NAME:

Shafique Ahmed Shah

CLASS:

MBA-II (36 CHs)

TOPIC:

THEORY AND RESEARCH IN STRATEGIC

MANAGEMENT (Intermediate methodologies)

SUBMITTED TO: Sir, Naveed Anwar

THEORY AND RESEARCH IN STRATEGIC MANAGEMENT Intermediate methodologies

Rumelt 1994: He described organizational economics that is concerned with institutional details and peoples behavior and actions in any organization. So strategic management researchers were attentive towards organizational economics rather than mathematical displays. Jensen & Meckling, 1976: They clarify the Rumelt theory. Their theory focuses on adoption of positivist agency theory means which is based on observational facts. Godfrey & Hill, 1995: they were concerned with empirical research; they stated certain key variables of organizational economics. That describes the concept of opportunism means giving opportunity to employees. And to know that why the employees are not taking interest, why their interests are changing from job satisfaction to dissatisfaction. Definitely if the management of organization will not observe their interest then they will get negative consequences from employees. Hoskisson and hitt, 1990: they got to know that managers dont give opportunity to employees in the decision making. Only they decide according to their own will. They also got to that it is very difficult to find that what are the clearly defined indicators which describe effect of governance mechanism on firms behavior for this reason strategic management researchers are more attentive towards the study of speculative theory and governance mechanism. These both writers have also relied on ownership structure and executive compensation. That how their should be ownership of organization like to give some share to employees or to give some portion of profit to employees etc and compensation means organization should compensate in a way that employees may not be dissatisfied from job. Ghoshal and Moran, 1996, Williamson, 1996: Assumptions about the nature of human motives. Hoskisson, Johnsonand moesel(1994):During the period of 1990 to 1996 these methodologies were applied for example structural equation modeling in strategic management whish is given by Hoskisson, Johnson and moesel(1994). The SM researchers have contributed more by collecting data in the methodologies used in strategic management Barney, 1991, Werner felt, 1984: these authors contributed well in SM methodologies. Their theories were consist on to manage transaction cost and to get competitive advantage by applying these theories some companies can manage transaction costs and others can achieve competitive advantage than others.

Penrose, 1959: he gave the theory about importance of heterogeneity of resources which provide unique characters to organization. Dess, Gupta, Hennart, & Hill, 1995: the focus on resources was coupled with environmental characteristics means with resources organization should also focus on the environmental characteristics i.e. external and internal. Grimm and smiths 1997: they gave the action based model of organizational evolution. Which means there are certain actions which play role in the early development of organization.

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