One of the most puzzling facts in economics is the firm size-wage effect. After controlling for the observable characteristics of workers (age, gender, education, residence etc.), firms (industry, occupation, work conditions etc.) and negotiation effect (unionization), one still finds that the...

The behavioral theory of the firm and prospect theory predict that performance below an aspiration level increases risk taking, but researchers also propose that performance below an aspiration level decreases risk taking. These conflicting predictions primarily hinge on whether decision makers...

Recent work on multiunit-multimarket (MUMM) firms has shown that the market entry behavior of these firms is influenced by learning processes and by opportunities for reduced competition with firms that have a high degree of multimarket contact. There is still uncertainty as to the prominence of...

In this study, we examine how the characteristics of clique structures affect the performance of firms embedded within the cliques. Although it is generally accepted in organization theory and strategic management that firms are embedded within ego and overarching industry networks that each...

A central theoretical problem in organizational evolution is how organizations acquire new capabilities. Organizational exploitation of current capabilities often reduces exploration of new capabilities, resulting in a short-term bias in organizational adaptation (March, 1991). In addition,...

Event-history analysis of the diffusion of practices in a social system can show how actors are influenced by each other as well as by their own characteristics. The presumption that complete data on the entire population are essential to draw valid inferences about diffusion processes has been...

This cutting-edge, multidisciplinary Handbook comprises specially commissioned contributions surveying state-of-the-art research on the concept of organizational routines. An authoritative overview of the concept of organizational routines and its contributions to our understanding of...

Investment in production assets is a strategic decision that results from organizational search and risk taking. The behavioral theory of the firm predicts that performance below the aspiration level and slack resources initiate organizational search. Risk theory predicts that performance below...