Strategic Management Theory and the Financial Crisis | Organizations and Markets

Strategic Management Theory and the Financial Crisis

1 August 2009 at 9:26 am Nicolai Foss 1 comment

| Nicolai Foss |

We (well, in fact, mainly Peter) have blogged extensively on the current financial crisis. Guest blogger Benito Arruñada suggested that macroeconomists may learn something from forest management. In a recent paper Rajshree Agarwal, Jay Barney, Peter, and I suggest that macroeconomists may learn something from strategic management theory. The paper is forthcoming as a SO!apbox Essay in the November issue of Strategic Organization. Hopefully it will stir considerable controversy. Here is the abstract:

Macroeconomic theory assumes that factors of production in the economy are homogeneous and fungible. As a result, it is poorly suited for analyzing and developing policy responses to the recent financial crisis. Theories of strategic management and organization, with their emphasis on heterogeneous resources and capabilities, are better positioned. We provide examples of how macroeconomic theory may lead policies astray, and how theories of strategic management provide insight into the nature and causes of the financial crisis and the appropriate policy response.

Entry filed under: - Foss -.

The Integration of Micro and Macroeconomics from a Historical Perspective Raising the Bar: The Strategy Research Initiative

1 Comment Add your own

1. david | 20 December 2011 at 4:14 pm

Interesting….

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