Session Details: Session 1049

Strategic Decision Making

Track H

Date: Tuesday, October 14, 2008


Time: 14:30 – 15:45

Common Ground

Room: Salon 7

Rhonda Reger, University of Tennessee

Title: Cognitive Dynamics of Strategic Change in Managerial Belief Systems


  • Timo Vuori, Aalto University

Abstract: Managerial belief systems play a central role in strategic change. We modeled managerial belief systems in an organization that faced turbulence in its business environment. We found several episodes that involved the collapse of the managerial belief system relating to a new business area and the subsequent reconstruction of a new belief system. At each transition point, management faced significant cognitive inertia to challenge its basic beliefs. When counter evidence against the basic beliefs was received it was not seen to threaten the basic beliefs. Instead, the evidence was explained by interpreting it either in favor or against the different competing derived beliefs until all the derived beliefs were refuted and there was no other choice than to challenge the basic beliefs.

Title: Exploratory Knowledge Creation in the Strategy Process


  • Petra Nylund, Universitat de Vic

Abstract: During which phases does organizational involvement contribute to effectiveness in the exploratory knowledge creation process? The level of organizational involvement is one of the factors in the knowledge creation process that can be controlled by management, and is therefore a salient object of study. Nonaka’s (1994) spiral of knowledge creation successfully describes exploitative knowledge creation, i.e. the conversion of existing knowledge. Knowledge creation can also be exploratory, using external impulses. I extend Nonaka’s paradigm to exploratory knowledge creation by including sensemaking of external circumstances and bidirectional conversion of knowledge between the organization and the individual. I then apply the model to the level of organizational involvement in different phases of the strategy process, and find support for the theory in survey data.

Title: Incentive Systems As A Potential Driving-Force For Organizational Change


  • Jose Ignacio Galan, University of Salamanca
  • Maria J. Sanchez-Bueno, Carlos III University of Madrid
  • José Angel Zuñiga-Vicente, King Juan Carlos University

Abstract: This paper provides preliminary empirical evidence on the role that incentive systems can play as a potential determinant of the organizational change process. Drawing on two case studies we note that the incorporation of networking elements in new forms of organization requires an increased consideration of incentive schemes linked to cultural, social and psychological aspects that extend beyond the contractual approach. Likewise, our study reveals that during the process of organizational change companies would have to introduce incentive schemes that allow for the co-existence of exploration and exploitation actions. However, in more traditional industries, they should place greater importance on incentive systems aimed at upholding exploitation actions, whereas in more innovative industries greater significance could be attributed to incentive systems designed to favor exploration actions.

Title: Interaction of Cognitive Styles in Dyadic Negotiations: Insights of a Simulation about Behavioral Decision-Making


  • Stefan Groesser, Bern University of Applied Sciences

Abstract: This study extends existing research of agenda setting by proposing a way to reduce the ambiguity of recent models regarding the process of dyadic negotiations during agenda setting processes. The purpose of this conceptual paper is, first, to develop a dyadic negotiation framework and connect it to the research about agenda building; second, to detail one sector of the framework with a formal-causal model about micro-processes of negotiation behavior; and third, to account for different cognitive styles of the negotiators and their impact on strategic agenda setting. Based on the formal model, we intend to develop propositions about the process and outcome, when different cognitive styles interact in dyadic negotiations. Simulation modeling enables to capture the dynamic complexity and supports us to develop insightful propositions.

Title: Intuition and Tacit Knowledge in the Strategy Process of CEOs


  • Mark Kriger, BI Norwegian Business School
  • Anatoly Kandel, Caldwell University

Abstract: This paper finds that firm competitiveness depends on the ability to identify causal connections between: 1) on-going competitive dynamics, 2) the development and deployment of organizational resources, and 3) the use of complex forms of cognition. Effective strategic judgments are found to be grounded in the tacit knowledge base of strategic managers who use several forms of intuition along with creative imagination and incremental exploration. The assessment of intuition-derived insights enables strategic managers to identify and implement effective strategic actions in order to adjust to evolving market opportunities and challenges. The paper builds on in-depth analyses of the long-term strategy processes of four CEOs - Akers and Gerstner (IBM), Grove (Intel), Armstrong (AT&T) - and concludes with implications for strategic managers and consultants.

All Sessions in Track H...

Sun: 10:00 – 11:30
Session 1504: Strategy Process Routines and their Content Outcomes I.
Sun: 13:00 – 14:30
Session 1604: Strategy Process Routines and their Content Outcomes II
Sun: 15:00 – 16:30
Session 1704: Strategy Process Routines and their Content Outcomes III.
Mon: 11:15 – 12:30
Session 1053: Turnaround and Alignment
Mon: 15:30 – 16:45
Session 1051: Restructuring and Change
Mon: 17:00 – 18:15
Session 1054: Facing Competing Demands to Create Value
Tue: 11:15 – 12:30
Session 1050: Linking Middle Managers into the Strategy Process
Tue: 14:30 – 15:45
Session 1049: Strategic Decision Making
Wed: 10:00 – 11:15
Session 1052: Resources, Capabilities and Competitive Advantage

Strategic Management Society

Cologne Conference