Value Capture Theory: A Strategic Management Review
49 Pages Posted: 14 Jan 2015 Last revised: 24 Feb 2016
Date Written: February 23, 2016
This paper provides the first review of developments in the application of cooperative game theory to issues of interest to strategic management; what we term “value capture theory.” Value capture theory provides a broad approach to formal strategy theory aimed at under- standing persistent heterogeneity in firm performance, nesting competitive market pressures, resource constraints and internal organizational issues. Our review highlights the primary framework for value capture theory, the blindspots that it resolves that otherwise exists in existing theoretical approaches, the principal insights from the theory as well as a myriad of applications that have been developed in recent years using value capture theory.
Keywords: value capture, cooperative game theory, competition
JEL Classification: L13
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