Abstract
This paper summarizes and comments on Conner (1991) that contributes to the strategic management area by providing an historical comparison of resource-based theory and five schools of thought within industrial organization economics. Conner (1991) argues that the fundamental distinction between resource-based theory and transaction costs theory is that resource-based theory focuses on the deployment and combination of specific inputs while transaction costs theory focuses on the avoidance of opportunism. I offer three responses to this claim. First, Conner's distinction was not central to the resource-based literature at the time the article was published. Second, I raise concerns about building a resource-based theory of the firm that assumes away the problems of opportunistic behavior. Third, I offer an alternative view of the fundamental similarities and differences between resource-based theory and transaction costs theory.
Original language | English (US) |
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Pages (from-to) | 651-660 |
Number of pages | 10 |
Journal | Journal of Management |
Volume | 27 |
Issue number | 6 |
DOIs | |
State | Published - Nov 2001 |
ASJC Scopus subject areas
- Finance
- Strategy and Management