What's Law Got to Do with It: A Systems Approach to Management

34 Pages Posted: 3 May 2006 Last revised: 26 Mar 2018

Constance E. Bagley

Yale University

Date Written: April 10, 2006

Abstract

This paper embeds legal considerations in mainstream management theory and frameworks. It proposes a systems approach to law and management that explains how law affects the competitive environment, the firm's resources, and the activities in the value chain. This is a dynamic model that recognizes that firms and markets are part of a broader system of society and that managerial actions will affect the law and how it is interpreted and applied over time. The paper suggests that the ability of managers to communicate effectively with counsel and to work together to solve complex problems and leverage the resource advantages of the firm - what this paper refers to as legal astuteness - may in certain contexts be a dynamic capability providing competitive advantage. A key objective of the paper is to spark greater academic interest in the legal aspects of management and to provide a theoretical predicate for multi-disciplinary empirical work on the role of law and legal astuteness in the achievement and sustainability of competitive advantage.

Keywords: Law, Management, Competitive Environment, Firm Resources,

JEL Classification: K12, K22, K23, L21

Suggested Citation

Bagley, Constance E., What's Law Got to Do with It: A Systems Approach to Management (April 10, 2006). Harvard Business School Working Paper No. 06-038. Available at SSRN: https://ssrn.com/abstract=898652 or http://dx.doi.org/10.2139/ssrn.898652

Constance E. Bagley (Contact Author)

Yale University ( email )

20 Fox Den Way
New Haven, CT 06525
United States

HOME PAGE: http://winninglegally.com

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