A dual-processing view of three cognitive strategies in strategic decision making: Intuition,analytic reasoning,and reframing

In making strategic decisions, managers implicitly or explicitly come to choose a cognitive strategy, by which we refer to the choices made as regards what type of information processing to engage in and rely on as the basis for a decision. Dual-processing theories of cognition recognize two types of information processing: non-conscious and conscious. There are two cognitive strategies—relying on intuition and engaging in analytic reasoning—that have a straightforward connection to the two types of information processing. However, managers often engage in reframing, that is, they deliberately attempt to rethink the background assumptions concerning how one approaches a decision-making situation. Despite the strategic importance of reframing, the foundations of this cognitive strategy remain theoretically underdeveloped. We argue that reframing involves both Type 1 and Type 2 processing in a complementary fashion. Specifically, reframing can be induced through conscious reflection and non-conscious processing during an incubation period. Furthermore, we argue that while reframing is a robust cognitive strategy across varying levels of environmental dynamism, dedicating time to reframing incurs significant opportunity costs, and can thus be employed only sparingly.     

Accounting for the formation of scientific fields in organization studies

There are few qualitative organizational accounts that explore the constitution of scientific fields in management. We developed a methodology for understanding the academic modes of scientific knowledge production in management research from the perspective of the sociology of scientific knowledge (SSK) and actor-network theory (ANT). SSK and ANT offer a way to account for how scientific fields in organization studies are enacted. Key to this process are splitting and inversion of statements; credibility and network formation; and the concepts of credit, trajectory, and position. Specific statements making key knowledge claims (e.g., handbooks, special editions) are situated in academic practices that obscure those rhetorical strategies that enable the production of a network of knowledge that can act, organizationally, as a more or less unified sub-field. We take as a starting point a collection of texts, dated 2011, which sought to systematize the main currents of a disciplinary sub-field during the last decade, focusing on how statements are transformed into scientific certainty and how the question of credibility is established. The sub-field is that of organizational learning (OL). The particular language of OL relies on approaches that make its epistemic assumptions intelligible within a network. It is a language that tends to reify and naturalize specific practices that become accredited as organization learning. The material/textual artifacts that sustain these practices, instead of being reified, can be reframed as enacting a scientific field whose resignification acts upon the network that enabled its existence.     

Multi-level issues in evolutionary theory, organization science, and leadership

Multi-level issues are critical in the physical, social, and behavioral sciences. We articulate issues related to multiple levels of analysis in theory building and theory testing and explore them from evolutionary theory (ET) and organization science and leadership (OSL) perspectives. Specifically, analogous multi-level concepts and notions in ET and OSL are identified, aligned, and illustrated. Ideas from evolutionary psychology are included in the ET perspective, while notions from the varient approach are included in the OSL perspective. Several exemplars in OSL that incorporate ET and multi-level perspectives are presented. Numerous examples and lessons learned from ET and implications of multi-level issues and multiple levels of analysis for future theory building and theory testing in OSL are discussed as well.     

Organizational change and rigidity during crisis: A review of the paradox

When and how do existential crises, threatening business continuity, stimulate organizational change or cause the opposite—rigid preservation of established business practices? This question remains unresolved, despite three decades of deliberations in the academic literature, which still yields contradicting theoretical arguments and empirical results. One view argues and finds support for the hypothesis that posits an amplified propensity to change within threatened organizations. The other view supports the threat-rigidity thesis, implying reinforcing habitual practices. In this paper, we provide a novel holistic typology of organizational crises and then review the literature on the topic, summarizing existing insights within a theoretical framework comprising three interrelated sequential processes: organizational cognition, decision-making, and implementation. We analyze the gaps in the field's knowledge within each process and propose a research agenda to address these voids.     

The relationship of organizational and social coping resources to employee coping behaviour: A longitudinal analysis

Research on the determinants of coping behaviour has focused primarily on stressor-specific influences and on personal attributes and skills that serve as coping resources. However, coping resources can also include aspects of the organizational and social environment. This study investigates the role of supportive work relationships and of participation and influence in decision-making in determining the coping behaviour of employees in a manufacturing plant. Since the relationships between worksite coping resources and employee coping behaviours may be causally reciprocal, longitudinal models were analysed to sort out causal priorities. Results showed that organizational and social coping resources did influence subsequent coping behaviour. Perceiving oneself to have influence over decision-making at work predicted increases in active, problem-solving coping attempts and decreases in resignation in response to worksite stressors. Also, employees who perceived their co-workers and supervisors to be supportive were more likely to increase their mobilization of that support when faced with worksite stress. In addition, the use of certain employee coping behaviours influenced subsequent levels of participation in decision-making, as well as the quality of relationships with co-workers and supervisors.     

The relationship of organizational and social coping resources to employee coping behaviour: A longitudinal analysis

Abstract

Research on the determinants of coping behaviour has focused primarily on stressor-specific influences and on personal attributes and skills that serve as coping resources. However, coping resources can also include aspects of the organizational and social environment. This study investigates the role of supportive work relationships and of participation and influence in decision-making in determining the coping behaviour of employees in a manufacturing plant. Since the relationships between worksite coping resources and employee coping behaviours may be causally reciprocal, longitudinal models were analysed to sort out causal priorities. Results showed that organizational and social coping resources did influence subsequent coping behaviour. Perceiving oneself to have influence over decision-making at work predicted increases in active, problem-solving coping attempts and decreases in resignation in response to worksite stressors. Also, employees who perceived their co-workers and supervisors to be supportive were more likely to increase their mobilization of that support when faced with worksite stress. In addition, the use of certain employee coping behaviours influenced subsequent levels of participation in decision-making, as well as the quality of relationships with co-workers and supervisors.     

On the fruitfulness of the concept of partial organization: A rejoinder to Apelt et al.

This short paper responds to Apelt et al.’s (2017) comments on Ahrne et al.'s (2016) proposal of extending the concept of organization to any decided social orders and thereby putting organization studies at the centre of the social sciences. We highlight some misunderstandings about the aims of this proposal and discuss Apelt et al.’s own proposal of re-focusing organization studies on formal organizations based on Niklas Luhmann's systems theory.     

Antecendents and effects of decision comprehensiveness: The role of decision quality and perceived uncertainty

On the basis of a sample of 184 top executives, we investigated the roles of decision quality and perceived uncertainty in the relationship between decision comprehensiveness and performance. Our results show that decision quality mediates a large proportion of the comprehensiveness–performance relationship and may thus provide a more proximate outcome measure of the effect of comprehensiveness. In addition, we found that perceived uncertainty directly affects the level of comprehensiveness in organizations rather than moderating its effect on performance as conceptualized by previous research. Based on the integration of behavioral and information processing theories we suggest that more process-oriented measures such as decision quality and perceived uncertainty may overcome conflicting empirical results in the field.     

Resurrecting organization without renouncing society: A response to Ahrne,Brunsson and Seidl

In a recent article in this journal, Ahrne, Brunsson, and Seidl (2016) suggest a definition of organization as a ‘decided social order’ composed of five elements (membership, rules, hierarchies, monitoring, and sanctions) which rest on decisions. ‘Partial organization’ uses only one or a few of these decidable elements while ‘complete organization’ uses them all. Such decided orders may also occur outside formal organizations, as the authors observe. Although we appreciate the idea of improving our understanding of organization(s) in modern society, we believe that Ahrne, Brunsson, and Seidl's suggestion jeopardizes the concept of organization by blurring its specific meaning. As the authors already draw on the work of Niklas Luhmann, we propose taking this exploration a step further and the potential of systems theory more seriously. Organizational analysis would then be able to retain a distinctive notion of formal organization on the one hand while benefiting from an encompassing theory of modern society on the other. With this extended conceptual framework, we would expect to gain a deeper understanding of how organizations implement and shape different societal realms as well as mediate between their particular logics, and, not least, how they are related to non-organizational social forms (e.g. families).     

Designing Lateral Organizations: An Analysis of the Benefits,Costs, and Enablers of Nonhierarchical Organizational Forms*

Twenty-first century organizations will require designs that enable them to cope with turbulent environments. Organizations have experimented with lateral organizational designs for this purpose, but research evidence concerning these forms is sparse. We analyzed data obtained from 512 employees within eight diverse organizations implementing flexible lateral organizations. Using a sequence comparison methodology, we were able to identify and categorize the major costs, benefits, and enablers associated with implementing these forms of complex organizations. Propositions for effectively managing lateral relations were tested and managerial implications were explored.     

Approaching management and organization paradoxes paradoxically: The case for the tetralemma as an expansive encasement strategy

The field of paradox studies keeps struggling to put the notion of paradox into the very centre of organizational life and managerial decision-making, with mixed success. We argue that this research ambition can be realized much more effectively by anchoring the field in three interrelated conceptual approaches which build on paradox as the paradigmatic point of departure. These approaches include Spencer Brown’s form calculus, Niklas Luhmann’s systems and organization theory, and the traditional Indian logical construct of tetralemma. In the proposed argument, paradox constitutes the very identity of organizations as (re-entries of) distinctions drawn in the environment; it is actualized in every act of organizational decision communication, as well as in the process of the continual vanishing and renewal of such acts. In this conception of organizational life, the key challenge is to debunk false distinctions by using tetralemmatization strategies that entail a radical questioning of the problematic observational perspectives.     

Embracing complexity: Learning from minority, 50-50, and majority joint venture experience

Learning from joint venture (JV) experience is commonly viewed as a way to improve JV performance. However, many JVs are complex and difficult to learn from. How can firms embrace this complexity to realize the learning potential of their JV experience? To answer this question, we consider how minority, 50-50, and majority JVs differ in terms of complexity stemming from the interdependencies between the JV partners and between the JV and its parent organizations. We theorize that the relatively limited complexity of minority JV experience facilitates learning from more complex experience with majority and 50-50 JVs. However, the same facilitating effect is not expected between two forms of complex experience. We test these predictions on a comprehensive set of equity JVs formed by Dutch listed companies between 1966 and 2005, using JV survival and abnormal stock market returns as complementary JV performance measures.     

Routines and transactive memory systems: Creating,coordinating, retaining,and transferring knowledge in organizations

This chapter compares and contrasts the effects of two knowledge repositories, routines and transactive memory systems (TMSs), on knowledge creation, coordination, retention and transfer. We provide overviews of research on the two knowledge repositories, with particular attention to how they form and change. We then discuss the relationship between routines and TMSs. We also compare and contrast routines and TMSs in terms of their capabilities to promote knowledge creation, coordination, retention and transfer in organizations. Routines can transfer across organizations, and they are resilient to member turnover. Although routines can be a source of inertia, they can also enable change. TMSs are susceptible to member turnover and are not easily transferred to other organizations. TMSs promote innovation and are particularly valuable under conditions of uncertainty. We argue that TMSs and routines are reciprocally related. Routines can seed TMSs and TMSs can crystalize into routines. We hope that our chapter stimulates future research on the interrelationship between routines and TMSs and their effects on knowledge creation, coordination, retention, and transfer in organizations.     

Internationalization and performance: The moderating effects of organizational learning

By proposing a conceptual outline for a general model that explains the internationalization–performance link, we test the moderating effects of organizational learning on the relationship between internationalization and performance empirically. Integrating two distinct literature streams from the organizational learning perspective and the resource-based view, we present an integrated, multidimensional framework for analyzing multinational enterprises’ (MNEs’) resources, internationalization, and organizational learning, as well as their associated impact on firm performance. Specifically, using a sample of 110 American MNEs, we find that while certain MNE resources motivate and precede internationalization, social and market learning (whereas technological learning does not) moderates the relationship between internationalization and performance. These findings extend prior research by establishing the importance of the relationships among MNE resources, internationalization, organizational learning, and firm performance.     

Concerns,Challenges, and Directions of Development for the Issue of Representing Uncertainty in Risk Assessment

In the analysis of the risk associated to rare events that may lead to catastrophic consequences with large uncertainty, it is questionable that the knowledge and information available for the analysis can be reflected properly by probabilities. Approaches other than purely probabilistic have been suggested, for example, using interval probabilities, possibilistic measures, or qualitative methods. In this article, we look into the problem and identify a number of issues that are foundational for its treatment. The foundational issues addressed reflect on the position that “probability is perfect” and take into open consideration the need for an extended framework for risk assessment that reflects the separation that practically exists between analyst and decisionmaker.     

Intergenerational resource tensions in the workplace and beyond: Individual,interpersonal, institutional,international

The workforce is rapidly aging. Already at record highs, labor force participation rates of both over-55 and over-65 age segments are expected to nearly double in the immediate future. The current chapter describes how these sweeping demographic changes necessitate both the unprecedented utilization of older workers and intergenerational collaboration, but also present the danger of heightened generational tension. We describe the specific risk factors for such tensions, highlighting the presence of generational boundaries at multiple levels: (a) individual, (b) interpersonal, (c) institutional, and (d) international. Drawing from our own work and relevant management literature, we then identify three broad domains within which intergenerational tensions are particularly salient at each of these levels: active Succession tensions over enviable resources and influence (e.g., employment), passive Consumption tensions over shared asset usage (e.g., healthcare) and symbolic Identity tensions over figurative space (e.g., cultural fit) (SCI). We conclude with suggestions for potential interventions, and major open areas for future organizational research, both of which should focus on how to maximize the utility of unprecedented intergenerational collaboration.     

Retail category management: State-of-the-art review of quantitative research and software applications in assortment and shelf space management

Retail requires efficient decision support to manage increasing product proliferation and various consumer choice effects with limited shelf space. Our goal is to identify, describe and compare decision support systems for category planning. This research analyzes quantitative models and software applications in assortment and shelf space management and contributes to a more integrated modeling approach. There are difficulties commonly involved in the use of commercial software and the implementation and transfer of scientific models. Scientific decision models either focus on space-dependent demand or substitution effects, whereas software applications use simplistic rules of thumb. We show that retail assortment planning models neglect space-elastic demand and largely also ignore constraints of limited shelf space. Shelf space management streams on the other hand, mostly omit substitution effects between products when products are delisted orout-of-stock, which is the focus of consumer choice models in assortment planning. Also, the problem sizes of the models are often not relevant for realistic category sizes. Addressing these issues, this paper provides a state-of-the-art overview and research framework for integrated assortment and shelf space planning.