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The role of HQ in the contemporary MNC has recently received a good deal of research attention. This article argues that the contemporary MNC requires an organizational model that can embrace different perspectives of the HQ role. The same HQ must at times hierarchically lead the firm and at other times assume a more passive, facilitative role that allows direct interaction and decision making among the subunits to coordinate interdependency within the firm. To achieve this integration, the article proposes a contingency model that specifies when the HQ should assume a hierarchical role and when it should assume a facilitative role.

In this paper we develop a model for researching the influence that a board of directors can have on improving an organization’s sustainability performance. Our model explores sources of cognitive flexibility of boards needed to recognize and respond to the need for improved sustainability performance. We first define concepts of sustainability, sustainability competence, and sustainability performance. We then analyze two forms of board capital (a board’s human capital and its social capital) and three aspects of a board’s information processing (its patterns of information search, discussion and debate, and information absorption) that we suggest affect a board’s cognitive flexibility and thereby influence whether a board decides to adopt sustainability performance goals. Our model also suggests that an organization’s strategic flexibility – as represented by its current endowments of resource flexibilities and coordination flexibilities – will moderate the relationship between a board’s decision to adopt sustainability performance goals and an organization’s subsequent achievement of those goals. We also suggest that our model is generally relevant to any research seeking to predict the influence of boards on strategic change in many forms, not just to research focused on sustainability issues.

Mental model convergence occurs as team members interact. By collecting information and observing behaviors through their interactions, team members’ individual mental models evolve into shared mental models. This process requires a cognitive shift in an individual's focal level. Specifically, the individual assigned to the team must shift his or her focus from thinking about the team domain using an individual perspective to thinking about it from a team perspective. Thus, mental model convergence may be the key to understanding how individuals are transformed into team members. This chapter presents a framework describing the mental model convergence process that draws on the extant research on group development and information processing. It also examines temporal aspects of mental model convergence, the role of mental model contents on the convergence process, and the relationship between converged mental models and team functioning. Preliminary evidence supporting the framework and the important role that converged mental models play in high-performing teams is provided. The chapter concludes with a discussion of the implications of this mental model convergence framework for research and practice.

Understanding the impact of diversity on group process and performance has been the focus of much research, yet there are still unanswered questions about how diversity impacts group process and performance. One factor that is clearly a consequence of group composition is affective tone. In this chapter, we discuss the impact of diversity and homogeneity on affective responses from group members and argue that the relatively negative affective tone experienced in diverse groups may fuel more systematic information processing and improve decision-making performance. The implications for managing both positive and negative affect in groups will be considered.

This study uses an eye-tracking device to examine the effects of dissenting opinion on information search style and decision quality, using insights from dual-process theory. When evaluating strategic outcomes, managers not exposed to a dissenting opinion employ directed information search using System 1 (heuristic, automatic cognitive processing), leading to low-quality decisions. Providing a dissenting opinion causes managers to use System 2 (sequential information search characterized by deliberate, slow, and effortful cognitive processing), leading to higher-quality decisions. This study provides useful insights into the cognitive processes underlying managers' judgments, and the factors that influence their decisions. We conclude by discussing the critical role of dissent in business practices, and explain how dissent affects people's System 2 cognitive processes.

Adopting a dual processing cognitive perspective, this study explores the decision-making processes past the start-up stage that small entrepreneurial businesses employ to grow. The author examines how entrepreneurs evaluate and make decisions on growth opportunities in their business environment. The author uses cognitive style as a theoretical lens to capture differences in information processing, combining interviews and psychometric questionnaires to analyse cognitive styles. The longitudinal mixed methods approach illustrates the richness of the entrepreneur’s decision-making process, which the author tracks over a two-year period. The author determines how intuitive and analytical cognitive styles are used by entrepreneurs and the contribution these styles make to decision-making. The findings show that the two cognitive styles are versatile as entrepreneurs adjust and adapt their cognitive style over time, in keeping with the situational factors of their business environment. The author also finds marked differences between novice and mature entrepreneurs and that experienced entrepreneurs exhibited greater levels of cognitive versatility, which was directly linked to their prior experience. The study has significant implications for future research, which should consider the question how an entrepreneur’s cognitive style is dependent on the business context and their prior experience.

President Obama embraced social media and remains one of the most followed persons on Twitter. The focus of this study is twofold: to assess how the President’s use of Twitter affected (a) Millennials’ perception of Obama and (b) Millennials’ interest and likelihood to participate in the political process. Study findings provide support for a model derived from information processing theory. Results also suggest that message orientation (or perceived favorability) predicted source credibility, which stems from message content as well as the Twitter medium by which the message was delivered. Implications for study findings – including optimal strategies for cultivating a social media presence – are discussed.