Capitalism, Cronyism, and Management Scholarship: A Call for Clarity

47 Pages Posted: 22 Mar 2021

See all articles by Peter G. Klein

Peter G. Klein

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

R. Michael Holmes

Florida State University - Department of Management

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation

Siri Terjesen

Florida Atlantic University

Justin Pepe

Florida State University - Department of Management

Date Written: March 3, 2021

Abstract

Capitalism, characterized by private ownership, coordination through markets, and decentralization, is blamed for a variety of economic, environmental, and social ills. These critiques often confuse capitalism with cronyism, a system of government favoritism toward particular firms. We show how this confusion harms management research, teaching, and practice.

Keywords: capitalism, cronyism, influence activities, rent-seeking, social responsibility

JEL Classification: D71, M14, L50

Suggested Citation

Klein, Peter G. and Holmes, R. Michael and Foss, Nicolai J. and Terjesen, Siri and Pepe, Justin, Capitalism, Cronyism, and Management Scholarship: A Call for Clarity (March 3, 2021). Available at SSRN: https://ssrn.com/abstract=3797259 or http://dx.doi.org/10.2139/ssrn.3797259

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

R. Michael Holmes

Florida State University - Department of Management ( email )

United States

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation ( email )

Kilen
Frederiksberg, 2000
Denmark

Siri Terjesen

Florida Atlantic University ( email )

Boca Raton, FL 33431
United States

Justin Pepe

Florida State University - Department of Management ( email )

United States

HOME PAGE: http://https://business.fsu.edu/person/justin-pepe

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