Early this year, the Wall Street Journal and the Heritage Foundation announced the results of their annual survey of economic freedom. Using criteria such as market access and the protection of property rights, the survey ranked countries by the level of economic freedom they permit. Hong Kong and Singapore top the list, Switzerland and the United States are fifth, and most European countries are in the upper middle of the range.

The survey noted that the political leaders of many countries—such as those in Latin America—have chosen to move in the direction of economic freedom. Moreover, there appears to be a strong correlation between economic freedom and growth. Countries blessed with natural resources or technological progress but with little economic freedom have not prospered, and aid to nations that lack economic freedom has had little effect on growth.

Strategic freedom

As I read the survey, I wondered if I could make a similar argument for strategic freedom in the world of business. What criteria would I use to assess it? Is the private sector choosing to become more strategically free, or do we run our companies like repressed countries? Is there a correlation in the corporate world between strategic...