A dual-processing view of three cognitive strategies in strategic decision making: Intuition, analytic reasoning, and reframing. Issue 3 (June 2021)

• Record Type: Journal Article
• Authors: Luoma, Jukka; Martela, Frank
• Is Part Of: Long range planning. Volume 54:Issue 3(2021)
• Publication Date: 2021-06
• Subjects: Decision making -- Managerial cognition -- Dual-processing theory -- Intuition -- Reflection; Management -- Periodicals; Business planning -- Periodicals; Gestion -- Périodiques; Management; Periodicals; 658.4012
• DOI: 10.1016/j.lrp.2020.102065
• Languages: English
• ISSNs: 0024-6301

Abstract

Abstract: In making strategic decisions, managers implicitly or explicitly come to choose a cognitive strategy, by which we refer to the choices made as regards what type of information processing to engage in and rely on as the basis for a decision. Dual-processing theories of cognition recognize two types of information processing: non-conscious and conscious. There are two cognitive strategies—relying on intuition and engaging in analytic reasoning—that have a straightforward connection to the two types of information processing. However, managers often engage in reframing, that is, they deliberately attempt to rethink the background assumptions concerning how one approaches a decision-making situation. Despite the strategic importance of reframing, the foundations of this cognitive strategy remain theoretically underdeveloped. We argue that reframing involves both Type 1 and Type 2 processing in a complementary fashion. Specifically, reframing can be induced through conscious reflection and non-conscious processing during an incubation period. Furthermore, we argue that while reframing is a robust cognitive strategy across varying levels of environmental dynamism, dedicating time to reframing incurs significant opportunity costs, and can thus be employed only sparingly.