Corporate Strategy and the Theory of the Firm in the Digital Age
Markus Menz, Sven Kunisch, Julian Birkinshaw, David J. Collis, Nicolai J. Foss, Robert E. Hoskisson, John E. Prescott
Journal of Management Studies · 2021 · Volume 58 · Issue 7
Abstract
The purpose of this article is to reinvigorate research in the intersection of corporate strategy and the theory of the firm in light of the rapid advancement of digital technologies. Using the theory of the firm as an interpretive lens, we focus our analysis on the implications of the emerging digital age for three broad domains of corporate strategy: (1) corporate (competitive) advantage, (2) firm scale, scope, and boundaries, and (3) internal structure and design. Recognizing that digitalization exacerbates ambiguity and paradoxes, we sketch foundational strategies for future research. We suggest that there is a need to develop knowledge that accounts for the new realities of the digital age, depending on whether the corporate strategy phenomena under investigation and the theories of the firm used to explain them, are existing or new. The article serves also as introduction to theJournal of Management StudiesSpecial Issue on the topic.
Keywords
corporate strategy, digitalization, digital transformation, multi-business firm, scale and scope, theory of the firm
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