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1 – 10 of over 17000Hangbiao Shang, Peilun Huang and Yan Guo
Based on the theory of bounded rationality, the purpose of this paper is to explore the role played by top managerial management cognition in firms' efforts to obtain and maintain…
Abstract
Purpose
Based on the theory of bounded rationality, the purpose of this paper is to explore the role played by top managerial management cognition in firms' efforts to obtain and maintain competitive advantage in a dynamic environment.
Design/methodology/approach
A research framework of the relations between environment changes, management cognition, strategic actions, organizational capability evolution and organizational performance is built. Data are collected through interviews, internal documents, and external documents and consequently a qualitative database is built to construct a causal map between environment, cognition, strategic actions, and organizational capability. Then by applying this causal map, a case study analysis of Vanward Group is carried out to explore its management cognition, strategic actions, and organizational capability in a dynamic environment.
Findings
The research propositions were tested and confirmed that top managerial management cognition is of bounded rationality and in dynamic environment it exerts direct and critical effect on their firms' strategic actions and organizational capability. Further discussion is extended to the roles played by institutional factors in organizational strategic decision process and the roles of top management in organizational dynamic capability.
Research limitations/implications
The generalizability of this paper's conclusions to other firms is to be tested by large sample quantitative research.
Practical implications
The research confirms the bounded rationality perspective in strategic management, and explores in depth the formation, evolution, and functions of top management cognition in a dynamic environment. It also emphasizes the non‐economic factors related to the continuous acquisition and maintenance of competitive advantages in a dynamic environment.
Originality/value
The paper releases the economic assumptions underlying industrial structure theory and resource‐based views by emphasizing the effect of top management cognition on organizational strategic actions and organizational capabilities. It further enriches the institution‐based view by illustrating how institutional environment affects top management cognition and consequently affects the changes in organizational strategic actions and organizational capability. Thus, the institutional context for organizational strategic decision making is emphasized. The paper contributes to research in dynamic capability by emphasizing top management roles in developing dynamic capability.
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The purpose of this paper is to examine the role of capacity building in reverse mentoring as an enabling routine in bringing about changes in cognitions and capabilities for…
Abstract
Purpose
The purpose of this paper is to examine the role of capacity building in reverse mentoring as an enabling routine in bringing about changes in cognitions and capabilities for strategy formulation/implementation and organisational change.
Design/methodology/approach
This paper is based on an action research case study of a reverse mentoring initiative for digital transformation in a large metal multinational based in India. The capacity-building action research was carried out during a consultancy project.
Findings
Top management team (TMT) change does not always provide the route to change in managerial cognition. Sometimes the TMT has to develop cognitive changes and new cognitions through learning and engage in way-finding to formulate/implement a strategy. Such learning requires routines, here digital reverse mentoring with capacity-building intervention, to enable development of personal knowledge (Eraut, 2000), along with cognitive changes, leading to development of capabilities. Such capacity-building routines serve as the enabling processes that facilitate learning and cognitive change.
Research limitations/implications
This study demonstrates the value of enabling process routines to facilitate learning and cognition change in bridging strategy implementation and change. It also suggests the need to look at a strategy as way-finding in order to better understand the gap between strategy formulation, implementation and change.
Practical implications
The study suggests the need for development of learning and cognition change routines as enabling processes in firms and provides insights into how old economy firms may adapt to digital era.
Originality/value
This study documents the routine of digital reverse mentoring as an enabling process for strategy development/implementation.
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Sreedhar Madhavaram, Vishag Badrinarayanan and Elad Granot
This paper aims to attempt to develop an integrative theoretical framework that approaches global industrial marketing from a managerial cognition perspective.
Abstract
Purpose
This paper aims to attempt to develop an integrative theoretical framework that approaches global industrial marketing from a managerial cognition perspective.
Design/methodology/approach
Drawing from the managerial cognition research, business strategy research, and international business research, this paper develops a theoretical framework that is relevant to global industrial marketing.
Findings
Global industrial marketing research has much to gain from the managerial cognition literature. The framework developed in this article presents relevant managerial cognition variables, their individual and firm level antecedents, and desirable outcomes.
Research limitations/implications
The framework presented in this paper provides strong theoretical foundation for further theory development in global industrial marketing research and managerial cognition research. However, given the conceptual nature of our research, empirical scrutiny and further conceptual and empirical research are required.
Originality/value
Given the growing importance of global industrial marketing, the authors hope that this article provides a theoretical foundation for future research. For practitioners, the framework provides a useful starting point for evaluating managerial cognition in their firms and effective usage of the managerial cognition concept.
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By recognizing the decisive role of top managers (TMs) of small- and medium-sized enterprises (SMEs), this study attempts to explicate the microfoundation of pro-environmental…
Abstract
Purpose
By recognizing the decisive role of top managers (TMs) of small- and medium-sized enterprises (SMEs), this study attempts to explicate the microfoundation of pro-environmental operations of SMEs by examining the influence of institutional pressure on managerial cognition and subsequent SME pro-environmental operations. This study highlights the personal ethics of TMs, so as to examine the moderating effect of TMs' place attachment on SMEs' pro-environmental operations.
Design/methodology/approach
Empirical data are collected from a questionnaire survey of 509 SMEs in China. Hierarchical regression results are subject to cross-validation using secondary public data.
Findings
This study demonstrates that coercive and mimetic pressures have inverted U-shaped effects, whilst normative pressure has a U-shaped effect on the threat cognition of TMs. The results also show that TMs' threat cognition (as opposed to opportunity cognition) positively influences SMEs' pro-environmental operations. Moreover, both the emotional (place identity) and functional (place dependence) dimensions of place attachment have positive moderating effects on the relationship between threat cognition and SMEs' pro-environmental operations.
Practical implications
Findings of this study lead to important implications for practitioners such as regulators, policy makers and trade associations. Enabling better understanding of the nature of SMEs' pro-environmental operations, they allow for more targeted development and the provision of optimal institutional tools to promote such operations.
Originality/value
This study allows some important factors that differentiate SMEs from large firms to surface. These factors (i.e. institutional pressures, managerial cognition and place attachment) and the interactions between them form important constituents of the microfoundations of SMEs' pro-environmental operations.
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Yantai Chen, Yanlin Guo and Xuhui Hu
This study proposes that the three core underpinnings of dynamic managerial capabilities (DMCs) – managerial cognition, managerial human capital and managerial social capital …
Abstract
Purpose
This study proposes that the three core underpinnings of dynamic managerial capabilities (DMCs) – managerial cognition, managerial human capital and managerial social capital – represent individual-level micro-foundations that influence corporate social responsibility (CSR). It further explores the interaction mechanism between the three underpinnings in influencing CSR, and their influence depends on the technological turbulence caused by big-data-related technologies.
Design/methodology/approach
This study uses a quantitative research method and partial least squares structural equation modelling (PLS-SEM) to test the relationship between latent factors based on a sample of 270 Chinese top managers.
Findings
The three core underpinnings of DMCs are positively related to CSR. Managerial human capital and managerial social capital mediate the relationship between managerial cognition and CSR. Technological turbulence's moderating effects are also tested. Specifically, technological turbulence amplifies the positive relationship between managerial cognition, managerial human capital and CSR but negatively moderates the relationship between managerial social capital and CSR.
Originality/value
Why are some firms more willing to participate in CSR than others mainly depend on the fact that the actual participants of CSR are the top managers who formulate strategies and implement CSR plans. This study, grounded in the DMCs framework and the upper echelons perspective, is arguably the first to link DMCs' three core underpinnings and CSR, and further explore the multiple drivers' mechanisms and boundary conditions. This study contributes to individual micro-foundation of CSR literature, and advances the understanding of whether and how top managers influence CSR engagement.
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Mehmet Bağış, Levent Altinay and Metin Saygılı
This study examines firms' strategic entrepreneurial behaviors based on the interaction of regulatory institutions and entrepreneurs' cognition, human capital, and social capital…
Abstract
Purpose
This study examines firms' strategic entrepreneurial behaviors based on the interaction of regulatory institutions and entrepreneurs' cognition, human capital, and social capital capabilities.
Design/methodology/approach
Data was collected from 450 exporting companies in Türkiye, which is a developing economy. Smart PLS 4.0 and SPSS 24.0 software were used to analyze the data. The data were examined using structural equation modeling, confirmatory factor analysis, average extracted variance, composite reliability, and Cronbach's alpha analyses.
Findings
The findings show that entrepreneurial cognition, social capital, and regulatory institutions influence each other, this relationship is not confirmed in managerial human capital. Moreover, while managerial cognition affects strategic entrepreneurship behavior, this effect was not supported for managerial human capital and managerial social capital. However, it was determined that only entrepreneurial cognition mediates the relationship between regulatory institutions and strategic entrepreneurial behavior.
Originality/value
This research enables entrepreneurs to understand, navigate, and appreciate the significance of the interactions between regulatory institutions and dynamic managerial capabilities in decision-making. Additionally, the study allows policymakers to develop evidence-based policy designs that equip entrepreneurs with the insights needed to succeed in a competitive and regulatory complex environment.
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Christian Scholtes, Sabina Trif and Petru Lucian Curseu
Our study aims to explore the interplay between dysfunctional cognitive schemas and rationality for decision comprehensiveness in organizational strategic decisions.
Abstract
Purpose
Our study aims to explore the interplay between dysfunctional cognitive schemas and rationality for decision comprehensiveness in organizational strategic decisions.
Design/methodology/approach
We used a cross-sectional design in which we evaluated individual decision rationality using an objective decision competence test and dysfunctional cognitive schemas in a sample of 270 managers (145 women with an average age of 41 years old). In addition, we asked managers to rate the decision comprehensiveness of their organization’s strategic decision processes.
Findings
Our findings support the detrimental impact of dysfunctional cognition in strategic decision-making in such a way that the association between individual managerial rationality and the comprehensiveness of organizational strategic decisions was positive only when managers reported low dysfunctional cognition, while when managers reported high levels of dysfunctional cognitive schemas, the association between rationality and comprehensiveness was negative.
Originality/value
Our study provides initial empirical evidence for the interplay between dysfunctional cognition and managerial rationality in strategic decision processes, and it opens venues for future research to explore the detrimental role of dysfunctional cognitive schemas in strategy processes.
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Siddharth Gaurav Majhi, Arindam Mukherjee and Ambuj Anand
The purpose of this conceptual paper is to explicate the role played by information technology (IT) in enabling managerial dynamic capabilities. By doing so, this paper seeks to…
Abstract
Purpose
The purpose of this conceptual paper is to explicate the role played by information technology (IT) in enabling managerial dynamic capabilities. By doing so, this paper seeks to address a critical theoretical gap regarding IT’s role in enabling dynamic capabilities (DCs). DCs are knowledge-intensive and information-intensive processes and play a crucial role in facilitating strategic renewal of firms operating in volatile, uncertain, complex and ambiguous business environments. Although managers play a central role in the DCs framework, extant research has only focused on the role of IT in enabling firm-level and process-level DCs.
Design/methodology/approach
This conceptual paper uses the literatures on dynamic managerial capabilities, individual-level information system use, social capital, human capital, managerial cognition and technology-enabled learning to build propositions that link managerial IT use with the enablement of dynamic managerial capabilities.
Findings
This paper introduces a new construct called individual IT leveraging capability (IILC) and provides theoretically grounded arguments that link IILC with managerial social capital, managerial cognition and managerial human capital. It also explicates the relationships between managerial social capital, managerial cognition and managerial human capital and the dynamic managerial capabilities of sensing, seizing and reconfiguring.
Research limitations/implications
The establishment of the linkage between IT and dynamic managerial capabilities extends the literature on the business value of IT. This work also adds to the literature on dynamic managerial capabilities by providing a theoretically grounded argument that IT can act as an antecedent of such capabilities.
Originality/value
To the best of the authors’ knowledge, this paper is arguably the first to theorize the role of IT in enabling managerial DC and thus addresses a critical gap in academic research literature.
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Md Imtiaz Mostafiz, Murali Sambasivan and See Kwong Goh
The significance of market orientation (MO) in industrial marketing literature is immense. Separately, the role of dynamic managerial capability (DMC) as an individual-level…
Abstract
Purpose
The significance of market orientation (MO) in industrial marketing literature is immense. Separately, the role of dynamic managerial capability (DMC) as an individual-level capability has been found to be beneficial to business-to-business (B2B) transactions. However, the assessments of DMC as the antecedent to complement MO in achieving firm performance are rare. To address this knowledge gap, this study builds upon a research framework on the DMC theory and MO literature. Additionally, this study aims to investigate how export assistance avails MO-firm performance relationship and assists entrepreneurs to thrive in the international market.
Design/methodology/approach
The research was conducted among the entrepreneurial export manufacturing firms in the apparel industry in Bangladesh. Structural equation modelling was used to investigate the hypothesized relationship among 329 firms.
Findings
Two attributes of DMC, namely, managerial social capital and managerial cognition of entrepreneurs improve the MO process of export manufacturing firms. MO mediates the relationship between DMC and firm performance. Additionally, export assistance positively moderates the relationship between MO and the financial performance of the firm.
Originality/value
MO requires complementary capabilities to realize the value of it efficiently. This study strongly advocates entrepreneurs to nurture DMC to leverage MO and capitalize on emerging opportunities by productively using export assistance. Firms in the emerging economies often suffer from resource-scarcity and export assistance mitigates barriers to expand international operations and yield financial liberty to the firms operating in the international B2B market.
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Tim Heubeck and Reinhard Meckl
Managers play a critical role in shaping the development of firms due to the risky and long-term nature of innovation. Although the managerial effect on strategic change has long…
Abstract
Purpose
Managers play a critical role in shaping the development of firms due to the risky and long-term nature of innovation. Although the managerial effect on strategic change has long been factored into organizational theories, scholars still lack a complete understanding of the specific managerial capabilities that drive innovation in today's digital economy. The present study builds on dynamic managerial capabilities theory to close this research gap. The paper proposes managers' dynamic capabilities and their three underlying drivers – managerial human capital, social capital, and cognition – as a direct antecedent to digital firms' innovativeness.
Design/methodology/approach
The study draws on survey data from German Industry 4.0 manufacturing firms, which were analyzed using regression analysis.
Findings
The results confirm managers' dynamic capabilities as facilitators of innovation. In contrast to previous research on nondigital industries, the findings demonstrate that only the complete portfolio of managers' dynamic capabilities promotes innovativeness in digital firms. The study provides evidence for the importance of dynamic managerial capabilities in the digital economy yet contradicts previous research on nondigital industries related to the advantageousness of managers' human capital, social capital, and cognition for innovation.
Originality/value
The study contributes to the literature by being the first to holistically test the effects of dynamic managerial capabilities on innovation in digital firms. The results offer a nuanced account of managers' dynamic capabilities, thereby expanding dynamic managerial capabilities theory to the digital economy.
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