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Integrating Organizational and Individual Information Processing Perspectives on Choice

Author

Listed:
  • Patricia Doyle Corner

    (Department of Management, University of Waikato, Private Bag 3105, Hamilton, New Zealand)

  • Angelo J. Kinicki

    (Department of Management, Arizona State University, Tempe, Arizona 85287)

  • Barbara W. Keats

    (Department of Management, Arizona State University, Tempe, Arizona 85287)

Abstract

Existing information processing theories of strategic choice focus on either the organizational or individual level of analysis. This single level focus makes these theories incomplete representations of how strategic decisions are actually made in organizations. We believe an integration of these two levels is necessary for a comprehensive view of choice. This paper thus proposes a parallel process model of strategic decision making that integrates organizational and individual level information processing perspectives. The integrated, comprehensive view afforded by the proposed model enhances understanding of strategic decision making by identifying (1) multiple ways in which bias can enter into choices and (2) dual level influences on decision activities such as information gathering and alternative generation.The proposed model portrays strategic decision making as complex, multilevel information processing and choices as emergent outcomes of that processing. The model is developed as follows. First, the individual level of the model is generated by recognizing that people process information in stages. The notion of stages is used because it depicts the basic structure of information processing and is widely supported by empirical research. Second, the organizational level of the model is articulated by acknowledging organizations (1) process information in stages and (2) exhibit information processing activities analogous to those at the individual level. Third, a series of linking mechanisms connecting individual information processing stages to analogous organizational level ones is proposed. These linking mechanisms thus conceptually operationalize the integration of the two levels. Fourth, three contingency variables are presented to flesh out the model and formulate propositions. Contingency variables specifically acknowledge differences in information processing across organizations. A final section of the paper explains how key variables in the proposed model can be operationalized and outlines a test for the presence of multiple levels of information processing in a strategic choice context.

Suggested Citation

  • Patricia Doyle Corner & Angelo J. Kinicki & Barbara W. Keats, 1994. "Integrating Organizational and Individual Information Processing Perspectives on Choice," Organization Science, INFORMS, vol. 5(3), pages 294-308, August.
    • Handle: RePEc:inm:ororsc:v:5:y:1994:i:3:p:294-308
    DOI: 10.1287/orsc.5.3.294
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    Citations

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    Cited by:

    1. Citroen, Charles L., 2011. "The role of information in strategic decision-making," International Journal of Information Management, Elsevier, vol. 31(6), pages 493-501.
    2. David Hirshleifer & Ivo Welch, 2002. "An Economic Approach to the Psychology of Change: Amnesia, Inertia, and Impulsiveness," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(3), pages 379-421, September.
    3. Tohyun Kim & Daegyu Yang, 2020. "Multiple Goals, Attention Allocation, and the Intention-Achievement Gap in Energy Efficiency Innovation," Sustainability, MDPI, vol. 12(17), pages 1-13, August.
    4. Mai, Nhat Chi, 2022. "Strategic Management," OSF Preprints vauxf, Center for Open Science.
    5. Chila, Vilma & Devarakonda, Shivaram, 2024. "The effects of firm-specific incentives (stock options) on mobility and employee entrepreneurship," Journal of Business Venturing, Elsevier, vol. 39(3).
    6. Frederik Dahlmann & Jens K. Roehrich, 2019. "Sustainable supply chain management and partner engagement to manage climate change information," Business Strategy and the Environment, Wiley Blackwell, vol. 28(8), pages 1632-1647, December.
    7. Stefan Wagner & Martin C. Goossen, 2018. "Knowing me, knowing you: Inventor mobility and the formation of technology-oriented alliances," ESMT Research Working Papers ESMT-18-01, ESMT European School of Management and Technology.
    8. Theresa S. Cho & Donald C. Hambrick, 2006. "Attention as the Mediator Between Top Management Team Characteristics and Strategic Change: The Case of Airline Deregulation," Organization Science, INFORMS, vol. 17(4), pages 453-469, August.
    9. Yan Chen & Michael Song, 2022. "The persistence and dynamics of new venture growth," Small Business Economics, Springer, vol. 58(1), pages 303-322, January.
    10. Ferreira, Luciana C. de Mesquita & Heugens, Pursey M. A. R. & Oosterhout, Hans van, 2010. "When a Thousand Words are (Not) Enough: An Empirical Study of the Relationship Between Firm Performance and Attention to Shareholders," Insper Working Papers wpe_223, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    11. AISDL, Mindsponge, 2022. "Strategic management," OSF Preprints b8vfg, Center for Open Science.
    12. Dean Tjosvold, 1998. "Using and Valuing Accounting Information: Joint Decision Making Between Accountants and Retail Managers," Group Decision and Negotiation, Springer, vol. 7(4), pages 327-345, July.
    13. Barbara B. Flynn & Xenophon Koufteros & Guanyi Lu, 2016. "On Theory in Supply Chain Uncertainty and its Implications for Supply Chain Integration," Journal of Supply Chain Management, Institute for Supply Management, vol. 52(3), pages 3-27, July.
    14. R Volkema, 2009. "Natural language and the art and science of problem/opportunity formulation: a transportation planning case analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(10), pages 1360-1372, October.
    15. Mark Simon & Susan M. Houghton, 2002. "The Relationship among Biases, Misperceptions, and the Introduction of Pioneering Products: Examining Differences in Venture Decision Contexts," Entrepreneurship Theory and Practice, , vol. 27(2), pages 105-124, April.
    16. Denis A. Grégoire & Pamela S. Barr & Dean A. Shepherd, 2010. "Cognitive Processes of Opportunity Recognition: The Role of Structural Alignment," Organization Science, INFORMS, vol. 21(2), pages 413-431, April.
    17. William Ocasio, 2011. "Attention to Attention," Organization Science, INFORMS, vol. 22(5), pages 1286-1296, October.
    18. Ferreira, Luciana C. de Mesquita, 2011. "Attention process: A multilevel perspective," Insper Working Papers wpe_261, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    19. Rengarajan, Srinath & Narayanamurthy, Gopalakrishnan & Moser, Roger & Pereira, Vijay, 2022. "Data strategies for global value chains: Hybridization of small and big data in the aftermath of COVID-19," Journal of Business Research, Elsevier, vol. 144(C), pages 776-787.
    20. Schrettle, Stefan & Hinz, Andreas & Scherrer -Rathje, Maike & Friedli, Thomas, 2014. "Turning sustainability into action: Explaining firms' sustainability efforts and their impact on firm performance," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 73-84.

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