Cognition and Decision Making in Diversified Firms

Authors

  • Larry Stimpert Colorado College
  • Irene Duhaime Georgia State University

Keywords:

Strategy, diversification

Abstract

The study reported here sought to develop top managers' beliefs about the management of diversification and to determine whether these beliefs are associated with key decisions. The study identified three broad sets of beliefs or orientations about the management of diversification that are commonly held by executives of large diversified firms. The study found that these management orientations are significantly associated with a number of strategic choices, including decisions about the extent of diversification, divestment activity, new product development efforts, and research and development spending. The results illustrate the influence of managerial cognition on strategic decision making and shed additional light on the management of diversification and corporate strategy.

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Published

2010-12-13

Issue

Vol. 1 No. 1 (2010)

Section

ABR Journal Articles

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