The Behavioral Foundations of Strategic Management
Published on 1. March 2005
Book
Paperback/Softback
160 pages
978-1-4051-3893-2 (ISBN)
Description
This book argues that assumptions of rationality and market equilibrium are inconsistent with rigorous strategic management research and that strategic management should adopt behavioral assumptions. The author suggests that most scholars in strategic management implicitly adopt a behavioral view by assuming firms can make better or worse decisions, and then trying to understand the characteristics of these decisions. He outlines the basics of a behavioral approach to strategic management; he examines assumptions of rationality and equilibrium and the problems they create; and he considers how a behavioral approach relates to several major strains of strategic management scholarship. Relevant methodological issues are also explored. The book as a whole argues persuasively that a behavioral perspective offers the best foundation for strategic management scholarship.
More details
Series
Language
English
Place of publication
Oxford
United Kingdom
Publishing group
John Wiley and Sons Ltd
Target group
Professional and scholarly
Illustrations
5
Dimensions
Height: 229 mm
Width: 152 mm
ISBN-13
978-1-4051-3893-2 (9781405138932)
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Schweitzer Classification
Person
Content
1. IntroductionObjectives of Strategic Management Research:What is an Explanation?Rigor in Strategy ResearchRationality and Bounded RationalitySummary of the ArgumentOutline of the book 2. Basics of A Behavioral Approach Basic Views of DecisionsBounded RationalityRoutinesAspirations and SearchAspiration LevelsSearchAlternative VariationsSlackThe Ecological or Selection ArgumentTwo Criticisms of the Bounded Rationality ViewSummary 3. A Behavioral Critique of Rationality and EquilibriumThe Behavioral Critique of RationalityRationality Assumptions are UntestableOnly Optimizers Survive - SelectionCorrectness of Assumptions Doesn't Matter because Optimization Predicts WellDoes Optimization Predict Well?Prediction is the Appropriate Test of a TheoryThe Assumptions are Close EnoughVery Weak Form Rationality?Optimization is Best!Logical Problems of Rationality and EquilibriumBounded rationality in economicsGame theoryA Lack of RigorUses of Formal ModelsSummary 4. A Behaviorist's Perspective on Current Strategy ApproachesBehavioral Traditions in StrategyNo Rules for Riches?Resource Based ViewThe RBV versus' Porter's Industry AnalysisTransactions CostsAgency TheorySummary 5. Behavioral MethodologyImportance of ProcessProcess and TestingTime Series and Endogeneity 6. Where do we go from here?Management Strategy and External StrategyCompetitionPrescriptionStatisticsBehavioral Theory of the FirmConcluding Remarks 7. References