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Article
Publication date: 22 October 2010

Hangbiao 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

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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.

Details

Nankai Business Review International, vol. 1 no. 4
Type: Research Article
ISSN: 2040-8749

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Article
Publication date: 23 August 2011

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.

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3255

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.

Details

Journal of Business & Industrial Marketing, vol. 26 no. 7
Type: Research Article
ISSN: 0885-8624

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Book part
Publication date: 5 December 2017

Mark P. Healey, Mercedes Bleda and Adrien Querbes

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…

Abstract

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.

Details

Methodological Challenges and Advances in Managerial and Organizational Cognition
Type: Book
ISBN: 978-1-78743-677-0

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Book part
Publication date: 30 November 2020

Kristian J. Sund, Robert J. Galavan and Marcel Bogers

In this paper, we reflect on an expanding literature that links theories of cognition and business models. Managers hold in their mind perceptual constructs or schemas of…

Abstract

In this paper, we reflect on an expanding literature that links theories of cognition and business models. Managers hold in their mind perceptual constructs or schemas of the business model. These guide the process of distinguishing between options and making choices. Those familiar with business model development will easily recognise that the perceptual construct provides only a summary of the business model, and that a more complex conceptualisation of how business model elements interact is needed. The business model is then much more than a visualisation. It is a schematic model of theorised interaction that is created, shaped, and shared over time. The underlying processes of this creation, shaping, and sharing are cognitive activities taking place at individual, organisational, and inter-organisational levels. Theories of managerial and organisational cognition are thus critical to understanding the acts of business modelling and business model innovation. Here we suggest some of the ways that business model and cognition literatures can be connected, present existing literature, and reflect on future avenues of research to explore the cognitive foundations of business modelling.

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Business Models and Cognition
Type: Book
ISBN: 978-1-83982-063-2

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Book part
Publication date: 27 November 2018

Kristian J. Sund, Robert J. Galavan and Stefano Brusoni

In this brief introduction, we reflect on the diversity of studies connecting cognition to innovation and the enormous potential that exists for further research. Research…

Abstract

In this brief introduction, we reflect on the diversity of studies connecting cognition to innovation and the enormous potential that exists for further research. Research streams on cognition in organizations, innovation in organizations, and intra- and entrepreneurship have developed in parallel over the past decades, with frequent touchpoints, notably in terms of theories of cognition informing studies on the processes of innovation and creativity. Cognition theories have thus been considered as micro-foundations of many theories of innovation. Here, we outline the many ways that theories of cognition can yield insights for studies of innovation and discuss the contributions of chapters comprising this third volume of New Horizons in Managerial and Organizational Cognition.

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Cognition and Innovation
Type: Book
ISBN: 978-1-78769-432-3

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Book part
Publication date: 4 August 2015

Michael Abebe and David

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…

Abstract

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.

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Entrepreneurial Growth: Individual, Firm, and Region
Type: Book
ISBN: 978-1-78560-047-0

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Book part
Publication date: 22 November 2021

Robert J. Galavan and Kristian J. Sund

In this chapter, the authors reflect on their experience of editing the first five volumes of the book series New Horizons in Managerial and Organizational Cognition. The…

Abstract

In this chapter, the authors reflect on their experience of editing the first five volumes of the book series New Horizons in Managerial and Organizational Cognition. The authors summarize some of the contributions of articles published in the series, including those comprising this fifth volume. From its beginnings as a follow-up publication of the second Frontiers in Managerial and Organizational Cognition (MOC) conference, the series has moved in several directions exploring how the field is developing, and what new applications of MOC theories and methods are being explored. The authors identify and highlight several lines of investigation in particular: work that furthers their understanding of schema and cognitive mapping, work on framing, work on identity, work on heuristics and intuition, work on emotions, and modern methodological advances, enabled by IT and other technologies.

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Thinking about Cognition
Type: Book
ISBN: 978-1-80117-824-2

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Article
Publication date: 6 November 2020

Nimruji Jammulamadaka

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…

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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Article
Publication date: 29 January 2021

Ahmed Muneeb Mehta and Syed Ahmad Ali

Managerial capabilities are one of the primary resources in every organisation that have peculiar strategic objectives to fulfil. The purpose of this paper is an effort to…

Abstract

Purpose

Managerial capabilities are one of the primary resources in every organisation that have peculiar strategic objectives to fulfil. The purpose of this paper is an effort to dig out how managerial cognition, human capital and social capital as underpinnings of dynamic managerial capabilities (both separate and composite) affect sustainable strategic market creation (SMC) in nascent industries. Moreover, this study unfolds the role of dynamic managerial capabilities (sensing, seizing and reconfiguring) as a key mechanism through which these underpinnings lead to SMC.

Design/methodology/approach

For this purpose, a sample of 497 respondents was collected from top and middle-level managers of insurance companies in Pakistan. Structural equation modelling was used to test a set of direct, indirect and moderation hypotheses.

Findings

Findings revealed that DMC underpinnings have a direct positive impact on marketing and research and development competence dimensions of SMC. Results also confirmed significant mediation paths and substantial moderation of aforementioned organisational climate factors between dynamic managerial capabilities (DMC) and its underpinnings.

Originality/value

It offers a first examination of the possible moderation impact of innovation, flexibility and outward focus between DMC and its underpinnings as essential organisational climate factors.

Details

International Journal of Ethics and Systems, vol. 37 no. 2
Type: Research Article
ISSN: 2514-9369

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Book part
Publication date: 5 December 2017

Gerard P. Hodgkinson, Kristian J. Sund and Robert J. Galavan

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)…

Abstract

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.

Details

Methodological Challenges and Advances in Managerial and Organizational Cognition
Type: Book
ISBN: 978-1-78743-677-0

Keywords

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