Theory of the Firm for Strategic Management
Economic Value Analysis

Develops a value-based theory of the firm specifically aimed at strategic decision-making.

Manuel Becerra (Author)

9780521681940, Cambridge University Press

Paperback, published 5 February 2009

310 pages, 3 tables
22.3 x 15.2 x 1.5 cm, 0.5 kg

'An excellent and very timely book. In times of strategic turbulence the importance of sound theoretical grounding is accentuated. A must read for any serious student of strategy.' Øystein D. Fjeldstad, Professor and Telenor Chair of International Strategy and Management, BI-Norwegian School of Management

Strategic decisions deal with the long-term direction of the firm and its main activities, usually the responsibility of the top managers in an organization. Because the firm is the critical unit of analysis in strategy, we need to define what firms are, how they create value, and what their organizational boundaries are in order to understand their overall performance. However, this must be done in a manner that is most useful for strategic analysis and decision making. In other words, we need a theory of the firm for business strategy. Theory of the Firm for Strategic Management integrates and expands key existing theories, like transaction costs economics and the resource-based view, to develop a value-based theory of the firm. This provides a framework to show how firms can create value for customers and, at the same time, capture economic profits for their owners through business, corporate, international, and social strategies.

List of figures
List of tables
Part I. Theories of the Firm: 1. Introduction
2. The contracting view of the firm
3. The nature of the firm in strategy
4. Creating economic value
5. The appropriation of value by firms
Part II. Firm Strategies: 6. Business strategy
7. Corporate strategy
8. International strategy
9. Strategy and social value
10. Value analysis in strategy
Further reading
References
Index.

Subject Areas: Business strategy [KJC]