Postdoctoral Fellow - Department of Marketing
Department of Marketing
Area of Expertise
Foss, Nicolai J. & Jensen, Henrik (2018)
Managerial meta-knowledge and adaptation: Governance choice when firms don’t know their capabilities
Strategic Organization Doi: 10.1177/1476127018778717
How well do managers know the capabilities of the firms they manage? Such knowledge, which we refer to as managerial meta-knowledge, has not been systematically addressed in the management and governance literature—which is problematic, as managerial meta-knowledge influences governance choice. In fact, transaction cost economics, the dominant theory of governance choice in management research, assumes that managers perfectly know the capabilities of their firms. However, micro-level research streams on resource cognition and transactive memory, as well as the knowledge-based view of strategy, suggest that this assumption is not in general warranted: Managers’ meta-knowledge is in general imperfect. We therefore examine the implications of imperfect managerial meta-knowledge for governance choice. The key mechanism we highlight is that imperfect managerial meta-knowledge leads to surprises and frictions in contractual relationships, negatively influences the ability to engage in coordinated adaptation, and is a driver of ex post transaction costs. For these reasons, managerial meta-knowledge holds implications for governance choices, which we summarize in four propositions.
Jensen, Henrik & Sande, Jon Bingen (2018)
The Importance of Business-to-Government Contracts and Why They Often Fail (To Meet Expectations)
[Academic lecture]. ISBM Academic Conference 2018 Advances in Business-to-Business Marketing.
|2016||Copenhagen Business School||PhD|
|2012||Copenhagen Business School||Master Cand. Merc|
|2009||Copenhagen Business School||B.S.|
|2016 - Present||BI Norwegian Business School||Assistant professor|