This chapter reviews recent advances in the NK modeling literature conceptualizing organizational change and innovation as a search over a complex landscape. It discusses both strengths and limitations of this perspective and delineates potential for future research directions. The key argument...

Extant work in strategic management has focused on the role of various legal levers when managing human capital. Companies use such levers to improve employee retention and prevent leakage of knowledge to rivals. Specifically, noncompete agreements (NCAs), contracts that prevent employees from...

Problemistic search theory, with its roots in the Carnegie School tradition, describes a behaviorally plausible process by which firms learn from performance feedback. A firm's recognition of performance below aspirations leads to search for a solution to the problem, resulting in change...

This paper develops a realistic real option theory of resource allocation decisions in strategic factor markets. Competitive advantage in factor markets is underpinned by market failures that allow firms to acquire assets at less than their value in use. We recognize that market failure may...

We develop a behavioral theory of real options that relaxes the informational and behavioral assumptions underlying applications of financial options theory to real assets. To do so, we augment real option theory's focus on uncertain future asset values (prospective uncertainty) with feedback...

Empirical evidence suggests that entrepreneurs make mistakes: too many enter markets and, once there, persist too long. While scholars have largely settled on behavioral bias as the cause, we suggest that this consensus is premature. These mistakes may also arise from a process in which...