Engaging with the Plurality of Economics for Integrated Strategic Thinking

Strategy-making is significantly influenced by insights from economics, which encompasses two main perspectives: ‘Neoclassical Economics’ and ‘Institutional Theory’. Neoclassical economics focuses on concepts like individualism, profit maximisation, and operational efficiency, prioritising resource management and competitiveness. However, this short-term focus can lead to ethical dilemmas and neglect of broader societal goals. In contrast, institutional theory emphasises the impact of societal norms, rules, and cultural expectations on economic behaviour. By integrating this perspective, strategic thinkers can better navigate regulatory changes and align with societal expectations, fostering innovation and resilience in dynamic environments. Ultimately, blending neoclassical economics with institutional theory allows for balanced decision-making that prioritises both operational efficiency and ethical considerations, providing valuable insights for strategic thinkers.