S-Space College of Business Administration/Business School (경영대학/대학원) Dept. of Business Administration (경영학과) Theses (Master's Degree_경영학과)
Categorical Performance Feedback and New Product Development in U.S. Film Industry : 범주적 성과 피드백 및 기업의 신제품 투자결정
- 경영대학 경영학과
- Issue Date
- 서울대학교 대학원
- the behavioral theory of the firm ; category-dependent legitimacy ; negative performance feedback ; risk-taking
- 학위논문 (석사)-- 서울대학교 대학원 : 경영학과 경영학전공, 2015. 8. 배종훈.
- In the behavioral theory of the firm literature, the mechanism of problemistic search predicts that organizational failures foster change. However, real-world observations that failures fail to serve as a positive trigger in many firms run counter to this general view. This study investigates how firms learning from their failures can be misdirected from institutional concerns. To examine this, I classified performance feedback from multiple products of firms into two categories: categorical feedback from exploitation and exploration. When failures are attributed to executives prior engagement in exploration?deviation from the institutionalized norm of doing business, executives risk more severe punishment from shareholders and board members, and thus show more sensitive reaction by changing the investment portfolio. I examine this phenomenon based on new product development investments of film producer organizations in the United States from 2000 to 2012. My result of a Tobit panel analysis showed that explorative categorical feedback more significantly moderated the effects of firm-level feedback on firms investments, supporting my hypothesis. Failures in exploration make managers less inclined to invest in subsequent exploration, implying that institutional illegitimacy imposed discriminately on exploratory failures indeed misdirects firms learning from failures.