... historical feedback and positive social feedback. Originality/value We contribute to the Behavioral Theory of the Firm by improving our understanding of mechanisms of feedback configurations. Specifically, we elaborate on the role of (in)consistent social feedback when firms respond to historical...

... feedback research, surprisingly, has not yet integrated generic strategy into its models. Behavioral theory of the firm Aspirations Generic strategy Performance feedback theory Social reference groups How managers interpret and learn from performance feedback affects how they adapt...

...Dmitri G. Markovitch; Jonathan O'Brien Purpose Research finds that investors initially under-react to increases in R&D intensity. The phenomenon is commonly viewed as mispricing. We draw on behavioral theory of the firm (BTF) to propose an alternative explanation that increased R&D...

....” The behavioral theory of the firm (Cyert and March, 1963) proposes that firms use prior aspirations, the performance of the focal firm and the performance of firms considered to be similar to themselves as performance benchmarks which indicate where their current and future aspiration levels should be. The study...