Naoki Yasuda: The Humanity of Corporate Behavior

One research method in business administration is an approach that analyzes data on corporate behavior to find laws governing that behavior. From this corporate behavior data, we can catch a glimpse of a certain kind of "humanity."

For example, when a company introduces a certain system, it is generally assumed that there is economic rationality for that company, but it is known that companies also act for social reasons, such as because other companies are doing it. This is the case when a company tries to introduce a side-job system simply because its competitors have done so. From the perspective of corporate strategy, by concentrating on existing businesses that have been successful in the past, a company may cling to those businesses even when the environment changes and flexibility is required, failing to adapt to those changes. Despite a changing environment where past experience is no longer useful, 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 be seen as the same when applied to our individual actions, whether in our private lives or at work. This is the source of "humanity." Our daily actions are partly influenced by others. Even if we don't usually care, the psychology of wanting to go to a store just because there is a long line is one example. Furthermore, in the course of our work, it is not easy to negate 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; by understanding human behavior, our understanding of corporate behavior deepens. Since organizations are collections of individuals and organizational decision-making is carried out by humans, it may be natural for there to be "humanity" in corporate decision-making. However, one of the interesting aspects of business administration lies in taking a scientific approach to this "humanity" visible in corporate behavior. I believe it is important to use these insights as an opportunity to understand the essence of human society.