Thomas and McDaniel (1990Thomas, J. B., & McDaniel, R. R., Jr. (1990). Interpreting strategic issues: Effects of strategy and the information-processing structure of top management teams. Academy of Management Journal, 33(2), 286-306. https://doi.org/10.2307/256326 https://doi.org/10.2307/256326...
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Empirical research |
Found a relationship between the organizational context (strategic orientation of the firm and the information-processing structure of the TMT) and the CEO’s interpretation of SI (labels assigned to SIs - threat and opportunities - and range of variables used in interpretation). |
Ginsberg and Venkatraman (1992Ginsberg, A., & Venkatraman, N. (1992). Investing in new information technology: The role of competitive posture and issue diagnosis. Strategic Management Journal, 13(S1), 37-53. https://doi.org/10.1002/smj.4250131005 https://doi.org/10.1002/smj.4250131005...
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Empirical research |
Concluded that strategic posture (efficiency vs. service quality orientation) influenced the adoption of new technology, both directly and indirectly, through issue interpretation (effect response and valence). |
Schneider and Meyer (1991Schneider, S. C., & Meyer, A., de. (1991). Interpreting and responding to strategic issues: The impact of national culture. Strategic Management Journal, 12(4), 307-320. https://doi.org/10.1002/smj.4250120406 https://doi.org/10.1002/smj.4250120406...
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Empirical research |
Following Sallivan and Nonaka (1988Sallivan, J., & Nonaka, I. (1988). Culture and strategic issue categorization theory. Management International Review, 28(3), 6-10. https://www.jstor.org/stable/40227887 https://www.jstor.org/stable/40227887...
), found that national culture influenced the interpretation of SI (as a crisis and as a threat) and the nature of the responses to these SI (magnitude and internal/external focus of the response). |
Barr et al. (1992Barr, P. S., Stimpert, J. L., & Huff, A. S. (1992). Cognitive change, strategic action, and organizational renewal [Special Issue]. Strategic Management Journal, 13, 15-36. https://www.jstor.org/stable/2486350 https://www.jstor.org/stable/2486350...
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Empirical research |
Found a link between changes in mental models (cause-effect understandings) and changes in organizational action when studying the evolution of the interpretation of a SI by leaders of two U.S. railroads over a 25-year period, a time span in which these firms experienced varying levels of environmental munificence. |
Thomas et al. (1993Thomas, J. B., Clark, S. M., & Gioia, D. A. (1993). Strategic sensemaking and organizational performance: Linkages among scanning, interpretation, action, and outcomes. Academy of Management Journal, 36(2), 239-270. https://doi.org/10.5465/256522 https://doi.org/10.5465/256522...
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Empirical research |
Investigated the relationship between strategic sensemaking (scanning, interpretation, and action) and organizational performance, and found that high information use (scanning) influence issue interpretation (TO), and that interpretation influence product-service change (action). Product-service change, by its turn, influenced performance. |
Palich and Bagby (1995Palich, L. E., & Bagby, D. R. (1995). Using cognitive theory to explain entrepreneurial risk-taking: Challenging conventional wisdom. Journal of Business Venturing, 10(6), 425-438. https://doi.org/10.1016/0883-9026(95)00082-J https://doi.org/10.1016/0883-9026(95)000...
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Empirical research |
Used experiments to conclude that entrepreneurs are predisposed to cognitively categorize business situations more positively (as opportunities) than non-entrepreneurs. |
Judge and Speitzfaden (1995Judge, W. Q., & Speitzfaden, M. (1995). The management of strategic time horizons within biotechnology firms: The impact of cognitive complexity on time horizon diversity. Journal of Management Inquiry, 4(2), 179-196. https://doi.org/10.1177/105649269542009 https://doi.org/10.1177/105649269542009...
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Empirical research |
Incorporated the size of the SI array of a firm on a model that established a relationship between strategic time horizon diversity and financial performance. |
Gioia and Thomas (1996Gioia, D. A., & Thomas, J. B. (1996). Identity, image, and issue interpretation: Sensemaking during strategic change in academia. Administrative Science Quarterly, 41(3), 370-403. https://psycnet.apa.org/doi/10.2307/2393936 https://psycnet.apa.org/doi/10.2307/2393...
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Empirical research |
In a study of higher education institutions, found that TMT members’ perceptions of identity and image mediate the relationship between the organization’s internal context (strategy and information-processing structures) and issue interpretation (strategic vs. political issues). |
Mittal and Ross (1998Mittal, V., & Ross, W. T., Jr. (1998). The impact of positive and negative affect and issue framing on issue interpretation and risk taking. Organizational Behavior and Human Decision Processes, 76(3), 298-324. https://doi.org/10.1006/obhd.1998.2808 https://doi.org/10.1006/obhd.1998.2808...
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Empirical research |
Investigated the influence of transient affective states and issue framing on issue interpretation (and risk taking) and found that framing an issue (as a threat or an opportunity) had a stronger impact on issue interpretation among negative affect participants than among positive affect participants in experiments. |
Barr (1998Barr, P. S. (1998). Adapting to unfamiliar environmental events: A look at the evolution of interpretation and its role in strategic change. Organization Science, 9(6), 644-669. https://www.jstor.org/stable/2640247 https://www.jstor.org/stable/2640247...
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Empirical research |
Investigated the evolution of the interpretation of a strategic issue in the pharmaceutical industry and found distinct patterns in this evolution, dependent on whether the issue was familiar or not. She also found that (change in) interpretation is strongly linked to the triggering of strategic response. |
Knight et al. (1999Knight, D., Pearce, C. L., Smith, K. G., Olian, J. D., Sims, H. P., Smith, K. A., & Flood, P. (1999). Top management team diversity, group process, and strategic consensus. Strategic Management Journal, 20(5), 445-465. https://doi.org/10.1002/(SICI)1097-0266(199905)20:5%3C445::AID-SMJ27%3E3.0.CO;2-V https://doi.org/10.1002/(SICI)1097-0266(...
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Empirical research |
Investigated how demographic diversity and group processes influence strategic consensus in the TMT. They found that group processes - interpersonal conflict and agreement-seeking behaviors (defined as the degree to which TMT members worked to reach agreement on SIs) - partially mediated the relationship between diversity and strategic consensus. |
Kuvaas (2002Kuvaas, B. (2002). An exploration of two competing perspectives on informational contexts in top management strategic issue interpretation. Journal of Management Studies, 39(7), 977-1001. https://doi.org/10.1111/1467-6486.00320 https://doi.org/10.1111/1467-6486.00320...
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Empirical research |
Investigated the effect of informational context on SI interpretation. He found that higher availability of environmental information leads to the perception of issues as controllable, but that managers in TMTs with higher processing capacity perceive higher degrees of control and manageability, and search for less data in issue interpretation. |
Anderson and Nichols (2007Anderson, M. H., & Nichols, M. L. (2007). Information gathering and changes in threat and opportunity perceptions. Journal of Management Studies, 44(3), 367-387. https://doi.org/10.1111/j.1467-6486.2006.00678.x https://doi.org/10.1111/j.1467-6486.2006...
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Empirical research |
Found that time spent searching for information leads to changes toward seeing the issue as more of a threat, while the diversity of information found leads to changes toward seeing it as less of a threat (they found no effect of information search on opportunity perceptions). |
Ocasio and Joseph (2005Ocasio, W., & Joseph, J. (2005). An attention-based theory of strategy formulation: Linking micro-and macroperspectives in strategy processes. In G. Szulanski, J. Porac, & Y. Doz (Eds.), Advances in Strategic Management (vol. 22, pp. 39-61). Emerald Group Publishing.). |
Theoretical essay |
Proposed an attention-based theory of strategy formulation, predicated on several propositions, the first of which states that “decision-making is guided by selective attention to organizational issues and initiatives.” |
Julian and Ofori-Dankwa (2008Julian, S. D., & Ofori-Dankwa, J. C. (2008). Toward an integrative cartography of two strategic issue diagnosis frameworks. Strategic Management Journal, 29(1), 93-114. https://doi.org/10.1002/smj.647 https://doi.org/10.1002/smj.647...
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Empirical research |
Investigated the explicative power of two alternative issue categorization frameworks - TO vs. FU - and found that the FU approach is a better predictor of both intentions and actual responses to SIs than the TO approach. |
Amason and Money (2008Amason, A. C., & Mooney, A. C. (2008). The Icarus paradox revisited: How strong performance sows the seeds of dysfunction in future strategic decision-making. Strategic Organization, 6(4), 407-434. https://doi.org/10.1177/1476127008096364 https://doi.org/10.1177/1476127008096364...
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Empirical research |
Examined how (past) performance influence SI framing and decision processes. They found that strong performance is associated with framing issues more as threats than opportunities, and that strong performance leads to less comprehensiveness in decision-making. |
Plambeck and Weber (2009Plambeck, N., & Weber, K. (2009). CEO ambivalence and responses to strategic issues. Organization Science, 20(6), 993-1010. https://www.jstor.org/stable/25614712 https://www.jstor.org/stable/25614712...
, 2010) |
Empirical research |
Found that when decision-makers evaluate an issue as both positive and negative, they are more likely to act on the issue, and that these actions were of greater scope, novelty, and riskiness. An ambidextrous strategic orientation and a sense of control of the environment both influence ambivalence in issue interpretation. |
Rerup (2009Rerup, C. (2009). Attentional triangulation: Learning from unexpected rare crises. Organization Science, 20(5), 876-893. https://www.jstor.org/stable/25614701 https://www.jstor.org/stable/25614701...
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Empirical research |
Found that the inability to notice the weak signs of an emerging issue and to act on it in a coherent fashion resulted in an unexpected crisis at Novo Nordisk. He proposed ‘attentional triangulation’ to identify issues that have potentially critical consequences for an organization. |
Barreto and Patient (2013Barreto, I., & Patient, D. L. (2013). Toward a theory of intraorganizational attention based on desirability and feasibility factors. Strategic Management Journal, 34(6), 687-703. https://www.jstor.org/stable/23471038 https://www.jstor.org/stable/23471038...
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Empirical research |
Investigated how managers in a firm attended to the threat and opportunity aspects of an issue (an exogenous shock). They found that attention was influenced by desirability (shock distance) and feasibility (capability perception) considerations. |
Bundy et al. (2013Bundy, J., Shropshire, C., & Buchholtz, A. K. (2013). Strategic cognition and issue salience: Toward an explanation of firm responsiveness to stakeholder concerns. Academy of Management Review, 38(3), 352-376. https://www.jstor.org/stable/43700495 https://www.jstor.org/stable/43700495...
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Theoretical essay |
Developed a cognitive theory of issue salience. They proposed that firms will respond more substantially to those issues perceived as salient to both an instrumental logic (the rational pursuit of organizational objectives) and an expressive logic (how the firm defines its identity) and more symbolically to those issues perceived as salient to only one logic. |
Liu and Maitlis (2014Liu, F., & Maitlis, S. (2014). Emotional dynamics and strategizing processes: A study of strategic conversations in top team meetings. Journal of Management Studies, 51(2), 202-234. https://doi.org/10.1111/j.1467-6486.2012.01087.x https://doi.org/10.1111/j.1467-6486.2012...
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Empirical research |
Analyzed how emotional dynamics influence the processing of SIs by TMTs. Through the analysis of the conversations in TMTs, they identified five kinds of emotional dynamics, each associated with a different type of strategizing process. The strategizing processes, by their turn, varied in how issues were proposed, discussed, and evaluated, and whether decisions were taken or postponed. |
Miller and Lin (2015Miller, K. D., & Lin, S. J. (2015). Analogical reasoning for diagnosing strategic issues in dynamic and complex environments. Strategic Management Journal, 36(13), 2000-2020. https://doi.org/10.1002/smj.2335 https://doi.org/10.1002/smj.2335...
, 2020) |
Mathematical/Computational modeling |
Investigated the accuracy of analogical reasoning when applied (over time) on the interpretation of SIs as threats and opportunities, in environments that differed in variation. |
Bergman et al. (2016Bergman, J. P., Knutas, A., Luukka, P., Jantunen, A., Tarkiainen, A., Karlik, A., & Platonov, V. (2016). Strategic interpretation on sustainability issues - eliciting cognitive maps of boards of directors. Corporate Governance: The International Journal of Business in Society, 16(1), 162-186. https://doi.org/10.1108/CG-04-2015-0051 https://doi.org/10.1108/CG-04-2015-0051...
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Empirical research |
Using the concept of cognitive maps, examined the role of cognitive diversity on strategic issue interpretation among boards of directors. Provides evidence that even though boards of directors of firms in the same industry manifest cognitive diversity, they follow strong industry-wide, common patterns on SI interpretations. |