Learning From Strategic Success and Failure

Learning From Strategic Success and Failure

By
Theresa K. Lant, David Bruce Montgomery
Journal of Business Research. December
1987, Vol. 15, Issue 6, Pages 503–517

Organizations facing complex, ambiguous, and dynamic environments find adaptive learning a key to survival and success. This study proposes three models of organization response in such environments: 1) A model of how aspiration levels or goals adapt over time, 2) a model of the riskiness of strategic choices made, and 3) a model of the innovativeness of search activities (R & D). In each model, the difference between performance and aspiration level is posited to be an important explanatory variable. Using the Markstrat game as a research environment, the data are consistent with all three models.