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Competition, Competitive Advantage, and ClustersThe Ideas of Michael Porter$
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Robert Huggins and Hiro Izushi

Print publication date: 2011

Print ISBN-13: 9780199578030

Published to Oxford Scholarship Online: May 2011

DOI: 10.1093/acprof:oso/9780199578030.001.0001

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Why Competitive Strategy succeeds – and with whom 1

Why Competitive Strategy succeeds – and with whom 1

Chapter:
(p.33) 3 Why Competitive Strategy succeeds – and with whom1
Source:
Competition, Competitive Advantage, and Clusters
Author(s):

J.-C. Spender (Contributor Webpage)

Jeroen Kraaijenbrink (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199578030.003.0003

This chapter poses the question why the book Competitive Strategy had such a huge impact and was so widely embraced by managers, policy makers, consultants, and strategy teachers, although at the same time was often criticized for its apparent shortcomings by strategy theorists. The chapter considers the intellectual context and sources behind the book and probe explanations of its impact. It gets into the history of the industrial organization (IO) movement and its associated methodological issues and disputes. Through an examination of IO's relationship to contemporary business, it is shown that Competitive Strategy's appeal to practitioners has little to do with the narrow logic of homo economicus or positivist notions of theoretical rigor. It is a framework to help strategists know what they should take into account as constraints on their options, so as to arrive at the ‘managerial choices’ their situation calls for.

Keywords:   Michael Porter, competitive strategy, industrial organization

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