Conceptualizing Processes of Strategic Change. The Contribution of an Attention-Based View to Strategy Formulation

Table of Contents

1. Introduction

2. Literature Review Strategic Management

2.1 Definitions

2.1.1 Definition of Strategic Management

2.1.2 Definition of Strategy

2.1.3 Definition of Strategic Change

2.1.4 Definition of/Differences between Strategic Process and Strategic Content

2.2 Definition of Strategy Formulation and the Concept of Corporate Strategy

2.3 Strategic Choice Under Conditions of Bounded Rationality

2.4 Deliberate and Emergent Strategies

2.5 Consensus in Strategy Formulation

2.6 Issue Selling to Top Management and understanding Strategic Agenda Building

2.7 Preliminary Conclusion

3. The Contribution of the Attention-Based View of the Firm to Strategy Formulation

3.1 Definition of Attention

3.2 The Carnegie School: Assumptions and Theoretical Pillars

3.2.1 Bounded Rationality

3.2.2 Specialized Decision-Making Structures

3.2.3 Conflicting Interests and Cooperation

3.3 The Attention-Based View of the Firm

3.3.1 The Three Principles of the ABV of the firm

3.3.2 A Model of Situated Attention and Firm Behavior

3.4 An Attention-Based Theory of Strategy Formulation

3.5 Strategic Framework and Specific Research Questions

4. Empiricism

4.1 The Contribution of the Focus of Attention to Strategy Formulation

4.1.1 Cognition, Capabilities, and Incentives: Assessing Firm Response to the Fiber-Optic Revolution (Kaplan 2008)

4.1.2 Cognition and Renewal: Comparing CEO and Organizational Effects on Incumbent Adaptation to Technical Change (Eggers & Kaplan 2009)

4.1.3 Competing for Attention in Knowledge Markets: Electronic Document in a Management Consulting Company (Hansen & Haas 2001)

4.1.4 An Attention-Based View of Service Orientation in the Business Strategy of Manufacturing Companies (Gebauer 2009)

4.1.5 Environmental Context, Managerial Cognition and Strategic Action: An Integrated View (Nadkarni & Barr 2008)

4.2 The Contribution of Situated Attention to Strategy Formulation

4.2.1 Competition and Beyond: Problems and Attention Allocation in the Organizational Rulemaking Process (Sullivan 2010)

4.2.2 Attention Allocation to Multiple Goals: The Case of For-Profit Social Enterprises (Stevens et al. 2014)

4.2.3 Commanding Board of Director Attention: Investigating How Organizational Performance and CEO Duality affect Board Members’ Attention to Monitoring (Tuggle et al. 2010)

4.2.4 International Attention and Multinational Enterprise Performance (Bouquet et al. 2009)

4.3 The Contribution of the Structural Distribution of Attention to Strategy Formulation

4.3.1 How Global Strategies Emerge: An Attention Perspective (Bouquet & Birkinshaw 2011)

4.3.2 Weight Versus Choice: How Foreign Subsidiaries Gain Attention from Corporate Headquarters (Bouquet & Birkinshaw 2008)

4.3.3 The Plurality of Institutional Embeddedness as a Source of Organizational Attention Differences (Hung 2005)

4.3.4 Attention as the Mediator between Top Management Team Characteristics and Strategic Change: The Case of Airline Deregulation (Cho & Hambrick 2006)

4.3.5 Toward a Theory of Intraorganizational Attention Based on Desirability and Feasibility Factors (Baretto & Patient 2013)

4.3.6 Polychronicity in Top Management Teams: The Impact on Strategic ecision Processes and Performance of New Technology Ventures (Souitaris & Maestro 2010)

4.3.7 The Integration Journey: An Attention-Based View of the Merger and Acquisition Integration Process (Yu et al. 2005)

4.3.8 Additional Empirical Studies

5. Discussion (Including Limitations and Implications)

6. Conclusion

Research Objectives and Focus

The primary research objective of this work is to investigate how firms behave and make decisions by analyzing the role of managerial attention within the context of strategy formulation. The study aims to clarify how the Attention-Based View (ABV) of the firm contributes to strategy formulation processes and how it influences firm performance, focusing on the strategic process rather than the final strategic content.

• Theoretical integration of strategic management literature with the Attention-Based View of the firm.
• Examination of the three core principles of the ABV: focus of attention, situated attention, and structural distribution of attention.
• Development of a strategic framework named "Selective Organizational Attentional Processing."
• Empirical analysis of existing research regarding managerial attention in various organizational contexts.

Excerpt from the Book

Summary of Chapters

1. Introduction: This chapter outlines the research motivation, defining strategic change and identifying managerial attention as the central, scarce resource for effective strategy formulation in complex environments.

2. Literature Review Strategic Management: This section reviews key streams in strategic management literature, including strategy process vs. content, bounded rationality, deliberate/emergent strategies, and consensus building in strategy formulation.

3. The Contribution of the Attention-Based View of the Firm to Strategy Formulation: This chapter defines the Attention-Based View (ABV) and its theoretical pillars, presenting the principles of focus, situated attention, and structural distribution of attention, culminating in the author’s proposed "Selective Organizational Attentional Processing" framework.

4. Empiricism: This chapter categorizes and summarizes 18 empirical studies that demonstrate how the three core principles of the ABV influence managerial decision-making, strategy formulation, and firm performance in diverse contexts.

5. Discussion (Including Limitations and Implications): This chapter reflects on the empirical findings, linking them back to the proposed strategic framework, addressing limitations of current research, and deriving practical implications for managers.

6. Conclusion: The final chapter summarizes the paper's findings, affirming that the ABV offers a valuable lens for understanding organizational behavior and providing an outlook for future research to address the currently underdeveloped nature of the theory.

Keywords

Attention-Based View, Strategic Management, Strategy Formulation, Organizational Behavior, Situated Attention, Focus of Attention, Structural Distribution of Attention, Bounded Rationality, Strategic Change, Decision-Making, Managerial Cognition, Governance Channels, Agenda Building, Firm Performance, Management Studies.

Frequently Asked Questions

What is the core focus of this master thesis?

The thesis investigates how firms behave and make strategic decisions by analyzing the role of managerial attention, specifically utilizing the Attention-Based View (ABV) of the firm.

What are the three main principles of the Attention-Based View discussed?

The work focuses on the three core principles proposed by Ocasio (1997): (1) the Focus of Attention, (2) Situated Attention, and (3) the Structural Distribution of Attention.

What is the primary goal of the author's proposed strategic framework?

The "Selective Organizational Attentional Processing" framework aims to integrate existing strategic management theories with the ABV to investigate how organizational structure and attention processes contribute to strategy formulation.

Which scientific methodology does the paper employ?

The paper performs an extensive literature review and a comprehensive synthesis and critical reflection of 18 empirical studies to explore the multi-disciplinary aspects of the ABV.

What is addressed in the empirical part of the thesis?

The empiricism section categorizes existing studies into three sections based on the three core principles of the ABV, examining how factors like CEO cognition, governance channels, and organizational structures influence strategy formulation and performance.

Which keywords best characterize this research?

Key terms include Attention-Based View, Strategy Formulation, Managerial Cognition, Bounded Rationality, and Strategic Change.

How does the author define the term "attention" within the thesis?

Adapting Ocasio (1997), the author defines attention as the "noticing, encoding, interpreting, and focusing of time and effort by organization decision-makers" on both environmental issues and potential action alternatives (answers).

Why is the "governance channel" important in this research?

Governance channels, such as board meetings, are identified as the specific organizational contexts where top-level decision-makers allocate their attention to formulate strategy and allocate resources.

How do "middle managers" contribute to strategy formulation according to the thesis?

Middle managers act as an intersection between operational and top-management levels, contributing to strategy by "selling" strategic issues to top managers and providing solutions based on their unique access to operational information.