A dual-processing view of three cognitive strategies in strategic decision making: Intuition, analytic reasoning, and reframing

Jukka Luoma*, Frank Martela

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

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.

Original languageEnglish
Article number102065
Number of pages58
JournalLong Range Planning
DOIs
Publication statusE-pub ahead of print - 2021
MoE publication typeA1 Journal article-refereed

Keywords

  • Decision making
  • Dual-processing theory
  • Intuition
  • Managerial cognition
  • Reflection

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