Abstract
Purpose
– The purpose of this paper is to consider the linkages between two theories of firm performance, aspiration theory and the resource-based view (RBV), possible ways in which these theories may interact, and how the culture from which the firm originated can be a factor in how the firm may react to Schumpeterian shock issues suggested in RBV of the firm.
Design/methodology/approach
– This paper takes a theoretical approach.
Findings
– Firms generally look to firms sharing their own cultural backgrounds when selecting similar others. However when the environment is no longer beneficial to firms sharing these goals and objectives, the focal firm may consider firms from other cultural backgrounds when forming aspiration levels.
Research limitations/implications
– Empirical studies would be necessary to verify these finding: do firms show a preference to firms from their own cultural backgrounds when choosing firms to serve as reference groups for goals and objectives? Would Schumpeterian Shocks cause firms to seek other firms outside of their own culture to set new goals and objectives?
Practical implications
– Firms should be aware of their own possible biases when deciding which firms to base its goals and objectives on, and widen the cultural scope of their competitive views to include firms from other cultural backgrounds, diversifying their repertoire of strategies and improving the survivability of the organization.
Originality/value
– The combination of different managerial theories is not common in management literature, and the author was unable to find an article combining the RBV, Aspiration Theory and cultural theories. If management theories are valid, then it is important to understand the relationships between these theories.