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We propose that the behavioral theory of the firm perspective on R&D search requires modification when applied to �communitarian� cultures such as Japan because reciprocity and embeddedness can influence the search decision. When performance exceeds aspirations, communitarian-oriented firms are more inclined to use their privileged position to help their less fortunate stakeholders by engaging in additional R&D search that should yield greater payoffs for these stakeholders in the future. Our results indicate that while Japanese firms engage in �problemistic� search in a manner similar to what has been found in other contexts, they respond differently when performance exceeds expectations. We find that as performance rises above aspirations, communitarian-oriented firms raise R&D search to a greater extent than do firms that lack a communitarian orientation.
