What Is a Collaborative Economy?

A collaborative economy is a marketplace where consumers rely on each other

instead of large companies to meet their wants and needs. Collaborative
economies consist of giving, swapping, borrowing, trading, renting, and sharing
products and services for a fee, between an individual who has something and
an individual who needs something — generally with the help of a web-based
middleman. A collaborative economy may also be known as a "shared
economy," "sharing economy," or a "peer-to-peer economy."
https://www.investopedia.com/terms/c/collaborative-economy.asp

Resource based view (RBV) of strategy concentrates in recognizing and

utilizing the organizations resources. It is an important, essential and an inside
out management concept that is useful in developing a successful strategy. The
company evaluates the environment on the basis of available resources at its
expense.

Market based view (MBV) of strategy designs the company policies and
strategy based on the trends and the nature of the industry’s environment. It
helps in selecting the market combination for the product, in which the company
utilizes its strategy. The strategy helps in designing the structure and strategy of
the company based on the market analysis of the industry.
https://www.ukessays.com/essays/business/resource-based-and-market-based-
view-of-strategy-business-essay.php

Game theory is the process of modeling the strategic interaction between two or
more players in a situation containing set rules and outcomes. While used in a
number of disciplines, game theory is most notably used as a tool within the
study of economics. The economic application of game theory can be a valuable
tool to aide in the fundamental analysis of industries, sectors and any strategic
interaction between two or more firms. Here, we'll take an introductory look at
game theory and the terms involved, and introduce you to a simple method of
solving games, called backwards induction.
https://www.investopedia.com/articles/financial-theory/08/game-theory-
basics.asp

SCP
Structure, Conduct and Performance paradigm (SCP) is used as an analytical
framework, to make relations amongst market structure, market conduct and
market performance. It was developed in 1959 by Joe S. Bain Jr., who described
it in his book “Industrial Organization”. The SCP paradigm is considered a pillar
of industrial organization theory, and it has been since its conception a starting
point when analysing markets and industries, not only in Economics, but also in
the fields of business management and controlling. For instance, the mainline of
Michael E. Porter’s works on competition are based on premises derived from
this paradigm.
https://policonomics.com/structure-conduct-performance-paradigm/
Chicken or the Egg: What comes first, Strategy or Structure?
https://medium.com/@rajivtandon/chicken-or-the-egg-what-comes-first-strategy-
or-structure-7714254e634

A Behavioral Theory of the Firm (James G. March and Richard Cyert, 1963)
Behavioral theory of the firm (BTF) is a composition of a number of theories that
have emerged within economics, sociology, business and management studies –
to deal with the issues of how firms behave in a market place and what
determines the inter-firm relationships.

Hambrick, D. C., & Mason, P. A. (1984). Upper Echelons: The Organization

as a Reflection of Its Top Managers.
HAMBRICK, DONALD C. (born 1946) and Phyllis A. Mason (1984), upper
echelons theory is the idea that top executives view their situations through their
own highly personalized lenses. These individualized construals of strategic
situations arise because of differences among executives in their experiences,
values, personalities and other human factors.

Environment Contingency Theory (Burn & Stalker)

Contingency theory A strand of organization theory (sometimes also known as
the ‘rational systems perspective’), the leading practitioners of which were Tom
Burns, Joan Woodward, Paul Lawrence, and Jay Lorsch, an otherwise
theoretically eclectic group who were nevertheless united in their belief that no
single organizational structure was inherently more efficient than all others.
Rather, since organizations differed in the tasks they performed and
environments they faced, the appropriate organizational structure was in each
case a function of such factors as technology, market, and the predictability of
tasks.
https://www.encyclopedia.com/social-sciences/dictionaries-thesauruses-pictures-
and-press-releases/contingency-theory

Resource Dependence Theory (Pfeffer & Salancik, 1978) symbiotic

interdependence with supplier, competitive interdependence with competitor

Institutional Theory (Phillips Selznick, 1957)

Philip Selznick was a student of Merton's at Columbia and was a founder of
institutional theory.

Selnick notes that "the most important thing about organizations is that, though
they are tools, each nevertheless has a life of its own". (Selznick 1949 p. 10 in
Scott p. 64). While he acknowledges rational view that organizations are
designed to attain goals, he notes that the formal structures can never conquer
the non-rational dimensions of organizational behavior. Individuals do not act
purely based on their formal roles. Organizations do not act purely based on
formal structures
https://is.theorizeit.org/wiki/Institutional_theory

Reputation Theory (Fombrun, 1996)

Fombrun introduces the term reputation capital early in the book. He describes it
as a form of intangible wealth that is closely related to "what accountants call
goodwill and marketers call brand equity." He claims that companies with a large
stock of reputational capital can gain a competitive advantage for a number of
reasons. Its reputation enables it to charge premium prices for products, to
achieve lower marketing costs, and to benefit from greater freedom in decision-
making.

Hannan & Freeman: Organizational Ecology

Population ecology is the study of dynamic changes within a given set of
organizations. Using the population as their level of analysis, population
ecologists statistically examine the birth and mortality of organizations and
organizational forms within the population over long periods.
Hannan & Freeman believe that long-term change in the diversity of
organizational forms within a population occurs through selection rather than
adaptation. Most organizations have structural inertia that hinders adaptation
when the environment changes. Those organizations that become incompatible
with the environment are eventually replaced through competition with new
organizations better suited to external demands .
http://faculty.babson.edu/krollag/org_site/org_theory/Scott_articles/han_free_org
ec.html

Enactment Theory (Karl Weick, 1978)

Conceptually, sensemaking can also be understood as an intra-organizational
evolution processes, based on the assumption that “a system can respond
adaptively to its environment by mimicking inside itself the basic dynamics of
evolutionary processes” (Warglien, 2002, p. 110). The “enactment theory”
suggests conceptualizing the process of organizing as a change-enactment-
selection-retention sequence (Weick et al., 2005):

The reciprocal exchange between ecological change and enactment captures the
sensemaking activities of noticing and bracketing, triggered when organizational
actors notice discrepancies and equivocality in ongoing activity. These noticing
and bracketing activities are still rather rough categorizations of possible
meanings. The number of possible meanings is then reduced through the
process of selection, where a combination of retrospective attention, conceptual
models and articulation perform a reduction of the material and generate a
plausible story. This story is further solidified and stabilized through the process
of retention (Weick et al., 2005). The retention process functions as a repository
for past successful organizing and sensemaking efforts. It has structure and
memory in the sense that it influences what is singled out for closer attention in
the enactment process (Colville, Pye, & Brown, 2016).

Adaptive Cycles (Miles & Snow, 1978)

Miles and Snow (1978) typology of generic strategies including prospectors,
defenders, analyzers, and reactors. Prospectors focus on innovation, creating
new markets and imposing uncertain environments (Miles and Snow, 2009).
Defenders, emphasizing cost control in a stable environment, concentrate on
their innovative efforts on process issues. analyzer builds a solid foundation in
efficiency but continues to pursue incremental innovation through flexibility.
reactors late to change often late and usually perform below the industry average
(Brunk, 2003).

Defender organizations face the entrepreneurial problem of how to maintain a

stable share of the market, and hence they function best in stable environments.
A common solution to this problem is cost leadership, and so these organizations
achieve success by specializing in particular areas and using established and
standardized technical processes to maintain low costs. In addition, defender
organizations tend to be vertically integrated in order to achieve cost efficiency.
Defender organizations face the administrative problem of having to ensure
efficiency, and thus they require centralization, formal procedures, and discrete
functions. Because their environments change slowly, defender organizations
can rely on long-term planning.

Analyzer organizations share characteristics with prospector and defender

organizations; thus, they face the entrepreneurial problem of how to maintain
their shares in existing markets and how to find and exploit new markets and
product opportunities. These organizations have the operational problem of
maintaining the efficiency of established products or services, while remaining
flexible enough to pursue new business activities. Consequently, they seek
technical efficiency to maintain low costs, but they also emphasize new product
and service development to remain competitive when the market changes. The
administrative problem is how to manage both of these aspects. Like prospector
organizations, analyzer organizations cultivate collaboration among different
departments and units. Analyzer organizations are characterized by balance—a
balance between defender and prospector organizations.

Reactor organizations, as the name suggests, do not have a systematic strategy,

design, or structure. They are not prepared for changes they face in their
business environments. If a reactor organization has a defined strategy and
structure, it is no longer appropriate for the organization's environment. Their new
product or service development fluctuates in response to the way their managers
perceive their environment. Reactor organizations do not make long-term plans,
because they see the environment as changing too quickly for them to be of any
use, and they possess unclear chains of command.

Read more: https://www.referenceforbusiness.com/management/Mar-No/Miles-

and-Snow-Typology.html#ixzz601cMw9iQ
Richard R. Nelson and Sidney G. Winter. 1982. An Evolutionary Theory of
Economic Change. Cambridge, Massachusetts: The Belknap Press of Harvard
University Press.

This book has an evolutionary theory and models "of the capabilities and
behavior of business firms operating in a market environment." (p.4) The firms
are modeled as having "certain capabilities" and internal "decision rules" (p.5)
They respond to changes in demand for their output, changes in supply
conditions, and changes in technology, some of which they create. In the model,
firms do not maximize, but some survive and others don't. (p. 4-6)
http://econterms.net/innovation/index.php?title=Nelson_and_Winter,_1982

Dynamic Capabilities (Teece, 1996)