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Oliver Williamson and the strategic theory of the firm

Published online by Cambridge University Press:  09 July 2021

Nicholas Argyres  and
Todd Zenger
Nicholas Argyres*
Affiliation:
Olin Business School, Washington University in St. Louis, St Louis, MO, USA
Todd Zenger
Affiliation:
Eccles School of Business, University of Utah, Salt Lake City, UT, USA
*
*Corresponding author. Email: [email protected]
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Abstract

Oliver Williamson's contributions to the theory of the firm were of course seminal. Yet, they were not originally formulated to address the central question in strategic management: Why do some firms persistently outperform others in financial terms? We suggest that when Williamson did address this question, his efforts were not compelling. We also suggest, however, that with suitable adjustments, the key mechanisms in Williamson's theory can indeed usefully address this question.

Keywords

Theory of the firmstrategytransaction costsD23
Type
Note
Information
Journal of Institutional Economics , Volume 18 , Issue 2 , April 2022 , pp. 209 - 217
Copyright
Copyright © The Author(s), 2021. Published by Cambridge University Press on behalf of Millennium Economics Ltd.

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