IDEAS home Printed from https://ideas.repec.org/a/oup/indcch/v12y2003i5p1051-1076.html
   My bibliography  Save this article

Investment and the behavioral theory of the firm: evidence from shipbuilding

Author

Listed:
  • Henrich R. Greve

Abstract

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 the aspiration level increases risk tolerance. This paper integrates these theories to form a theory of problem- and slack-driven strategic change and applies it to the growth of production assets. The predictions are tested by analyzing the growth of production assets in the Japanese shipbuilding industry, yielding clear evidence that high performance causes low asset growth, but no effect of slack. Copyright 2003, Oxford University Press.

Suggested Citation

  • Henrich R. Greve, 2003. "Investment and the behavioral theory of the firm: evidence from shipbuilding," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(5), pages 1051-1076, October.
    • Handle: RePEc:oup:indcch:v:12:y:2003:i:5:p:1051-1076
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:oup:indcch:v:12:y:2003:i:5:p:1051-1076. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/icc .

    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.