What I study “in common language”
Basically, it is a motivational theory of firms via which I am attempting to explain (predict) future behavior, mainly strategic activities, of a firm: change in strategies, timing of acquisitions etc.
- Behavioral theory of the firm (Cyert & March)
- Prospect theory (Kahneman & Tversky)
- Bounded rationality (Simon)
- and other streams in particular areas of interest
What is it good for?
- Managers – understanding that managers are subject to short-term reactions to feedback from attaining goals.
- Owners – for setting appropriate reward system for managers in order to promote long-term interests of their business and maximize return on investment.
- Competition – prediction of some likely competitors’ moves.
- Governments – assessment of an impact of certain policies.
Where is it applicable?
- Firm and business unit level mostly.
- However, basically my research is applicable on smaller units as well (departments, long-term teams etc.)