AbstractNeoclassical and industrial organization economics have traditionally treated firm internal operations as a black box linking market structure to market performance. This approach is inadequate in our modern food distribution system where large firms shape markets as they are shaped by them. Given the importance of firm behavior to firm and market performance, major research is needed to develop a micro‐microeconomic theory of the firm. Research on strategic choice by firms and their use of internal organization to implement those choices is a promising approach to developing this new theor