The Role of Social Cognitive Theory in Understanding Firm Innovation: A Literature Review

Past studies have shown the intimacy between social cognitive theory, knowledge management and organizational learning. The latter two are also frequently inquired in the context of firm innovation while the former one is the fundamental theoretical underpinning that provides explanation to many issues associated with the latter two. This paper reviews 19 selected articles that encompass the above three areas relating to firm innovation in an integrating manner, and appreciates the commonalities and differences between different approaches with respect to different units of analysis. The review constitutes of four building blocks: brain physiology, creativity, knowledge and learning, and towards a formal theory. Suggestions direct to future research of the social cognitive theory of firm innovation are made