This paper introduces a conceptual framework to assess the foreign market entry behavior of emerging market multinationals (EMMs). By introducing strategic cognition as…
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…
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.
Due to the scanty of theoretical attempts to link entrepreneurial cognitions to strategic change momentum (SCM) and to explore moderating effects of organizational…
Due to the scanty of theoretical attempts to link entrepreneurial cognitions to strategic change momentum (SCM) and to explore moderating effects of organizational knowledge structures in the relationship, the purpose of this paper is to examine the relationship between entrepreneurial cognitions and SCM, as well as the moderating effects of organizational knowledge structures by drawing on the institutional theory and resource-based view.
Using analysis of covariance, multivariate analysis of variance, and hierarchical regression analysis, the data of 229 enterprise samples are used to empirically test the hypotheses.
The empirical results indicate that two dimensions of entrepreneurial cognitions, arrangement and willingness cognitions, will positively influence SCM, with organizational knowledge structures as a moderator. Specifically, explicit knowledge decreases the positive relationship between entrepreneurial arrangement cognitions and SCM, and tacit knowledge increases the positive relationship between entrepreneurial arrangement, willingness and ability cognitions and SCM. However, entrepreneurial ability cognitions have no significant effect on SCM, and explicit knowledge does not moderate the relationship between entrepreneurial willingness and ability cognitions and SCM.
From the results of this study, the paper can derive some important managerial implications that entrepreneurs should holistically understand the concept of entrepreneurial cognitions in Chinese context as well as strengthen the innovation of their internal management institutions and consolidate their institutional platforms for improving entrepreneurial cognitive efficacy. Moreover, strategic control ability should be further enhanced for China’s entrepreneurs, and also the dynamic balances during the conversion process between tacit knowledge and explicit knowledge should be promoted so as to optimize the organizational knowledge structures.
By integrating entrepreneurial cognitions, organizational knowledge structures, and SCM into a unified theoretical framework, the paper empirically examines the theoretical problems about the interactions among the three variables involved. The findings can broaden the research perspectives and deepen the research field of strategic change, and also provide managerial implications for cultivating entrepreneurs and optimizing organizational knowledge structures under the context of China.
In our framework, we examine the influence of both reactive and proactive cognitive variables on strategic change. Reactive sources that impact strategic change are…
In our framework, we examine the influence of both reactive and proactive cognitive variables on strategic change. Reactive sources that impact strategic change are perceptions and attributions – cognitions that determine the “what” and the “why” of performance. Perceptions are first-order cognitions that assess what is the performance feedback: positive or negative? After performance feedback is perceived, attributions are second-order cognitions that attempt to establish why the performance is positive or negative.
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…
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.
By theorizing choice as an information and decision problem, behavioral strategy research has not considered fully the agentic capacities of strategists. We argue that…
By theorizing choice as an information and decision problem, behavioral strategy research has not considered fully the agentic capacities of strategists. We argue that agentic capacities are distinct from decision-making and information-processing capacities as they rest on temporally anchored engagements with the world through habit, imagination, and judgment. We propose that understanding agency as temporally anchored action capacities is particularly important for research in behavioral strategy, as strategic phenomena encompass accumulated experience and path-dependencies (the past), ongoing competitive, market, and organizational interactions and exchanges (the present), and plans, visions, and forecasts for the future (the future). We outline how strategic choice and agency involve cognitive engagement in the three time horizons through distinct cognitive capabilities and the organizational processes that support them.
This book on uncertainty comprises the initial volume in a series titled “New Horizons in Managerial and Organizational Cognition”. We asked Frances Milliken and Gerard P…
This book on uncertainty comprises the initial volume in a series titled “New Horizons in Managerial and Organizational Cognition”. We asked Frances Milliken and Gerard P. Hodgkinson, two well-known scholars who have made important contributions to our understanding of uncertainty to join us in this opening chapter to introduce this project. The brief bios found at the end of this volume cannot do justice to the broad range of their contributions, but our conversation gives a flavor of the kind of insights they have brought to managerial and organizational cognition (MOC). The editors thank them for helping launch the series with a decisive exploration of what defining uncertainty involves, how that might be done, why it is important, and how the task is changing. We were interested to discover that all five of us are currently involved in research that considers the nature and impact of uncertainty, and we hope that readers similarly find that paying attention to uncertainty contributes to their current projects. Working together, we can advance understanding of organizational settings and effective action, both for researchers and practitioners.
Developments in the social neurosciences over the past two decades have rendered problematic the main knowledge elicitation techniques currently in use by strategy…
Developments in the social neurosciences over the past two decades have rendered problematic the main knowledge elicitation techniques currently in use by strategy researchers, as a basis for revealing actors’ mental representations of strategic knowledge. Extant elicitation techniques were advanced during an era when cognitive scientists and organizational researchers alike were preoccupied with the basic information of processing limitations of decision makers and means of addressing them, predicated on an outmoded conception of strategists as affect-free, cognitive misers. The need to adapt these techniques to enable the investigation of the emotional content and structure of actors’ mental representations is now a pressing priority for the advancement of theory, research, and practice pertaining to several interrelated areas of strategic management, from dynamic capabilities development, to upper echelons theory, to strategic consensus formation. Accordingly, in this chapter, we report the findings of two studies that investigated the feasibility of adapting the repertory grid, a robust method, widely known and well used in strategic management, for this purpose. Study 1 elicited a series of commonly mentioned strategic issues (the elements) from a sample of senior managers similar in composition to the sample recruited to the second study. Study 2 participants evaluated the elements elicited in Study 1 in relation to a series of researcher-supplied bipolar attributes (the constructs), based on the well-known affective circumplex model of human emotions. In line with expectations, a series of vector-based multivariate analyses revealed a number of interesting similarities and variations among participants in terms of the basic structure and emotional salience of the issues under consideration.
The psychological analysis of strategic management issues has gained a great deal of momentum in recent years. Much can be learned by entering the black box of strategic…
The psychological analysis of strategic management issues has gained a great deal of momentum in recent years. Much can be learned by entering the black box of strategic thinking of senior executives and bring new insights on how they see, make sense of, and interpret their everyday strategic experiences. This chapter will focus on a powerful cognitive mapping tool called the Repertory Grid Technique and demonstrate how it has been used in the strategy literature along with how a new and more refined application of the technique can enhance the elicitation of complex strategic cognitions for strategy and Board of Directors research.
The major part of studies in the field of strategic cognition focussed on strategy content, while process studies are comparatively rare. Those of the studies that are…
The major part of studies in the field of strategic cognition focussed on strategy content, while process studies are comparatively rare. Those of the studies that are dedicated to explain strategy occurrence are dominantly restricted to formal decision making. In contrast to this, the purpose of this paper is to draw on a framework that helps to get a differentiated picture on contingent processes, strategies may pass through in organizations. Furthermore, an own elicitation procedure is introduced that enables to measure strategic cognition on different levels.
The paper provides an empirical approach by applying collective causal mapping techniques, both on an individual as well as collective level. The conceptual framework of the study rests on the “genesis” concept of strategy formation introduced by Kirsch and colleagues.
The main contribution of the paper is the presentation of a methodical approach to study the formation of shared strategic orientations in small companies. An operationalization to study these cognitive processes, based on collective causal mapping techniques is provided.
Applying the methodical approach presented in the paper is expected to make a contribution to the understanding of the shared knowledge of organizational members about major strengths and weaknesses of a new strategic reorientation and to contribute to practical concerns of organizational members in specific problematic situations, especially in small companies.
The study empirically approaches the complex phenomenon on strategy formation in small companies and therefore expands the understanding of shared cognition in organizations.