Abstract
This article reports on two studies that examine the relationship between performance and strategic issue-framing and decision-processing. The results suggest strong performance promotes a defensive mindset that may lead to dysfunctional outcomes. Study 1 draws its data from 51 CEOs and shows that performance is associated with framing issues as threats rather than opportunities. Study 2 draws its data from 45 top management teams and shows that performance is associated with less comprehensiveness in decision-making. Implications of these findings provide insights into why organizations that perform well sometimes squander their success subsequently through poor decision-making.
Original language | American English |
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Journal | Strategic Organization |
Volume | 6 |
DOIs | |
State | Published - Oct 8 2008 |
Keywords
- Paradox of Performance
- Strategic Decision-Making
- Strategic Issue Diagnosis
- Top Management Team Processes
DC Disciplines
- Business Administration, Management, and Operations
- Business