IDEAS home Printed from https://ideas.repec.org/a/eee/eurman/v42y2024i1p108-118.html
   My bibliography  Save this article

Dominant logic – Cognitive and practiced facets and their relationships to strategic renewal and performance

Author

Listed:
  • Jantunen, Ari
  • Tuppura, Anni
  • Pätäri, Satu

Abstract

In this study, we distinguish two facets of dominant logic and assess empirically their relationships to strategic renewal and firm performance. In a sample of 156 Finnish small and medium-sized enterprises (SMEs) in the forestry and forest products sector, we find that cognitive and practiced dominant logics have divergent relationships with outcomes. Practiced dominant logic is more strongly related to a recognized need for capability development and performance than cognitive dominant logic is. These effects appear regardless of whether the practiced dominant logic is efficiency- or proactivity-oriented. Further, the results suggest that the differences in practiced dominant logic may reflect future investment plans, especially in terms of investment in research and development and new markets. We contribute to the literature by examining with survey-based data the relationship that dominant logic has with strategic renewal and performance. The practiced and cognitive dominant logics are measured separately, and we present a novel operationalization of cognitive dominant logic.

Suggested Citation

  • Jantunen, Ari & Tuppura, Anni & Pätäri, Satu, 2024. "Dominant logic – Cognitive and practiced facets and their relationships to strategic renewal and performance," European Management Journal, Elsevier, vol. 42(1), pages 108-118.
    • Handle: RePEc:eee:eurman:v:42:y:2024:i:1:p:108-118
    DOI: 10.1016/j.emj.2022.07.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0263237322000913
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.emj.2022.07.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Mary Tripsas & Giovanni Gavetti, 2000. "Capabilities, cognition, and inertia: evidence from digital imaging," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1147-1161, October.
    2. Jeremy C. Short & David J. Ketchen & Timothy B. Palmer & G. Tomas M. Hult, 2007. "Firm, strategic group, and industry influences on performance," Strategic Management Journal, Wiley Blackwell, vol. 28(2), pages 147-167, February.
    3. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    4. Jeffrey G. Covin & G.T. Lumpkin, 2011. "Entrepreneurial Orientation Theory and Research: Reflections on a Needed Construct," Entrepreneurship Theory and Practice, , vol. 35(5), pages 855-872, September.
    5. James G. Combs & David J. Ketchen, Jr & R. Duane Ireland & Justin W. Webb, 2011. "The Role of Resource Flexibility in Leveraging Strategic Resources," Journal of Management Studies, Wiley Blackwell, vol. 48, pages 1098-1125, July.
    6. Joseph Lampel & Jamal Shamsie, 2000. "Probing the unobtrusive link: dominant logic and the design of joint ventures at General Electric," Strategic Management Journal, Wiley Blackwell, vol. 21(5), pages 593-602, May.
    7. Richard A. Bettis & C. K. Prahalad, 1995. "The dominant logic: Retrospective and extension," Strategic Management Journal, Wiley Blackwell, vol. 16(1), pages 5-14.
    8. Ron Adner & Constance E. Helfat, 2003. "Corporate effects and dynamic managerial capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 1011-1025, October.
    9. Sucheta Nadkarni & Pamela S. Barr, 2008. "Environmental context, managerial cognition, and strategic action: an integrated view," Strategic Management Journal, Wiley Blackwell, vol. 29(13), pages 1395-1427, December.
    10. Andreea N. Kiss & Pamela S. Barr, 2015. "New venture strategic adaptation: The interplay of belief structures and industry context," Strategic Management Journal, Wiley Blackwell, vol. 36(8), pages 1245-1263, August.
    11. Tomasz Obloj & Krzysztof Obloj & Michael G. Pratt, 2010. "Dominant Logic and Entrepreneurial Firms‘ Performance in a Transition Economy," Entrepreneurship Theory and Practice, , vol. 34(1), pages 151-170, January.
    12. Richard Gentry & Clay Dibrell & Jaemin Kim, 2016. "Long–Term Orientation in Publicly Traded Family Businesses: Evidence of a Dominant Logic," Entrepreneurship Theory and Practice, , vol. 40(4), pages 733-757, July.
    13. Vargo, Stephen L. & Maglio, Paul P. & Akaka, Melissa Archpru, 2008. "On value and value co-creation: A service systems and service logic perspective," European Management Journal, Elsevier, vol. 26(3), pages 145-152, June.
    14. Louise Grimmer & Morgan P. Miles & John Byrom & Martin Grimmer, 2017. "The Impact of Resources and Strategic Orientation on Small Retail Firm Performance," Journal of Small Business Management, Taylor & Francis Journals, vol. 55(S1), pages 7-26, December.
    15. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    16. James P. Walsh, 1995. "Managerial and Organizational Cognition: Notes from a Trip Down Memory Lane," Organization Science, INFORMS, vol. 6(3), pages 280-321, June.
    17. Tomasz Obloj & Krzysztof Obloj & Michael G. Pratt, 2010. "Dominant logic and entrepreneurial firms' performance in a transition economy," Post-Print hal-00623887, HAL.
    18. Rajshree Agarwal & Constance E. Helfat, 2009. "Strategic Renewal of Organizations," Organization Science, INFORMS, vol. 20(2), pages 281-293, April.
    19. William Ocasio, 1997. "Towards An Attention‐Based View Of The Firm," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 187-206, July.
    20. Wendy K. Smith & Michael L. Tushman, 2005. "Managing Strategic Contradictions: A Top Management Model for Managing Innovation Streams," Organization Science, INFORMS, vol. 16(5), pages 522-536, October.
    21. C. K. Prahalad & Richard A. Bettis, 1986. "The dominant logic: A new linkage between diversity and performance," Strategic Management Journal, Wiley Blackwell, vol. 7(6), pages 485-501, November.
    22. Gerard P. Hodgkinson, 1997. "Cognitive Inertia in a Turbulent Market: the Case of UK Residential Estate Agents," Journal of Management Studies, Wiley Blackwell, vol. 34(6), pages 921-945, November.
    23. Hanna-Kaisa Ellonen & Ari Jantunen & Anette Johansson, 2015. "The Interplay Of Dominant Logic And Dynamic Capabilities In Innovation Activities," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 19(05), pages 1-15.
    24. Rhonda K. Reger & Timothy B. Palmer, 1996. "Managerial Categorization of Competitors: Using Old Maps to Navigate New Environments," Organization Science, INFORMS, vol. 7(1), pages 22-39, February.
    25. Tomi Laamanen & Johan Wallin, 2009. "Cognitive Dynamics of Capability Development Paths," Journal of Management Studies, Wiley Blackwell, vol. 46(6), pages 950-981, September.
    26. Vinay K. Garg & Bruce A. Walters & Richard L. Priem, 2003. "Chief executive scanning emphases, environmental dynamism, and manufacturing firm performance," Strategic Management Journal, Wiley Blackwell, vol. 24(8), pages 725-744, August.
    27. Ranjay Gulati & Phanish Puranam, 2009. "Renewal Through Reorganization: The Value of Inconsistencies Between Formal and Informal Organization," Organization Science, INFORMS, vol. 20(2), pages 422-440, April.
    28. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    29. Theresa S. Cho & Donald C. Hambrick, 2006. "Attention as the Mediator Between Top Management Team Characteristics and Strategic Change: The Case of Airline Deregulation," Organization Science, INFORMS, vol. 17(4), pages 453-469, August.
    30. Daniele Tumidei & Constantinos Alexiou & Michael Bourne, 2021. "A choice and inevitability framework in strategic management: empirical evidence of its real-life existence," Review of Managerial Science, Springer, vol. 15(6), pages 1729-1766, August.
    31. Sarah Kaplan, 2011. "Research in Cognition and Strategy: Reflections on Two Decades of Progress and a Look to the Future," Journal of Management Studies, Wiley Blackwell, vol. 48(3), pages 665-695, May.
    32. Adrian Klammer & Stefan Gueldenberg & Sascha Kraus & Michele O’Dwyer, 2017. "To change or not to change–antecedents and outcomes of strategic renewal in SMEs," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 739-756, September.
    33. J. P. Eggers & Sarah Kaplan, 2009. "Cognition and Renewal: Comparing CEO and Organizational Effects on Incumbent Adaptation to Technical Change," Organization Science, INFORMS, vol. 20(2), pages 461-477, April.
    34. Peter Boumgarden & Jackson Nickerson & Todd R. Zenger, 2012. "Sailing into the wind: Exploring the relationships among ambidexterity, vacillation, and organizational performance," Strategic Management Journal, Wiley Blackwell, vol. 33(6), pages 587-610, June.
    35. Donal Crilly & Pamela Sloan, 2012. "Enterprise logic: explaining corporate attention to stakeholders from the ‘inside‐out’," Strategic Management Journal, Wiley Blackwell, vol. 33(10), pages 1174-1193, October.
    36. Boris Kabanoff & Shane Brown, 2008. "Knowledge structures of prospectors, analyzers, and defenders: content, structure, stability, and performance," Strategic Management Journal, Wiley Blackwell, vol. 29(2), pages 149-171, February.
    37. Marco Brand & Victor Tiberius & Peter M. Bican & Alexander Brem, 2021. "Agility as an innovation driver: towards an agile front end of innovation framework," Review of Managerial Science, Springer, vol. 15(1), pages 157-187, January.
    38. Juha Uotila & Markku Maula & Thomas Keil & Shaker A. Zahra, 2009. "Exploration, exploitation, and financial performance: analysis of S&P 500 corporations," Strategic Management Journal, Wiley Blackwell, vol. 30(2), pages 221-231, February.
    39. Wayne S. DeSarbo & C. Anthony Di Benedetto & Michael Song & Indrajit Sinha, 2005. "Revisiting the Miles and Snow strategic framework: uncovering interrelationships between strategic types, capabilities, environmental uncertainty, and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 26(1), pages 47-74, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sheen S. Levine & Mark Bernard & Rosemarie Nagel, 2018. "Strategic intelligence: The cognitive capability to anticipate competitor behaviour," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 527-527, February.
    2. Jean-Philippe Vergne & Colette Depeyre, 2015. "How do firms adapt? A fuzzy-set analysis of the role of cognition and capabilities in U.S. defense firms’ responses to 9/11," Post-Print hal-01274005, HAL.
    3. Vecchiato, Riccardo, 2020. "Analogical reasoning, cognition, and the response to technological change: Lessons from mobile communication," Research Policy, Elsevier, vol. 49(5).
    4. Linan Lei & Xiaobo Wu, 2022. "Thinking like a specialist or a generalist? Evidence from hidden champions in China," Asian Business & Management, Palgrave Macmillan, vol. 21(1), pages 25-57, February.
    5. Dean A. Shepherd & Jeffery S. Mcmullen & William Ocasio, 2017. "Is that an opportunity? An attention model of top managers' opportunity beliefs for strategic action," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 626-644, March.
    6. Philip Mundlos, 2025. "The impact of artificial intelligence on managerial attention allocation for discontinuous change: a conceptual framework," Management Review Quarterly, Springer, vol. 75(2), pages 1-45, June.
    7. Henk W. Volberda & Nicolai J. Foss & Marjorie A. Lyles, 2010. "PERSPECTIVE---Absorbing the Concept of Absorptive Capacity: How to Realize Its Potential in the Organization Field," Organization Science, INFORMS, vol. 21(4), pages 931-951, August.
    8. Tomi Laamanen & Johan Wallin, 2009. "Cognitive Dynamics of Capability Development Paths," Journal of Management Studies, Wiley Blackwell, vol. 46(6), pages 950-981, September.
    9. J. P. Eggers & Sarah Kaplan, 2009. "Cognition and Renewal: Comparing CEO and Organizational Effects on Incumbent Adaptation to Technical Change," Organization Science, INFORMS, vol. 20(2), pages 461-477, April.
    10. Hutzschenreuter, Thomas & Kleindienst, Ingo, 2013. "(How) Does discretion change over time? A contribution toward a dynamic view of managerial discretion," Scandinavian Journal of Management, Elsevier, vol. 29(3), pages 264-281.
    11. Donal Crilly & Pamela Sloan, 2014. "Autonomy or Control? Organizational Architecture and Corporate Attention to Stakeholders," Organization Science, INFORMS, vol. 25(2), pages 339-355, April.
    12. Baishya, Somnath & Karna, Amit & Mahapatra, Diptiranjan & Kumar, Satish & Mukherjee, Debmalya, 2025. "Dynamic managerial capabilities: A critical synthesis and future directions," Journal of Business Research, Elsevier, vol. 186(C).
    13. Shinjinee Chattopadhyay & Janet Bercovitz, 2020. "When one door closes, another door opens … for some: Evidence from the post‐TRIPS Indian pharmaceutical industry," Strategic Management Journal, Wiley Blackwell, vol. 41(6), pages 988-1022, June.
    14. Jordi Surroca & Diego Prior & Josep A. Tribó Giné, 2016. "Using panel data dea to measure CEOs' focus of attention: An application to the study of cognitive group membership and performance," Strategic Management Journal, Wiley Blackwell, vol. 37(2), pages 370-388, February.
    15. Tim Heubeck & Reinhard Meckl, 2023. "Microfoundations of innovation: A dynamic CEO capabilities perspective," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(6), pages 3108-3126, September.
    16. Sreejith Kumar Krishnakumar & Rajiv Kishore & Nallan C. Suresh, 2022. "Expansive or focused attention? An exploration–exploitation perspective on e‐Business systems and firm performance," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 2038-2066, May.
    17. Buyl, Tine & Boone, Christophe & Wade, James B., 2015. "Non-CEO executive mobility: The impact of poor firm performance and TMT attention," European Management Journal, Elsevier, vol. 33(4), pages 257-267.
    18. Constance E. Helfat & Margaret A. Peteraf, 2015. "Managerial cognitive capabilities and the microfoundations of dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 36(6), pages 831-850, June.
    19. Nicodemus M. Mutinda & James M. Kilika, 2019. "TMT Cognitive Capability and Organizational Outcomes: A Theoretical Review," International Business Research, Canadian Center of Science and Education, vol. 12(8), pages 31-52, August.
    20. Kodama, Mitsuru & Hashimoto, Keisuke, 2024. "Research on high-end disruptive innovations - Analysis and insights from the video conferencing systems market," Technology in Society, Elsevier, vol. 77(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eurman:v:42:y:2024:i:1:p:108-118. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/115/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.