One of the most enduring puzzles in the strategy literature is the negative association between risk and return known as the Bowman paradox. This paper formalizes a model of strategic conduct based on the concept of strategic fit and the heterogeneity of firm strategic capabilities. This model...

Individuals are typically more likely to continue to interact with people if they have a positive impression of them. This article shows how this sequential sampling feature of impression formation can explain several biases in impression formation. The underlying mechanism is the sample bias...

Strategy is concerned with sustained interfirm profitability differences. Observations of such sustained differences are often attributed to unobserved systematic a priori differences in firm characteristics. This paper shows that sustained interfirm profitability differences may be very likely...

Organizations learn from other organizations. However, the observations available to them are typically a biased sample. The organizations that can be observed at any point in lime are the survivors of a selective process that has eliminated a large fraction of the underlying population. In...

Given that firms are distinguished by the resources they command, and that those resources must in some ultimate sense have been acquired through purchase, how could it happen that the purchase prices are sufficiently favorable to support superior profitability (Barney, 1986)? Barney sets...