This paper discusses methodological individualism and the perceived "need" for microfoundations in economic theory. It argues that the persistent focus on microfoundations has led a large part of the field to overlook the complexity of social interactions, the relevance of historical processes,...

This paper develops a model to explain recent trends of work intensification and employee burnout. In an organization a manager assigns tasks to an employee; doing tasks is costly and too many create burnout. In a matrix-style organization, different managers simultaneously assign tasks to an...

Social learning (SL) is a behavioral model in which expectations and the resulting aggregate dynamics stem from the interactions of a large amount of heterogeneous agents. Nonetheless, this framework has so far lacked micro-foundations and a general-solution method. This paper bridges these two...

An enormous number of firms fail to deliver economically profitable growth in output even though they may have strong managerial teams and adequate capital. In this paper, we provide new empirical evidence to demonstrate a few fundamental factors that can account for the ability of a firm to...

Change necessitates companies to alter their established routines. But how flexible are routines, and how can they be changed? Research has given very different answers to this question. While some researchers see routines as rigid and opposed to change, others see them as flexible and a source...

This paper aims to integrate the money market into the structure of the economy. The microfoundation is the starting point to define the money market and the general equilibrium mechanism of the economy. On this basis, this research seeks a linking mechanism of the money market with economic...

Most large organizations face challenges when trying to effectively introduce new operational practices that substitute existing ones. We study how the social dynamics due to social comparisons between employees gives rise to individual strategic considerations, and eventually shapes the...

This paper is an attempt to understand Robert E. Lucas’s microfounded models of the 1960-70s as results of a structuralist project. It is argued that the way Lucas derived macroeconomic outcomes from the decisions of market agents is in line with the basic tenet of the semirealist version of...

Uncertainty rises sharply during economic downturns at both the micro and macro level. Leveraging a new solution method, I study the interaction between micro and macro uncertainty in a globally solved Heterogeneous Agent New Keynesian (HANK) model with aggregate risk, counter-cyclical...

Marketing agility has emerged as an important construct in research for enabling marketing managers to thrive in dynamic markets. So far, however, marketing research has not provided sufficient guidance on how to develop marketing agility. Drawing on the dynamic capabilities view, this study...

Existing research on ecosystems is overly descriptive and structural. While description and structure are important, in this essay we argue for a microanalytic and firm-specific approach to ecosystems. We focus on the “hypothesis-led” firm—the role that a firm-specific hypothesis plays in...

We relax the strong rationality assumption for the agents in the paradigmatic Kyle model of price formation, thereby reconciling the framework of asymmetrically informed traders with the Adaptive Market Hypothesis, where agents use inductive rather than deductive reasoning. Building on these...