" a bigger theoretical hole in our understanding of the politics of the firm is elsewhere. A first order empirical fact of economics is the enormous heterogeneity we see between firms in their productivity and management. Part of the reason for this is likely to be because of the difficulty of making efficiency improvements in companies that increase the size of the pie, but leave some groups worse off. The losers can block change as writers such as Cyert and March long emphasized. Since product markets are imperfectly competitive it takes a long time before such firms are driven out of business. Understanding the reasons for performance heterogeneity and its link to the political economy of the firm is a key omission."