A dual-processing view of three cognitive strategies in strategic decision making

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Journal Title
Journal ISSN
Volume Title
A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä
Date
2021-06
Major/Subject
Mcode
Degree programme
Language
en
Pages
58
Series
Long Range Planning, articlenumber 102065
Abstract
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 processingduring 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.
Description
Keywords
Decision making, Dual-processing theory, Intuition, Managerial cognition, Reflection
Other note
Citation
Luoma , J & Martela , F 2021 , ' A dual-processing view of three cognitive strategies in strategic decision making : Intuition, analytic reasoning, and reframing ' , Long Range Planning , vol. 54 , no. 3 , 102065 . https://doi.org/10.1016/j.lrp.2020.102065