This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Download to citation manager Citing Articles Citing Articles via HighWire Citing Articles via Google Scholar Google Scholar Articles by Dosi, G. Articles by Marengo, L. Search for Related Content

Perspective—On the Evolutionary and Behavioral Theories of Organizations: A Tentative Roadmap

LEM, St. Anna School of Advanced Studies, P.za Martiri della Libertà, 33-56127 Pisa, Italy
LEM, St. Anna School of Advanced Studies, P.za Martiri della Libertà, 33, 56127 Pisa, Italy
g.dosi{at}sssup.it
l.marengo{at}sssup.it

Cyert and March’s A Behavioral Theory of the Firm has been acknowledged as one of the most fundamental pillars on which evolutionary theorizing in economics is built. Nelson and Winter’s 1982 book is pervaded by the philosophy and concepts previously developed by Cyert, March, and Simon. Behavioral notions, such as bounded rationality are also at the heart of economic theories of institutions such as transaction costs economics. In this paper, after briefly reviewing the basic concepts of evolutionary economics, we discuss its implications for the theory of organizations (and business firms in particular), and we suggest that evolutionary theory should coherently embrace an "embeddedness" view of organizations, whereby the latter are not simply efficient solutions to informational problems arising from contract incompleteness and uncertainty, but also shape the "visions of the world," interaction networks, behavioral patterns, and the identity of the agents. After outlining the basic features of this perspective, we analyze its consequences and empirical relevance.

Key Words: evolutionary theory; behavioral theory; embeddedness

This article has been cited by other articles:

				L. Argote and H. R. Greve A Behavioral Theory of the Firm--40 Years and Counting: Introduction and Impact Organization Science, May 1, 2007; 18(3): 337 - 349. [Abstract] [PDF]