The behavioral theory of the firm first appeared in the 1963 book a behavioral theory of the firm by richard m cyert and james g march the work on the behavioral theory started in 1952 when march a political scientist joined carnegie mellon university where cyert was an economist. A behavioral theory of the firm has become a classic work in organizational theory looking inside the firm to develop new theoretical ideas abnout economic behavior the second edition reaffirms the seminal arguments and insights of the first and puts the original text in its contemporary context . Textbooks and handbooks because the behavioral theory of the firm is one of multiple organizational theories that are taught in organizational theory courses it does not have its own textbook but is found as a subtopic in standard textbooks. Provides a theory of decision making within business organizations contrary to the economic theory of the firm which sees firms as profit maximizing entities. Description behavioural theory of the firm has become a classic work in organizational theory and is one of the most significant contributions to improving the theory of the firm
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