Abstract: This proposal develops a unifying framework for the behavioral foundations of strategic management. To this end, we develop a theoretical model of strategic decision making that builds on realistic assumptions about human behavior to explain how major intended and emergent strategic initiatives are identified, executed, and assessed. Our model sheds light on the persistent individual level patterns of an executive’s beliefs – the way expectations are formed, preferences – the way alternatives are ranked, and attribution biases—the way that the determinants of outcomes are ascribed. We aim to provide a robust framework to organize insights from existing scholarship, as well as inform an agenda to continue rigorous theoretical development and testing.

Abstract: While the recognition of the cognitive, psychological, and social psychological micro-foundations of strategy offers exciting promise for research progress in strategic management, empirical researchers often face intractable methodological challenges. Computer-based business simulations (also known as simulation games) provide a powerful methodology to address these challenges. This paper provides an understanding of the usefulness of simulation games to study the cognitive, psychological and social psychological micro-foundations of strategy research. We describe the nature and history of management simulations and their attractions and limitations for strategic management research. We also provide a research agenda focused on the cognitive underpinnings of many theories currently informing strategy research where more rapid and nuanced progress could be afforded via computer-based simulation methodology.

Abstract: We empirically test a recently proposed cognitive theory of strategic behavior. Using a large student sample we link the concepts of entity-schema, self-schemata and self-efficacy to mindset, and determine what a strategic mindset ‘looks like.’ We differentiate strategic mindset from other mindsets likely to be found in student samples, such as entrepreneurial and/or accounting. We do not do this to ‘sort’ students, or later, practitioners, but to understand which sorts of mindsets lead to success in business strategy development in order to enable students to create those mindsets in themselves.

Abstract: Market segmentation has been established as a key component of strategy development, but now is criticized due to its implementation problems, increased marketing ineffectiveness and product proliferation. These, together with developments in information and communication technologies, have complicated the decision of how to “go to market”, which is a key aspect in firms’ attempt to achieve competitive advantage. This paper clarifies the current role of market segmentation by analyzing it from three different perspectives: research technique, managerial decision making tool and competitive strategy. It also undertakes the first comprehensive and structured review of the conceptual and empirical evidence on the outcomes of market segmentation. Finally, it proposes a conceptual model and launches the quest for further research into how segmentation influences business performance.