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Drivers and facets of corporate strategic change in response to performance feedback
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The present Work Project investigates the heterogeneous performance feedback –strategic response relationship of organizations as well as the moderating effects of profitability and CEO temporal-and regulatory foci on this main relationship, providing a nuanced understanding of how, where, and why organizations engage in strategic change. Overall, this study suggests that firms adapt their strategy as a response to performance feedback according to the psychological process of risk perception explained in the “Prospect Theory” and according to the influence of various moderators, each one selectively affecting specific aspects of a firm’s strategy in different situations.
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Strategy and international business Prospect theory Performance feedback Behavioral theory of the firm Business aspirations Behavioral strategy Upper echelons theory