Strategic management and economics

TLDR

Economics has largely contributed through industrial organization, with new economics promising gains beyond neoclassical theory. The essay examines the relationship between strategic management and economics and identifies areas for future research. It introduces a special issue with a guide to eight papers and presents guest editors’ perspectives on cross‑disciplinary contributions. Strategic management’s contributions to economics are highlighted.

Abstract

This essay examines the relationship between strategic management and economics. It introduces the special issue on this same topic by providing a guide to the eight papers contained in the special issue, and it offers the guest editors viewpoints on the contributions of each discipline to the other. The essay notes the major contribution from economics has been primarily from the industrial organization literature, with promises of important gains to be made from the ‘new’ economics as it breaks away from the neoclassical theory of the firm. Contributions from strategic management to economics are noted. Areas for further research utilizing the relationship between strategic management and economics are also indicated.