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On the relevance of Cognitive Continuum Theory and quasirationality for understanding management judgment and decision making

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  • Dhami, Mandeep K.
  • Thomson, Mary E.

Abstract

‘Quasirationality’ (i.e., the combination of intuitive and analytic thought) is increasingly considered to be widespread and beneficial in management. This paper provides an overview of this concept as it is defined by Cognitive Continuum Theory (Hammond, 1996, 2000), and highlights the relevance of the theory for studying managerial judgment and decision making. According to Cognitive Continuum Theory, there are multiple modes of cognition that lie on a continuum between intuition and analysis. Quasirationality is the prevalent mode of cognition. Cognitive (managerial) tasks vary in their ability to induce intuition, quasirationality or analysis, and performance is contingent on the correspondence between task properties and cognitive mode. Using Cognitive Continuum Theory, management researchers can identify tasks requiring different modes of thought, and recognize when quasirationality may outperform analysis and intuition. Researchers can also utilize Cognitive Continuum Theory to iron out some identified anomalies in the strategic management literature and to provide a more refined theoretical framework in this context.

Suggested Citation

  • Dhami, Mandeep K. & Thomson, Mary E., 2012. "On the relevance of Cognitive Continuum Theory and quasirationality for understanding management judgment and decision making," European Management Journal, Elsevier, vol. 30(4), pages 316-326.
    • Handle: RePEc:eee:eurman:v:30:y:2012:i:4:p:316-326
    DOI: 10.1016/j.emj.2012.02.002
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    Cited by:

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    2. Kopalle, Praveen K. & Kuusela, Hannu & Lehmann, Donald R., 2023. "The role of intuition in CEO acquisition decisions," Journal of Business Research, Elsevier, vol. 167(C).
    3. Yixin Hu & Dawei Wang & Kaiyuan Pang & Guangxing Xu & Jinhong Guo, 2015. "The effect of emotion and time pressure on risk decision-making," Journal of Risk Research, Taylor & Francis Journals, vol. 18(5), pages 637-650, May.
    4. Claudius Bachmann & Laura Sasse & Andre Habisch, 2018. "Applying the Practical Wisdom Lenses in Decision-Making: An Integrative Approach to Humanistic Management," Humanistic Management Journal, Springer, vol. 2(2), pages 125-150, February.
    5. Basel, Jörn S. & Brühl, Rolf, 2013. "Rationality and dual process models of reasoning in managerial cognition and decision making," European Management Journal, Elsevier, vol. 31(6), pages 745-754.
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    7. Sarah L. Carthy & Colm B. Doody & Katie Cox & Denis O'Hora & Kiran M. Sarma, 2020. "Counter‐narratives for the prevention of violent radicalisation: A systematic review of targeted interventions," Campbell Systematic Reviews, John Wiley & Sons, vol. 16(3), September.
    8. Gilbert-Saad, Antoine & Siedlok, Frank & McNaughton, Rod B., 2023. "Entrepreneurial heuristics: Making strategic decisions in highly uncertain environments," Technological Forecasting and Social Change, Elsevier, vol. 189(C).

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