TY - JOUR
T1 - Performance feedback in hierarchical business groups
T2 - The cross-level effects of cognitive accessibility on R & D search behavior
AU - Rhee, Luke
AU - Ocasio, William
AU - Kim, Tae Hyun
N1 - The authors thank Sea-Jin Chang, Zur Shapira, SidneyWinter, and two anonymous reviewers for their helpful comments on previous versions of this paper. Seminar participants at Bocconi University, Northwestern University, the 2014 Carnegie School of Organizational Learning Conference, and the 2014 Academy ofManagement Meeting also provided constructive input.
PY - 2019/1/1
Y1 - 2019/1/1
N2 - This study examines the cross-level effect of group-level managers on member firms' problemistic search in hierarchical business groups. Usingmultilevel data from Korean business groups, we propose that the effects of failure to meet an aspiration level on R&D search intensity increase when member firm performance and R & D investments are more cognitively accessible to group-level managers. Specifically, we find, first, that when underperforming firms are widespread in a business group, a focal member firm intensifies R & D search in response to performance below an aspiration level because member firm performance, as a group-level problem, becomes cognitively accessible to group-level managers. Second, asmember firms operating in R & D intensive industries aremore prevalent in a business group, R&D investments, as a search solution, becomemore cognitively accessible to group-level managers. Thus, a focal member firm reinforces R & D search in response to the performance shortfall. We discuss the implications of these findings for research on the behavioral theory of the firm and performance feedback.
AB - This study examines the cross-level effect of group-level managers on member firms' problemistic search in hierarchical business groups. Usingmultilevel data from Korean business groups, we propose that the effects of failure to meet an aspiration level on R&D search intensity increase when member firm performance and R & D investments are more cognitively accessible to group-level managers. Specifically, we find, first, that when underperforming firms are widespread in a business group, a focal member firm intensifies R & D search in response to performance below an aspiration level because member firm performance, as a group-level problem, becomes cognitively accessible to group-level managers. Second, asmember firms operating in R & D intensive industries aremore prevalent in a business group, R&D investments, as a search solution, becomemore cognitively accessible to group-level managers. Thus, a focal member firm reinforces R & D search in response to the performance shortfall. We discuss the implications of these findings for research on the behavioral theory of the firm and performance feedback.
KW - Attention-based view
KW - Cognitive accessibility
KW - Hierarchical business groups
KW - R & D search behavior
UR - https://www.scopus.com/pages/publications/85064684300
UR - https://www.scopus.com/pages/publications/85064684300#tab=citedBy
U2 - 10.1287/orsc.2018.1237
DO - 10.1287/orsc.2018.1237
M3 - Article
AN - SCOPUS:85064684300
SN - 1047-7039
VL - 30
SP - 51
EP - 69
JO - Organization Science
JF - Organization Science
IS - 1
ER -