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Behavioral strategy completes the analyses of superior profitability by highlighting how non-economic, behavioral barriers generate an alternative source of strategic opportunities. Existing internal and external analysis frameworks fail to explain why strategic factors can be systematically mispriced and why large firms’ structural and resource advantage are regularly disrupted by entrepreneurs. We argue that the systematic biases documented in the behavioral and organizational sciences in fact illuminate an alternative source of competitive advantage. Strategists could develop superior insights into the value of resources and recognize factors that are either under- or overvalued while competitors remain blind to such possibilities. Our argument is illustrated by how three “underdogs” disrupted the incumbents in their industries by exploiting rivals’ predictable biases and blind spots. We conclude by discussing how our ideas can be generalized as an alternative, behavioral approach for strategy.

Chance models – mechanisms that explain empirical regularities through unsystematic variance – have a long tradition in the sciences but have been historically marginalized in management scholarship, relative to an agentic worldview about the role of managers and organizations. An exception is the work of James G. March and his coauthors, who proposed a variety of chance models that explain important management phenomena, including the careers of top executives, managerial risk taking, and organizational anarchy, learning, and adaptation. This paper serves as a tribute to the beauty of these “little ideas” and demonstrates how they can be recombined to generate novel implications. In particular, we focus on the example of an inverted V-shaped performance association centering around the year when executives were featured in a prominent listing, Barron’s annual list of Top 30 chief executive officers. Our recombination of several chance models developed by March and his coauthors provides a novel explanation for why many of the executives’ exceptional performances did not persist. In contrast to the common accounts of complacency, hubris, and statistical regression, the results show that declines from high performance may result from the way luck interacts with these executives’ slow adaptation, incompetence, and self-reinforced risk taking. We conclude by elaborating on the normative implications of chance models, which address many current management and societal challenges. We further encourage the continued development of chance models to help explain performance differences, shifting from accounts that favor heroic stories of corporate leaders toward accounts that favor their changing fortunes.

The purpose of this paper is to examine how tension management as a means of achieving compromise and overcoming minor conflicts reduces the effects of the opportunism and bargaining costs of relationships on the evaluation of business partners. The paper proposes and tests a theoretical model with a full-information approach using structural equation modeling.

The data set was based on 312 observations from a unique survey based on a business-to-business relationship sample in Sweden. The measurements reflect the effects of partner opportunism, bargaining costs, and tension management on partner evaluations.

The findings corroborate that partner opportunism and bargaining costs have a negative impact on partner evaluation. In addition, the model shows that tension management weakens the negative effects of opportunism and bargaining costs on the evaluation.

This study offers evidence on how negative effects are reduced through intervening constructs. With most studies focusing on the positive side of relationships, this paper makes an important contribution to the literature through not only describing negative effects, but also how these can be decreased.

Healthcare is traditionally considered an indispensable service in both personal and social points of views. In this regard, healthcare-seeking behaviour is driven by utilitarian orientation, given its existential value. But this trend is changing, as the propensity to avail (un)necessary healthcare services is burgeoning with changing lifestyle and practices. From the supply point of view, the market appears to be relentless in enforcing propensity to seek healthcare. The service providers, generally, create unnecessary needs and aspirations, taking undue advantage of the prospects’ over-conscious health concerns and overzealous longing for wellness. This study aims to find whether utilitarianism or hedonism is the prominent paradigm of healthcare-seeking behaviour in the onset of changing preferences and lifestyles and supply-driven market forces.

The study followed an empirical approach to accomplish the aim of research. Subjects for the study constitute sample respondents in the age of 18-60 years, who were identified on inspection. A structured questionnaire, drawn upon literature, was used to elicit information.

The study offered new insight into the basic psychological motive for healthcare-seeking. The results have empirically validated the pre-eminence of a hedonic attribute of consumer behaviour in healthcare-seeking.

The outcome of the study has implications for healthcare providers to tailor-make their future products and services and for governing bodies to design suitable policy guidelines.

The study explores the emerging trends in health-seeking behaviour.