Competitive Rationality as an Entry Point for Enhancing Corporate Success: A Study in Light of Imperfect Procedural Rationality and Total Quality Management Standards

Abstract

This research paper discusses a fundamental hypothesis stating that corporate success significantly depends on "Competitive Rationality," operationally defined as "Imperfect Procedural Rationality." The study posits that innovative firms strive to create new market opportunities rather than merely exploiting existing ones, a process that requires a profound understanding of the variance in seller and investor responses. Furthermore, the paper reviews Competitive Rationality theory as a framework for developing creative processes associated with strategy formulation and evaluation, fostering a flexible organizational culture that embraces change, and enhancing cognitive vigilance along with planning and execution skills.
The theory calls for shifting away from traditional models of price equilibrium and supply-and-demand functions toward models of internal procedures and dynamic interactions. Given the scarcity of literature addressing these modern concepts in detail, this paper aims to characterize and discuss Competitive Rationality theory, linking it to the implementation of Total Quality Management systems (ISO 9001:2015) and Critical Success Factors (CSFs) within strategic management. The paper concludes that integrating these elements constitutes the primary pillar for ensuring sustainable success in an uncertain business environment.