2. Overview
Possession and Processing of
knowledge both (un)consciously by interpreting the
environment
Never static -action relationships between managers
and organization’s external environment (Timo 2015).
Successful decisions: dependent on awareness and
mental model by identifying O & T to forecast the fuure(
L.Nui et al 2009).
Mental models of managers and internal fit not
researched enough (Espoo 2015)
Its like a drug – perception (kim 2015)
3. Formation of cognition- Timo 2015, Mason 1984
Cognition = Behavior + personal + environmental factors
(subjective interpretation )-Timo 2015,mason 1984 Sucheta 2008
4. M.C and DCV
M.C is enabled through DCV
by seizing market opportunity
and threats thus mobilizing
resources and reconfiguring
resources accordingly.
6. 2. Sense making
Understanding new concepts
Nature= social: different people collaborate to form a
view on changed circumstances and change according
to environment ( Antaki 1994)
Scanning of VUCA environment for T & O, is key in
managerial sense making.
External environment = complex force + loads of
information : managers have to know and react to
(Mintzberg 1973)
7. 3.Opportunity spotting
Entrepreneurial thinking and action to
identify unmet needs and expectation not
existing market opportunities( Egger et al
2013)
Further supported by blue ocean strategy
that states an organization should identify
uncontested market space and make
competition irrelevant. (kim &
Maubornnr 2005)
8. Cognition and Decision making
Rose colored glasses.
Decisions are subject to manager’s view about
Organization (Anderson 1985) which includes
information processing( McCall 1985).
Strategic decisions – complex and long-term made by
TMT of organization(deborah 2014).
Innovation and knowledge creation is based on
cognitive management (Wiley 2017) by modifying
knowledge structure and affecting the way we
perceive our environment .
10. Strategic decision: influenced by
Context and Process.
(Olson & Simerson 2015)
Strategic thinking conceptualizes
strategic decision focusing on how
TMT attempts to understand VUCA
environment. (Bonn 2005)
Subjective representation of
Environment defines firms strategic
agenda
11. Emerging Issues
Human resources AS A CAPABILITY
C.A only by investing in Human resources (pfeffer
1994)
Human’s are humans…
Biased, influenced
by environment.
12. Cognitive Bias
Decision making: cognitive Bias and inertia forces
undermine Sensing seizing and transformation
capabilities (hodgkinson 2011)
How we should reason – How we reason = Bias gap
13. Cognitive flexibility
Ability to present a task using various perspectives ,
reconfiguring knowledge to respond to VUCA
environment ( Spiro 1988).
Seeking multiple perspectives- TMT should be of diverse
origins
R & D =information and data
processes to avoid personal bias
Reflection on own views and values of individual TMT
members: - Central bank governor.
14. Cognition in global arena
Knowledge is power esp. for MNCs (Peter 2013)
Which FDIs do we invest in?
Information processing and internalization is a
prerequisite of the managers capability
Complex informational environment = cognitive
capabilities for C.A (Orly 2007)