We develop a theory of firm scope in which integrating two firms into one facilitates the allocation of resources, but …. This effect exists even though with perfect information, centralized resource allocation would improve the managers …

The allocation of scarce resources forms the core of modern economies, but the focus of strategic management literature … is more on a narrower challenge of appropriate allocation of resources for corporate strategy. The ‘soft' element and … approach is used here based on the premise that resource allocation activity is unique to every organization. A combined …

We develop a theory of firm scope in which integrating two firms into one facilitates the allocation of resources, but …. This effect exists even though with perfect information, centralized resource allocation would improve the managers …