IDEAS home Printed from https://ideas.repec.org/a/bla/srbeha/v31y2014i1p77-93.html
   My bibliography  Save this article

Cognitive Time Distortion on the Performance of Economic Organizations

Author

Listed:
  • Fabian von Schèele
  • Darek M. Haftor

Abstract

This paper introduces a novel conception of an economic organization, where its Total Profit Equation accounts for the phenomenon of cognitive time distortion—this being understood as the discrepancy between physical and cognitive time. Cognitive time distortion is unconditionally inherent in all human beings and everything they do, and typically produces economic inefficiencies as well as human stress; all this may now be conceptualized, detected, and acted upon. The novel Total Profit Equation as introduced here, including its underlying Total Revenue Equation and the Total Cost Equation, echoes a call of the founders of Systems Sciences that non‐trivial systems manifest several kinds of temporal experiences. This call has largely been ignored by the various disciplines that study organizations and their management, particularly economic organizations, where the temporal experience of economic organizations is reduced to physical time. In this sense, this contribution offers an alternative to remedy that reductionism. Copyright © 2013 John Wiley & Sons, Ltd.

Suggested Citation

  • Fabian von Schèele & Darek M. Haftor, 2014. "Cognitive Time Distortion on the Performance of Economic Organizations," Systems Research and Behavioral Science, Wiley Blackwell, vol. 31(1), pages 77-93, January.
    • Handle: RePEc:bla:srbeha:v:31:y:2014:i:1:p:77-93
    DOI: 10.1002/sres.2173
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sres.2173
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sres.2173?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard A. D'Aveni & Giovanni Battista Dagnino & Ken G. Smith, 2010. "The age of temporary advantage," Strategic Management Journal, Wiley Blackwell, vol. 31(13), pages 1371-1385, December.
    2. Peter G. Klein & Michael E. Sykuta (ed.), 2010. "The Elgar Companion to Transaction Cost Economics," Books, Edward Elgar Publishing, number 4136.
    3. Oliver E. Williamson, 2002. "The Theory of the Firm as Governance Structure: From Choice to Contract," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 171-195, Summer.
    4. Barro, Robert J & Grossman, Herschel I, 1971. "A General Disequilibrium Model of Income and Employment," American Economic Review, American Economic Association, vol. 61(1), pages 82-93, March.
    5. Fred Collopy, 1996. "Biases in Retrospective Self-Reports of Time Use: An Empirical Study of Computer Users," Management Science, INFORMS, vol. 42(5), pages 758-767, May.
    6. L. A. Boland, 1978. "Time in Economics vs. Economics in Time: The 'Hayek Problem.'," Canadian Journal of Economics, Canadian Economics Association, vol. 11(2), pages 240-262, May.
    7. Klaus E. Meyer & Saul Estrin & Sumon Kumar Bhaumik & Mike W. Peng, 2009. "Institutions, resources, and entry strategies in emerging economies," Strategic Management Journal, Wiley Blackwell, vol. 30(1), pages 61-80, January.
    8. Morris A. Cohen & Jehoshua Eliasberg & Teck-Hua Ho, 1996. "New Product Development: The Performance and Time-to-Market Tradeoff," Management Science, INFORMS, vol. 42(2), pages 173-186, February.
    9. Taylor, Frederick Winslow, 1911. "The Principles of Scientific Management," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number taylor1911.
    10. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    11. Hicks, John, 1970. "Elasticity of Substitution Again: Substitutes and Complements," Oxford Economic Papers, Oxford University Press, vol. 22(3), pages 289-296, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. von Schéele, Fabian & Haftor, Darek M. & Pashkevich, Natallia, 2020. "Cognitive time as a service price determinant: Hidden dynamics and price collapse," Journal of Business Research, Elsevier, vol. 112(C), pages 248-253.
    2. von Schéele, Fabian & Haftor, Darek M., 2018. "Temporal workload in economic organizations: A hidden non-linear condition of economic efficiency," Journal of Business Research, Elsevier, vol. 88(C), pages 415-420.
    3. Pashkevich, Natallia & von Schéele, Fabian & Haftor, Darek M., 2023. "Accounting for cognitive time in activity-based costing: A technology for the management of digital economy," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Namgyoo Park & John Mezias & Jinju Lee & Jae-Hoon Han, 2014. "Reverse knowledge diffusion: Competitive dynamics and the knowledge seeking behavior of Korean high-tech firms," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 355-375, June.
    2. Gonçalo Pacheco-de-Almeida & Ashton Hawk & Bernard Yeung, 2015. "The right speed and its value," Strategic Management Journal, Wiley Blackwell, vol. 36(2), pages 159-176, February.
    3. Qun Tan & Carlos M. P. Sousa, 2019. "Why Poor Performance is Not Enough for a Foreign Exit: The Importance of Innovation Capability and International Experience," Management International Review, Springer, vol. 59(3), pages 465-498, June.
    4. Vikrant Shirodkar & Palitha Konara, 2017. "Institutional Distance and Foreign Subsidiary Performance in Emerging Markets: Moderating Effects of Ownership Strategy and Host-Country Experience," Management International Review, Springer, vol. 57(2), pages 179-207, April.
    5. Marco Bettiol & Maria Chiarvesio & Eleonora Di Maria & Raffaella Tabacco, 2016. "Luxury Firms in China: The Role of Design and Marketing Capabilities," Global Business Review, International Management Institute, vol. 17(6), pages 1269-1279, December.
    6. Jason P. Davis & Vikas A. Aggarwal, 2020. "Knowledge mobilization in the face of imitation: Microfoundations of knowledge aggregation and firm‐level innovation," Strategic Management Journal, Wiley Blackwell, vol. 41(11), pages 1983-2014, November.
    7. Pascucci, Stefano & Royer, Annie & Bijman, Jos, 2012. "To Make or to Buy: Is this the Question?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(3), pages 1-20, September.
    8. Vi Dung Ngo & Frank Janssen & Marine Falize, 2016. "An incentive-based model of international entrepreneurship in emerging and transition economies," Journal of International Entrepreneurship, Springer, vol. 14(1), pages 52-74, March.
    9. Lisa-Marie Semke & Victor Tiberius, 2020. "Corporate Foresight and Dynamic Capabilities: An Exploratory Study," Forecasting, MDPI, vol. 2(2), pages 1-14, June.
    10. Abdulrahman Al–Aali & David J. Teece, 2014. "International Entrepreneurship and the Theory of the (Long–Lived) International Firm: A Capabilities Perspective," Entrepreneurship Theory and Practice, , vol. 38(1), pages 95-116, January.
    11. Per L. Bylund, 2015. "Signifying Williamson's Contribution to the Transaction Cost Approach: An Agent-Based Simulation of Coasean Transaction Costs and Specialization," Journal of Management Studies, Wiley Blackwell, vol. 52(1), pages 148-174, January.
    12. Li, Da-yuan & Liu, Juan, 2014. "Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China," Journal of Business Research, Elsevier, vol. 67(1), pages 2793-2799.
    13. Nayak, Bishwajit & Bhattacharyya, Som Sekhar & Krishnamoorthy, Bala, 2022. "Exploring the black box of competitive advantage – An integrated bibliometric and chronological literature review approach," Journal of Business Research, Elsevier, vol. 139(C), pages 964-982.
    14. Patrizia Pastore & Antonio Ricciardi & Silvia Tommaso, 2020. "Contractual networks: an organizational model to reduce the competitive disadvantage of small and medium enterprises (SMEs) in Europe’s less developed regions. A survey in southern Italy," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1503-1535, December.
    15. Trushin, Eshref & Ugur, Mehmet, 2018. "Ecosystem complexity, firm learning and survival: UK evidence on intra-industry age and size diversity as exit hazards," Greenwich Papers in Political Economy 19095, University of Greenwich, Greenwich Political Economy Research Centre.
    16. Sarianna M. Lundan & Jiatao Li, 2019. "Adjusting to and learning from institutional diversity: Toward a capability-building perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(1), pages 36-47, February.
    17. Roberts, Nicholas & Grover, Varun, 2012. "Investigating firm's customer agility and firm performance: The importance of aligning sense and respond capabilities," Journal of Business Research, Elsevier, vol. 65(5), pages 579-585.
    18. Lin, Yini & Wu, Lei-Yu, 2014. "Exploring the role of dynamic capabilities in firm performance under the resource-based view framework," Journal of Business Research, Elsevier, vol. 67(3), pages 407-413.
    19. Sang Ho Kook & Ki Hong Kim & Chulung Lee, 2017. "Dynamic Technological Diversification and Its Impact on Firms’ Performance: An Empirical Analysis of Korean IT Firms," Sustainability, MDPI, vol. 9(7), pages 1-16, July.
    20. Claudio Giachetti, 2013. "Competitive Aggressiveness and Performance of Developed Country-Based Firms in the Chinese Emerging Economy: The Moderating Effect of Institutional Voids and Entry Mode Degree of Control," Working Papers 1, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:srbeha:v:31:y:2014:i:1:p:77-93. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1111/1092-7026 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.