When “nobody knowns anything”: imitation of resource allocation decisions under uncertainty
File(s)
Accepted version
Author(s)
Ross, JM
Sharapov, D
Mishina, Y
Shamsie, J
Type
Conference Paper
Abstract
This paper explores how environmental uncertainty influences the interorganizational imitation of resource allocation decisions. Existing literature proposes contrasting findings: one highlighting reduced imitation under high uncertainty due to limitations in observational learning, and the other emphasizing the use of imitation to mitigate the risk of falling behind competitors in such environments. We attempt to reconcile the different views by proposing that imitation depends on the interplay between the type of environmental uncertainty (demand and competitive), the focal organization’s performance rank (first vs. last), and the organizational leader’s inexperience. We test our hypotheses using data on the allocation of new investments across different movie genres made by major Hollywood film studios (1986-2004). The results reveal that imitation under uncertainty depends on the interplay between competitive and social considerations shaping incentives to focus on managing reputational risk versus creating opportunities to catch up.
Date Issued
2025-07-01
Date Acceptance
2025-05-21
Citation
Academy of Management Annual Meeting Proceedings, 2025, 2025 (1)
ISSN
0065-0668
Publisher
Academy of Management
Journal / Book Title
Academy of Management Annual Meeting Proceedings
Volume
2025
Issue
1
Copyright Statement
© Academy of Management Proceedings. This is the author’s accepted manuscript made available under a CC-BY licence in accordance with Imperial’s Research Publications Open Access policy (www.imperial.ac.uk/oa-policy)
License URL
Source
Academy of Management Annual Meeting (AOM 2025)
Publication Status
Published
Start Date
2025-07-25
Finish Date
2025-07-29
Coverage Spatial
Copenhagen, Denmark
Date Publish Online
2025-06-17