Issue selection flexibility and strategic rigidity: Lessons from Sharp's crisis

Koichi Nakagawa () and Yoichi Matsumoto Matsumoto ()
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Koichi Nakagawa: Graduate school of economics, Osaka University
Yoichi Matsumoto Matsumoto: Research Institute for Economics and Business Administration, Kobe University

No 15-24, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This study explores the relationship between attention to managerial issues and organizational inertia. Past research shows that rigid cognition makes managers focus on specific issues during strategy formulation, and such focus prevents from altering strategies. In this study we introduce the idea from an attention based-view that issues move in and out of the focus. Analyzing the case of the Sharp Corporation from this viewpoint, it was found that top managers frequently changed peripheral issues and their answers while central issues and answers remained unchanged. Managers used several issues flexibly for justifying their fixed answers for their central issues. From this case, we get some new propositions that flexible change of issues rather prevents from changing strategies, if the managers f cognition is rigid.

Keywords: Cognition; attention; managerial issues; organizational inertia; SharpCorporation (search for similar items in EconPapers)
JEL-codes: M10 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2015-10
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