Online Content

1. Mollona, Eduardo, "The Dynamics of Organizational Heuristics and Biases in Corporate Strategy"

Type:
Document
Date Created:
1996
Collection:
System Dynamic Society Records
Collecting Area:
University Archives
Collection ID:
ua435
Parent Record(s):
227da936724c4223c5a64764d3922694, ca4810593b2703dcaa087957ab13af91, and 23d738ba88f8333bc39725f9cb5bd0b8
Thumbnail Path Ss:
/downloads/34850082c?file=thumbnail
System Modified Dtsi:
2020-01-02T18:56:54Z
Description:
According to the research-based literature, essence of firm's idiosyncrasies is better investigated looking at the bundle of resources that constitutes them. According to this view, this paper examines the role of cumulated experience in influencing strategy-making process by directing selection of strategic initiatives. Moreover, this work regards it as necessary to look at the organisational and behaviuoral systems in which resources are embedded. For this reason, it places itself in the area of research, within the research-based view of the firm, recently denominated 'Competitive Organizational Behaviour' that studies the strategic consequences of behavioural and social phenomena within the firm jointly with the content of strategy and the competitive context [Barney and Zajac, 1992]. Taking this intraorganisational point of view, it is argued that firms not only cumulate experience that enhances their ability to simulation approach is used to explore the consequences of such assumption. A firm is represented that allocates funds among competing strategic initiatives using evolving routines. On one hand, the firm learns and exploits accumulated knowledge, on the other hand, it is strongly biased by past experiences. A behavioural perspective is therefore, taken in highlighting heuristics and biases in the strategy-making process. As a result, the paper (i) proposes some areas of analysis as crucial to address the paradox of taking advantage of core capabilities without being hampered by their dysfunctional flip side learning ( Leonard-Barton, 1992) (ii) investigates the suitability of system dynamics modelling to this kind of analysis.