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Strategy formulation processes: Differences in perceptions of strength and weaknesses indicators and environmental uncertainty by managerial level

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  • R. Duane Ireland
  • Michael A. Hitt
  • Richard A. Bettis
  • Deborah Auld De Porras

Abstract

Some literature suggests that managers' perceptions of strengths and weaknesses indicators vary by management level. Differences likely result because of individuals' cognitive schemes, which include their cognitive biases. In turn, systematic errors may occur in managerial decisions. Results from the research reported herein support the notion that managers' perceptions of the indicators of a firm's strengths and weaknesses, and of environmental uncertainty, vary by managerial level. Differences in these perceptions were discovered to be more significant within each firm. Implications of these results are examined, including the impact on the deployment of firms' strategy formulation processes.

Suggested Citation

  • R. Duane Ireland & Michael A. Hitt & Richard A. Bettis & Deborah Auld De Porras, 1987. "Strategy formulation processes: Differences in perceptions of strength and weaknesses indicators and environmental uncertainty by managerial level," Strategic Management Journal, Wiley Blackwell, vol. 8(5), pages 469-485, September.
    • Handle: RePEc:bla:stratm:v:8:y:1987:i:5:p:469-485
    DOI: 10.1002/smj.4250080506
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    Cited by:

    1. Narisa Tianjing Dai & Xi (Jason) Kuang & Guliang Tang, 2018. "Differential Weighting of Objective Versus Subjective Measures in Performance Evaluation: Experimental Evidence," European Accounting Review, Taylor & Francis Journals, vol. 27(1), pages 129-148, January.
    2. Lueg, Rainer & Borisov, Boris Genadiev, 2014. "Archival or perceived measures of environmental uncertainty? Conceptualization and new empirical evidence," European Management Journal, Elsevier, vol. 32(4), pages 658-671.
    3. Zafer Ozleblebici & Castro Pinto & Nelson Antonio, 2015. "Variations in Strategy Perception among Business and Military Managers," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 4(1), pages 17-31, January.
    4. Yaqun Yi & Yi Liu & Hong He & Yuan Li, 2012. "Environment, governance, controls, and radical innovation during institutional transitions," Asia Pacific Journal of Management, Springer, vol. 29(3), pages 689-708, September.
    5. Dutta, Dev K. & Thornhill, Stewart, 2008. "The evolution of growth intentions: Toward a cognition-based model," Journal of Business Venturing, Elsevier, vol. 23(3), pages 307-332, May.
    6. Tammy E. Beck & Donde Ashmos Plowman, 2009. "Experiencing Rare and Unusual Events Richly: The Role of Middle Managers in Animating and Guiding Organizational Interpretation," Organization Science, INFORMS, vol. 20(5), pages 909-924, October.
    7. Rapert, Molly Inhofe & Velliquette, Anne & Garretson, Judith A., 2002. "The strategic implementation process: evoking strategic consensus through communication," Journal of Business Research, Elsevier, vol. 55(4), pages 301-310, April.
    8. Ondersteijn, C.J.M. & Giesen, G.W.J. & Huirne, R.B.M., 2006. "Perceived environmental uncertainty in Dutch dairy farming: The effect of external farm context on strategic choice," Agricultural Systems, Elsevier, vol. 88(2-3), pages 205-226, June.
    9. Goldsmith, Arthur A., 1996. "Strategic thinking in international development: Using management tools to see the big picture," World Development, Elsevier, vol. 24(9), pages 1431-1439, September.
    10. Tom J. M. Mom & Frans A. J. van den Bosch & Henk W. Volberda, 2009. "Understanding Variation in Managers' Ambidexterity: Investigating Direct and Interaction Effects of Formal Structural and Personal Coordination Mechanisms," Organization Science, INFORMS, vol. 20(4), pages 812-828, August.
    11. Michael A. Hitt & Robert D. Nixon & Robert E. Hoskisson & Rahul Kochhar, 1999. "Corporate Entrepreneurship and Cross-Functional Fertilization: Activation, Process and Disintegration of a New Product Design Team," Entrepreneurship Theory and Practice, , vol. 23(3), pages 145-168, April.
    12. R. Duane Ireland & Philip M. Van Auken, 1987. "Entrepreneurship and Small Business Research: An Historical Typology and Directions for Future Research," Entrepreneurship Theory and Practice, , vol. 11(4), pages 9-20, April.
    13. Samson, Kelly & Bhanugopan, Ramudu, 2022. "Strategic human capital analytics and organisation performance: The mediating effects of managerial decision-making," Journal of Business Research, Elsevier, vol. 144(C), pages 637-649.
    14. G. Page West III, 2007. "Collective Cognition: When Entrepreneurial Teams, Not Individuals, Make Decisions," Entrepreneurship Theory and Practice, , vol. 31(1), pages 77-102, January.
    15. Küsshauer, Alexander & Baum, Matthias, 2023. "The good, the bad and the uncertain: Employers' perceptions of former entrepreneurs," Journal of Business Venturing, Elsevier, vol. 38(2).
    16. Robin Pesch & Ricarda B. Bouncken & Sascha Kraus, 2015. "Effects of Communication Style and Age Diversity in Innovation Teams," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 12(06), pages 1-20, December.
    17. Olusoga, S. Ade & Mokwa, Michael P. & Noble, Charles H., 1995. "Strategic groups, mobility barriers, and competitive advantage: An empirical investigation," Journal of Business Research, Elsevier, vol. 33(2), pages 153-164, June.
    18. Christian Engau & Volker Hoffmann, 2011. "Corporate response strategies to regulatory uncertainty: evidence from uncertainty about post-Kyoto regulation," Policy Sciences, Springer;Society of Policy Sciences, vol. 44(1), pages 53-80, March.
    19. Judge, William Q. & Stahl, Michael J., 1995. "Middle-manager effort in strategy implementation: A multinational perspective," International Business Review, Elsevier, vol. 4(1), pages 91-111, March.
    20. Ralf Meinhardt & Sebastian Junge & Martin Weiss, 2018. "The organizational environment with its measures, antecedents, and consequences: a review and research agenda," Management Review Quarterly, Springer, vol. 68(2), pages 195-235, April.
    21. Judith Behrens & Holger Patzelt, 2016. "Corporate Entrepreneurship Managers’ Project Terminations: Integrating Portfolio–Level, Individual–Level, and Firm–Level Effects," Entrepreneurship Theory and Practice, , vol. 40(4), pages 815-842, July.

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