TheoryHub

Theories: 7

Agency Theory

Agency theory explains how contracts, incentives, and monitoring align the interests of principals and agents with differing goals and unequal information to minimise agency costs.

Diffusion of Innovations

Diffusion of innovation studies aim to understand what stimulates the adoption of a resource, such as an idea or product, and how such a decision can affect a social structure and context.

Evolutionary Economic Theory

Evolutionary economics explains change over time with respect to economic development.

The resource-based theory (RBT) is an influential approach in strategic management. It has been widely applied as a managerial framework to determine vital resources for a firm to achieve a sustained competitive advantage. The theory provides an essential framework to explain and predict the fundamentals of a company’s performance and competitive advantage.

Social Capital Theory

Social capital refers to the structure and quality of social relationships and constitutes a positive product of social interactions that can be a source of benefits for individuals, social groups and the society as a whole.

Social Exchange Theory

Social exchange theory explains the social behaviour in dyadic and collective relations by applying a principle of a cost-benefit analysis of relations.

Upper Echelons Theory

The Upper Echelons Theory postulates that the idiosyncratic characteristics (e.g., cognitive base and values) of a firm’s top-level managers play a key role in explaining and/or predicting strategic decisions and organisational performance. Top-level managers’ cognitive base and values exert influence on how they interpret strategic situations, shaping their decisions and resulting in market and financial performance outcomes.

Operationalised:	Qualitatively Quantitatively
Theory Level:	Micro Meso Macro
Theory Level:	Theory for Analysing Theory for Explaining Theory for Predicting Theory for Explaining and Predicting Theory for Design and Action

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