Technical Report Issue selection flexibility and strategic rigidity: Lessons from Sharp's crisis

Nakagawa, Koichi  ,  Matsumoto, Yoichi

15-24pp.1 - 33 , 2015-10 , Graduate School of Economics and Osaka School of International Public Policy (OSIPP) Osaka University
This study explores the relationship between attention to managerial issues and organizational inertia. Past research shows that rigid cognition makes managers focus on specific issues during strategy formulation, and such focus prevents from altering strategies. In this study we introduce the idea from an attention based-view that issues move in and out of the focus. Analyzing the case of the Sharp Corporation from this viewpoint, it was found that top managers frequently changed peripheral issues and their answers while central issues and answers remained unchanged. Managers used several issues flexibly for justifying their fixed answers for their central issues. From this case, we get some new propositions that flexible change of issues rather prevents from changing strategies, if the managers’ cognition is rigid.

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