ABSTRACT
This chapter aims to examine the existing theories of the market and of the firm in economics for their potentialities to supply theoretical foundations on which strategic management theory may be based to explain and predict its phenomena of inquiry. It also aims to examine and assess whether economic theories of the firm and of the market provide perspectives for thinking about strategic issues and theoretical foundations for analysing significant strategic research problems. The chapter aims to make its chief contribution in this respect to existing knowledge produced around the debate over the economics and strategic management relationship from the different viewpoints. It aims to remedy all these deficiencies by developing and applying a standard for examination and judgement, by examining all the theories of the firm and of the market being subject matter of the debate, and by approaching the economics/strategic management relationship from a paradigmatic viewpoint of strategy.
