Strategy, Decision Making, and Cognition

Reflecting the dis-equilibrium provoking, ongoing process nature of competition, the role of management in firms has evolved from determining quantity and implementing production function to recognizing, understanding, creating, selecting, implementing, and modifying strategies. The quest for competitive advantages compels firms to continuously engage in strategy and related activities. Given that decision making and cognition are two, somewhat implicit and highly intertwined, concepts that are central to strategy, this research responds to the call for integrating developments in cognition to make strategic decision making more impactful. Therefore, given that cognition (1) is seen as a missing link for strategic management and (2) can impact strategic decision making, this research integrates the perspectives from strategy, decision making, and cognition to develop a framework that can shed light on how firms can succeed in their quest for competitive advantages. The paper concludes with a discussion of the contributions and the corresponding implications for research and practice.