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WHY LOOK BACK WITH TROUBLE AHEAD? THE IMPACT OF ENVIRONMENTAL FRAMES ON STRATEGIC TRANSITION.

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Decision-Making and Behavioral Economics Leadership, Behavior, and Decision-Making Studies Organizational Management and Leadership

Abstract

We investigate whether managers shift from predictive decision-making in a stable environment to strategies which do not rely on historical information when the situation becomes uncertain. Our experiment involving 147 experienced corporate managers suggests that they do exactly the opposite of what theory suggests they should do.

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