Evolutionary Theory of the Firm

Evolutionary Theory of the Firm

A theory that no one business model or strategy ensures a company's survival over the long term. According to the evolutionary theory, success or failure is determined by how well the business model fits the needs of the present moment. Sheer chance also plays a large role.
References in periodicals archive ?
The same way that internalization theory claims that firms are superior because of their distinct characteristic of creation of hierarchies, the evolutionary theory of the firm as put forward by Cantwell (1989), and Kogut and Zander (1992, 1993) characterizes a firm's superiority because of its geographically dispersed networks of production units, and its social community respectively.
Firm-specific advantages are also the centre of analysis for the subsequent theory of internalization, the OLI paradigm (partially at least) and the evolutionary theory of the firm.
A most comprehensive summary of transaction costs, principal-agent, and evolutionary theory of the firm can scarcely be found elsewhere.
The evolutionary theory of the firm brings together contributions from fields as varied as general economic theory, strategy, organization and management theory, and industrial organization and economics.
These findings are in line with the evolutionary theory of the firm outlined previously.
The evolutionary theory of the firm is explored also in Randall Bausor's essay.