This book starts from the proposition that frameworks used in business strategy lack realism because they are built on equilibrium-based foundations carried over from the domain of neoclassical economics. Mathews proposes instead a conceptual framework consistent with the turbulence found in real economies, and brings strategizing into conformity with such phenomena as innovation and technological change, network formation, capture of substitution effects in modular systems, and many other interesting features of modern economies that are passed over by mainstream equilibrium-based analysis. This new framework is based on the way firms assemble resources into a distinctive bundle, then build activities out of these resources to generate revenue, and link the resources to the activities through routines created and administered by management.
1. Introduction -- 2. Capitalism is not and never can be a stationary system -- 3. Entrepreneurial profits can only be earned in disequilibrium -- 4. Rents versus profits as strategizing goals -- 5. Strategizing is carried out by Penrosean, resource-based firms -- 6. No firm is an island : strategizing in networks -- 7. The economy as a whole : strategizing linked to entrepreneurial, industrial, and evolutionary dynamics -- 8. Strategizing in disequilibrium : dynamic versus comparative static frameworks -- 9. Toward a unified theory of management -- App. 1. Entrepreneurship and economics : a case of shocking neglect -- App. 2. Strategy and the theory of profit.