Department of Economics

Course: Theory of Business Organization

Code: MGT473

Semester: B

Instructor: Ch. Pitelis

The course examines the theories and business strategies for obtaining a sustainable competitive advantage. It focuses on four theoretical frameworks (market power and market competitors, transaction costs, resource-based and knowledge-based approaches, and behavioural-conflict-based views), their static and evolutionary dimensions, and four basic types of strategic moves. It also explores the following four questions:

• Why do firms exist?
• What determines the expansion of the firm?
• What determines the "optimal" size, limits and ‘boundaries’ of the firm?
• What strategy mixture is better for sustainable competitive advantage?

Finally, it considers the relationship between sustainable business advantage and economic sustainability.