Path 1: Fully Incorporating Separat

Path 1: Fully Incorporating Separating EquilibriumThe strategy field appears to be missing out on the opportunity to examine important and interesting research questions by not using signalling theory as Spence intended it to be used. Following Spence’s model more rigorously could be useful for explaining selection decisions in strategic management. For example, incorporation of separating equilibrium into applications of signalling theory could be used to inform how executives decide among potential joint venture partners, multiple acquisition targets, and various greenfield markets that a firm could enter.