Leading Change Essay

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This page intentionally left blank Organizational Learning from Performance Feedback A Behavioral Perspective on Innovation and Change Revisiting Cyert and March’s classic 1963 Behavioral Theory of the Firm, Henrich Greve offers an intriguing analysis of how firms evolve in response to feedback about their own performance. Based on ideas from organizational theory, social psychology, and economics, he explains how managers set goals, evaluate performance, and determine strategic changes. Drawing on a range of recent studies, including the author’s own analysis of the Japanese shipbuilding industry, he reports on how theory fits current evidence on organizational change of risk taking, research and development expenses, innovativeness, investment in assets, and market strategy. The findings suggest that high-performing organizations quickly reduce their rates of change, but low-performing organizations only slowly increase those rates. Analysis of performance feedback is an important new direction for research and this book provides valuable insights in how organizational learning interacts with other influences on organizational behaviour such as competitive rivalry and institutional influences.         .     is Professor of Strategy at the Norwegian School of Management BI, Norway. Organizational Learning from Performance Feedback A Behavioral Perspective on Innovation and Change Henrich R. Greve    Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo Cambridge University Press The Edinburgh Building, Cambridge  , United Kingdom Published in the United States of America by Cambridge University Press, New York www.cambridge.org Information on this title: www.cambridge.org/9780521818315 © Henrich R. Greve 2003 This book is in copyright. Subject to statutory exception and to the provision of

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