A Behavioral Theory of the Firm.

1965 ◽  
Vol 60 (309) ◽  
pp. 378 ◽  
Author(s):  
Martin Shubik ◽  
Richard M. Cyert ◽  
James G. March
Keyword(s):  
Theory Of The Firm ◽  
Behavioral Theory

How Starting Strategy and Network Structure Shape Problemistic Search: An Examination of Venture Capital Firms

2021 ◽  
pp. 104225872110335
Author(s):  
Jake Duke ◽  
Taha Havakhor ◽  
Rachel Mui ◽  
Owen Parker
Keyword(s):  
Venture Capital ◽  
Network Structure ◽  
Theory Of The Firm ◽  
Behavioral Theory ◽  
Organizational Strategy ◽  
Search Process ◽  
Strategy Research ◽  
Structural Holes ◽  
Starting Point ◽  
Venture Capital Firms

Building on the behavioral theory of the firm, we empirically examine how starting strategies and syndication networks can influence venture capital (VC) firms’ problemistic search. We propose that: (a) depending on a VC’s strategic starting point, that is, the VC’s extent of specialization, the directionality of problemistic search may change to either expanding or contracting search activities; and (b) depending on search direction, structural holes in syndication networks can either impede or facilitate the problemistic search process. In a sample of U.S. VC firms, we find results consistent with our predictions, which have important implications for entrepreneurship and organizational strategy research.

scholarly journals Almost‐Maximization as a Behavioral Theory of the Firm: Static, Dynamic and Evolutionary Perspectives

2019 ◽  
Vol 56 (2) ◽  
pp. 237-258
Author(s):  
Huw Dixon
Keyword(s):  
Dynamic Behavior ◽  
Firm Behavior ◽  
Theory Of The Firm ◽  
Behavioral Theory ◽  
Price Rigidity ◽  
Price Setting ◽  
Term Survival ◽  
Sales Revenue ◽  
Evolutionary Perspectives

Abstract In this paper we consider the effect of epsilon maximization on firm behavior. In particular we focus on the dynamic behavior of firms with the use of the example of price‐setting: We show how almost-rational firms can be more volatile in their behavior. However, if a lexicographic preference for simplicity is made, then we can explain nominal price rigidity as a result of epsilon optimization. The behavior of the firm—which is consistent with its long‐term survival—is examined. We argue that epsilon-optimization is consistent with survival in any context in which something is optimized: such as sales revenue.

Interdisciplinary Research in SCM: Through the Lens of the Behavioral Theory of the Firm

2016 ◽  
Vol 37 (2) ◽  
pp. 107-112 ◽  
Author(s):  
Nada R. Sanders ◽  
Brian S. Fugate ◽  
Zach G. Zacharia
Keyword(s):  
Interdisciplinary Research ◽  
Theory Of The Firm ◽  
Behavioral Theory

scholarly journals Problematic search, slack search and institutional logic in corporate R&D strategy: An empirical analysis of Taiwanese electronics firms

2013 ◽  
Vol 19 (6) ◽  
pp. 659-678 ◽  
Author(s):  
Lin-Hua Lu ◽  
Shih-Chieh Fang
Keyword(s):  
Performance Feedback ◽  
Stock Exchange ◽  
Theory Of The Firm ◽  
Business Group ◽  
Behavioral Theory ◽  
Institutional Logic ◽  
Taiwan Stock Exchange ◽  
Positive Performance ◽  
Theoretical Predictions ◽  
D Investment

AbstractThis study focuses on firms’ search behavior with regard to corporate R&D investment. Building on Cyert and March's (1963) behavioral theory of the firm, we develop specific hypotheses about how firms adjust their R&D investment in response to performance discrepancies, and how this adjustment varies for two types of slack resources. Moreover, by utilizing institutional logic, we also hypothesized that the firms’ search behaviors in response to performance feedback may differ between business-group affiliated and unaffiliated firms. Empirical evidence from panel data coving 274 Taiwanese electronics firms listed on the Taiwan Stock Exchange over the period 1999–2008 is consistent with our theoretical predictions. In particular, we find that firms will increase R&D investment when they faced discrepancies in performance, but will decrease R&D spending when close to bankruptcy. Moreover, our results show that unabsorbed and absorbed slack have different impacts, positively and negatively affecting R&D investment, respectively. In addition, we find that both business group-affiliated and unaffiliated firms will increase R&D investment in response to negative performance feedback, but only business group-affiliated firms will increase R&D activity when facing positive performance feedback. Furthermore, we also find that only business group-affiliated firms have a greater inclination to invest in R&D when there is unabsorbed slack. Our findings extend the claims of behavioral theory in newly industrialized economies, and identify the important factors that need to be considered in future studies.

How Industry and Firm Specific Characteristics Moderate the Behavioral Theory of the Firm.

2015 ◽  
Vol 2015 (1) ◽  
pp. 17729
Author(s):  
Hossein MahdaviMazdeh ◽  
James R. Dewald ◽  
Oleksiy Osiyevskyy
Keyword(s):  
Theory Of The Firm ◽  
Behavioral Theory
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