Naoki Yasuda: The Humanity of Corporate Behavior

2024/06/12

One research method in business administration involves analyzing data on corporate behavior to discover patterns within it. From this corporate behavior data, we can catch a glimpse of a certain "humanity."

For example, when a company introduces a new system, it is generally assumed that there is economic rationality for that company. However, it is known that companies also act for social reasons, such as because other companies are doing it. An example is a case where a company tries to introduce a side-job system simply because its competitors have done so. From a corporate strategy perspective, by focusing on existing businesses that have been successful in the past, a company may become unable to adapt to changes even when the environment demands flexibility, leading it to cling to those existing businesses. Despite being in a situation where the environment has changed and past experience is no longer applicable, they rely on that past experience. This can be called an organizational dilemma, in the sense that both consistency and flexibility are required.

These kinds of tendencies in corporate behavior can also be seen in our individual actions, whether in our private lives or at work. This is the source of "humanity." Our daily actions are influenced by others. Even if we don't usually notice it, the psychology of wanting to go to a shop just because there is a long line is one example. Furthermore, in the course of our work, it is not easy to set aside the successful experiences we have built up in the past and adapt to new things. It is truly difficult to discard what we have cultivated over time.

Thinking this way, understanding corporate behavior leads to understanding human behavior. The reverse is also true; understanding human behavior deepens our understanding of corporate behavior. Since organizations are collections of individuals and organizational decisions are made by humans, it may be natural for corporate decision-making to possess "humanity." However, one of the fascinations of business administration lies in taking a scientific approach to this "humanity" glimpsed in corporate behavior. I believe it is important to use these insights as a catalyst for understanding the essence of human society.