Training strategic thinking: Experimental evidence
Strategic behavior is crucial for strong firm performance, especially in competitive environments. Thus, designing a good strategy is a key issue for firms. Designing a strategy requires a combination of strategic thinking—which involves analyzing a firm's strategic environment, defining a vision of its future, and devising new ideas to out-think competitors – and strategic planning – which implies using these ideas to formulate a business plan. Although many firms excel at strategic planning, few devote enough resources to strategic thinking, which results in strategic insanity (i.e., firms repeatedly applying the same strategies with the expectation of different outcomes). To foster a strategic environment within a firm, firm managers and other workers must show willingness for active involvement in a firm's strategic decisions. Nevertheless, not everybody has the skills to do so, as many firms lack work force training programs. This study shows, experimentally, how training affects firms' strategic behavior. The starting point is two groups of individuals with initially equal qualifications who play in a sequential game whose rules hinder the calculation of equilibria. The members of only one of the groups previously receive a treatment entailing a process of training and learning that aims at fostering strategic thinking. The results point to a significant increase in the number of strategic decisions in the treatment group in sharp contrast to the control group, confirming the initial hypothesis (i.e., the positive impact of training).
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Benito-Ostolaza, Juan M. & Brañas-Garza, Pablo & Hernández, Penélope & Sanchis-Llopis, Juan A., 2015.
"Strategic behaviour in Schelling dynamics: Theory and experimental evidence,"
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics),
Elsevier, vol. 57(C), pages 134-147.
- Juan M. Benito-Ostolaza & Pablo Brañas-Garza & Penélope Hernández, 2015. "Strategic behaviour in Schelling dynamics: Theory and experimental evidence," Working Papers 1504, Department of Applied Economics II, Universidad de Valencia.
- Juan Miguel Benito & Pablo BraÃ±as-Garza & PenÃ©lope HernÃ¡ndez & Juan A. Sanchis, 2011. "Sequential versus Simultaneous Schelling Models: Experimental Evidence," Journal of Conflict Resolution, Peace Science Society (International), vol. 55(1), pages 60-84, February.
- Harris, Lloyd C. & Ogbonna, Emmanuel, 2006. "Initiating strategic planning," Journal of Business Research, Elsevier, vol. 59(1), pages 100-111, January.
- Schelling, Thomas C, 1969. "Models of Segregation," American Economic Review, American Economic Association, vol. 59(2), pages 488-493, May.
- Antoni Bosch-Domènech & José G. Montalvo & Rosemarie Nagel & Albert Satorra, 2002.
"One, Two, (Three), Infinity, ...: Newspaper and Lab Beauty-Contest Experiments,"
American Economic Review,
American Economic Association, vol. 92(5), pages 1687-1701, December.
- Rosemarie Nagel & Antoni Bosch-Domènech & Albert Satorra & José García Montalvo, 1999. "One, two, (three), infinity: Newspaper and lab beauty-contest experiments," Economics Working Papers 438, Department of Economics and Business, Universitat Pompeu Fabra.
- Antoni Bosch-Domenech & Jose Garcia-Montalvo & Rosemarie Nagel & Albert Satorra, 2002. "One, two, (three), infinity: Newspaper and lab beauty-contest experiments," Artefactual Field Experiments 00011, The Field Experiments Website.
- Colin F. Camerer & Teck-Hua Ho & Juin-Kuan Chong, 2004. "A Cognitive Hierarchy Model of Games," The Quarterly Journal of Economics, Oxford University Press, vol. 119(3), pages 861-898.
- ogilvie, dt, 1998. "Creative action as a dynamic strategy: Using imagination to improve strategic solutions in unstable environments," Journal of Business Research, Elsevier, vol. 41(1), pages 49-56, January.
- Juan Miguel Benito & Pablo Brañas-Garza & Penélope Hernández & Juan A. Sanchis, 2012.
"Strategic behavior in Schelling dynamics: A new result and experimental evidence,"
Discussion Papers in Economic Behaviour
0312, University of Valencia, ERI-CES.
- Juan Miguel Benito & Pablo Branas-Garz & Penelope Hernandez & Juan A. Sanchis, 2011. "Strategic behavior in Schelling dynamics: A new result and experimental evidence," Working Papers 11-14, Chapman University, Economic Science Institute.
When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:67:y:2014:i:5:p:785-789. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.