CEO Cognitive Complexity, Cognitive Flexibility, and Strategic Change: The Moderating Role of CEO Tenure

Activity: Talk or presentationScience to science

Description

We examine the effect of CEO tenure on the relationship between CEO cognition and strategic change. We focus on two fundamental cognitive map properties: cognitive complexity and cognitive flexibility. Applying a novel methodological approach, which combines a topic modeling algorithm, trained on over 681 million words, with network analysis, we measure the complexity of cognitive maps as well as their degree of adaptation over time. Results from a panel data analysis of 355 companies show that the effect of cognitive complexity on strategic change becomes increasingly negative as the CEO´s tenure progresses. Conversely, the effect of cognitive flexibility on strategic change becomes increasingly positive over the course of the CEO´s tenure. Our study contributes novel insights into the cognitive microfoundations of strategic change by introducing a dynamic perspective on cognitive maps.
Period8 Jul 202110 Jul 2021
Event title37th EGOS Colloquium 2021
Event typeUnkonwn
Degree of RecognitionInternational