Industrial Organization

Industrial Organization (IO) is a view based in microeconomic theory that states firm profitability is most closely associated with industry structure.

Definition

According to the Strategic Management by Parnell (4th edition),

Industrial Organization (IO). A view based in microeconomic theory that states firm profitability is most closely associated with industry structure.

According to the Strategic Management by David and David (15th edition),

Industrial Organization (I/O). An approach to competitive advantage that advocates that external (industry) factors are more important than internal factors for a firm in striving to achieve competitive advantage.