Herbert Simon’s bounded rationality: Its historical evolution in management and cross-fertilizing contribution

Abstract

Purpose

The purpose of this paper is to investigate the historical advancements attained on the bounded rationality concept in management research, considering the key influencing discoveries in related fields. Understanding the cross-fertilization that has occurred is the first step to go beyond the current knowledge on bounded rationality and to face its challenges.

Design/methodology/approach

The adopted method is historical. This research approach helps to explain the evolution of a widespread concept in a scientific field and, particularly, to identify the parallel influencing advancements made in related domains.

Findings

Investigation of the irrational forces of human reasoning is at the centre of today’s research agenda on rationality in organizations, claiming to be an extension of the original bounded rationality concept. In this regard, scholars should commit themselves to build a more holistic approach to the investigation of human rationality, conjointly applying socio-biological and behavioural perspectives to explain the real behaviour of people in organizations and society. This reconnection will also help to overcome the inner limits of some “fashion of the month” streams that have yet to demonstrate their contribution.

Originality/value

This is the first study that offers an overall historical evolution of the bounded rationality concept which considers both management research and developments in related fields. The historically educed lessons learned are at the basis of the concluding recommendations for future research.

Citation

Cristofaro, M. (2017), "Herbert Simon’s bounded rationality: Its historical evolution in management and cross-fertilizing contribution", Journal of Management History, Vol. 23 No. 2, pp. 170-190. https://doi.org/10.1108/JMH-11-2016-0060