Abstract
Behavioral strategy, positioned at the intersection of psychology, economics, and decision science, investigates the influence of cognitive biases and bounded rationality on strategic decision-making in organizations. Departing from traditional economic and management theories that assume rational decision-making, behavioral strategy recognizes systematic yet boundedly rational patterns and routines inherent in decision processes. It includes individual and group behaviors in strategic contexts, investigating the cognitive and social-psychological aspects shaping organizational strategies and behavior. This research field integrates insights from the behavioral theory of the firm and behavioral economics, revealing deviations from rationality through empirical observations and experiments. To adapt to this approach, firms need to reconsider their decision architecture, the structure and processes guiding how decisions are made within the organization.
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