Perspective—Chance Explanations in the Management Sciences

Jerker Denrell (), Christina Fang () and Chengwei Liu ()
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Jerker Denrell: Warwick Business School, University of Warwick, Coventry, CV4 7AL, United Kingdom
Christina Fang: Department of Management, Stern School of Business, New York University, New York, New York 10012
Chengwei Liu: Warwick Business School, University of Warwick, Coventry, CV4 7AL, United Kingdom

Organization Science, 2015, vol. 26, issue 3, 923-940

Abstract: We propose that random variation should be considered one of the most important explanatory mechanisms in the management sciences. There are good theoretical reasons to expect that chance events strongly impact organizational behavior and outcomes. We argue that models built on random variation can provide parsimonious explanations of several important empirical regularities in strategic management and organizational behavior. The reason is that random variation in a structured system can give rise to systematic patterns at the macro level. Here, we define the concept of a chance explanation; describe the theoretical mechanisms by which random variation generates patterns at the macro level; outline how key empirical regularities in management can be explained by chance models; and discuss the implications of chance models for theoretical integration, empirical testing, and management practice.

Keywords: randomness; luck; chance; theoretical mechanisms; null models (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ororsc:v:26:y:2015:i:3:p:923-940

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