Microfoundations in Management Studies

Little consensus exists on the definition of microfoundations in management studies. This paper proposes a simple definition of microfoundations in management studies from a practical point of view as comprising involvement of and interactions between individuals that entail value creation at a firm. This involvement should include every individual within an organization. For interactions to be successful in terms of value creation, both leadership and common goals (visions and missions statements) are important. This definition will be supported by drawing on the literature and practical examples to illustrate its functional effectiveness and practicality. Since this definition, with its description and examples, includes important factors of organizational performance, practitioners could use it while planning, reviewing, and implementing strategies