R. M. Cyert’s research while affiliated with Carnegie Institute and other places

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Publications (10)


A Behavioral Theory of the Firm
  • Article

April 2007

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6,679 Reads

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4,568 Citations

Systems Research and Behavioral Science

R. M. Cyert

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E. A. Feigenbaum

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J. G. March

How do business organizations make decisions? What process do they follow in deciding how much to produce? And at what price? A behavioral theory of the firm is here explored. Using a specific type of duopoly, a model is written explicity as a computer program to deal with the complex theory implicit in the process by which businesses make decisions. This model highlights our need for more empirical observations of organizational decision-making.








The Role of Expectations in Business Decision Making

December 1958

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87 Reads

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89 Citations

Administrative Science Quarterly

From an extended sequence of observations of decision making in three firms, four examples of how management uses expectations in making internal investment decisions are analyzed. The analysis suggests that although expectational data are an important element, they do not enter into the decisions in quite the way anticipated by standard theories of business behavior. In particular, four characteristics of these decisions are discussed: the extent to which resource allocation reflects comparisons of marginal advantages of alternatives; the extent to which search activity is viewed as one of the competitors for internal resources and the nature of search activity in a business organization; the type of computations about alternatives that are made and used in a decision; and the interaction between expectations and personal and subunit preferences.



Citations (10)


... As such, the aspiration level is a very important reference point for evaluating a company's performance. Performance below the aspiration level can be considered negative, while performance above the aspiration level can be considered a success (Cyert & March, 1963;March & Simon, 1958). ...

Reference:

The Impact of Gender in the Context of Performance Feedback and Business Risk
A behavioral theory of the firm
  • Citing Article
  • January 1963

... Basing public policy measures solely on normative economics may be a grave error. Business firms may be operating in such a way as to negate or at least severely reduce the impact of many policy measures (Baumol & Simon, 1963;Cyert & March, 1955). If so, then policy considerations must take into account both positive and normative aspects of economics. ...

Organizational structure and pricing behavior in an oligopolistic market
  • Citing Article
  • March 1955

American Economic Review

... The theory of organizational behavior began to develop in the 1950s as a response to the weaknesses of the assumptions of neoclassical theory. Professor Simon [18] was the pioneer of the theory and Cyert and March [19] continued it. The essence of the theory lies in the analysis and interpretation of organizations as decision-making systems focusing on administrative, economic, or managerial issues that operate in an entrepreneurial environment of uncertainty and lack of information. ...

The Role of Expectations in Business Decision Making
  • Citing Article
  • December 1958

Administrative Science Quarterly

... and Dijksterhuis et al (1999) push this argument further by suggesting that being 'on the edge of chaos' encourages the emergence of new 'management logics', driven more by principles of self-organisation than of command and control. This approach moves the argument some distance from the earliest treatments of behavioural theories of the firm by the likes of Cyert and March (1963), which emphasised the role of organisational slack, and of rules of thumb, based on satisficing heuristics [Simon (1957[Simon ( , 1972], rather than emergent processes and management logics. ...

A Behavioral Theory of the Firm: Attempts to Develop a Theory of the Firm which is Based on Empirical Studies of Decision-making within the Firm.
  • Citing Article
  • March 1964

The Economic Journal

... For example, polluting enterprises need to achieve green transformation through environmental investment and green innovation to cope with ecological pollution pressure [3,4], and traditional manufacturing enterprises are in urgent need of intelligent and digital transformation to cope with the impact of the COVID-19 epidemic [5]. Notably, micro-level studies on the factors affecting enterprise transformation and upgrading primarily focus on government subsidies and credit intervention [6,7], technological innovation [8,9], environmental regulation [10], digital innovation [11], and entrepreneurial characteristics [12,13]. However, there is a lack of research to explore the role of enterprise groups' centralized allocation of decision rights in enterprise transformation and upgrading. ...

A Behavioral Theory of the Firm
  • Citing Article
  • April 2007

Systems Research and Behavioral Science

... I tillegg vil store foretak o e ha mer avansert og variert kompetanse, samt organisatorisk slakk (jf. Cyert & March, 1963), som «istandgjør en organisasjon til å håndtere internt press for tilpasning samt eksternt press for strategiendringer» (Bourgeois, 1981, s. 30). Siden store foretak er relativt ressursrike, og har organisatorisk slakk og legitimitet, er det rimelig å anta at de har vaert relativt godt rustet mot kriser, men forskning på området peker i noe ulike retninger (Amorim Varum & Rocha, 2012;Armand & Mendi, 2018). ...

A Behavioral Theory of the Finn
  • Citing Article
  • February 1964

Journal of Marketing Research

... Strategic issues with a technical component, as in this case study, create knowledge demands that may not be present in all issues. In order to assemble the requisite technical expertise, issue sellers may choose to create a coalition (Cyert & March, 1959 in support of the issue. Potential responders, in turn, are faced with the twin decisions of whether to join the coalition and whether to speak on behalf of the new coalition to advance the issue. ...

A behavioural theory of organizational objectives
  • Citing Article

... Cyert & March (1963) proponen una teoría conductual de la organización donde prevalezca la toma de decisiones sobre bases más reales y no sobre supuestos.Para este ciclo, encontramos una vertiente llamada escuela del comportamiento, la cual se sustenta desde un término para algunos, un poco extraño llamado incertidumbre; para March, la incertidumbre existe, pero esta incertidumbre se reducirá en la medida en que la información se despliegue. De ahí, se plantea la idea de un orden, en el cual se limita a que hay un mundo real, que es de conocimiento y entendido en principio, pero habrá un aspecto fundamental que es la racionalidad limitada.El concepto básico que resume a la escuela es una lógica de la consecuencia que conjetura que los objetivos sean precisos, las acciones estén ligadas a las anticipaciones de efectos futuros y las preferencias que sustenten la acción. ...

A Behavioral Study of the Firm
  • Citing Book
  • January 1963

... These games emerged in the late 1950s and were just beginning to become popular. 25 The best known one, "The Carnegie Tech Management Game" (see Cohen et al., 1960), used the detergent industry of the day to provide the raw material of economic details for its industry model. This was a "man-machine" simulation: the industrial environment (the model) was programmed on the computer and the people playing the game took the role of managers making the decisions required by the firms participating in the industry and responding to the environment; the computer acted as the calculating device that solved the individual plans according to the model of industry level activity. ...

The Carnegie Tech Management Game
  • Citing Article
  • February 1960

The Journal of Business