The field of business policy/strategic management has offered a variety of frameworks and concepts during the last half century, many aimed at 'taking business and its management seriously.' Research conferences and resulting books and journals have provided intellectual momentum, augmented by...

This paper studies the dynamic risk management of highly-levered financial institutions within a structural model of credit risk. We consider a context in which systemic default induces externalities that amplify the private cost of financial distress. This represents a source of strategic...

Research summary: We use a novel theoretical framework to synthesize ostensibly disparate streams of non-market strategy research. We argue that faced with weak institutions, firms can create and appropriate value by either adapting to, augmenting, or transforming the existing institutional...

Boom and bust or overshoot and collapse dynamics are common among firms in a large range of different industries. The underlying cognitive and behavioral factors responsible for strategic decisions driving boom and bust dynamics include misperceptions of feedback, attribution errors, and the...

This article investigates a dynamic general equilibrium model with a stockout constraint, which means that no seller can sell more than the inventories that she has. The model successfully explains two inventory facts; (i) inventory investment is procyclical, and (ii) production is more volatile...