Micro-Foundations for Strategy: A Goal-Framing Perspective on the Drivers of Value Creation

36 Pages Posted: 22 Mar 2013

See all articles by Nicolai J. Foss

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation

Siegwart M. Lindenberg

University of Groningen - Department of Sociology; Tilburg University - Tilburg Institute for Behavioral Economics Research (TIBER); Royal Netherlands Academy of Arts and Sciences

Date Written: March 22, 2013

Abstract

Scholars increasingly seek to proffer microfoundations for macro management theory, notably strategic management theory. These microfoundations naturally revolve around human resources. We argue that proper microfoundations for strategic management theory must recognize that the management of motivation is first and foremost a matter of the management of cognitions of organizational members, an insight that we found in goal-framing theory, an emerging perspective based on cognitive science, behavioral economics, and social psychology. Building on this insight, we argue that a key reason why strategic goals matter to firm performance - that is, firm-level value creation and value capture and sustained competitive heterogeneity - is that such goals influence value creation rooted in employee motivations. Unfolding this idea allows us to generate new insight in the relations between value creation, strategic leadership and strategic goals.

Keywords: microfoundations, strategic management, value creation, motivation, goals, framing

JEL Classification: D21, D23, L2

Suggested Citation

Foss, Nicolai J. and Lindenberg, Siegwart M., Micro-Foundations for Strategy: A Goal-Framing Perspective on the Drivers of Value Creation (March 22, 2013). Available at SSRN: https://ssrn.com/abstract=2237857 or http://dx.doi.org/10.2139/ssrn.2237857

Nicolai J. Foss (Contact Author)

Copenhagen Business School - Department of Strategy and Innovation ( email )

Kilen
Frederiksberg, 2000
Denmark

Siegwart M. Lindenberg

University of Groningen - Department of Sociology ( email )

Groningen
Netherlands

Tilburg University - Tilburg Institute for Behavioral Economics Research (TIBER) ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Royal Netherlands Academy of Arts and Sciences ( email )

Amsterdam, 1000 GC
Netherlands

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