IDEAS home Printed from https://ideas.repec.org/a/inm/ororsc/v18y2007i3p523-536.html
   My bibliography  Save this article

Perspective---Neo-Carnegie: The Carnegie School’s Past, Present, and Reconstructing for the Future

Author

Listed:
  • Giovanni Gavetti

    (Harvard Business School, Harvard University, Boston, Massachusetts 02163)

  • Daniel Levinthal

    (Wharton School, University of Pennsylvania, 2000 Steinberg--Dietrich Hall, Philadelphia, Pennsylvania 19104-6370)

  • William Ocasio

    (Kellogg School, Northwestern University, Evanston, Illinois 60208)

Abstract

Cyert and March’s (1963) A Behavioral Theory of the Firm and the broader Carnegie School form critical theoretical underpinnings for modern organization studies. Despite its impact, however, we suggest that researchers who rely on the Carnegie School have progressively lost touch with its defining commitment to a decision-centered view of organizations. Decision making has given way to learning, routines, and an increased focus on change and adaptation; the organizational level of analysis, although frequently invoked, has been largely supplanted by either a more micro or a more macro focus. In this paper, we argue for restoring the School’s original mission and perspective. Our proposal for how this overarching goal can be achieved encompasses three central points. First, we believe the School needs to resurrect a few select ideas that, despite their fundamental importance, have been neglected over time. Second, we believe there is a need for greater paradigmatic closure amongst the School’s central theoretical pillars. Loose coupling among such pillars might keep key insights on organizational decision making from emerging. Finally, there is the need to incorporate major developments that have been generated post-Carnegie School, both within organization theory and in the behavioral and social sciences more broadly. In particular, we point to the shift to more open systems perspectives on organizations, the conceptions of organizations being embedded in larger social contexts, and recent developments in the study of individual cognition.

Suggested Citation

  • Giovanni Gavetti & Daniel Levinthal & William Ocasio, 2007. "Perspective---Neo-Carnegie: The Carnegie School’s Past, Present, and Reconstructing for the Future," Organization Science, INFORMS, vol. 18(3), pages 523-536, June.
  • Handle: RePEc:inm:ororsc:v:18:y:2007:i:3:p:523-536
    DOI: 10.1287/orsc.1070.0277
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/orsc.1070.0277
    Download Restriction: no

    File URL: https://libkey.io/10.1287/orsc.1070.0277?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-864, October.
    2. Jan W. Rivkin & Nicolaj Siggelkow, 2003. "Balancing Search and Stability: Interdependencies Among Elements of Organizational Design," Management Science, INFORMS, vol. 49(3), pages 290-311, March.
    3. Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 69(1), pages 99-118.
    4. Giovanni Gavetti, 2005. "Cognition and Hierarchy: Rethinking the Microfoundations of Capabilities’ Development," Organization Science, INFORMS, vol. 16(6), pages 599-617, December.
    5. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    6. Padgett, John F., 1980. "Bounded Rationality in Budgetary Research," American Political Science Review, Cambridge University Press, vol. 74(2), pages 354-372, June.
    7. Daniel A. Levinthal, 1997. "Adaptation on Rugged Landscapes," Management Science, INFORMS, vol. 43(7), pages 934-950, July.
    8. Fama, Eugene F, 1980. "Agency Problems and the Theory of the Firm," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 288-307, April.
    9. Bengt Holmstrom, 1979. "Moral Hazard and Observability," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 74-91, Spring.
    10. Levin, Irwin P. & Schneider, Sandra L. & Gaeth, Gary J., 1998. "All Frames Are Not Created Equal: A Typology and Critical Analysis of Framing Effects," Organizational Behavior and Human Decision Processes, Elsevier, vol. 76(2), pages 149-188, November.
    11. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    12. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    13. HOLMSTROM, Bengt, 1979. "Moral hazard and observability," LIDAM Reprints CORE 379, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    14. Bandura, Albert, 1991. "Social cognitive theory of self-regulation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 248-287, December.
    15. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    16. Henrich R. Greve, 2002. "Sticky Aspirations: Organizational Time Perspective and Competitiveness," Organization Science, INFORMS, vol. 13(1), pages 1-17, February.
    17. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    18. Giovanni Gavetti & Jan W. Rivkin, 2007. "On the Origin of Strategy: Action and Cognition over Time," Organization Science, INFORMS, vol. 18(3), pages 420-439, June.
    19. Augier, Mie, 2001. "Sublime Simon: The consistent vision of economic psychology's Nobel laureate," Journal of Economic Psychology, Elsevier, vol. 22(3), pages 307-334, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephan Billinger & Kannan Srikanth & Nils Stieglitz & Terry R. Schumacher, 2021. "Exploration and exploitation in complex search tasks: How feedback influences whether and where human agents search," Strategic Management Journal, Wiley Blackwell, vol. 42(2), pages 361-385, February.
    2. Carl Joachim Kock, 2005. "When the Market Misleads: Stock Prices, Firm Behavior, and Industry Evolution," Organization Science, INFORMS, vol. 16(6), pages 637-660, December.
    3. Sangyoon Yi & Thorbjørn Knudsen & Markus C. Becker, 2016. "Inertia in Routines: A Hidden Source of Organizational Variation," Organization Science, INFORMS, vol. 27(3), pages 782-800, June.
    4. Oliver Baumann, 2015. "Models of complex adaptive systems in strategy and organization research," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 14(2), pages 169-183, November.
    5. Giovanni Gavetti, 2012. "PERSPECTIVE—Toward a Behavioral Theory of Strategy," Organization Science, INFORMS, vol. 23(1), pages 267-285, February.
    6. Michael J. Leiblein & Jeffrey J. Reuer & Todd Zenger, 2018. "What Makes a Decision Strategic?," Strategy Science, INFORMS, vol. 3(4), pages 558-573, December.
    7. Mikko Ketokivi & Joseph T. Mahoney, 2020. "Transaction Cost Economics As a Theory of Supply Chain Efficiency," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 1011-1031, April.
    8. Manuel Portugal Ferreira & Sungu Armagan & Dan Li, 2007. "Vertical Integration For Full Outsourcing: Growth And Internationalization Of A Portuguese Packaging Firm," Working Papers 4, globADVANTAGE, Polytechnic Institute of Leiria.
    9. Alessandro Marino & Paolo Aversa & Luiz Mesquita & Jaideep Anand, 2015. "Driving Performance via Exploration in Changing Environments: Evidence from Formula One Racing," Organization Science, INFORMS, vol. 26(4), pages 1079-1100, August.
    10. Arne Nygaard & Ingunn Myrtveit, 2000. "Moral hazard, competition and contract design: empirical evidence from managerial, franchised and entrepreneurial businesses in Norway," Applied Economics, Taylor & Francis Journals, vol. 32(3), pages 349-356.
    11. Inseong Song & Jonghoon Bae, 2016. "Politics, strong institution and competitive advantage: an examination of organizational aspiration for competition," Computational and Mathematical Organization Theory, Springer, vol. 22(4), pages 412-443, December.
    12. Justin Tan & Yong Zeng, 2009. "A stage-dependent model of resource utilization, strategic flexibility, and implications for performance over time: Empirical evidence from a transitional environment," Asia Pacific Journal of Management, Springer, vol. 26(3), pages 563-588, September.
    13. Yuan, Chun & Xue, Doudou & He, Xin, 2021. "A balancing strategy for ambidextrous learning, dynamic capabilities, and business model design, the opposite moderating effects of environmental dynamism," Technovation, Elsevier, vol. 103(C).
    14. Kidwell, Roland E. & Nygaard, Arne & Silkoset, Ragnhild, 2007. "Antecedents and effects of free riding in the franchisor-franchisee relationship," Journal of Business Venturing, Elsevier, vol. 22(4), pages 522-544, July.
    15. Helmut M. Dietl & Markus Lang & Eric Lucas & Dirk Martignoni, 2012. "Learning Through Inaccurate Replication," Working Papers 312, University of Zurich, Department of Business Administration (IBW).
    16. Stacey Beaumont & Raluca Ratiu & David Reeb & Glenn Boyle & Philip Brown & Alexander Szimayer & Raymond Silva Rosa & David Hillier & Patrick McColgan & Athanasios Tsekeris & Bryan Howieson & Zoltan Ma, 2016. "Comments on Shan and Walter: ‘Towards a Set of Design Principles for Executive Compensation Contracts’," Abacus, Accounting Foundation, University of Sydney, vol. 52(4), pages 685-771, December.
    17. Eduard Marinov, 2016. "The 2016 Nobel Prize in Economics," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 97-149.
    18. Piaskowska, D., 2005. "Essays on firm growth and value creation," Other publications TiSEM 89053610-79c6-4c52-9d1c-6, Tilburg University, School of Economics and Management.
    19. Merchant, Kenneth A. & Van der Stede, Wim A. & Zheng, Liu, 2003. "Disciplinary constraints on the advancement of knowledge: the case of organizational incentive systems," Accounting, Organizations and Society, Elsevier, vol. 28(2-3), pages 251-286.
    20. Stephan Billinger & Nils Stieglitz & Terry R. Schumacher, 2014. "Search on Rugged Landscapes: An Experimental Study," Organization Science, INFORMS, vol. 25(1), pages 93-108, February.

    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:inm:ororsc:v:18:y:2007:i:3:p:523-536. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.