Economic “Short-Termism”: The Debate, The Unresolved Issues, and The Implications for Management Practice and Research
Abstract
In many crucial decisions, the course of action that is moat desirable over the long run is not the best course of action in the short term. This is the dilemma addressed by the ongoing debate over economic “short-termism,” sparked by contentions that U.S. firms are losing to overseas competitors because U.S. management is unwilling or unable to invest in the long run, I argue that the debate has suffered from a limited focus: to address this problem, I present a framework that addresses organizational and individual as well as economic perspectives. I offer a review of concepts, analysis, and evidence, and I suggest a cross-discipline, multilevel research agenda for advancing understanding of this vital topic.
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There are many plausible and hotly contested explanations of short-termism, each with different implications for how self-regulatory regimes should be designed.
“Answering such a question is tricky because, as a recent survey of the literature reveals, there are many plausible (and hotly contested) explanations of short-termism (Laverty 1996: 825), each with different implications for thinking about how self-regulatory regimes should be designed.”
From Industry self-regulation: An institutional perspective (1997) · cites this paper as Laverty 1996: 825
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The long‐term benefits of organizational resilience through sustainable business practices
Ortiz‐de‐Mandojana, N., & Bansal, P. (2016) · Strategic Management Journal · doi:10.1002/smj.2410 · Cited by 1,260 · see citing works
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A Selective Review of Time Assumptions in Strategy Research
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- Authors
- Laverty, K. J.
- Affiliations
- University of Washington Bothell (US)
- Corresponding author
- Laverty, Kevin J.
- Venue
- Academy of Management Review
- Publisher
- Academy of Management
- Published
- 1996-07
- Volume
- 21
- Issue
- 3
- Pages
- 825-860
- ISSN
- 0363-7425 (ISSN-L)
- 1930-3807
- OpenAlex
- W2122007741
- Cited by
- 690
- References
- 3
- Citations by year
- 2026: 30 · 2025: 51 · 2024: 48 · 2023: 51 · 2022: 32 · 2021: 30 · 2020: 22 · 2019: 32 · 2018: 35 · 2017: 27 · 2016: 34 · 2015: 29 · 2014: 44 · 2013: 29 · 2012: 29
- FWCI
- 18.53
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Academy of Management Review (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Accounting › Corporate Finance and Governance
- Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Organizational Management and Leadership
- Social Sciences › Business, Management and Accounting › Management Information Systems › Accounting and Organizational Management
- Keywords
- short-termism, long-term investment, corporate governance, management practices, personal perspective, interdisciplinary research, enterprise competitiveness
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