Prospect theory, behavioral theory, and the threat-rigidity thesis

Combinative effects on organizational decisions to divest formerly acquired units

Research output: Contribution to journalArticle

142 Citations (Scopus)

Abstract

By complementing prospect theory with organization-level behavioral theory and the threat-rigidity thesis, I study how factors unique to an organizational level can interact with the individual-level tendencies predicted by prospect theory. I tested this approach by examining organizational decisions to divest or retain formerly acquired units in a longitudinal setting. The results show that divestiture decisions are influenced by both individual- and organization- level factors that cannot be explained solely by one theory and provide a richer understanding of organizational risk-seeking behaviors. Copyright of the Academy of Management, all rights reserved.

Original languageEnglish
Pages (from-to)1495-1514
Number of pages20
JournalAcademy of Management Journal
Volume50
Issue number6
Publication statusPublished - 2007 Dec
Externally publishedYes

Fingerprint

Rigidity
Factors
Prospect theory
Threat
Behavioral theory
Divestiture
Risk seeking
Organizational level

ASJC Scopus subject areas

  • Business and International Management
  • Management of Technology and Innovation
  • Strategy and Management
  • Business, Management and Accounting(all)

Cite this

@article{1d13d8fccf55403e91c16d68aa0ae093,
title = "Prospect theory, behavioral theory, and the threat-rigidity thesis: Combinative effects on organizational decisions to divest formerly acquired units",
abstract = "By complementing prospect theory with organization-level behavioral theory and the threat-rigidity thesis, I study how factors unique to an organizational level can interact with the individual-level tendencies predicted by prospect theory. I tested this approach by examining organizational decisions to divest or retain formerly acquired units in a longitudinal setting. The results show that divestiture decisions are influenced by both individual- and organization- level factors that cannot be explained solely by one theory and provide a richer understanding of organizational risk-seeking behaviors. Copyright of the Academy of Management, all rights reserved.",
author = "Katsuhiko Shimizu",
year = "2007",
month = "12",
language = "English",
volume = "50",
pages = "1495--1514",
journal = "Academy of Management Journal",
issn = "0001-4273",
publisher = "Academy of Management",
number = "6",

}

TY - JOUR

T1 - Prospect theory, behavioral theory, and the threat-rigidity thesis

T2 - Combinative effects on organizational decisions to divest formerly acquired units

AU - Shimizu, Katsuhiko

PY - 2007/12

Y1 - 2007/12

N2 - By complementing prospect theory with organization-level behavioral theory and the threat-rigidity thesis, I study how factors unique to an organizational level can interact with the individual-level tendencies predicted by prospect theory. I tested this approach by examining organizational decisions to divest or retain formerly acquired units in a longitudinal setting. The results show that divestiture decisions are influenced by both individual- and organization- level factors that cannot be explained solely by one theory and provide a richer understanding of organizational risk-seeking behaviors. Copyright of the Academy of Management, all rights reserved.

AB - By complementing prospect theory with organization-level behavioral theory and the threat-rigidity thesis, I study how factors unique to an organizational level can interact with the individual-level tendencies predicted by prospect theory. I tested this approach by examining organizational decisions to divest or retain formerly acquired units in a longitudinal setting. The results show that divestiture decisions are influenced by both individual- and organization- level factors that cannot be explained solely by one theory and provide a richer understanding of organizational risk-seeking behaviors. Copyright of the Academy of Management, all rights reserved.

UR - http://www.scopus.com/inward/record.url?scp=38949177053&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=38949177053&partnerID=8YFLogxK

M3 - Article

VL - 50

SP - 1495

EP - 1514

JO - Academy of Management Journal

JF - Academy of Management Journal

SN - 0001-4273

IS - 6

ER -