ABSTRACT
Management theories have captured the essence of successful management; meanwhile, excellent managers value management theories and make the most of them in practice. This chapter shows the interconnectedness of both sides, which will benefit students, researchers, and managers in practice by illustrating the interwoven relationships between management theories and practice. Throughout the long journey of industrial evolution and corporate strategies, excellent management has shown what makes exceptional companies succeed in industry over time. Management theories have captured the essence of successful management; meanwhile, excellent managers value management theories and make the most of them in practice. During the era of corporate globalization in the United States, in the 1980s, the most relevant and practical theory from strategic management was Michael Porter's competitive strategy. Porter's competitive strategy was based on five competitive forces: bargaining power of suppliers, substitute products, customers, threat of new entrants, and competitors. The resource-based view (RBV) was introduced to recognize firms in qualitative scale.
