Strategy research is increasingly influenced by economic theories of the firm, particularly modern organizational economics (OE) and a host of currents classified as ‘knowledge-based view of the firm’ (KBV). There is a tendency in strategy research to draw on only one of these two approaches: ‘isolationism’ and ‘integrationism’. Isolationism implies that the strategic theory of the firm should be found in either the KBV or on OE. Integrationism implies that research on the strategic theory of the firm should be based on ideas from both OE and KBV. An argument in favour of integrationism is...

Strategy research is increasingly influenced by economic theories of the firm, particularly modern organizational economics (OE) and a host of currents classified as ‘knowledge-based view of the firm’ (KBV). There is a tendency in strategy research to draw on only one of these two approaches: ‘isolationism’ and ‘integrationism’. Isolationism implies that the strategic theory of the firm should be found in either the KBV or on OE. Integrationism implies that research on the strategic theory of the firm should be based on ideas from both OE and KBV. An argument in favour of integrationism is presented.