March'ing towards “a behavioral theory of the firm”

While the history of modern ideas in business education in general, and organization theory and organizational economics in particular, has several different intellectual roots, two books in particular were influential in initiating the field that is now broadly recognized as behavioral theories of organizations:A Behavioral Theory of the Firm, written by Richard Cyert and James G. March; andOrganizations, written by Herbert Simon and James March. These two books set the stage for several subsequent developments in organization and management theory including research in learning, strategic management, and organizational routines. The behavioral view of the firm was also important to modern developments such as evolutionary theory and transaction cost economics. This paper examines part of this history and development, focusing in particular on the contributions of March.