Heterogeneous Resources and the Financial Crisis: Implications of Strategic Management Theory

Strategic Organization, Forthcoming

26 Pages Posted: 30 Jul 2009

See all articles by Rajshree Agarwal

Rajshree Agarwal

University of Maryland - Robert H. Smith School of Business

Jay B. Barney

Ohio State University (OSU) - Human Resource Research

Nicolai J. Foss

Bocconi University - Department of Management and Technology

Peter G. Klein

Baylor University - Hankamer School of Business; Norwegian School of Economics (NHH) - Department of Strategy and Management; Ludwig von Mises Institute

Date Written: July 28, 2009

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.

Keywords: strategic management, financial crisis, heterogeneous resources, macroeconomic policy, bailouts, resource-based view, Austrian capital theory

JEL Classification: E32, E22, E60, L16, L32, G34

Suggested Citation

Agarwal, Rajshree and Barney, Jay and Foss, Nicolai J. and Klein, Peter G., Heterogeneous Resources and the Financial Crisis: Implications of Strategic Management Theory (July 28, 2009). Strategic Organization, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1440851 or http://dx.doi.org/10.2139/ssrn.1440851

Rajshree Agarwal

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742-1815
United States

Jay Barney

Ohio State University (OSU) - Human Resource Research ( email )

700 Fisher Hall
2100 Neil Avenue
Columbus, OH 43210-1144
United States
614-688-3161 (Phone)

Nicolai J. Foss

Bocconi University - Department of Management and Technology ( email )

Via Roentgen 1
Milan, MI 20136
Italy

Peter G. Klein (Contact Author)

Baylor University - Hankamer School of Business ( email )

Waco, TX 76798
United States
254-710-4903 (Phone)

Norwegian School of Economics (NHH) - Department of Strategy and Management ( email )

Breiviksveien 40
N-5045 Bergen
Norway

Ludwig von Mises Institute ( email )

Auburn, AL
United States

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