Theory-Based Decisions: Foundations and Introduction
Published Online:12 Dec 2024https://doi.org/10.1287/stsc.2024.intro.v9.n4
References
- (2024) Strategic experiments in non-experimental settings: Challenges of theory, inference, and persuasion in business strategy. Strategy Sci. 9(4):311–321.Google Scholar
- Agrawal A, Camuffo A, Gambardella A, Scott E, Stern S, eds. (2024) Bayesian Entrepreneurship (MIT Press, Cambridge, MA).Google Scholar
- Agarwal R, Bacco F, Camuffo A, Coali A, Gambardella A, Msangi H, Sonka ST, Temu A, Waized B, Wormald A (2023) Does a theory-of-value add value? Evidence from a randomized control trial with Tanzanian entrepreneurs. Preprint, submitted April 20, http://dx.doi.org/10.2139/ssrn.4412041.Google Scholar
- (1970) The market for lemons: Quality uncertainty and the market mechanism. Quart. J. Econom. 84(3):488–500.Crossref, Google Scholar
- Alvarez SA, Barney JB, Arikan AM, Arikan I (2024) The creation theory of entrepreneurship and lean startup frameworks: Complementary or contradictory? J. Management 50(8):3064–3079.Google Scholar
- (2016) Resource characteristics and redeployment strategies: Toward a theoretical synthesis. Resource Redeployment and Corporate Strategy (Emerald Group Publishing Limited, Bingley, UK), 155–184.Crossref, Google Scholar
- (1986) Rationality of self and others in an economic system. J. Bus. 59(4):S385–S399.Crossref, Google Scholar
- (1986) Strategic factor markets: Expectations, luck, and business strategy. Management Sci. 32(10):1231–1241.Link, Google Scholar
- Barney J (1991) Firm resources and sustained competitive advantage. J. Management 17(1):99–120.Google Scholar
- (1995) Looking inside for competitive advantage. Acad. Management Perspective 9(4):49–61.Crossref, Google Scholar
- (2016) Mindful economics: The production, consumption, and value of beliefs. J. Econom. Perspective 30(3):141–164.Crossref, Google Scholar
- (2019) Errors in probabilistic reasoning and judgment biases. Douglas Bernheim B, DellaVigna S, Laibson D, eds. Handbook of Behavioral Economics: Applications and Foundations (Elsevier, Amsterdam), 69–186.Crossref, Google Scholar
- (2016) The lemons problem in markets for strategy. Strategy Sci. 1(2):71–89.Google Scholar
- (2024) The lean startup as an actionable theory of entrepreneurship. J. Management 50(8):3012–3034.Google Scholar
- (1996) Value‐based business strategy. J. Econom. Management Strategy 5(1):5–24.Google Scholar
- (2012) Generality, recombination, and reuse. The Rate and Direction of Inventive Activity Revisited (University of Chicago Press, Chicago), 611–656.Crossref, Google Scholar
- (2022) Value capture in the face of known and unknown unknowns. Strategy Sci. 7(3):157–189.Link, Google Scholar
- (2023) Framing strategic decisions in the digital world. Strategic Management Rev. 4(2):127–160.Crossref, Google Scholar
- (2024a) Theory-driven strategic management decisions. Strategy Sci. 9(4):382–396.Link, Google Scholar
- (2020) A scientific approach to entrepreneurial decision making: Evidence from a randomized control trial. Management Sci. 66(2):564–586.Link, Google Scholar
- (2024b) A scientific approach to entrepreneurial decision‐making: Large‐scale replication and extension. Strategic Management J. 45(6):1209–1237.Crossref, Google Scholar
- (2024) Strategy theory using analogy: Rationale, tools, and examples. Strategy Sci. 9(4):483–498.Link, Google Scholar
- (2018) Mind Is Flat: The Remarkable Shallowness of the Improvising Brain (Yale University Press, New Haven, CT).Google Scholar
- (2018) Mind, rationality, and cognition: An interdisciplinary debate. Psychonomics Bull. Rev. 25:793–826.Crossref, Google Scholar
- (2019) When does advice impact startup performance? Strategic Management J. 40(3):331–356.Crossref, Google Scholar
- (2024) Theory-based entrepreneurial search. Strategy Sci. 9(4):397–415.Link, Google Scholar
- (2003) Open Innovation: The New Imperative for Creating and Profiting from Technology (Harvard Business School Publishing Company, Cambridge, MA).Google Scholar
- (2024) Scientific decision-making, project selection and longer-term outcomes. Res. Policy 53(6):105022.Crossref, Google Scholar
- (2019a) The role of accelerator designs in mitigating bounded rationality in new ventures. Admin. Sci. Quart. 64(4):810–854.Crossref, Google Scholar
- (2019b) The design of startup accelerators. Res. Policy 48(7):1781–1797.Crossref, Google Scholar
- (2024) Artificial intelligence and strategic decision-making: Evidence from entrepreneurs and investors. Strategy Sci. 9(4):322–345.Link, Google Scholar
- (2003) The economics of strategic opportunity. Strategic Management J. 24(10):977–990.Crossref, Google Scholar
- (1916) Essays in Experimental Logic (University of Chicago Press, Chicago).Crossref, Google Scholar
- (2022) Why we need normative theories of entrepreneurial learning that go beyond Bayesianism. J. Bus. Venturing Insights 18:e00335.Crossref, Google Scholar
- (2022) Theory‐based learning and experimentation: How strategists can systematically generate knowledge at the edge between the known and the unknown. Strategic Management J. 43(7):1287–1318.Crossref, Google Scholar
- (2024) Competing with theories: Using awareness and confidence to secure resources and rents. Strategy Sci. 9(4):416–432.Link, Google Scholar
- (2024) Causal reasoning and the scientific entrepreneur: Beyond Bayes. Agrawal A, Camuffo A, Gambardella A, Scott E, Stern S, eds. Bayesian Entrepreneurship (MIT Press, Cambridge, MA).Google Scholar
- (2000) Dynamic capabilities: What are they? Strategic Management J. 21(10‐11):1105–1121.Crossref, Google Scholar
- (2005) An interview with Thomas. Macroeconom. Dynamics 9(4):561–583.Crossref, Google Scholar
- (2022) Venture capital contracts. J. Financial Econom. 143(1):131–158.Crossref, Google Scholar
- (2024) Theory is all you need: AI, human cognition, and causal reasoning. Strategy Sci. 9(4):346–371.Link, Google Scholar
- (2023) Disruptive evolution: Harnessing functional excess, experimentation, and science as tool. Industry Corporate Change 32(6):1372–1392.Crossref, Google Scholar
- (2022) A generative view of rationality and growing awareness. Frontiers Psych. 13:80726.Google Scholar
- (2009) Entrepreneurs as theorists: On the origins of collective beliefs and novel strategies. Strategic Entrepreneurial J. 3(2):127–146.Crossref, Google Scholar
- (2017) The theory-based view: Economic actors as theorists. Strategy Sci. 2(4):258–271.Link, Google Scholar
- (2021) Value laboratory: A tool for entrepreneurial strategy. Management Bus. Rev. 1(2):68–76.Crossref, Google Scholar
- (2023) Resource origins and search. Strategic Management J. 44(6):1514–1533.Google Scholar
- (2024) A scientific method for startups. J. Management 50(8):3080–3104.Google Scholar
- (2004) Science as a map in technological search. Strategic Management J. 25(8‐9):909–928.Google Scholar
- Foss NJ, Klein PG, Lien LB, Zellweger T, Zenger T (2021) Ownership competence. Strategic Management J. 42(2):302–328.Google Scholar
- (2019) Behavioral inattention. Handbook of Behavioral Economics: Applications and Foundations 1, vol. 2 (North-Holland, Amsterdam), 261–343.Crossref, Google Scholar
- (2024) Design-based and theory-based approaches to strategic decisions. Organ. Sci., ePub ahead of print October 17, https://doi.org/10.1287/orsc.2023.18245.Link, Google Scholar
- Gavetti G, Levinthal D (2000) Looking forward and looking backward: Cognitive and experiential search. Admin. Sci. Quart. 45(1):113–137.Google Scholar
- (2008) Choice interactions and business strategy. Management Sci. 54(9):1638–1651.Link, Google Scholar
- Gompers P, Lerner J (2001) The venture capital revolution. J. Econom. Perspect. 15(2):145–168.Google Scholar
- (2020) How do venture capitalists make decisions? J. Financial Econom. 135(1):169–190.Crossref, Google Scholar
- (1999) The Scientist in the Crib: Minds, Brains, and How Children Learn (William Morrow & Co., Farfield, NJ).Google Scholar
- (2024) On the origin of entrepreneurial theories: How entrepreneurs craft complex causal models with theorizing and data. Strategy Sci. 9(4):461–482.Google Scholar
- (2024) Econometric causality: The central role of thought experiments. J. Econometrics 243(1–2):105719.Crossref, Google Scholar
- (2004) Inter‐temporal economies of scope, organizational modularity, and the dynamics of diversification. Strategic Management J. 25(13):1217–1232.Crossref, Google Scholar
- (2021) Venture capital booms and start-up financing. Annu. Rev. Financial Econom. 13(1):111–127.Crossref, Google Scholar
- (2003) Maps of bounded rationality: Psychology for behavioral economics. Amer. Econom. Rev. 93(5):1449–1475.Crossref, Google Scholar
- (2021) Noise: A Flaw in Human Judgment (Hachette, New York).Google Scholar
- (2009) Should investors bet on the jockey or the horse? Evidence from the evolution of firms from early business plans to public companies. J. Finance 64(1):75–115.Crossref, Google Scholar
- (1993) The Origins of Order: Self-Organization and Selection in Evolution (Oxford University Press, Oxford, UK).Crossref, Google Scholar
- (2023) Explaining Technology (Cambridge University Press, Cambridge, UK).Crossref, Google Scholar
- (2006) Open for innovation: The role of openness in explaining innovation performance among UK manufacturing firms. Strategic Management J. 27(2):131–150.Crossref, Google Scholar
- (2020) The lean startup method: Early‐stage teams and hypothesis‐based probing of business ideas. Strategic Entrepreneurial J. 14(4):570–593.Crossref, Google Scholar
- (2018) What makes a decision strategic? Strategy Sci. 3(4):558–573.Link, Google Scholar
- (2023) Venture Capital, Private Equity, and the Financing of Entrepreneurship (John Wiley & Sons, Hoboken, NJ).Google Scholar
- (2020) Venture capital’s role in financing innovation: What we know and how much we still need to learn. J. Econom. Perspective 34(3):237–261.Crossref, Google Scholar
- (1993) The myopia of learning. Strategic Management J. 14(S2):95–112.Crossref, Google Scholar
- (2024) Resource redeployment and the pursuit of the new best use: Economic logic and organizational challenges. Strategy Sci., ePub ahead of print June 21, https://doi.org/10.1287/stsc.2022.0105.Google Scholar
- (2003) A bargaining perspective on resource advantage. Strategic Management J. 24(11):1069–1086.Crossref, Google Scholar
- Litov LP, Moreton P, Zenger TR (2012) Corporate strategy, analyst coverage, and the uniqueness paradox. Management Sci. 58(10):1797–1815.Google Scholar
- (2004) How do value creation and competition determine whether a firm appropriates value? Management Sci. 50(10):1319–1333.Link, Google Scholar
- (2001) Strategic factor market intelligence: An application of information economics to strategy formulation and competitor intelligence. Management Sci. 47(12):1621–1638.Link, Google Scholar
- (2011) Invited editorial: Building a bridge between resource acquisition and resource accumulation. J. Management 37(5):1374–1389.Crossref, Google Scholar
- (2004) A knowledge-based theory of the firm—The problem-solving perspective. Organ. Sci. 15(6):617–632.Link, Google Scholar
- (2024) Making business model decisions like scientists: Strategic commitment, uncertainty, and economic performance. Strategic Management J., ePub ahead of print July 9, https://doi.org/10.1002/smj.3636.Crossref, Google Scholar
- (2018) The Book of Why: The New Science of Cause and Effect (Basic Books, New York).Google Scholar
- (2020) The origins of firm strategy: Learning by economic experimentation and strategic pivots in the early automobile industry. Strategic Management J. 41(3):369–399.Crossref, Google Scholar
- (2021) Rationality: What It Is, Why It Seems Scarce, Why It Matters (Penguin, New York).Google Scholar
- (1985) Competitive Advantage (Free Press, New York).Google Scholar
- (1991) Toward a dynamic theory of strategy. Strategic Management J. 12(S2):95–117.Crossref, Google Scholar
- (2008) Contextuality within activity systems and sustainability of competitive advantage. Acad. Management Perspect. 22(2):34–56.Crossref, Google Scholar
- (2024) The imagination advantage: Why and how strategists combine knowledge and imagination in developing theories. Strategy Sci. 9(4):499–514.Link, Google Scholar
- Rorty R (2007) Philosophy as Cultural Politics: Volume 4: Philosophical Papers (Cambridge University Press, Cambridge, UK).Google Scholar
- (2012) Good Strategy/Bad Strategy: The Difference and Why It Matters (Crown Currency, New York).Google Scholar
- (2015) Getting beyond relatedness as a driver of corporate value. Strategic Management J. 36(13):1939–1959.Crossref, Google Scholar
- (1972) The Foundations of Statistics (Courier Corporation, Chelmsford, MA).Google Scholar
- Schumpeter JA (1934) The Theory of Economic Development (Harvard University Press, Cambridge, UK).Google Scholar
- (2022) Mutable reality and unknowable future: Revealing the broader potential of pragmatism. Acad. Management Rev. 47(4):692–696.Crossref, Google Scholar
- (1972) Epistemics and Economics: A Critique of Economic Doctrines (Cambridge University Press, Cambridge, UK).Google Scholar
- (2024) Heisenberg effects in experiments on business ideas. Acad. Management Rev. Forthcoming.Crossref, Google Scholar
- (2021) The lean startup framework: Closing the academic–practitioner divide. Entrepreneurial Theory Practice 45(5):967–998.Crossref, Google Scholar
- (1955) A behavioral model of rational choice. Quart. J. Econom. 69(1):99–118.Crossref, Google Scholar
- (1956) Rational choice and the structure of the environment. Psych. Rev. 63(2):129.Google Scholar
- (1990) Invariants of human behavior. Annu. Rev. Psych. 41(1):1–20.Crossref, Google Scholar
- (2024) Theory, search, and learning. Strategy Sci. 9(4):372–381.Google Scholar
- (2016) Behavioral economics: Past, present, and future. Amer. Econom. Rev. 106(7):1577–1600.Crossref, Google Scholar
- (2024) The theory-based view and strategic pivots. Strategy Sci. 9(4):433–460.Link, Google Scholar
- (1998) Recombinant growth. Quart. J. Econom. 113(2):331–360.Crossref, Google Scholar
- (2009) Introduction to the thirtieth-anniversary edition. Philosophy and the Mirror of Nature (Princeton University Press, Princeton, NJ), xiii–xxx.Crossref, Google Scholar
- (2023) The theory‐based view: Entrepreneurial microfoundations, resources, and choices. Strategic Management J. 44(12):2922–2949.Crossref, Google Scholar
- (2022a) Entrepreneurs as scientists: A pragmatist alternative to the creation discovery debate. Acad. Management Rev. 47(4):696–699.Crossref, Google Scholar
- (2022b) Entrepreneurs as scientist, Bayesian inference, and belief revision. J. Bus. Venturing Insights. Forthcoming.Google Scholar
- (2023) Entrepreneurs as scientists: A pragmatist approach to producing value out of uncertainty. Acad. Management Rev. 48(3):379–408.Crossref, Google Scholar

