Top management perception of strategic information processing in a turbulent environment

Abstract

Extant strategic management literature provides only partial answers to the important question: what variables affect top managers′ ability to process complicated, novel, ambiguous, or dynamic strategic information in a turbulent environment? Drawing on cognitive psychology, personality theory, management theory, organizational theory, and management information systems literature, proposes that nine personal attributes and four contextual attributes affect top managers′ information‐processing capability. The nine personal attributes are: cognitive complexity, knowledge, mental model of success, openmindedness, time orientation, personal values, tolerance for ambiguity,locusof control, and time devoted to environmental scanning. The four contextual attributes are: rewards and incentives, culture, structure of strategic planning process, and executive support systems. Thirteen propositions are postulated regarding the types of attributes that are conducive for top managers′ ability in processing complicated, novel, ambiguous, or dynamic information.

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