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).
|Date of creation:||Nov 2013|
|Contact details of provider:|| Postal: Edifici Departamental Oriental, Campus dels Tarongers, Avda. dels Tarongers, S/N (4P15), 46022 - València|
Phone: 963 82 83 49
Fax: 963 82 83 54
Web page: http://www.estructuraeconomica.es
More information through EDIRC
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.:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
When requesting a correction, please mention this item's handle: RePEc:eec:wpaper:1323. 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: (Silviano Esteve)
If references are entirely missing, you can add them using this form.