A Rational Basis for Criticisms of Organizational Economics: A Reply to Barney

Abstract

Contrary to Barney (1990) in his reply to Donaldson (1990), this article points out that the strength of criticism of organizational economics lies in part in apprehensions about its deleterious effects upon management theory. The article also argues that there is continuing reason to doubt that organizational economics readily lends itself to synthesis with traditional management theory. The issues of the narrowness of the motivational model in organizational economics and its offensiveness and the bias against systems-level analysis and against management are discussed.