Praxis, Character, and Competence: From a Behavioral to a Communitarian View of the Firm

Abstract

I seek to further develop the behavioral approach to strategic management through sketching a communitarian view of the firm. Specifically, I argue that the latter, informed by a practice-based onto-epistemology, especially a neo-Aristotelian understanding of praxis, and the related institutional work of Selznick, suggests the centrality of value commitments firms make, which, through habituation, are integrated to form organizational character. The latter provides firms with certain core competences – a distinctive style with which practitioners enact their tasks. Organizational character helps confront the self-command problem firms face. However, the behavioral consistency that character provides may lead to rigidities when competitive circumstances change, while organizational character, through praxis, may take on features that prevent the leadership of a firm from realizing the novelty of the circumstances in order to modify existing core competences and the accompanying organizational character dispositions.