{"title":"Hierarchical Sensing and Strategic Decision-Making","authors":"E. Green, Z. Shapira","doi":"10.1108/S0742-332220180000039009","DOIUrl":null,"url":null,"abstract":"Abstract \nThere are many cases where top management either missed or almost missed detecting or interpreting a major change in the environment that might have led them to a major setback. We propose a model of sensing in hierarchical organizations that describes a sequence of sensing and detecting changes in the environment, followed by successive stages of perception, interpretation, and finally action. We model an organization as a complex signal detection system, where the flow of information among members of the organization is constrained by two elements: the structure of the organization, which is defined by who reports to whom, and the attentional and cognitive limitations of the individuals. We infer the probability of sensing over time for different levels of environmental shocks and different organizational structures. By focusing on the (un)reliability of sensing and the information flow in different organizational structures, we are able to provide preliminary analysis of the trade-offs among cognitive limitations, speed of detection, modes of information flow, and the resulting performance measure of delay, false-alarms, and true detections.","PeriodicalId":46550,"journal":{"name":"Advances in Strategic Management-A Research Annual","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2018-09-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1108/S0742-332220180000039009","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Advances in Strategic Management-A Research Annual","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1108/S0742-332220180000039009","RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Economics, Econometrics and Finance","Score":null,"Total":0}
引用次数: 1
Abstract
Abstract
There are many cases where top management either missed or almost missed detecting or interpreting a major change in the environment that might have led them to a major setback. We propose a model of sensing in hierarchical organizations that describes a sequence of sensing and detecting changes in the environment, followed by successive stages of perception, interpretation, and finally action. We model an organization as a complex signal detection system, where the flow of information among members of the organization is constrained by two elements: the structure of the organization, which is defined by who reports to whom, and the attentional and cognitive limitations of the individuals. We infer the probability of sensing over time for different levels of environmental shocks and different organizational structures. By focusing on the (un)reliability of sensing and the information flow in different organizational structures, we are able to provide preliminary analysis of the trade-offs among cognitive limitations, speed of detection, modes of information flow, and the resulting performance measure of delay, false-alarms, and true detections.
期刊介绍:
Advances in Strategic Management is dedicated to communicating innovative, new research that advances theory and practice in Strategic Management. The domain of the series encompasses, but is not limited to, corporate and business unit strategy, strategic organization and process, alliances and networks, and competitive dynamics. The series is committed to expanding the scope of Strategic Management theory and analysis and enriching practice by: -Encouraging multitheoretical approaches that span multiple social science disciplines -Welcoming papers using a diversity of innovative research methods -Creating focused volumes that explore in depth promising new research directions, consolidate research streams, and address significant current theoretical and practical problems.