This paper studies, in a world with differing priors, the role of organizational beliefs and managerial vision in the behavior and performance of corporations

This paper studies, in a world with differing priors, the role of organizational beliefs and managerial vision in the behavior and performance of corporations. The paper defines vision operationally as a very strong belief by the manager about the right course of action for the firm. The interaction between employees beliefs and the managers vision influences decisions and determines employees motivation and satisfaction. Through sorting in the labor market, the managers vision also shapes organizational beliefs. Under weak conditions, a companys board should select a manager with stronger beliefs than its own, although spurious effects may make vision often look better than it really is. The analysis shows that beliefs play an important role that goes beyond their information content. It also has implications for theories of corporate culture and business strateg

Van den Steen, Eric

vision
organizational beliefs
culture
heterogeneous priors
differing priors

vision
organizational beliefs
culture
heterogeneous priors
differing priors