Towards a Dynamic Research Model

Abstract

Chapter two provided a detailed review of four different schools of thought that dominated the strategy literature over the past four decades. Extensive research helped to establish sound theoretical foundations in each research field. Based on these foundations, each approach claims to provide a satisfactory explanation for performance differences between firms. However, with four competing paradigms, one question is particularly interesting: who is right? Can performance be fully explained by industry characteristics as claimed by industrial organization economists? Or do the firm’s unique capabilities make the difference? Does corporate strategy play the decisive role or is it perhaps strategic moves on the business unit level?