Habits: Theoretical Foundations and a Conceptual Framework on a Managerial Trap and Chance
Authors: K. Piórkowska
Abstract:
The overarching aim of the paper is to incorporate the micro-foundations perspective in strategic management and offering possibilities to bridge the macro–micro divide, to review the concept of habits, as well as to propose research findings and directions in terms of further exploring the habit construct and its impact on higher epistemological level phenomena (for instance organizational routines, which is a domain inherently multilevel in nature). To realize this aim, the following sections have been developed: (1) habits’ origins, (2) habits – cognitive constellations, (3) interrelationships between habits and mental representations, intentions, (4) habits and organizational routines, and (5) habits and routines linkages with adaptation. The conclusions that have been made support recent and current studies linking the level of individual heterogeneous agents with the level of macro (organizational) outcomes.
Keywords: Behaviorism, habits, micro-foundations, routines.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1128233
Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1210References:
[1] R. M. Cyert, J. G. March, A Behavioral Theory of the Firm, 2nd edn., Oxford: Blackwell, 1963/1992.
[2] D. Kahneman, “Maps of Bounded Rationality: Psychology for Behavioural Economics”, The American Economic Review, vol. 93(5), pp. 1449-1475, 2003.
[3] J. March, “Bounded rationality, ambiguity, and the engineering of choice”, Bell Journal of Economics, vol. 9, pp. 587–608, 1978.
[4] H.A. Simon, Administrative behawior, New York: Macmillan, 1947.
[5] D. C. Hambrick, A. P. Mason, “Upper Echelons: The Organization as a Reflection of Its Top Managers”, The Academy of Management Review, vol. 9 (2) (April), pp. 193-206, 1984.
[6] D. C. Hambrick, “Upper Echelons Theory: An Update”, The Academy of Management Review, vol. 32 (2) (April), pp. 334-343, 2007.
[7] S. Oppong, “Upper echelons theory revisited: the need for a change from causal description to casual explanation”, Management, vol. 19 (2), pp. 169-183, 2014.
[8] M. C. Becker, T. Knudsen, “Heterogeneity of habits as a foundation for Schumpeterian economic policy,” Journal of Evolutionary Economics, published online 28 June 2016, doi:10.1007/s00191-016-0463-7.
[9] J. A. Schumpeter, Theorie der wirtschaftlichen Entwicklung. Leipzig: Duncker & Humblot, 1911.
[10] J. A. Schumpeter, Theorie der wirtschaftlichen Entwicklung. Leipzig: Duncker & Humblot, 2nd edition, 1926.
[11] A. Bandura, Social foundations of thought and action: A social cognitive theory. Englewood Cliffs, NJ: Prentice Hall, 1986.
[12] J. A. Bargh, M. J. Ferguson, “Beyond Behaviorism: On the Automaticity of Higher Mental Processes,” Psychological Bulletin, vol. 126, no. 6, pp. 925-945, 2000.
[13] C. L. Hull, Principles of behavior: An introduction to behavior theory. Oxford, England: Appleton-Century, 1943.
[14] E. L. Thorndike, “Animal intelligence: An experimental study of the associative processes in animals,” Psychological Review of Monograph Supplement, vol. 2, pp. 1-109, 1898.
[15] J. B. Watson, “Psychology as the behaviorist views it,” Psychological Review, vol. 20, pp. 158-177, 1913.
[16] B. F. Skinner, The behavior of organisms: An experimental analysis, New York: Appleto-Century, 1938.
[17] N. Chomsky, “A review of B.F. Skinner’s ‘Verbal Behavior,” Language, vol. 35, pp. 26-58, 1959.
[18] O. H. Mowrer, Learning theory and the symbolic processes. New York: Wiley, 1960.
[19] U. Neisser, Cognitive psychology. New York: Appleton-Century-Crofts, 1967.
[20] W. James, Principles of psychology. New York: Henry Holt, 1890.
[21] D. T. Neal, W. Wood, J. M. Quinn, “Habits – A Repeat Performance,” Association for Psychological Science, vol. 15, no. 4, pp. 198-202, 2006.
[22] W. Wood, D. T. Neal, “A new look at habits and the habit-goal interface,” Psychological Review, vol. 114, no. 4, pp. 843-863, 2007.
[23] J. H. Aldrich, J. M. Montgomery, W. Wood, “Turnout as habit,” Political Behavior,vol. 33, pp. 535-563, 2011.
[24] G. E. Marcus, W. R. Neuman, M. MacKuen, Affective intelligence and political judgement. Chicago: University of Chicago Press, 2000.
[25] H. C. Triandis, Interpersonal behavior. New York: Brooks/Cole, 1977.
[26] U. N. Danner, H. Aarts, N. K. de Vries, “Habit Formation and Multiple Means to Goal Attainment: Repeated Retrieval of Target Means Causes Inhibited Access to Competitors,” Personality and Social Psychology Bulletin, vol. 33, no. 10, pp. 1367-1379, 2007.
[27] W. Wood, J. S. Labrecque, P-Y Lin, D. Rünger, “Habits in Dual Process Models,” in Dual Process Theories of the Social Mind, J. Sherman, B. Gawronski, Y. Trope, Eds. New York: Guilford Press, 2014, pp. 371-385.
[28] J. De Houwer, S. Teige-Mocigemba, A, Spruyt, A. Moors, “Implicit measures: A normative analysis and review,” Psychological Bulletin, vol. 13, pp. 347-368, 2009.
[29] J. P. Birnholtz, M. D. Cohen, S. V. Hoch, “Organizational character: on the regeneration of camp poplar grove,” Organization Science, vol. 18(2), pp. 315–332, 2007.
[30] M. D. Cohen, “Reading Dewey: reflections on the study of routine,” Organizational Studies, vol. 28(5), pp. 773–786, 2007.
[31] G. M. Hodgson, T. Knudsen, Darwin’s conjecture: the search for general principles of social and economic evolution. Chicago: University of Chicago Press, 2010.
[32] A. M. Graybiel, “Habits, rituals, and the evaluative brain,” The Annual Review of Neuroscience, vol. 31, pp. 359–387, 2008.
[33] J. A. Schumpeter, “The explanation of the business cycle,” Economica, vol. 7(21), pp. 286–311, 1927.
[34] J. A. Schumpeter, Capitalism, socialism and democracy, 3rd edn. New York: Harper Torchbooks, 1942.
[35] J. A. Schumpeter, “Vilfredo Pareto (1848–1920),” Quarterly Journal of Economics, vol. 63(2), pp. 147–173, 1949.
[36] D. E Dollimore, “Organizational routines: origins and replication,” Paper presented at the WINIR conference 2015, Rio de Janeiro, 10-13 September 2015.
[37] D. T. Neal, W. Wood, J. Labrecque, P. Lally, “How do habits guide behavior? Perceived and actual triggers of habits in daily life,” Journal of Experimental Social Psychology, vol. 48, pp. 492-498, 2012.
[38] J. St. B. T. Evans, “Dual-processing accounts of reasoning, judgment, and social cognition,” Annual Review of Psychology, vol. 59, pp. 255-278, 2008.
[39] C. N. Macrae, L. Johnston, “Help, I need somebody: Automatic action and inaction,” Social Cognition, vol. 16, pp. 400-417, 1998.
[40] H. H. Yin, B. J. Knowlton, “The role of the basal ganglia in habit formation,” Nature Reviews Neuroscience, vol. 7, pp. 464–476, 2006.
[41] M. Ji Song, W. Wood, “Habitual purchase and consumption: Not always what you intend,” Journal of Consumer Psychology, no. 17, pp. 261–276, 2007.
[42] J. Ouellette, J., W. Wood, “Habit and intention in everyday life: The multiple processes by which past behavior predicts future behavior,” Psychological Bulletin, vol. 124, pp. 54-74, 1998.
[43] W. Wood, L. Tam, M. G. Witt, “Changing circumstances, disrupting habits,” Journal of Personality and Social Psychology, vol. 88, pp. 918–933, 2005.
[44] V. Verplanken, W. Wood, “Breaking and creating habits: Consequences for public policy interventions,” Journal of Public Policy & Marketing, vol. 25 (1), pp. 90-103, 2006.
[45] D. T. Neal, W. Wood, M. Wu, D. Kurlander, “The pull of the past when do habits persist despite conflict with motives?,” Personality and Social Psychology Bulletin, vol. 37(11), pp. 1428-1437, 2011.
[46] B. Verplanken, I. Walker, A. Davis, M. Jurasek, “Context change and travel mode choice: Combining the habit discontinuity and self-activation hypotheses,” Journal of Environmental Psychology, vol. 28(2), pp. 121–127, 2008.
[47] M. D. Cohen, P. Bacdayan, “Organisational routines are stored as procedural memory: Evidence from a laboratory study,” Organisation Science, vol. 5, pp. 554-568, 1994.
[48] L. R. Squire, E. R. Kandel, Memory: From mind to molecules, New York: Scientific American Library, 1999.
[49] J. A. Bargh, “Auto-motives: Preconscious determinants of social interaction,” in Handbook of motivation and cognition, vol. 2, E. T. Higgins, R. M. Sorrentino, Eds, New York: Guilford Press, 1990, pp. 93-130.
[50] J. A. Bargh, T. L. Chartrand, “The unbearable automaticity of being,” American Psychologist, vol. 54, pp. 462-479, 1999.
[51] J. A. Bargh, “The four horsemen of automaticity: Awareness, intention, efficiency, and control in social cognition,” in Handbook of social cognition: Basic processes, vol. 2, R. S. Wyer, T. S. Scrull, Eds, Hillsdale, NJ: Erlbaum, 1994, pp. 1–40.
[52] A. Moors, J. De Houwer, “Automaticity: A theoretical and conceptual analysis,” Psychological Bulletin, vol. 132, pp. 297–326, 2006.
[53] W. Wood, D. T. Neal, “The habitual consumer,” Journal of Consumer Psychology, vol. 19(4), pp. 579-592, 2009.
[54] N. D. Daw, Y. Niv, P. Dayan, “Uncertainty-based competition between prefrontal and dorsolateral striatal systems for behavioral control,” Nature Neuroscience, vol. 8, no. 12, pp. 1704-1711, 2005.
[55] N. Yeung., M. M. Botvinick, J. D. Cohen, “The neural basis of error detection: Conflict monitoring and the error-related negativity,” Psychological Review, vol. 111, no. 4, pp. 931-959, 2004.
[56] E. R. Smith, J. Decoster, “Dual-process models in social and cognitive psychology: Conceptual integration and and links to underlying memory systems,” Personality and Social Psychology Review, vol. 4, no. 2, pp. 108-131, 2000.
[57] H. Aarts, A. Dijksterhuis, “Habits as knowledge structures: Automaticity in goal-directed behavior,” Journal of Personality and Social Psychology, vol. 78, pp. 53–63, 2000.
[58] J. T. Austin, J. B. Vancouver, “Goal constructs in psychology: Structure, process, and content,” Psychological Bulletin, vol. 120, pp. 338-375, 1996.
[59] U. N. Danner, H. Aarts, N. K. de Vries, “Habit vs. intention in the prediction of future behaviour: The role of frequency, context stability and mental accessibility of past behaviour,” British Journal of Social Psychology, vol. 47, pp. 245–265, 2008.
[60] E. Ferguson, P. A. Bibby, “Predicting future blood donor returns: Past behavior, intentions, and observer effects,” Health Psychology, vol. 21, pp. 513–518, 2002.
[61] T. L. Webb, P. Sheeran, “Does changing behavioral intentions engender behavior change? A meta-analysis of the experimental evidence,” Psychological Bulletin, vol. 132, pp. 249–268, 2006.
[62] J. Y. Shah, R. Friedman, A. W. Kruglanski, “Forgetting all else: On the antecedents and consequences of goal shielding, “Journal of Personality and Social Psychology, vol. 83, pp. 1261-1280, 2002.
[63] B. J Levy, M. C. Anderson, “Inhibitory processes and the control of memory retrieval,” Trends in Cognitive Sciences, vol. 6, pp. 299-305, 2002.
[64] U. Mayr, “Inhibition in action rules,” Psychonomic Bulletin and Review, vol. 9, pp. 93-99, 2002.
[65] J. Y. Shah, “The automatic pursuit and management of goals,” Current Directions in Psychological Science, vol. 14, pp. 10-13, 2005.
[66] D. Avni-Babad, “Routine and feelings of safety, confidence, and well-being,” British Journal of Psychology, vol. 102, pp. 223–244, 2011.
[67] D. Avni-Babad, I. Ritov, “Routine and the perception of time,” Journal of Experimental Psychology: General, vol. 132, pp. 543–550, 2003.
[68] M. D. Cohen, D. A. Levinthal, M. Warglien, “Collective performance: modeling the interaction of habit based actions,” Industrial and Corporate Change, vol. 23(2), pp. 329–360, 2014.
[69] J. Dewey, “Human nature and conduct – an introduction into social psychology,” London: George Allen & Unwin, 1922.
[70] S. G. Winter, “Habit, deliberation, and action: strengthening the microfoundations of routines and capabilities,” Academy Management Perspectives, vol. 27(2), pp. 120–137, 2013.
[71] T. Burns, “The forms of conduct,” American Journal of Sociology, vol. 64, pp. 137–151, 1958.
[72] J. A. Schumpeter, “Frank William Taussig,” Quarterly Journal of Economics, vol. 55(3), pp, 337–363, 1941.
[73] M. D. Cohen, “Perceiving and remembering routine action: fundamental micro-level origins,” Journal of Management Studies, vol. 49(8), pp. 1383–1388, 2012.
[74] R. W. Holland, H. Aarts, D. Langendam, “Breaking and creating habits on the working floor: A Weld-experiment on the power of implementation intentions,” Journal of Experimental Social Psychology, vol. 42, pp. 776-783, 2006.
[75] G. M. Hodgson, “The nature and replication of routines,” in Organizational routines: advancing empirical research, M. C. Becker, N. Lazaric, Eds. Cheltenham: Edward Elgar, pp 26–44, 2009.
[76] T. Betsch, S. Haberstroh, B. Molter, A. Glockner, “Oops, I did it again – relapse errors in routinized decision making,” Organizational Behavior and Human Decision Processes, vol. 93, pp. 62-74, 2004.
[77] G. Dosi, R. R. Nelson, S. G. Winter, “Introduction: the nature and dynamics of organizational capabilities,” in The nature and dynamics of organizational capabilities, G. Dosi, R. R. Nelson, S. G. Winter, Eds, Oxford: Oxford University Press, 2000, pp 1–22.
[78] G. M. Hodgson, “The concept of a routine,” in Handbook of organizational routines, M. C. Becker, Ed, Cheltenham: Edward Elgar, 2008, pp 3–14.
[79] M. S. Feldman, B. T. Pentland, “Reconceptualizing organizational routines as a source of flexibility and change,” Administrative Science Quarterly 48(1), pp. 94–118, 2003.
[80] B. T. Pentland, M. S. Feldman, M. C. Becker, P. Liu, “Dynamics of organizational routines: a generative model,” Journal of Management Studies, vol. 49(8), pp. 1484–1508, 2012.
[81] T. Felin, N. J. Foss, “Strategic Organization: A Field in Search of Micro-foundations”, Strategic Organization, vol. 3(4), pp. 441-455, 2005.
[82] T. Felin, N. J. Foss, “Organizational Routines and Capabilities: Historical Drift and A Course-correction Toward Microfoundations,” Scandinavian Journal of Management, vol. 25(2), pp. 157-167, 2009
[83] T. Betsch, S. Haberstroh, A. Glockner, A., T. Haar, K. Fiedler, “The effects of routine strength on adaptation and information search in recurrent decision making,” Organizational Behavior and Human Decision Processes, vol. 84, pp. 23–53, 2001.
[84] .H. Aarts, B. Verplanken, A. van Knippenberg, “Predicting behavior from actions in the past: Repeated decision making or a matter of habit?” Journal of Applied Social Psychology, vo. 28, pp. 1355–1374, 1998.
[85] D. Kahneman, D. L. Miller, “Norm theory: Comparing reality to its alternatives,” Psychological Review, vol. 93, pp. 136–153, 1986.
[86] R. B. Zajonc, “Attitudinal effects of mere exposure,” Journal of Personality and Social Psychology, vol. 9, pp. 1–27, 1968.
[87] R. B. Zajonc, “Mere exposure: A gateway to the subliminal,” Current Directions in Psychological Science, vol. 10, pp. 224–228, 2001.
[88] R. R. Nelson, S. G. Winter, An evolutionary theory of economic change, Cambridge: Belknap Press, 1982.
[89] D. J. Teece., G. Pisano, A. Shuen, “Dynamic capabilities and strategic management,” Strategic Management Journal, vol. 18, pp. 509-533, 1997.
[90] M. S. Feldman., “Organizational routines as a source of continuous change,” Organization Science, vol. 11, pp. 611-629. 2000.
[91] S. Yi, T. Knudsen, M. C. Becker, “Inertia in routines: a hidden source of organizational variation,” Organization Science, vol. 27(3), pp. 782–800, 2016.
[92] J.A. Howard-Grenville, “The persistence of flexible organizational routines: The role of agency and organizational context”, Organization Science, vol. 16(6), pp. 618-636, 2005.
[93] C. H. Hommes, Behavioral rationality and heterogeneous expectations in complex economic systems, Cambridge: Cambridge University Press, 2013.
[94] K. Piórkowska, “Behavioral strategies as micro-foundations in strategic management”, Global Business & Economics Anthology 2014, vol. II, December, pp. 356-361, 2014.