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Strategic growth of firms in the digital economy: A Simonian research agenda
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2005, Journal of Information Technology Theory & Application, 7(2), pp.37-52
Strategic growth of firms, in the words of Herbert Simon, is within the framework of decision making under "massive and unending uncertainty." In the rapidly changing digital economy, the cycle of winning and losing and asset redistribution intensifies as the speed of information exchange increases. It is thus more necessary than ever to find explanatory theories to describe, model, and predict the emerging market structures of the hypercompetitive digital economy. In this paper, we draw upon several Simonian models of bounded rationality in decision making and propose a research agenda for strategic growth of firms in the digital economy. The agenda consists of three major topics: (1) skew distributions in the digital market competition, (2) empirical laws of information use, and (3) a framework of strategic information systems. Some ongoing projects related to the agenda are discussed.
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