Cognitive biases in resource cognition: evidence from action research
ISSN: 0025-1747
Article publication date: 11 April 2023
Issue publication date: 24 August 2023
Abstract
Purpose
Resource cognition – identifying valuable resources and capabilities and assessing their potential for redeployment – is a pivotal management capability for strategic renewal. This study explores how managerial cognition in this activity may be biased, leading to erroneous results.
Design/methodology/approach
This study employs an action research approach: A full resource cognition project was conducted together with the top management of a case firm, including the CEO and members of the supervisory board.
Findings
Resource cognition may be distorted by four cognitive biases: The insulation bias – tending to keep one's perspective insularly to the current business; the novelty bias – tending to exclusively focus on innovation and recent achievements; the status quo bias – tending to view opportunities from the current situation and structural set-up; and the scaffolding bias – tending to adopt concepts and examples indiscriminately to the firm.
Originality/value
Active participation in a resource cognition project provided first-hand and insightful practice-based evidence on resource cognition. Aware practitioners can take preventive steps to avoid cognitive biases. This study sheds light on the under researched issue of resource cognition.
Keywords
Citation
Leemann, N. and Kanbach, D.K. (2023), "Cognitive biases in resource cognition: evidence from action research", Management Decision, Vol. 61 No. 9, pp. 2784-2791. https://doi.org/10.1108/MD-10-2021-1379
Publisher
:Emerald Publishing Limited
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