behavioral theory of the firm
E447611
The behavioral theory of the firm is an organizational and economic framework that explains how companies actually make decisions based on bounded rationality, routines, and internal politics rather than purely profit-maximizing optimization.
All labels observed (2)
| Label | Occurrences |
|---|---|
| behavioral theory of the firm canonical | 2 |
| A Behavioral Theory of the Firm | 1 |
Statements (50)
| Predicate | Object |
|---|---|
| instanceOf |
decision-making theory
ⓘ
economic theory ⓘ organizational theory ⓘ theory of the firm ⓘ |
| articulatedIn | book "A Behavioral Theory of the Firm" NERFINISHED ⓘ |
| assumes |
decision-makers have limited cognitive capacity
ⓘ
firms are coalitions of participants ⓘ firms satisfice rather than optimize ⓘ participants have multiple, sometimes conflicting goals ⓘ rules and routines guide behavior ⓘ search is local and incremental ⓘ |
| basedOn | bounded rationality concept of Herbert A. Simon ⓘ |
| contrastsWith |
neoclassical profit-maximization model
ⓘ
perfect rationality assumption ⓘ |
| developedBy |
James G. March
NERFINISHED
ⓘ
Richard M. Cyert NERFINISHED ⓘ |
| explains |
how firms adapt to environmental change
ⓘ
how firms make investment decisions ⓘ how firms set output levels ⓘ how firms set prices ⓘ how internal conflicts affect decisions ⓘ |
| focusesOn |
aspiration levels
ⓘ
bounded rationality ⓘ coalition formation within firms ⓘ conflict of goals within firms ⓘ limited information processing ⓘ organizational learning ⓘ organizational politics ⓘ organizational routines ⓘ organizational slack ⓘ problemistic search ⓘ satisficing behavior ⓘ search triggered by performance shortfalls ⓘ sequential decision-making ⓘ standard operating procedures ⓘ subunit bargaining ⓘ |
| influenced |
evolutionary theory of the firm
ⓘ
organizational learning theories ⓘ strategy process research ⓘ theories of organizational routines ⓘ |
| influencedBy | Herbert A. Simon NERFINISHED ⓘ |
| introducesConcept |
aspiration levels based on past performance
ⓘ
organizational slack as buffer ⓘ problemistic search triggered by poor performance ⓘ |
| publicationYear | 1963 ⓘ |
| publishedBy | Prentice-Hall NERFINISHED ⓘ |
| usedIn |
decision-making research
ⓘ
organizational behavior research ⓘ organizational economics ⓘ strategic management research ⓘ |
Referenced by (3)
Full triples — surface form annotated when it differs from this entity's canonical label.
this entity surface form:
A Behavioral Theory of the Firm