sajm






Value Creation in Economic Theory: Neoclassical and Ecological Approaches

Filip Lestan* and Sajal Kabiraj**

DOI: https://doi.org/10.62206/sajm.32.2.2025.7-20

Abstract

This paper explores the perspectives of neoclassical and ecological economics on value creation within firms. Neoclassical economics, grounded in utility maximization and market efficiency, emphasizes monetary gains, competition, and shareholder value. In contrast, ecological economics prioritizes sustainability, resilience, and stakeholder engagement, integrating environmental and social dimensions into value creation. By comparing key philosophical and theoretical underpinnings, this study highlights how each approach shapes strategic decision- making, resource allocation, and market dynamics. Drawing on the works of Popper, Kuhn, and Lakatos, the paper examines how these schools of thought influence economic paradigms and research methodologies. While neoclassical economics offers a structured, profit-driven framework, ecological economics provides a holistic perspective that considers long-term sustainability. Both approaches have limitations, necessitating a balanced integration of economic efficiency with environmental and social considerations. This research contributes to strategic management and economics by offering insights into sustainable value creation in an evolving economic landscape.

Key Words

Ecology, Economics, Neoclassicism, Philosophy of Science, Value Creation

Author Biography

Filip Lestan*
PhD Research Fellow in Strategy and Innovation, Nord University Business School, Division of Innovation and Entrepreneurship, Universitetsalléen 11, 8026 Bodø, Norway. E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Sajal Kabiraj**
Principal Lecturer of Strategy and International Business, LAB University of Applied Sciences, Faculty of Business and Hospitality Management, Mukkulankatu 19, 15101 Lahti, Finland, Yliopistonkatu 36, 53851, Lappeenranta, Finland. E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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