An fMRI Investigation of the Neurocognitive Processing of Measures and Strategic Objectives

Paul W. Black (), C. Brock Kirwan (), Thomas O. Meservy (), William B. Tayler () and Jeffrey Williams ()
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Paul W. Black: Raymond J. Harbert College of Business, Auburn University, Auburn, Alabama 36849
C. Brock Kirwan: Department of Psychology, Brigham Young University, Provo, Utah 84602
Thomas O. Meservy: Marriott School of Business, Brigham Young University, Provo, Utah 84602
William B. Tayler: Marriott School of Business, Brigham Young University, Provo, Utah 84602
Jeffrey Williams: Woodbury School of Business, Utah Valley University, Orem, Utah 84058

Management Science, 2024, vol. 70, issue 10, 6740-6760

Abstract: A central feature of most organizations is the use of measures to represent key elements of performance across multiple strategic objectives. Prior research demonstrates a tendency for individuals to treat these measures as though they are the higher order strategic objectives the measures were intended to represent as opposed to imperfect representations of those strategic objectives—a phenomenon labeled “surrogation.” We employ an experiment to further understand this phenomenon. In this study, we capture neural activation when processing measures and when processing strategic objectives. We find that, in regions of the brain with greater (less) activation for concrete versus abstract words, brain activation is greater (less) when processing measure phrases versus when processing strategy phrases. We further find evidence that greater brain activity and longer response times are associated with less surrogation. This affirms the notion that increased cognitive involvement can reduce surrogation.

Keywords: performance measurement; strategic objective; surrogation; fMRI; SPMS (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:70:y:2024:i:10:p:6740-6760

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