Using Organizational Economics to Study Organizational Capability Development and Strategy

Authors:
Nicholas Argyres
Affiliations:
Olin School of Business, Washington University in St. Louis, St. Louis, Missouri 63130
Venue:
Organization Science
Year:
2011

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Abstract

There is a consensus among strategy scholars that heterogeneous firm capabilities are at the root of firms' competitive advantages. Organizational economics does not address such capabilities directly, and some have suggested that it therefore offers little insight into them. In this essay, I argue that organizational economics can shed light on how firm capabilities are developed and sustained.