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Performance implications of cognitive complexity: An empirical study of cognitive strategic groups in semiconductor industry

Shu-Ling Cheng and Hae-Ching Chang

Journal of Business Research, 2009, vol. 62, issue 12, 1311-1320

Abstract: This study extends previous strategic group research by empirically examining the performance effects of group's cognitive complexity in Taiwan semiconductor industry. Through computer-aided content analysis, this study derives themes from letters to shareholders as variables to assess the managerial cognitive complexity and uses thematic variations to find cognitive strategic groups during periods of market downturns, uncertainty and upturns. The study specifies three statistically reliable and accurate themes (operation, customer, and product) and identifies five types of cognitive strategic groups with different degrees of cognitive complexity on perceived strategic dimensions. The results indicate that cognitively complex groups with dual orientations toward customers and products sustain competitive advantages over time, especially during periods of market downturns and uncertainty.

Keywords: Strategic; group; Semiconductor; industry; Cognitive; complexity; Content; analysis; Themes (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (7)

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