Economic Analysis and Strategic Management

David J. Teece

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Outsourcing and Supply Chain Management Merger and Competition Analysis Economic Theory and Institutions

Abstract

This article reviews the contribution of economic analysis to issues in strategic management. It explores why orthodox economic theory has an uneasy tension with the concerns of strategic managers, outlines some important recent contributions from industrial organizations, and attempts to develop some normative principles from recent theoretical and empirical work in transactions cost economics. The article also attempts an assessment of the respective contributions of different industrial organization paradigms to strategic management issues.

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