Duck turns into rabbit: Paradigm shifts in economics – Challenges for the 21st century manager

Abstract

The essay aims to draw attention to the subject of changing paradigms in economics and management sciences. Conceptionally, paradigm shifts in social sciences differ from those in natural sciences; resulting in debates over fundamental claims and counter¬claims they oppose to one single prevailing theory. Furthermore, economic paradigm shifts are driven by long waves or technological cycles. The 21st century management should be aware that paradigms will determine strategic choices but at the same time strategic choices are likely to create new paradigms and hence they will drive paradigm shifts. For the application of theory in practice, two frameworks of recent trends that are likely to promote paradigm shifts will be discussed. Moreover, new challenges such as the network economy, the role of culture and the empowerment of employees will be addressed as promising avenues for future research.