My research focuses on understanding the role of disruption in shaping business decision making. I investigate the drivers and consequences of strategic choices made by individuals and organizations in response to large shocks, including financial crises, climate risk, natural disasters, economic disintegration, pandemics, and political unrest.
I believe that strategy under disruption can be more consequential for market competition and economic development than behavior under stable conditions. Large shocks can reshape how stakeholders perceive the role of companies in society, increase business renewal and innovation in strategies and processes, challenge regulations and social norms, and lead to enduring changes in risk attitudes.
Given the uncertainty and urgency that characterize large shocks, inefficient decision making and loss are often the norm, and learning is rare. In my research, I seek to understand the individual, organizational, and institutional factors that enable organizations to be more efficient in meeting the needs and demands created by disruption.
What motivates corporate philanthropy in the aftermath of large disasters? Is this behavior socially valuable? Do firms benefit? Which organizational structures help managers better navigate the behavioral factors that traditionally affect decision-making under uncertainty? What spurs innovation and entrepreneurship in the face of systemic shocks?
My work seeks to address similar questions and contribute to a better understanding of the fundamental transformation that the business community is undergoing as it grapples with disruption at the global level.
I hold a PhD in Applied Economics and Management from Wharton and degrees from the MIT and ITAM. Prior to academia, I worked with financial derivatives for two banks and with policy instruments to finance catastrophic risk for two multilateral agencies.
I am in the review boards of the Academy Management Journal and the Strategic Management Journal.
Luis Ballesteros 