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In response to recent calls to better understand the brain’s role in organizational behavior, we propose a series of theoretical tests to examine the question “can brains manage?” Our tests ask whether brains can manage without bodies and without extracranial resources, whether they can manage in social isolation, and whether brains are the ultimate controllers of emotional and cognitive aspects of organizational behavior. Our analysis shows that, to accomplish work-related tasks in organizations, the brain relies on and closely interfaces with the body, interpersonal and social dynamics, and cognitive and emotional processes that are distributed across persons and artifacts. The results of this “thought experiment” suggest that the brain is more appropriately conceived as a regulatory organ that integrates top-down (i.e., social, artifactual and environmental) and bottom-up (i.e., neural) influences on organizational behavior, rather than the sole cause of that behavior. Drawing on a socially situated perspective, our analysis develops a framework that connects brain, body and mind to social, cultural, and environmental forces, as significant components of complex emotional and cognitive organizational systems. We discuss the implications for the emerging field of organizational cognitive neuroscience and for conceptualizing the interaction between the brain, cognition and emotion in organizations.

In this chapter we examine some possibilities of using computer simulation methods to model the interaction of affect and cognition in organizations, with a particular focus on agent-based modeling (ABM) techniques. Our chapter has two main aims. First, we take stock of methodological progress in this area, highlighting important developments in the modeling of affect and cognition in other fields, including psychology and economics. Second, we outline how ABM in particular can help to advance managerial and organizational cognition by building and testing theoretical models predicated on the interaction of affect and cognition. We argue that using ABM for this purpose can improve the level of specificity of cognitive and affective concepts and their interrelationships in organizational theories, yield more behaviorally plausible models of behavior in and of organizations, and deepen understanding of the generative behavioral mechanisms of multi-level organizational phenomena. We highlight possibilities for using ABM to model affect–cognition interactions in studies of mental models, collective cognition, diversity in work groups and teams, and organizational decision-making.

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.

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.

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.

The generalizability of this paper's conclusions to other firms is to be tested by large sample quantitative research.

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.

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.

Secchi and Cowley (2016, 2018) propose a Radical approach to Organizational Cognition (ROC) as a way of studying cognitive processes in organizations. What distinguishes ROC from the established research on Organizational Cognition is that it remains faithful to radical, anti-representationalist principles of contemporary cognitive science. However, it is imperative for proponents of ROC to legitimize their approach by considering how it differs from the established research approach of Distributed Cognition (DCog). DCog is a potential contender to ROC in that it not only counters classical approaches to cognition but also provides valuable insights into cognition in organizational settings.

The paper adopts a conceptual/theoretical approach that expands Secchi and Cowley's introduction of ROC.

The paper shows that DCog research presupposes a task-specification requirement, which entails that cognitive tasks are well-defined. Consequently, DCog research neglects cases of organizational becoming where tasks cannot be clearly demarcated for the or are well-known to the organization. This is the case with the introduction of novel tasks or technical devices. Moreover, the paper elaborates on ROC's 3M model by linking it with insights from the literature on organizational change. Thus, it explores how organizing can be explored as an emergent phenomenon that involves micro, meso and macro domain dynamics, which are shaped by synoptic and performative changes.

The present paper explores new grounds for ROC by not only expanding on its core model but also showing its potential for informing organizational theory and radical cognitive science research.

For organizational neuroscience to progress, it requires an overarching theoretical framework that locates neural processes appropriately within the wider context of organizational cognitive activities. In this chapter, we argue the case for building such a framework on two foundations: (1) critical realism, and (2) socially situated cognition. Critical realism holds to the importance of identifying biophysical roots for organizational activity (including neurophysiological processes) while acknowledging the top-down influence of higher-level, emergent organizational phenomena such as routines and structures, thereby avoiding the trap of reductionism. Socially situated cognition connects the brain, body, and mind to social, cultural, and environmental forces, as significant components of complex organizational systems. By focusing on adaptive action as the primary explanandum, socially situated cognition posits that, although the brain plays a driving role in adaptive organizational activity, this activity also relies on the body, situational context, and cognitive processes that are distributed across organizational agents and artifacts. The value of the framework that we sketch out is twofold. First, it promises to help organizational neuroscience become more than an arena for validating basic neuroscience concepts, enabling organizational researchers to backfill into social neuroscience, by identifying unique relations between the brain and social organization. Second, it promises to build deeper connections between neuroscience and mainstream theories of organizational behavior, by advancing models of managerial and organizational cognition that are biologically informed and socially situated.

This paper introduces a conceptual framework to assess the foreign market entry behavior of emerging market multinationals (EMMs). By introducing strategic cognition as the underlying theoretical perspective, this paper postulates that different levels of institutional voids in home markets shape the strategic cognition of EMMs, influencing their market entry behavior due to the prevalence of organizational imprinting in the early stages of internationalization. The paper aims to contribute to the strategic cognition literature by introducing emerging markets as a relevant context in which to apply and extend current thinking. Additionally, it aims to contribute to the institutional voids literature by providing a cognitive framework of behavioral patterns that is rationalized by institutional voids. Finally, the paper contributes to the entry mode literature by proposing strategic cognition as a relevant moderator for foreign entry mode choices, particularly those of EMMs.

Despite the extensive research on the determinants and consequences of firm growth, research focusing on how the actual process unfolds is still evolving. An important part of firm growth process research is entrepreneurial cognition. The purpose of this chapter is to explore the relationship between entrepreneurial cognition and firm growth intentions. Specifically, we propose a theoretical model of entrepreneurial cognitive interpretation and categorization of market information as it relates to firm growth intentions. Drawing from the strategic cognition literature in general and strategic issue interpretation literature in particular, we propose that entrepreneurs’ interpretation of market information as opportunity or threat, gain or loss, and controllable or uncontrollable influences their firm growth intentions. Furthermore, our theoretical model discusses the condition under which favorable interpretation of market information leads to higher growth intentions by incorporating insights from the Entrepreneurial Orientation (EO) construct. This chapter extends our understanding of firm growth processes by highlighting the important role cognitive interpretation and categorization play in facilitating or hindering entrepreneurial firm growth.

The contributions proposed in this paper are motivated by principles of incompatibility, and non‐equilibrium states, existing between the continuous growth in the level of environmental complexity and the insufficient cognitive capacity of the organization. From such a view, the purpose of this paper is to ask: what are the core competencies of the new industrial organization in the twenty‐first century?

First, the paper examines the characteristics and limitations of past and current industrial organizations; second, it contributes by extending their frontiers and by proposing technological, managerial and organizational core competencies of the new enterprise.

From such analyses, this paper introduces the features of customer‐centric systems (CCS) which represent new industrial organizations in the pursuit of high degrees of organizational cognition, intelligence and autonomy, and consequently, high degrees of agility and flexibility, in order to manage high levels of environmental complexity and uncertainty, to operate through intensive mass customization, and to provide customers with immersiveness.

For further research, this paper suggests the investigation of practical implementation of the features of the new enterprise of CCS. In such a direction, it recommends additional reading on the concept and design of computational organizational management networks.

This paper emphasizes that CCS are firm types which strategically organize their resources and competencies around customers' values and needs, in order to involve customers into their business. By involving customers into their task environments and business, CCS‐based firms have the chance to understand their clients' real needs and to produce the appropriate goods and services.

The uniqueness of this paper lies in its attempt to master, analyze and integrate technological, managerial and organizational perspectives of past and current manufacturing organizations, which contribute to illuminate features and to identify core competencies of future industrial firms, which are in the pursuit of innovation and sustainable competitive advantage in the twenty‐first century.

Bandwagon refers to the adoption of popular ideas, thoughts, or practices. Although the inter-organizational (macro) dynamics of the phenomenon have been widely studied, its intra-organizational (micro) aspects have received limited attention. The paper presents a theoretical framework and a model that address intra-organizational aspects of bandwagon drawing on distributed cognition, social relationships, and other elements of the organizational structure such as culture and defensive routines. The analysis of simulated data from the model suggests that the phenomenon is likely to decrease with highly informal culture, promotion of advice taking and giving, low levels of distrust, strong social ties, and minimal defensive routines.

This book comprises the second volume in the recently launched New Horizons in Managerial and Organizational Cognition book series. Volume 1 (Sund, Galavan, & Huff, 2016), addressed the topic of strategic uncertainty. This second volume comprises a collection of contributions that variously report new methodological developments in managerial and organizational cognition, reflect critically on those developments, and consider the challenges that have yet to be confronted in order to further advance this exciting and dynamic interdisciplinary field. Contextualizing within an overarching framework the various contributions selected for inclusion in the present volume, in this opening chapter we reflect more broadly on what we consider the most significant developments that have occurred over recent years and the most significant challenges that lie ahead.