Strategic management and economics
Article Abstract:
Research in the field of strategic management has become increasingly influenced by the logic of economic theory. Five key factors that helped to shape the increasingly close relationship between strategic management research and economic theory in recent years were the need to systematically analyze performance data, the development of the experience curve doctrine, the need to explain the persistence of corporate success, the shift away from the neoclassical view of the firm, and the transformation of business schools from practice-based centers of scholarship to discipline-based business education centers. These five factors continue to foster the integration of economic precepts into strategic management research by generating new insights that are further reshaping the theoretical linkages between strategic management research and the various schools of economic thought.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1991
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The relative impact of actual and potential rivalry on firm profitability in the pharmaceutical industry
Article Abstract:
A study presented measures of actual as well as potential rivalry and examines the effects of these two types of competition on the profitability of 22 American pharmaceutical firms from 1963 to 1982. The drug industry has often been accused of monopolistic pricing and nonproductive R&D activity, triggering debates as to the competitiveness of the industry and possible earnings of excessive rents in the sector. The measure of actual rivalry is formulated based on an 'adjusted' Herfindahl index while the measure of potential rivalry is based on the work of Griliches (1979) and Jaffe (1986). Findings revealed the presence of rivalry for most of the timeframe studied. Moreover, firm profitability was limited by the risk of entry to therapeutic classes and government interventions successfully intensified actual competition.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1999
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Performance differences among strategic group members
Article Abstract:
This paper examines why members of the same strategic business group experience different performance results. Existing theory on the relationship between group membership and firm performance is reviewed. A new theory is developed in which differences in performance may be the result of historical differences among strategic group members. Using data from the US pharmaceutical industry, risk and return relationships are empirically analyzed.
Publication Name: Strategic Management Journal
Subject: Business
ISSN: 0143-2095
Year: 1988
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