David Maslach

The first 50 years and the next 50 years of A Behavioral Theory of the Firm : an interview with James G. March

To celebrate the 50th anniversary of the 1963 publication of A Behavioral Theory of the Firm (BTF) by Richard Cyert and James G. March, we interviewed Professor James G. March. The purpose of this article is to disseminate the full text of that interview.

The Quick-Fix Effect: Understanding the Role of Mean Time between Failures on the Related Reliability of Subsequent New Products

Much evidence documents the high failure rates of new product introductions. Some of these product failures can provide opportunities for learning and improvement of subsequent products. In this study, we examine the role of mean time between product failures and their influence on subsequent product introductions and their related reliability. Our panel data analysis of 136 firms from 1998 to 2012 in the medical devices industry provides evidence of myopia in learning from failures that happen too close-in-time. There are two parts to what we call the quick-fix effect in new product development. First, firms have a greater probability of introducing a new product when they experience a low mean time between product failures (MTBF) than a high MTBF. However, there is also a greater probability of introducing a new product when the MTBF reaches a certain inflection point. Second, the related reliability of future new product development activities is contingent on this past MTBF. We believe the findings suggest that fast innovation and short-cycle times in product development can lead to chronic quality and operational problems if firms do not afford enough time to fix the underlying causes to the failures.

The Robust Beauty of “Little Ideas”: The Past and Future of A Behavioral Theory of the Firm

This introductory and the following nine articles reflect comments made by panelists during a symposium honoring A Behavioral Theory of the Firm by Richard Cyert and James G. March at the 2013 Academy of Management meeting. Not surprisingly, what emerged from these comments is that the Behavioral Theory of the Firm (BTF) was enormously influential to the creation of many “little ideas” that have a big impact on a number of social sciences. More surprising is the potential for many new “little ideas” that build on the BTF. The panelists detail what these new “little ideas” may be in future research.

The Effects of Software and Service Orientations on Sales Productivity in Canadian Software Companies from 1993 to 2011

Software development can be viewed as manufacturing a knowledge-intensive tool. Managers of software companies can either specialize in developing underlying software technologies or specialize in developing services that support software technologies. We explore the revenue generated by product and service orientations in public and private Canadian software firms from 1993-2011. Our analysis finds that service orientation contributes significantly more to service sales productivity than product orientation contributes to software sales productivity. The analysis implies that software firms should strengthen service-oriented capabilities, however we discuss that managers may find specialization in services difficult to do.