The Cognitive Perspective in Strategy: An Integrative Review

V. K. Narayanan, Lee J. Zane, Benedict Kemmerer

Journal of Management · 2010 · 381 citations · 246 references

Concepts

TL;DR

Strategy formulation and implementation are complex activities involving scanning, sensemaking, decision making, sensegiving, and issue selling. The review aims to integrate strategic cognition literature into a framework linking its antecedents, structure, and processes with outcomes, and to connect this framework to broader strategic management theory. The authors review literature from 1993–2007, identifying three structural elements of strategic cognition—organizational identity, strategy frames, and routines—and four processes—strategy formulation, implementation, strategic change, and organizational learning. The review maps five empirical research streams, highlighting three mature themes—strategy frame antecedents/outcomes, strategy formulation determinants/consequences, and cognitive construction of competitive dynamics—and two emerging themes—strategy implementation determinants/consequences and organizational identity antecedents/outcomes—while proposing opportunities for future research and methodological guidance.

Abstract

This article integrates the literature on strategic cognition (SC) within a framework that links the antecedents, structure, and process of SC with outcomes. Reviewing the literature from 1993 (two years prior to Walsh’s review of managerial and organizational cognition) until 2007, this article identifies three elements of SC structure (organizational identity, strategy frames, and organizational routines) and four SC processes (strategy formulation, strategy implementation, strategic change, and organizational learning). The literature portrays strategy formulation as a complex activity consisting of scanning, sensemaking, and decision making. Strategy implementation is composed of sensegiving, sensemaking, and issue selling. This review identifies five streams of empirical research with three well-developed themes (the antecedents and outcomes of strategy frames, determinants and consequences of strategy formulation, and cognitive construction of competitive/industry dynamics) and two emerging themes (the determinants and consequences of strategy implementation and the antecedents and outcomes of organizational identity). This review identifies several opportunities to extend the literature and outlines key methodological implications. Finally, the review addresses the need to build linkages to the ongoing theoretical conversations within strategic management literature.

References

246