Industry Transformation and its Microfoundations - Conceptual Contributions to How Industries Change

The paper aims at starting a discussion on how to describe and analyze the transformation of industries and their architectures based on its microfoundations. From the theoretical side the authors suggest a co-evolutionary conceptual framework for the analysis of industrial dynamics being based on the interplay of market process theory and a competence based theory of the firm. Industry, supply chain architecture, market, organization and individual are modelled as interdependent levels of analysis and their coevolution is illustrated with the case of the German pharmaceutical distribution