The development of strategic management over the past two decades has been dramatic, transitioning from an applied area known as business policy to a theory-based field with substantial empirical research. This review examines the field's early development, theoretical and methodological foundations, and current state. Early works, such as Chandler's (1962) *Strategy and Structure* and Ansoff's (1965) *Corporate Strategy*, emphasized contingency and resource-based perspectives. Industrial organization (IO) economics, particularly Michael Porter's work, introduced the structure-conduct-performance framework and strategic groups, influencing competitive dynamics research. Organizational economics contributed transaction cost economics and agency theory, while the resource-based view (RBV), rooted in Edith Penrose's work, became dominant in the 1990s. Recent contributions include the knowledge-based view and strategic leadership. Research methodologies have evolved to combine quantitative and qualitative approaches, with advanced statistical tools. The field has swung between internal and external focuses, with a recent return to internal firm characteristics. Theoretical developments include RBV, strategic leadership, and competitive dynamics. Methodologically, the field has shifted from case studies to empirical research, with econometric tools and large data sets. The pendulum has swung between internal and external perspectives, with a current emphasis on RBV and strategic groups. Future directions include integrating theories and methodologies to enhance understanding of strategic management. The field has grown from a capstone course to a respected academic discipline, with ongoing research on competitive dynamics, strategic groups, and the role of firm resources. Theoretical and methodological advancements continue to shape the field, emphasizing the importance of firm-level analysis and empirical research.The development of strategic management over the past two decades has been dramatic, transitioning from an applied area known as business policy to a theory-based field with substantial empirical research. This review examines the field's early development, theoretical and methodological foundations, and current state. Early works, such as Chandler's (1962) *Strategy and Structure* and Ansoff's (1965) *Corporate Strategy*, emphasized contingency and resource-based perspectives. Industrial organization (IO) economics, particularly Michael Porter's work, introduced the structure-conduct-performance framework and strategic groups, influencing competitive dynamics research. Organizational economics contributed transaction cost economics and agency theory, while the resource-based view (RBV), rooted in Edith Penrose's work, became dominant in the 1990s. Recent contributions include the knowledge-based view and strategic leadership. Research methodologies have evolved to combine quantitative and qualitative approaches, with advanced statistical tools. The field has swung between internal and external focuses, with a recent return to internal firm characteristics. Theoretical developments include RBV, strategic leadership, and competitive dynamics. Methodologically, the field has shifted from case studies to empirical research, with econometric tools and large data sets. The pendulum has swung between internal and external perspectives, with a current emphasis on RBV and strategic groups. Future directions include integrating theories and methodologies to enhance understanding of strategic management. The field has grown from a capstone course to a respected academic discipline, with ongoing research on competitive dynamics, strategic groups, and the role of firm resources. Theoretical and methodological advancements continue to shape the field, emphasizing the importance of firm-level analysis and empirical research.