Josep M. Rosanas

On the Methodology of Management Research

Epistemology, methodology or philosophy of science, i.e., the foundations and validity of knowledge, have never been very popular subjects as applied to management research. Lately, though, the need for better theories and the methodological discussion underlying the creation of such theories appears to be receiving more attention. In this paper, I review some basic underlying issues in the area by taking a look at some of the classical authors. I first analyze Hayeks view of methodological problems in economics and then apply his analysis to the development of management theory. Then, I elaborate on Elsters distinction between causal, functional and intentional explanations. Naive methodological attitudes are discussed in this context. I use agency theory as an example of what should and should not be done. Finally, I examine the falsification criterion in management theory and discuss the role of mathematics in the development of theory.

Bounded Rationality, Value Systems and Time-inconsistency of Preferences as Rational Foundations for the Concept of Trust

This paper intends to contribute to the (bounded rationality) foundations of trust. After reviewing the extant definitions, I establish the formal structure of situations involving trust. In that context, I examine the paradoxical situation of (calculative) trust in simple settings. Then I show how bounded rationality provides a rationale for a concept of trust that goes beyond that calculative notion. Value systems and possible inconsistency of time preferences are shown to be crucial elements.

A Humanistic Approach to Organizations and to Organizational Decision-Making

This paper attempts to take steps towards the formulation of a more human approach to the theory of the firm than the conventional economics-based models. Unbounded rationality, self-interest and the absence of learning are shown to be crucial assumptions of conventional economic theory. Then, the essential assumptions of an alternative approach are put forward and discussed. Next, I present an alternative view of organizations, which has its foundations in the concepts of mission, distinctive competence, identification and unity. Finally, the implications of such an approach for management decision-making are shown, emphasizing that three criteria have to be considered in any non-trivial decision in an organizational context.