Abstract
Missed It By ‘That Much’: Near Miss Performance and Firm Risk-Taking
Academy of Management Annual Meeting Proceedings, Vol.2026(1)
07/2026
DOI: 10.5465/AMPROC.2026.10787abstract
Abstract
This paper revisits a core assumption in research on performance feedback and the Behavioral Theory of the Firm (BTOF): that when performance falls below aspirations, firms are presumed to take risks at a level commensurate with the shortfall. We challenge this notion, drawing on gambling research to argue that when performance falls just short of the aspiration—a phenomenon we term ‘near miss performance’—decision-makers become frustrated, engage in counterfactual thinking, and ultimately pursue disproportionate risk-taking due to ‘situational irrationality’. We distinguish this from bounded rationality and outline implications for current theory and future research.
Details
- Title: Subtitle
- Missed It By ‘That Much’: Near Miss Performance and Firm Risk-Taking
- Creators
- Owen Nelson Parker - The University of Texas at ArlingtonRyan Adam Krause - University of IowaMandy Johnson - University of IowaSpencer James Fraseur
- Resource Type
- Abstract
- Publication Details
- Academy of Management Annual Meeting Proceedings, Vol.2026(1)
- DOI
- 10.5465/AMPROC.2026.10787abstract
- eISSN
- 2151-6561
- Language
- English
- Date published
- 07/2026
- Academic Unit
- Management and Entrepreneurship
- Record Identifier
- 9985214113002771
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