This paper aims to investigate the relation between firm sustainability strategies and sustainability performance. For this purpose, the paper raises the question on “whether or not a higher degree of cognitive complexity (strategy) is associated with a higher level of corporate sustainability (performance index) in the organization”? In the search of answers, the paper introduces an approach to operationalize measurements on Degree of Cognitive Complexity (DCC) and Level of Corporate Sustainability (LCS) in order to find relations between them. The measures are most grounded in the concepts of cognitive complexity, general systems theory, cognitive maps, natural resource-based view, and corporate sustainability indexes. Empirically, the paper investigates firms that have participated in the Brazilian Stock Exchange (BM&FBOVESPA). The research involves six (longitudinal) case studies of firms that fully provided their Global Reporting Initiative (GRI) and Brazilian Corporate Sustainability Indexes (BCSI). Results indicate a positive relationship between Degree of Cognitive Complexity (DCC) and Level of Corporate Sustainability (LCS); and, consequently, between the firm sustainability strategy and performance. Findings also suggest future research on contingency views on Degree of Cognitive Complexity (DCC) and Level of Corporate Sustainability (LCS).

Resumo Pesquisas sobre cognição nas organizações têm sido fundamentadas em áreas e estudos multidisciplinares que se desenvolveram principalmente nos últimos cinquenta anos. Cognição organizacional tem recebido contribuições de abordagens computacionais e interpretativas e pode ser compreendida como uma área de teoria das organizações. Todavia, apesar de apoiar esses desenvolvimentos, este artigo aponta para a necessidade de se avançar e propor definições mais concisas e precisas sobre cognição organizacional, na direção de conceitualizações que possam esclarecer a sua distinção e suas fronteiras com os conceitos de inteligência, autonomia, aprendizagem e gestão do conhecimento organizacional. Adicionalmente, este artigo destaca a necessidade de concentração de maiores esforços para a redução da distância entre teoria e prática no campo da cognição organizacional. Para atender a essas necessidades, este trabalho contribui para o campo da cognição organizacional através de revisão de literatura, conceitualizações e a sua introdução no contexto da administração estratégica de recursos.

This research investigates antecedents, developments and consequences of dynamic capabilities in an organization. It contributes by searching theoretical and empirical answers to the questions: (a) What are the antecedents which can provide an organization with dynamic and ordinary capabilities?; (b) How do these antecedents contribute to create capabilities in an organization?; (c) How do they affect an organization’s competitive advantage?; (d) Can we assess and measure the antecedents and consequences to an organization? From a first (theoretical) perspective, this paper searches answers to the first, second and third questions by reviewing concepts of an ability-based view of organizations that involves the abilities of cognition, intelligence, autonomy, learning and knowledge management, and which contributes to explain the dynamic behavior of the firm in the pursuit of competitive advantage. From a second (empirical) perspective, this paper reinforces and delivers findings to the second, third and fourth questions by presenting a case study that evidences the ability-based view in action in a software corporation, where it contributes by investigating: (a) the development of organizational capabilities; (b) the effects of the new capabilities on the organization; and (c) the assessment and measurement of the abilities and consequences.

Financing is one of the most critical boundaries for the establishment and growth of a Small and Medium-sized Enterprise: SME (Moore, 1993). This chapter describes traditional and non-traditional financing opportunities for SMEs in Germany by focusing on its applicability. The disclosure of financial business information and giving a say to an equity financier is a difficult topic for owners of Small and Medium-sized Enterprises (SMEs), because these companies are often run as a ‘one-man-show’ (by a single manager) and this person identifies itself with the company. The request for external funds is in that perspective still regarded as a disability of a business to be self-financed. A comparison of the organisational structure of a SME and that of a Large Scale Enterprise (LSE) reveals the structural weaknesses in terms of research and development (R&D) activities. While LSE have an extra department, budget and procedures to develop product and process innovations similarly to a knowledge push, in SMEs, innovations are often originated from customers—similarly to a need pull process (Tidd & Bessant, 2009). Furthermore, CEOs and customer contribute to a great extend to innovations in SMEs (BDI, 2010). The results of an online-based survey presented in the BDI-Mittelstandspanel 2010, show that less than 13% of innovations are originated by external scientists, R&D organisations and consultants. This proofs that external R&D sources (to compensate missing internal resources and structures) are rarely employed; impeding or slowing down the development of innovations.

This paper investigates theoretical micro-foundations of core competencies in the organization that pursues sustainable competitive advantage. It advocates that there is a lack of literature perspectives which can explain the sources of core competencies of the firm. This research raises questions on: What are the main sources of creation and sustenance of core competencies? What are the abilities which nourish the development of operational and dynamic capabilities? What is the main source of collective knowledge in the organization? This work answers these questions by proposing a dynamic ability-based view of the organization which contributes to explaining the dynamic behavior of the firm in the pursuit of sustainable competitive advantage. Cognition is the core ability which supports individuals, groups, and organizations with intelligence, autonomy, learning, and knowledge management. These concepts form the set of organizational abilities in this research.

Este artigo estende a metáfora da corporação, baseada na árvore, e propõe que a cognição representa a principal habilidade que contribui para nutrir o desenvolvimento de competências essenciais na organização. A partir dessa extensão, este trabalho levanta a seguinte questão: Qual é o papel ou função da cognição na organização que busca o desenvolvimento de competências essenciais e vantagem competitiva sustentável? Este artigo responde a esse problema, ao apresentar duas perspectivas, que contribuem para a introdução do campo da cognição organizacional nos domínios da visão da empresa, baseada em recursos, e da teoria da contingência. Em sua primeira perspectiva, este artigo propõe uma visão da organização baseada em habilidades, que está fundamentada em conceitos da empresa, baseada em recursos, e em capacidades dinâmicas. Em sua segunda perspectiva, este trabalho introduz uma visão contingencial da cognição organizacional, desenvolvida por meio de relações causais e proposições. Com base nessas perspectivas, esta pesquisa sustenta a tese de que a cognição é fonte de controle da incerteza ambiental e, de forma complementar, a cognição contribui para a criação da vantagem competitiva sustentável da organização.

PurposeThis paper extends the corporation‐based metaphor of the tree by proposing that cognition is the core ability that nourishes the development of core competencies. From such an extension, this paper aims to take a step forward to answer the question: what is the role of cognition in the organization that is in pursuit of core competencies and sustainable competitive advantage?Design/methodology/approachThe paper answers this problem by presenting two complementary perspectives, which contribute to introduce the field of organizational cognition into the strategic‐resource and contingency domains. First, it proposes precepts of an ability‐based view of the organization through analogies that are most associated to concepts of the resource‐based view and dynamic capabilities of the firm. Second, it introduces a contingency‐based view of organizational cognition which is most developed through causal relations, and also deductive and inductive reasoning.FindingsConclusions reinforce the thesis that cognition is the core ability which supports individuals, groups and organizations with other complementary abilities such as intelligence, autonomy, learning, and knowledge management; whereas these abilities, all together, are sources of reduction of environmental uncertainty, and, complementarily, they nourish the development of the organization's core competencies and competitive advantage.Originality/valueThe uniqueness and distinction of this research lies in the authors' efforts to explain the strategic dynamic behavior of the organization in the pursuit of high degrees of cognition in order to manage high levels of environmental uncertainty, to nourish the development of core competencies, and to sustain the organization's competitive advantage.

This paper proposes a new contingency view of the organization and it contributes to the theme through two complementary perspectives. First, it proposes cognition as a function which acts as the main mediator between the organization and the environment. Second, it introduces cognition as the core organizational ability which supports individuals, groups and organizations with intelligence, autonomy, learning and knowledge management, whereas, in such a perspective, cognition is viewed as the core resource in the service of the organization. Both perspectives, the mediation and the core organizational resource views, imply that cognition contributes toward managing environmental complexity and uncertainty. From this picture, this work analyzes the organization in the pursuit of high degrees of organizational cognition in order to manage high levels of environmental complexity and uncertainty. Grounded in these views, this paper presents a model of the organization as a set of fuzzy abilities. From all these backgrounds, this research opens new directions for future research on organizational abilities which subsume cognition, intelligence, autonomy, learning and knowledge management as important elements of organizational analysis.

This paper proposes the features of future industrial organizations in order to provide them with the abilities to manage high levels of environmental complexity in the 21st century. For such a purpose, it introduces the concept of computational organization management networks.

Purpose – The purpose of this paper is to present the results of an initial survey on the implementation of costs of quality (CoQ) programmes in the UK telecommunications industry and to discuss the findings in the context of sustainable competitiveness.Design/methodology/approach – A postal survey was employed in order to investigate the breadth of use of CoQ programmes in the sector. A questionnaire was developed and distributed across a sample of companies with a UK SIC code of “6400 Telecommunications”.Findings – The survey results revealed little interest in implementing such programmes in the sector. The most frequently cited reasons were: having a costing system that is already capable of monitoring quality costs; and not yet introduced to the concept of CoQ.Research limitations/implications – The results presented are limited by two factors: the low response rate; and the range of data gathered. Since the majority of the respondents were service providers, the results could be indicative of this t...

Humans and organizations have limitations of computational capacity and information management. Such constraints are synonymous with bounded rationality. Therefore, in order to extend the human and organizational boundaries to more advanced models of cognition, this research proposes concepts of cognitive machines in organizations. From a micro point of view, what makes this research distinct is that, beyond people, it includes in the list of participants of the organization the cognitive machines. From a macro point of view, this paper relies on the premise that cognitive machines can improve the cognitive abilities of the organization. From such perspectives, it presents rationale and principles of a class of cognitive machines with capabilities to carry out complex cognitive tasks in organizations. It also introduces analyses of the cognitive machines in organizations through theories of bounded rationality, economic decision-making, and conflict resolution. The analyses indicate that these machines can solve or reduce intra-individual and group dysfunctional conflicts which arise from decision-making processes in the organization, and thus they can improve the degree of organizational cognition. From all these backgrounds, this research outlines implications of cognitive machines for organizations.

Organizational cognition concerns the processes which provide agents and organizations with the ability to learn, make decisions, and solve problems.Organizational and Technological Implications of Cognitive Machines: Designing Future Information Management Systems presents new challenges and perspectives to the understanding of the participation of cognitive machines in organizations. Containing extensive research by an international collaboration of experts, this book addresses the possible implications of cognitive machines for current and future organizations.

This paper mainly relies on the principles of incompatibility, or non-equilibrium, existing between the continuous growth in the level of environmental complexity and the insufficient cognitive capacity of the organization to deal with higher levels of uncertainty, to operate in complex task environments, to attend new market demands, to manage new approaches to customers’ satisfaction and relationship, and to capture effectively information resources from the environment. It examines characteristics and limitations of past and current manufacturing organizations, and it extends their frontiers by proposing new technological, managerial and organizational capabilities of the new manufacturing organizations in the 21st century. From such an analysis, it introduces the concept of customer-centric systems which represent new organizational production models that pursue high degrees of organizational cognition, intelligence and autonomy, and consequently, high degrees of agility and flexibility, in order to manage high levels of environmental complexity, to operate through intensive mass customization, and to provide customers with immersiveness. From all these backgrounds, this research contributes by proposing the concept of new organizations with structure and processes of computational organization management networks. In such a new organization type, cognitive machines and cognitive information systems are prominent actors of governance, automation and control of the whole enterprize.

Organizations and the environment change over time. Not only change their structures and processes of functioning, but also the perspectives that researchers have about them over periods of time. Hence, scientists need to review theories of organizations in order to formulate new solutions to the problems of the present. It is in such a direction of thinking that this paper contributes by introducing new concepts, principles and propositions towards a theory of organizational cognition. It put forwards new perspectives about the organization and the environment, and also about the relations between them through the concept of cognition. From these backgrounds, this research also contributes by presenting the concepts of organizational intelligence and autonomy, hierarchic levels of cognition in organizational systems, along with cognitive definitions and complex models for the organization and the environment.

With scientific management now in sight of its centenary, the continuing shortage of numerically articulated models in manufacturing management leaves managers only words and concepts with which to work. Those that do exist are overwhelmingly qualitative in nature and many are presented in diagrammatic forms that suggest degrees of insight and rigour far in excess of actuality. A change of emphasis is required if the area is to develop further. Efforts should be redirected towards quantifying the major variables in typical situations and then building quantitative models for managers to use. Drawing upon their current research into management practices in a wide range of manufacturing organizations in the UK and internationally, the authors identify and criticize three types of models that appear all too frequently in manufacturing management theory. Copyright © 2007 John Wiley & Sons, Ltd.