IDEAS home Printed from https://ideas.repec.org/a/kap/revaec/v33y2020i4d10.1007_s11138-019-00472-x.html
   My bibliography  Save this article

Strategic marketing & Austrian economics: The foundations of resource-advantage theory

Author

Listed:
  • Fernando Antonio Monteiro Christoph D’Andrea

    (Universidade Federal do Rio Grande do Sul)

Abstract

Contrary to popular belief, marketing was not born under management, but under economics. Issues such as markets and exchanges are at the core of both disciplines even though they are studied under different lenses. The common ground makes it possible to use one approach to analyze the other. That is the goal of this paper: to show that “Austrian economics” is helpful in understanding the key phenomena of strategic marketing. The aim is to show how business schools can adopt an Austrian approach in their economics classes to facilitate students’ understanding of market dynamics. This qualitative and exploratory study analyzes a general theory of competition, the Resource-Advantage Theory, using the Austrian concepts — action, time, and knowledge — to better understand business competition and what leads companies to achieve and maintain competitive advantages. By comparing these two theoretical frameworks, the paper analyzes, in a detailed manner, each one of the R-A Theory’s premises using ideas of the Austrian School and concludes that these ideas are helpful not only for understanding the Resource-Advantage Theory, but also Strategic Marketing as a whole and that, consequently, the Austrian approach should be taught at business schools economics courses.

Suggested Citation

  • Fernando Antonio Monteiro Christoph D’Andrea, 2020. "Strategic marketing & Austrian economics: The foundations of resource-advantage theory," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 33(4), pages 481-501, December.
    • Handle: RePEc:kap:revaec:v:33:y:2020:i:4:d:10.1007_s11138-019-00472-x
    DOI: 10.1007/s11138-019-00472-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11138-019-00472-x
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11138-019-00472-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nicola Reimann, 2004. "First-year Teaching-Learning Environments in Economics," International Review of Economic Education, Economics Network, University of Bristol, vol. 3(1), pages 9-38.
    2. de Soto Jesus Huerta, 1998. "The Ongoing Methodenstreit of The Austrian School," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 8(1), pages 1-40, March.
    3. Shelby D. Hunt, 1997. "Resource-Advantage Theory: An Evolutionary Theory of Competitive Firm Behavior?," Journal of Economic Issues, Taylor & Francis Journals, vol. 31(1), pages 59-78, March.
    4. Snuggs, Elizabeth & Jevons, Colin, 2018. "Reconceptualising the scholarship of marketing education–SoME futurescapes," Australasian marketing journal, Elsevier, vol. 26(2), pages 180-186.
    5. Boettke, Peter J, 2002. "Information and Knowledge: Austrian Economics in Search of its Uniqueness," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 15(4), pages 263-274, December.
    6. Rajan Varadarajan, 2015. "Strategic marketing, marketing strategy and market strategy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(3), pages 78-90, December.
    7. Foss, Nicolai J. & Klein, Peter G., 2015. "Introduction to a forum on the judgment-based approach to entrepreneurship: accomplishments, challenges, new directions," Journal of Institutional Economics, Cambridge University Press, vol. 11(3), pages 585-599, September.
    8. Foss,Nicolai J. & Klein,Peter G., 2012. "Organizing Entrepreneurial Judgment," Cambridge Books, Cambridge University Press, number 9780521697262.
    9. Parker, Martin, 2018. "Shut Down the Business School," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780745399171, September.
    10. Mark D. Packard & Brent B. Clark & Peter G. Klein, 2017. "Uncertainty Types and Transitions in the Entrepreneurial Process," Organization Science, INFORMS, vol. 28(5), pages 840-856, October.
    11. Andrew Mearman & Aspasia Papa & Don Webber, 2014. "Why do Students Study Economics?," Economic Issues Journal Articles, Economic Issues, vol. 19(1), pages 119-147, March.
      • Andrew Mearman & Aspasia Papa & Don J. Webber, 2013. "Why do students study economics?," Working Papers 20131303, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    12. Peter Lewin, 1997. "Hayekian equilibrium and change," Journal of Economic Methodology, Taylor & Francis Journals, vol. 4(2), pages 245-266.
    13. Shelby D. Hunt, 2011. "Developing successful theories in marketing and R-A theory: Historical evolution? Other drivers? What’s important? What’s next?," AMS Review, Springer;Academy of Marketing Science, vol. 1(2), pages 95-98, June.
    14. Rajan Varadarajan, 2015. "Strategic marketing, marketing strategy and market strategy," AMS Review, Springer;Academy of Marketing Science, vol. 5(3), pages 78-90, December.
    15. repec:bpj:jeehcn:v:8:y:1998:i:1:p:75-114:n:4 is not listed on IDEAS
    16. Wroe Alderson, 2006. "The Heterogeneous Market and the Organized Behavior System," Springer Books, in: Ben Wooliscroft & Robert D. Tamilia & Stanley J. Shapiro (ed.), A Twenty-First Century Guide to Aldersonian Marketing Thought, chapter 0, pages 189-215, Springer.
    17. Hunt, Shelby D. & Duhan, Dale F., 2002. "Competition in the third millennium: efficiency or effectiveness?," Journal of Business Research, Elsevier, vol. 55(2), pages 97-102, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Packard, Mark D. & Bylund, Per L., 2021. "From homo economicus to homo agens: Toward a subjective rationality for entrepreneurship," Journal of Business Venturing, Elsevier, vol. 36(6).
    2. Vicente Moreno‐Casas & Philipp Bagus, 2022. "Dynamic efficiency and economic complexity," Economic Affairs, Wiley Blackwell, vol. 42(1), pages 115-134, February.
    3. David J. Rapp & Michael Olbrich, 2020. "On entrepreneurial decision logics under conditions of uncertainty: an attempt to advance the current debate," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-9, December.
    4. David J. Rapp, 2022. "Predictive vs. non-predictive entrepreneurial strategies: What’s the difference, anyway?," Review of Managerial Science, Springer, vol. 16(7), pages 2161-2179, October.
    5. Loïc Sauce, 2017. "Market process(es) and (un)knowledge," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(3), pages 305-321, September.
    6. Niklas Elert & Dan Johansson & Mikael Stenkula & Niklas Wykman, 2023. "The evolution of owner-entrepreneurs’ taxation: five tax regimes over a 160-year period," Journal of Evolutionary Economics, Springer, vol. 33(2), pages 517-540, April.
    7. Shelby D. Hunt, 2017. "Strategic marketing, sustainability, the triple bottom line, and resource-advantage (R-A) theory: Securing the foundations of strategic marketing theory and research," AMS Review, Springer;Academy of Marketing Science, vol. 7(1), pages 52-66, June.
    8. Elert, Niklas & Stenkula, Mikael, 2020. "Intrapreneurship: Productive, Unproductive, and Destructive," Working Paper Series 1367, Research Institute of Industrial Economics.
    9. Victor I. Espinosa & Miguel A. Alonso Neira & Jesús Huerta de Soto, 2021. "Principles of Sustainable Economic Growth and Development: A Call to Action in a Post-COVID-19 World," Sustainability, MDPI, vol. 13(23), pages 1-14, November.
    10. Victor I. Espinosa & José Antonio Peña-Ramos & Fátima Recuero-López, 2021. "The Political Economy of Rent-Seeking: Evidence from Spain’s Support Policies for Renewable Energy," Energies, MDPI, vol. 14(14), pages 1-16, July.
    11. Daniel Leunbach & Truls Erikson & Max Rapp-Ricciardi, 2020. "Muddling through Akerlofian and Knightian uncertainty: The role of sociobehavioral integration, positive affective tone, and polychronicity," Journal of International Entrepreneurship, Springer, vol. 18(2), pages 145-164, June.
    12. Mark D. Packard & Brent B. Clark & Peter G. Klein, 2017. "Uncertainty Types and Transitions in the Entrepreneurial Process," Organization Science, INFORMS, vol. 28(5), pages 840-856, October.
    13. Willem Smit, 2023. "Top Manager Heuristics Under Knightian Uncertainty: Control Versus Prediction and the Moderating Impact of Framing," Journal of Management Studies, Wiley Blackwell, vol. 60(5), pages 1302-1340, July.
    14. Marta Gancarczyk & Anna Ujwary-Gil, 2021. "Entrepreneurial cognition or judgment: The management and economics approaches to the entrepreneur's choices," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 17(1), pages 7-23.
    15. Octavian-Dragomir Jora & Matei-Alexandru Apăvăloaei & Vlad I. Roșca & Mihaela Iacob, 2020. "“Mens Sana in Sound Corporations”: A Principled Reconciliation Between Profitability and Responsibility, With a Focus on Environmental Issues," Sustainability, MDPI, vol. 12(4), pages 1-22, February.
    16. Gilbert-Saad, Antoine & Siedlok, Frank & McNaughton, Rod B., 2018. "Decision and design heuristics in the context of entrepreneurial uncertainties," Journal of Business Venturing Insights, Elsevier, vol. 9(C), pages 75-80.
    17. Nicolai J. Foss & Peter G. Klein, 2023. "Why managers still matter as applied organization (design) theory," Journal of Organization Design, Springer;Organizational Design Community, vol. 12(1), pages 7-18, June.
    18. Ehrig, Timo & Foss, Nicolai J., 2022. "Why we need normative theories of entrepreneurial learning that go beyond Bayesianism," Journal of Business Venturing Insights, Elsevier, vol. 18(C).
    19. Alexander Chepurenko, 2019. "‘Non-Routine Entrepreneurs’: Another Path of Realizing Entrepreneurial Intentions," Administrative Sciences, MDPI, vol. 9(2), pages 1-15, May.
    20. Rajan Varadarajan, 2019. "Theoretical underpinnings of research in strategic marketing: a commentary," Journal of the Academy of Marketing Science, Springer, vol. 47(1), pages 30-36, January.

    More about this item

    Keywords

    Strategic marketing; Austrian school of economics; Competition; Competitive advantage; Business competition; R-A theory;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:revaec:v:33:y:2020:i:4:d:10.1007_s11138-019-00472-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.