A Review of Theories for the Modern Firm

Abstract

The area of strategic management has been attempting to invent a fully explanatory “theory of the firm” or one that is superior to others such that it is applied most often. A couple of theories, lately, do seem to hold favor a majority of the time, while others have not remained popular, but they are still recognized and resurface now and then. I hope to explain why many of these theories are helpful and at the same time, that we have reached a point in theory development where we need to make a step forward; we need to develop beyond, what has really become a roadblock, this belief that it is constructive to attempt to make a clear choice.