Using panel data dea to measure CEOs' focus of attention: An application to the study of cognitive group membership and performance

In this study, we examine the existence and performance of cognitive groups. In accordance with the attention-based view of managerial cognition, cognitive groups are defined as groups of firms in which the CEOs focus their attention on similar strategic elements when seeking to maximize their firm&...

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Bibliographic Details
Published in:Strategic management journal 2016-02, Vol.37 (2), p.370-388
Main Authors: Surroca, Jordi, Prior, Diego, Tribó Giné, Josep A.
Format: Article
Language:English
Subjects:
CEO attention
cognitive groups
Data Envelopment Analysis
mental models
panel data
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Summary:In this study, we examine the existence and performance of cognitive groups. In accordance with the attention-based view of managerial cognition, cognitive groups are defined as groups of firms in which the CEOs focus their attention on similar strategic elements when seeking to maximize their firm's competitive advantage. We developed a panel data extension of the original Data Envelopment Analysis to gauge CEOs' focus of attention and then clustered firms into groups. We compared our approach with other approaches that use content analysis of CEOs' letters to shareholders and CEOs' demographic characteristics to measure CEOs' attention. Although the different approaches are related, indicating the existence of a common underlying construct (i.e., mental models), our approach explains a higher proportion of the variation in organizational performance.
ISSN:0143-2095
1097-0266
DOI:10.1002/smj.2350