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Behavioral strategy : an alternative account of superior profitability
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Fang, Christina and Liu, Chengwei (2018) Behavioral strategy : an alternative account of superior profitability. In: Augier, Mie and Fang, Christina and Rindova, Violina P., (eds.) Behavioral Strategy in Perspective. Advances in Strategic Management , 39 . Emerald Publishing Limited, pp. 209-219. ISBN 9781787563483
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Official URL: http://doi.org/10.1108/S0742-332220180000039015
Abstract
Behavioral strategy completes the analyses of superior profitability by highlighting how non-economic but behavioral barriers generate an alternative source of strategic opportunities. Existing internal and external analysis frameworks fail to explain why strategic factors can be systematically mispriced and why large firms’ structural and resource advantage are regularly disrupted by entrepreneurs. We argue that the systematic biases documented in the behavioral and organizational sciences in fact illuminate an alternative source of competitive advantage. Strategists could develop superior insights into the value of resources and recognize factors that are either under or over-valued while competitors remain blind to such possibilities. Our argument is illustrated by how three “underdogs” disrupted the incumbents in their industries by exploiting rivals’ predictable biases and blind spots. We conclude by discussing how our ideas can be generalized as an alternative, behavioral approach for strategy.
| Item Type: | Book Item | ||||||
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| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor |
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| Divisions: | Faculty of Social Sciences > Warwick Business School > Strategy & International Business Faculty of Social Sciences > Warwick Business School |
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| Library of Congress Subject Headings (LCSH): | Profit, Business planning -- Psychological aspects, Competition | ||||||
| Series Name: | Advances in Strategic Management | ||||||
| Journal or Publication Title: | Advances in Strategic Management | ||||||
| Publisher: | Emerald Publishing Limited | ||||||
| ISBN: | 9781787563483 | ||||||
| ISSN: | 0742-3322 | ||||||
| Book Title: | Behavioral Strategy in Perspective | ||||||
| Editor: | Augier, Mie and Fang, Christina and Rindova, Violina P. | ||||||
| Official Date: | 21 September 2018 | ||||||
| Dates: |
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| Volume: | 39 | ||||||
| Page Range: | pp. 209-219 | ||||||
| DOI: | 10.1108/S0742-332220180000039015 | ||||||
| Status: | Peer Reviewed | ||||||
| Publication Status: | Published | ||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||
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