Why do firms differ, and how does it matter?
Abstract
In virtually all economic analyses, differences among firms in the same line of business are repressed, or assumed to reflect differences in the market environments that they face. In contrast, for students of business management and strategy, firm differences are at the heart of their inquiry. This paper explores the reasons behind this stark difference in viewpoint. It argues that economists really ought to recognize firm differences explicitly.
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- Authors
- Nelson, R. R.
- Affiliations
- Columbia University (US)
- Corresponding author
- Nelson, Richard R.
- ORCID
- Nelson, Richard R.
- Venue
- Strategic Management Journal
- Publisher
- Wiley
- Published
- 1991
- Volume
- 12
- Issue
- S2
- Pages
- 61-74
- ISSN
- 0143-2095 (ISSN-L)
- 1097-0266
- OpenAlex
- W2007631529
- Cited by
- 1,970
- References
- 0
- Citations by year
- 2026: 36 · 2025: 23 · 2024: 30 · 2023: 41 · 2022: 34 · 2021: 52 · 2020: 39 · 2019: 61 · 2018: 102 · 2017: 73 · 2016: 56 · 2015: 71 · 2014: 63 · 2013: 103 · 2012: 93
- FWCI
- 40.18
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Strategic Management Journal (publishedVersion)
- Funders
- Alfred P. Sloan Foundation
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Merger and Competition Analysis
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Firm Innovation and Growth
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Theory and Institutions
- Keywords
- firm heterogeneity, market conditions, business strategy
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