This article introduces the Special Issue and discusses the microfoundations of routines and capabilities, including why a microfoundations view is needed and how it may inform work on organizational and competitive heterogeneity. Building on extant research, we identify three primary categories...

The question of how firms differ is paramount to strategy scholars. This question has motivated empirical research on the factors influencing performance differences among close competitors. It also has motivated work on factors that increase or decrease the mean performance of firms in an...