The purpose of this paper is to contribute to the literature on theories of the firm and argues for the importance of an innovation-based view (IBV). In doing so, it examines the incumbent management theories of the firm, resource-based view (RBV), knowledge-based view (KBV) and dynamic capabilities, considering the recent developments in the academic literature and in the nature of the firm. The research approach of abduction (conceiving of theory) proposed by Peirce and described by Van de Ven is used. A conceptual framework that incorporates the growing influence of information and communications technology and open innovation on the characteristics of the firm is developed. The managerial tradition that originated in the scholarship of Edith Penrose is used to develop the framework, as opposed to the lens of economic 'black box' theories.