Behavioral theory of the firm: hopes for the past; lessons from the future

Abstract

This paper is a discussion of “behavioral theory of the firm”. It focuses on understanding aspects of the pre-history, the context, the reception and the evolution of some of the main ideas found in “behavioral theory of the firm” and in the key works associated with it (in particular the books “Organizations” and “A Behavioral Theory of the Firm”). I discuss the reception of these works, using both reviews and bibliometric illustrations. Unlike many modern contributors to organizational literature, Cyert and March (and Simon) made a point of doing interdisciplinary work engaging directly with “the disciplines” (engaging the audiences and disciplines of economics, sociology, political science and psychology), not just focusing on making contributions between them. That legacy – communicating and contributing to the disciplines not just between them – is often overlooked in other celebrations of behavioral theory ideas that often discuss specific developments within the field of organization studies itself.