The development of strategic management over the past two decades has been dramatic, evolving from a more applied area, often referred to as business policy, to a strongly theory-based field with substantial empirical research. Early works by Chandler (1962) and Ansoff (1965) laid the groundwork with a focus on the fit between strategy and structure and internal strengths and weaknesses. The industrial organization (IO) economics, particularly the work of Michael Porter, significantly influenced the field with its structure-conduct-performance framework and the concept of strategic groups. IO economics brought econometric tools to strategic management research, and the organizational economics perspective contributed transaction costs economics and agency theory. The resource-based view (RBV) of the firm, introduced in the 1980s, emphasized firms' internal strengths and weaknesses relative to external opportunities and threats. Recent research has combined quantitative and qualitative methods, and the field is moving towards more qualitative approaches to study firms' distinctive resources. The evolution of strategic management can be likened to a pendulum swing, with early focus on internal firm characteristics, a swing towards IO economics, and a recent swing back to internal firm characteristics. The field's future directions include continued development of theoretical frameworks and methodologies to address the dynamic nature of business competition.The development of strategic management over the past two decades has been dramatic, evolving from a more applied area, often referred to as business policy, to a strongly theory-based field with substantial empirical research. Early works by Chandler (1962) and Ansoff (1965) laid the groundwork with a focus on the fit between strategy and structure and internal strengths and weaknesses. The industrial organization (IO) economics, particularly the work of Michael Porter, significantly influenced the field with its structure-conduct-performance framework and the concept of strategic groups. IO economics brought econometric tools to strategic management research, and the organizational economics perspective contributed transaction costs economics and agency theory. The resource-based view (RBV) of the firm, introduced in the 1980s, emphasized firms' internal strengths and weaknesses relative to external opportunities and threats. Recent research has combined quantitative and qualitative methods, and the field is moving towards more qualitative approaches to study firms' distinctive resources. The evolution of strategic management can be likened to a pendulum swing, with early focus on internal firm characteristics, a swing towards IO economics, and a recent swing back to internal firm characteristics. The field's future directions include continued development of theoretical frameworks and methodologies to address the dynamic nature of business competition.