IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v157y2023ics0148296322010384.html
   My bibliography  Save this article

How myopic are managers? Development and validation of a multidimensional strategic myopia scale

Author

Listed:
  • Czakon, Wojciech
  • Klimas, Patrycja
  • Kawa, Arkadiusz
  • Kraus, Sascha

Abstract

The myopia metaphor has a long and fruitful history of application in management literature. Initially proposed to explain business failure associated with managerial cognition shortcomings, managerial myopia spawned across management and strategy literature, and significantly influenced behavioural streams of research. Despite, or possibly due to this fragmented multiple use, the myopia construct has not so far seen a formal definition, nor a useful measurement scale. Using data from two focus group interviews, followed by validation on three samples of managers (N = 21; 122; 658), we develop a measurement scale for strategic myopia. We establish the dimensionality of the construct, involving competitive, cooperative, temporal, and learning myopia, and validate a parsimonious scale of 16 items. Our scale may be useful both for further theory testing and for self-evaluation of managers, as well as evaluation of management teams’ myopia profiles, thus supporting related decisions on how to shape team diversity.

Suggested Citation

  • Czakon, Wojciech & Klimas, Patrycja & Kawa, Arkadiusz & Kraus, Sascha, 2023. "How myopic are managers? Development and validation of a multidimensional strategic myopia scale," Journal of Business Research, Elsevier, vol. 157(C).
    • Handle: RePEc:eee:jbrese:v:157:y:2023:i:c:s0148296322010384
    DOI: 10.1016/j.jbusres.2022.113573
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296322010384
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2022.113573?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Stein, Jeremy C, 1988. "Takeover Threats and Managerial Myopia," Journal of Political Economy, University of Chicago Press, vol. 96(1), pages 61-80, February.
    2. 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.
    3. David Marginson & Laurie McAulay, 2008. "Exploring the debate on short‐termism: a theoretical and empirical analysis," Strategic Management Journal, Wiley Blackwell, vol. 29(3), pages 273-292, March.
    4. Hardesty, David M. & Bearden, William O., 2004. "The use of expert judges in scale development: Implications for improving face validity of measures of unobservable constructs," Journal of Business Research, Elsevier, vol. 57(2), pages 98-107, 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. Joseph F. Hair & Marcelo L.D.S. Gabriel & Dirceu da Silva & Sergio Braga Junior, 2019. "Development and validation of attitudes measurement scales: fundamental and practical aspects," RAUSP Management Journal, Emerald Group Publishing Limited, vol. 54(4), pages 490-507, October.
    7. Cherian Samuel, 2000. "Does shareholder myopia lead to managerial myopia? A first look," Applied Financial Economics, Taylor & Francis Journals, vol. 10(5), pages 493-505.
    8. Coltman, Tim & Devinney, Timothy M. & Midgley, David F. & Venaik, Sunil, 2008. "Formative versus reflective measurement models: Two applications of formative measurement," Journal of Business Research, Elsevier, vol. 61(12), pages 1250-1262, December.
    9. William C. Bogner & Pamela S. Barr, 2000. "Making Sense in Hypercompetitive Environments: A Cognitive Explanation for the Persistence of High Velocity Competition," Organization Science, INFORMS, vol. 11(2), pages 212-226, April.
    10. Walsh, Gianfranco & Albrecht, Arne K. & Hofacker, Charles F. & Grant, Ian & Takahashi, Ikuo, 2016. "Developing and validating a scale of consumer brand embarrassment tendencies," Journal of Business Research, Elsevier, vol. 69(3), pages 1138-1147.
    11. Chen, Yu-Fen & Lin, Fu-Lai & Yang, Sheng-Yung, 2015. "Does institutional short-termism matter with managerial myopia?," Journal of Business Research, Elsevier, vol. 68(4), pages 845-850.
    12. Julia K. de Groote & Werner Conrad & Andreas Hack, 2021. "How can family businesses survive disruptive industry changes? Insights from the traditional mail order industry," Review of Managerial Science, Springer, vol. 15(8), pages 2239-2273, November.
    13. George Loewenstein & Drazen Prelec, 1992. "Anomalies in Intertemporal Choice: Evidence and an Interpretation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 573-597.
    14. 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.
    15. Peter Maskell & Anders Malmberg, 2007. "Myopia, knowledge development and cluster evolution," Journal of Economic Geography, Oxford University Press, vol. 7(5), pages 603-618, September.
    16. Chandima N. P. G. Arachchige & Luke A. Prendergast & Robert G. Staudte, 2022. "Robust analogs to the coefficient of variation," Journal of Applied Statistics, Taylor & Francis Journals, vol. 49(2), pages 268-290, January.
    17. Jatinder S. Sidhu & Harry R. Commandeur & Henk W. Volberda, 2007. "The Multifaceted Nature of Exploration and Exploitation: Value of Supply, Demand, and Spatial Search for Innovation," Organization Science, INFORMS, vol. 18(1), pages 20-38, February.
    18. Wahal, Sunil & McConnell, John J., 2000. "Do institutional investors exacerbate managerial myopia?," Journal of Corporate Finance, Elsevier, vol. 6(3), pages 307-329, September.
    19. Anindita Chakravarty & Rajdeep Grewal, 2011. "The Stock Market in the Driver's Seat! Implications for R&D and Marketing," Management Science, INFORMS, vol. 57(9), pages 1594-1609, March.
    20. Ming-Jer Chen & Danny Miller, 2015. "Reconceptualizing competitive dynamics: A multidimensional framework," Strategic Management Journal, Wiley Blackwell, vol. 36(5), pages 758-775, May.
    21. Sascha Kraus & Matthias Breier & Sonia Dasí-Rodríguez, 2020. "The art of crafting a systematic literature review in entrepreneurship research," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 1023-1042, September.
    22. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    23. Joseph F. Porac & Howard Thomas & Charles Baden‐Fuller, 2011. "Competitive Groups as Cognitive Communities: The Case of Scottish Knitwear Manufacturers Revisited," Journal of Management Studies, Wiley Blackwell, vol. 48(3), pages 646-664, May.
    24. Bouncken, Ricarda B. & Pesch, Robin & Gudergan, Siegfried P., 2015. "Strategic embeddedness of modularity in alliances: Innovation and performance implications," Journal of Business Research, Elsevier, vol. 68(7), pages 1388-1394.
    25. Fuller, Christie M. & Simmering, Marcia J. & Atinc, Guclu & Atinc, Yasemin & Babin, Barry J., 2016. "Common methods variance detection in business research," Journal of Business Research, Elsevier, vol. 69(8), pages 3192-3198.
    26. Davis, Donna F. & Golicic, Susan L. & Boerstler, Courtney N. & Choi, Sunny & Oh, Hanmo, 2013. "Does marketing research suffer from methods myopia?," Journal of Business Research, Elsevier, vol. 66(9), pages 1245-1250.
    27. Chesbrough, Henry, 2002. "Graceful Exits and Missed Opportunities: Xerox's Management of its Technology Spin-off Organizations," Business History Review, Cambridge University Press, vol. 76(4), pages 803-837, January.
    28. Erwin Danneels, 2016. "Survey measures of first- and second-order competences," Strategic Management Journal, Wiley Blackwell, vol. 37(10), pages 2174-2188, October.
    29. Greta L Polites & Nicholas Roberts & Jason Thatcher, 2012. "Conceptualizing models using multidimensional constructs: a review and guidelines for their use," European Journal of Information Systems, Taylor & Francis Journals, vol. 21(1), pages 22-48, January.
    30. Julia Hillmann, 2021. "Disciplines of organizational resilience: contributions, critiques, and future research avenues," Review of Managerial Science, Springer, vol. 15(4), pages 879-936, May.
    31. Douglas R. Johnson & David G. Hoopes, 2003. "Managerial cognition, sunk costs, and the evolution of industry structure," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 1057-1068, October.
    32. Sarah Kaplan & Wanda J. Orlikowski, 2013. "Temporal Work in Strategy Making," Organization Science, INFORMS, vol. 24(4), pages 965-995, August.
    33. Giovanni Gavetti, 2012. "PERSPECTIVE—Toward a Behavioral Theory of Strategy," Organization Science, INFORMS, vol. 23(1), pages 267-285, February.
    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. 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.
    2. Choi, Jaeho & Rhee, Mooweon & Kim, Young-Choon, 2019. "Performance feedback and problemistic search: The moderating effects of managerial and board outsiderness," Journal of Business Research, Elsevier, vol. 102(C), pages 21-33.
    3. Daniella Laureiro-Martínez & Stefano Brusoni & Nicola Canessa & Maurizio Zollo, 2015. "Understanding the exploration–exploitation dilemma: An fMRI study of attention control and decision-making performance," Strategic Management Journal, Wiley Blackwell, vol. 36(3), pages 319-338, March.
    4. 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.
    5. Li, Mingxiang, 2021. "Exploring novel technologies through board interlocks: Spillover vs. broad exploration," Research Policy, Elsevier, vol. 50(9).
    6. Hazhir Rahmandad, 2012. "Impact of Growth Opportunities and Competition on Firm-Level Capability Development Trade-offs," Organization Science, INFORMS, vol. 23(1), pages 138-154, February.
    7. Stephen J. Smulowitz & Didier Cossin & Hongze Lu, 2023. "Managerial Short-Termism and Corporate Social Performance: The Moderating Role of External Monitoring," Journal of Business Ethics, Springer, vol. 188(4), pages 759-778, December.
    8. Healey, Mark P. & Bleda, Mercedes & Querbes, Adrien, 2021. "Opportunity evaluation in teams: A social cognitive model," Journal of Business Venturing, Elsevier, vol. 36(4).
    9. Mark DesJardine & Pratima Bansal, 2019. "One Step Forward, Two Steps Back: How Negative External Evaluations Can Shorten Organizational Time Horizons," Organization Science, INFORMS, vol. 30(4), pages 761-780, July.
    10. Dirk Martignoni & Anoop Menon & Nicolaj Siggelkow, 2016. "Consequences of misspecified mental models: Contrasting effects and the role of cognitive fit," Strategic Management Journal, Wiley Blackwell, vol. 37(13), pages 2545-2568, December.
    11. 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.
    12. John Joseph & Alex J. Wilson, 2018. "The growth of the firm: An attention‐based view," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1779-1800, June.
    13. Vikas A. Aggarwal & Hart E. Posen & Maciej Workiewicz, 2017. "Adaptive capacity to technological change: A microfoundational approach," Strategic Management Journal, Wiley Blackwell, vol. 38(6), pages 1212-1231, June.
    14. Saerom Lee & Felipe A. Csaszar, 2020. "Cognitive and Structural Antecedents of Innovation: A Large-Sample Study," Strategy Science, INFORMS, vol. 5(2), pages 71-97, June.
    15. Matthews, Lane & Heyden, Mariano L.M. & Zhou, Dan, 2022. "Paradoxical transparency? Capital market responses to exploration and exploitation disclosure," Research Policy, Elsevier, vol. 51(1).
    16. Shepherd, Dean A. & Majchrzak, Ann, 2022. "Machines augmenting entrepreneurs: Opportunities (and threats) at the Nexus of artificial intelligence and entrepreneurship," Journal of Business Venturing, Elsevier, vol. 37(4).
    17. GuiDeng Say & Gurneeta Vasudeva, 2020. "Learning from Digital Failures? The Effectiveness of Firms’ Divestiture and Management Turnover Responses to Data Breaches," Strategy Science, INFORMS, vol. 5(2), pages 117-142, June.
    18. Gianluigi Giustiziero & Aseem Kaul & Brian Wu, 2019. "The Dynamics of Learning and Competition in Schumpeterian Environments," Organization Science, INFORMS, vol. 30(4), pages 668-693, July.
    19. Hadida, Allègre L. & Paris, Thomas, 2014. "Managerial cognition and the value chain in the digital music industry," Technological Forecasting and Social Change, Elsevier, vol. 83(C), pages 84-97.
    20. Mary Tripsas, 2009. "Technology, Identity, and Inertia Through the Lens of “The Digital Photography Company”," Organization Science, INFORMS, vol. 20(2), pages 441-460, April.

    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:jbrese:v:157:y:2023:i:c:s0148296322010384. 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/locate/jbusres .

    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.