Several case studies have documented myopic allocation of organizational resources among capabilities that payoff in short vs. long-term. We capture a general class of organizational resource allocation problems in a simple model that exhibits the typical worse-before-better dynamics commonly believed to be responsible for persistence of myopic policies. Next we examine the endogeneity of resources and the impact of competitive pressures on the efficiency of allocation policies. Endogenous resources and competition are both shown to significantly shift the optimal allocation towards myopic policies. Short-term policies become beneficial as they strengthen the positive loop between performance, resources, and capabilities. In fact strategic selection of allocation policy in a competitive market can force the firms to allocate all the resources to the short-term capability. These results provide an alternative explanation for the persistence of myopic organizational decision-rules that does not rest on psychological and learning arguments.

This is the whole item.

Date created

• 2007 July 29-2007 August 2

Type

• Document

Processing Activity

• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

License

• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
  Contact Us for questions or additional rights.

ITEM CONTEXT

Part of

298eed5a7fe199ac661be72f3a39f134

Scope and Contents

Part of

0619e689ce89476bfd3b88323c5a9410

Scope and Contents

Part of

23d738ba88f8333bc39725f9cb5bd0b8

Scope and Contents

Collection

System Dynamic Society Records

Scope and Contents

Collecting area

• This collection is part of the University Archives