Revisiting Cyert and March's classic 1963 'Behavioral Theory of the Firm', Henrich Greve offers an intriguing analysis of how firms evolve in response to feedback about their own performance. Based on ideas from organizational theory, social psychology, and economics, he explains how managers set goals, evaluate performance, and determine strategic changes. Drawing on a range of studies, including the author's own analysis of the Japanese shipbuilding industry, he reports on how theory fits evidence on organizational change of risk-taking, research and development expenses, innovativeness, investment in assets, and in market strategy. The findings suggest that high-performing organizations quickly reduce their rates of change, but low-performing organizations only slowly increase those rates. Analysis of performance feedback is an important direction for research and this book provides valuable insights in how organizational learning interacts with other influences on organizational behaviour such as competitive rivalry and institutional influences.
• Draws on research into a wide range of industries • Includes more recent insights from scholarly literature • Important for management - top managers would benefit from reading it!
List of figures; List of tables; Acknowledgements; 1. Introduction; 2. Foundations; 3. Model; 4. Applications; 5. Advanced topics; 6. Conclusion; References; Index.
'… an extraordinarily impressive achievement and a must-read for all serious students of organizational learning, innovation, decision-making, and performance …No one can afford to overlook this remarkable volume.' Christine Oliver, Schulich School of Business, York University
'A feast for thought that every serious student of strategy and organization will consume with pleasure.' Joel Baum, University of Toronto
'… this book is going to become a standard reference for scholars interested in studying how organizations learn, innovate and change.' Zur Shapira, William Berkley Professor of Management Stern School of Business, New York University
'… an outstanding review of both the theoretical and empirical literatures that address the influence of performance on corporate behavior.' Philip Bromiley, Curtis L. Carlson Chair in Strategic Management Philip Bromley, University of Minnesota
'… a remarkably engaging and innovative accomplishment.' Hayagreeva Rao, Richard L. Thomas Distinguished Professor of Leadership and Change, Kellogg School of Management, Northwestern University