research Papers Series 776, HEC Paris.
    5. Michael Young & Terence Tsai & Xinran Wang & Shubo Liu & David Ahlstrom, 2014. "Strategy in emerging economies and the theory of the firm," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 331-354, June.
    6. George Kleiner, 2017. "System Modernization of Domestic Enterprises: Theoretical Background, Motives, Principles," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 13-24.
    7. Lawton, Thomas C. & McGuire, Steven M., 2001. "Supranational governance and corporate strategy: the emerging role of the World Trade Organization," International Business Review, Elsevier, vol. 10(2), pages 217-233, April.
    8. Fritz Rahmeyer, 2006. "From a Routine-Based to a Knowledge-Based View: Towards an Evolutionary Theory of the Firm," Discussion Paper Series 283, Universitaet Augsburg, Institute for Economics.
    9. Paolo Aversa & Cristina Bettinelli & Gabriella Levanti & Arabella Mocciaro Li Destri & Pasquale Massimo Picone, 2024. "Leveraging intersections in management," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 28(3), pages 687-705, September.
    10. Nicolai J. Foss, 1999. "Understanding Leadership A Coordination Theory," DRUID Working Papers 99-3, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    11. Blomqvist, K. & Kylaheiko, K. & Virolainen, V. -M., 2002. "Filling a gap in traditional transaction cost economics: : Towards transaction benefits-based analysis," International Journal of Production Economics, Elsevier, vol. 79(1), pages 1-14, September.

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