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Perspective---Historical Roots of the A Behavioral Theory of the Firm Model at GSIA

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  • Mie Augier

    (Stanford University, 70 Cubberley, Stanford, California 94305-3096)

  • Michael Prietula

    (Goizueta Business School, Emory University, 1300 Clifton Road, Atlanta, Georgia 30322-2710)

Abstract

Richard Cyert and James March’s (1963) A Behavioral Theory of the Firm (ABTOF) is one of the most influential works in organization science. An important element of that work was a computational model of a duopoly, which was arguably the first computational model that instantiated organizational constructs within a substantial theoretical framework. We suggest that the academic environment within which this theory and model grew was instrumental in its emergence. Furthermore, an examination of the model itself (by triangulating on the verbal descriptions, the flow charts, and the code) reveals innovative embodiments of organizational attention, organizational learning, organizational memory, routines, metaroutines, aspiration level adjustments and computational experiments. In this paper we examine the historical roots of the model---the concepts, culture, and characters at Carnegie Tech and the Graduate School of Industrial Administration (GSIA). Although causality is difficult to assess historically, we suggest the significance of a strong research-based, interdisciplinary culture at a time when innovative (and often computational) concepts and theories were emerging within the contexts of computer science, economics, and psychology.

Suggested Citation

  • Mie Augier & Michael Prietula, 2007. "Perspective---Historical Roots of the A Behavioral Theory of the Firm Model at GSIA," Organization Science, INFORMS, vol. 18(3), pages 507-522, June.
    • Handle: RePEc:inm:ororsc:v:18:y:2007:i:3:p:507-522
    DOI: 10.1287/orsc.1070.0276
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    Cited by:

    1. Mie Augier & David J. Teece, 2009. "Dynamic Capabilities and the Role of Managers in Business Strategy and Economic Performance," Organization Science, INFORMS, vol. 20(2), pages 410-421, April.
    2. William Ocasio, 2011. "Attention to Attention," Organization Science, INFORMS, vol. 22(5), pages 1286-1296, October.
    3. O’Connor, Ellen S., 2013. "New contributions from old sources: Recovering Barnard’s science and revitalizing the Carnegie School," European Management Journal, Elsevier, vol. 31(1), pages 93-103.
    4. Joseph Lampel, 2011. "Torn Between Admiration and Distrust: European Strategy Research and the American Challenge," Organization Science, INFORMS, vol. 22(6), pages 1655-1662, December.
    5. repec:hal:spmain:info:hdl:2441/5oi5d12qn3983q921gleelod94 is not listed on IDEAS
    6. Linda Argote & Henrich R. Greve, 2007. "A Behavioral Theory of the Firm ---40 Years and Counting: Introduction and Impact," Organization Science, INFORMS, vol. 18(3), pages 337-349, June.
    7. Marion Fourcade & Rakesh Khurana, 2013. "From social control to financial economics: The linked ecologies of economics and business in twentieth century America," Sciences Po publications info:hdl:2441/5oi5d12qn39, Sciences Po.
    8. Marion Fourcade & Rakesh Khurana, 2013. "From social control to financial economics," Post-Print hal-03473899, HAL.

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