Extant approaches to rent appropriation are static in that they explore bargaining power at a fixed point in time. This article contributes by examining how capabilities and bargaining power coevolve. As capabilities are developed, those who are favored by knowledge asymmetries make decisions...

Most insider trading is routine and not subject to prosecution or enforcement. Still, investors typically treat it as a signal about the firm's prospects. In other words, they act as though the trades reflect managers' attempts to profit from their private inside information. This article...

There are number of competing (and complementary) theories of the firm seeking to explain the scope and boundaries of organizations. Two prominent competitors are the knowledge-based theory of the firm (KBTF) and transaction cost economics (TCE). These differ in that the KBTF seeks to explain...

Rent appropriation is an emerging area in the strategic management literature. Along these lines, the article explores who reaps the fruits of a dynamic capability. We argue that while social capital is essential for the acquisition, integration, and release of resources at the core of a dynamic...

In order to establish a competitive advantage, firms must acquire or create resources at a price below their value in use. Absent pure luck, this requires managers to exercise foresight about a resource's future value and/or complementarities with pre-existing capabilities. This foresight...

From the origins of resource-based theory, scholars have emphasized the importance of human capital as a source of sustained competitive advantage, and recently there has been great interest in gaining a better understanding of the micro-foundations of strategic capabilities. Along these lines,...

We create a taxonomy of hybrid governance forms and develop a formal theory that predicts when a given hybrid form will be efficient. Our model is unique in that we consider cross-task synergies in a multitask principal-agent model, where hybrid forms result as principals try to motivate...

Scholars have begun to recognize the importance of integrating organizational issues into real options theory. In doing so, some argue that options are inappropriate for evaluating critical strategic investments. In a more in-depth analysis, we argue that the organizational form that an option...

The received view is that related acquisitions have more potential to create value than unrelated acquisitions. However, there are very few measures of relatedness between two firms. Existing measures are very crude relative to those used in diversification research (e.g., diversity of a single...