Auteur
Fabrice Cavarretta
Abstract
The exploration-exploitation study (March, 1991) suggested that changes in performance variability may imply that more extremely high outcomes occur simultaneously with decreasing expected outcomes. That mean-variance tradeoff has wide theoretical consequences where ignoring variability effects can lead to wrong conclusions. I review the difficulties that limited focus on performance variability in organizational scholarship. In a constructive manner, I propose a generic approach to address it and illustrate it methodologically. This study contributes to the scholarship of extreme organizational outcomes by providing rationale to distinguish them from average outcomes.
