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Texas Tech Professor Theories On Competition Receive Wide Recognition

Texas Business reports:  LUBBOCK—As economies struggle worldwide - including here in the United States - one Texas Tech University professor may have the answer.

Others think so, too. Author and Texas Tech University Rawls College of Business Professor Shelby D. Hunt, recently garnered the prestigious Journal of the Academy of Marketing Science Sheth Foundation Best Paper Award for 2011. He will receive the award during the Academy of Marketing Sciences annual conference in New Orleans later this month.

His paper, "Sustainable marketing, equity, and economic growth: a resource-advantage, economic freedom approach," may be tough to understand for the non-academic.

However, when broken down into everyday language, Hunt's pathbreaking - and sometimes controversial - way of looking at market sustainability is one he says could help many struggling economies.

When it comes to sustainable economic development, there are two theories of economic growth, Hunt said. The "static" approach is that economic growth comes by first increasing society's investment in new plants and equipment.

"My dynamic theory of competition, on the other hand, maintains that most growth results from the process of dynamic competition, rather than from increasing investment," he said. "By policies that encourage the process of competition, societies experience economic growth, which then results in increases in investment. In the past, much public policy has been based on the 'static' view that investment causes economic growth- and that's simply not so."

Hunt's 30-plus page paper goes on to explain exactly how and why his theory has been supported by studies of economic growth over many decades.

In addition to his award-winning academic article writing - which spans more than 25 years at the Rawls College of Business alone - Hunt also is author of the book A General Theory of Competition, in which he discusses at length his theory of competition, which is called "resource-advantage theory."

In the book, Hunt draws on economics, management, marketing and sociology to articulate resource-advantage theory. Hunt proceeds to illustrate how and why his theory may be used to explain and predict a wide range of economic phenomena much better than the "static" approach.