Session 93

Cognition and Intuition

Track H

Date: Tuesday, October 9, 2012


Time: 17:30 – 18:45


Room: Meeting Room 2.2

Session Chair:

  • Pamela Barr, Georgia State University

Title: An Examination of Intuition in Strategic Decision-Making: The Role of Context


  • Neil Shepherd, Aston University
  • John Rudd, Aston University

Abstract: Intuition is a vitally important concept in strategic decision making research because it enables decision-makers to rapidly detect patterns in dynamic environments in order to cope with the time-pressured, ill-structured and non-routine nature of strategic decision-making. Despite a growing body of conceptual literature emphasising the importance of intuition in strategic decision-making; there has been very little development of theory explaining the contextual factors that cause intuition to be used in the strategic decision-making process. This paper demonstrates that by integrating different contextual variables a clear understanding of the influences on the use of intuition in strategic decision-making can be developed. This article develops an integrative theoretical model together with testable research propositions, which if empirically examined, would make a substantial contribution to knowledge.

Title: Can Organizations Mitigate Individual Biases? Evidence from Mutual Fund Investment Decisions


  • Dimo Ringov, ESADE Business School

Abstract: Can organizations mitigate the impact of individual biases on organizational decisions? This study investigates whether and how organizational structure and decision making process affect the quality of organizational decisions. Theoretical arguments about the impact of organizational structure and decision process on organizations’ disposition effect - a decision bias that refers to actors’ tendency to sell assets whose prices have increased since purchase, yet hold on to assets that have dropped in value since purchase - are evaluated empirically on a large sample of mutual fund portfolio decisions. The findings suggest that decision making process significantly affects the disposition effect in mutual fund investment decisions.

Title: Managerial Network Cognition in the Context of 2014 Winter Olympic Games Tender Competitions


  • Souren Arzlanian, VU University Amsterdam
  • Wouter Stam, Hong Kong University of Science & Technology

Abstract: Empirical studies have revealed that organizational performance is strongly dependent on accuracy of managerial perception of environmental characteristics. We examined how the personal characteristics of management team, environmental scanning, and organizational structure characteristics are related to their perceived accuracy of inter-organizational networks. Our study contributes to the prior work on managerial cognition. However, in contrast to previous research we simultaneously examine the performance effects of three prominent sets of influences of managerial perception. Furthermore, we focus on inter-organizational networks that have received relatively little attention in managerial cognition literature. As such, this study builds on recent observations that there is little empirical research systematically examining influences on environmental perceptions by assessing how different factors affect managerial perception.

Title: Strategy Making in Unfamiliar Environments: Towards a Dual Process Theory of the Complementary Power of Pattern-Matching and Simulating


  • Emmanuelle Reuter, University of St. Gallen

Abstract: A recent and ongoing discussion on the type of cognitive processes involved in managers’ strategy-making in unfamiliar environments has outlined an oppositional view of either strategy-as-pattern or strategy-as-construction approaches; assuming either more dominant underlying automatic, or active cognitive processes. We outline an alternative dual process theory of complementary automatic and active cognitive processes, underlying the general activity types of pattern-matching and simulating. We first derived these activities from a systematic review of prior empirical environment interpretation literature. We then theorize how environment interpretation involves a dynamic interplay between pattern-matching and simulating activities, where prior domain experience and cognitive capacity are two central elements, with which managers efficiently balance between stability and flexibility of organizational actions. Implications for environment interpretation, managerial cognition and organizational adaptation are discussed.

All Sessions in Track H...

Sun: 08:00 – 09:15
Session 267: Strategic Processes in Transition
Sun: 09:30 – 10:45
Session 268: Capabilities that Help or Hurt Acquisition Processes
Sun: 11:15 – 12:30
Session 269: Chief Strategy Officer’s Role in Strategy Processes
Sun: 15:15 – 16:30
Session 89: Strategic Alignment and Strategy Implementation
Mon: 08:00 – 09:15
Session 99: Ambidexterity and Innovativeness
Mon: 09:30 – 10:45
Session 91: Consensus and Commitment
Mon: 13:30 – 14:45
Session 92: Attention, Goals and Renewal
Mon: 16:30 – 17:45
Session 90: Participation, Cooperation and Commitment
Tue: 08:00 – 09:15
Session 94: Going Beyond the Conventional Wisdom
Tue: 11:00 – 12:15
Session 95: Emotions and Behavior
Tue: 14:15 – 15:30
Session 96: Comprehensiveness and Time
Tue: 15:45 – 17:00
Session 98: Management of Emerging Strategic Issues
Tue: 17:30 – 18:45
Session 93: Cognition and Intuition
Session 97: Cognition and Capabilities

Strategic Management Society