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Why do firms differ, and how does it matter?

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  • Richard R. Nelson

Abstract

In virtually all economic analyses, differences among firms in the same line of business are repressed, or assumed to reflect differences in the market environments that they face. In contrast, for students of business management and strategy, firm differences are at the heart of their inquiry. This paper explores the reasons behind this stark difference in viewpoint. It argues that economists really ought to recognize firm differences explicitly.

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  • Richard R. Nelson, 1991. "Why do firms differ, and how does it matter?," Strategic Management Journal, Wiley Blackwell, vol. 12(S2), pages 61-74, December.
    • Handle: RePEc:bla:stratm:v:12:y:1991:i:s2:p:61-74
    DOI: 10.1002/smj.4250121006
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