Strategic marketing & Austrian economics: The foundations of resource-advantage theory
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Strategic marketing & Austrian economics: The foundations of resource-advantage theory Fernando Antonio Monteiro Christoph D’Andrea 1 # Springer Science+Business Media, LLC, part of Springer Nature 2019
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 ResourceAdvantage 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. Keywords Strategic marketing . Austrian school ofeconomics . Competition . Competitive
advantage . Business competition . R-A theory JEL classification D21 . M10 . M21 . M31 . L22
1 Introduction Most scholars associate the rise of capitalism with the industrial revolution; however, pre-established conditions were necessary for it to happen, among those conditions was
* Fernando Antonio Monteiro Christoph D’Andrea [email protected]
1
Escola de Administração, Universidade Federal do Rio Grande do Sul, Rua Washington Luiz, 855, Centro Histórico, Porto Alegre, RS 90010-460, Brazil
F.A.M.C. D’Andrea
a flourishing culture of commerce. Commerce in Europe was vibrant long before manufacturing started in the English isle, evidence of that is the number and diversity of studies dealing with the topic, for example, between 1470 and 1700 more than three thousand publications directed to merchants were available in central Europe (Harreld 2007); by the eighteenth century, treatises on commerce could be found in French (Cantillon 2010; Savary 1675), German (Mataja 1884; May 1762), English (Wheeler 1601), and Italian (see Sapori 1997), among other languages. Those works applied a lot of knowledge that now would be recognized as economics to better understand the business world: trade, entrepreneurship, prices, costs, industrial organization and taxation were discussed in those works. As a consequence of such an interest, and taking advantage of an already available body of knowledge able to facilitate the comprehension of the topic, the so called ‘schools of
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