Toward a more general theory of corporate strategy: The integration of information and its technologies

Toward a more general theory of corporate strategy: The integration of information and its technologies

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Article ID: iaor19911188
Country: Germany
Volume: 35
Start Page Number: 189
End Page Number: 195
Publication Date: Oct 1991
Journal: Mathematical Methods of Operations Research (Heidelberg)
Authors: ,
Abstract:

Despite the technological advancements in user oriented computing and software, and the tremondous growth in decision and executive support systems, much of the corporate strategy literature assumes certain or discusses the role of information in largely descriptive terms. This paper presents a framework for integrating information, and the resources that provide it, into a more general formulation of competitive strategy. In an environment of uncertain demand, where n firms compete through product differentiation, production efficiencies, and management information, it is shown that a Nash equilibrium exists, and that the quality of information is a strategic option of the firm. The implications of these findings for profitability and the choice of technologies are discussed.

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