This website uses cookies to ensure you have the best experience. Learn more

Cognitive Capacity As Competitive Advantage: Essay

399 words - 2 pages

The study of cognitive processes in strategy has traditionally focused on limits to
rationality in the strategic planning process. Important concepts, such as bounded
rationality, mental maps, framing, and dominant logic, have emerged from this stream of
research [19, 31, 38, 39]. The major application of this research has been to provide a
range of explanations for strategic errors and mistakes.
More recently, several authors have begun to call for an investigation of the
normative implications of cognition [15, 16, 36]. If cognitive ability is not uniformly
distributed among managers then the ability to capture this resource may ...view middle of the document...

This study focuses on cognitive capacity as one facet of cognition. Cognitive
capacity is defined as the capacity to “...register, store, use and make sense of data” [18].
It is possible to identify a number of propositions in the theoretical literature concerning
the effects of cognitive capacity on performance.
Prahalad and Bettis [31] have argued that the size of a diversified firm is limited
by the ability of the top management team to manage strategic variety, where strategic
variety refers to “...the differences in strategic characteristics of the businesses in the
portfolio of the firm” [31, p. 490]. According to this view, the complexity of the top
management process is a function of strategic variety. Similar businesses can be managed
in the same way, that is, with a single dominant general management logic. Increasing
strategic variety requires the addition of new dominant logics or ways of managing,
especially among the top management team, who are usually responsible for the
allocation of resources among business units. Prahalad and Bettis [31] view the inability
of the top management team to assimilate new dominant logics as a major limiting factor
in diversification. As a corollary, a top management team that attempts to stretch a single
dominant logic over a range of unrelated businesses will perform poorly relative to a
more tightly focused team.
A relationship therefore exists between cognitive capacity and the number

Other Papers Like Cognitive Capacity As Competitive Advantage:

Competitive Advantage Essay

593 words - 3 pages advantage facilitates an organization to outlast against its competitors for an insignificant amount of time. Competitive advantage may originate in many forms. The competitive characteristic stems from the likeness of other alternatives (Strategy Fundamental: Determining Sustainable Competitive Advantage, 2010). I chose the Miami Heat as my pro-sport team to discuss competitive advantage. Because signing the very talented LeBron James to its 2010-2011

Resource Based View Essay

2647 words - 11 pages advantage. Therefore, resources and competencies approach first appeared as a theory of competitive advantage or a theory of “performance of the firm” (Argyres & Zenger, 2007). It is only recently, in the last 20 years that organizations have started using the resource based view approach on strategy. Nowadays, they view it as the most important key development in international business research and strategic management, an approach that

Cognitive Psychology Definitions Paper

1037 words - 5 pages understandable explanations of the human mental processes, whereas behaviorism does not address the concerns of mental processes. The main objective of cognitive psychology is to explain the human transformation of thoughts into manifistations by a cognitive process. As behaviorism was being questioned and at the end of popular opinion, cognitive psychology, with the assistance of the application of abstract concepts, neuroscience, and new technology

Aarkstore - Wind Turbine Gearbox and Direct-Drive Systems, 2014 Update - Global Market Size, Gearbox Refurbishments, Competitive Landscape and Key Country Analysis to 2020

3728 words - 15 pages sourced from industry associations, government websites and statutory bodies. The information is also sourced through other secondary research sources such as industry and trade magazines. Scope - Data on market size, units installed and average price of the wind turbine gearbox market from 2006-2020 for global and key countries. - Data on capacity of direct-drive turbines installed and capacity of wind turbine with expected gearbox

Nanotech Case Study

935 words - 4 pages Carnot’s customers use nanotubes in T.V. and computer monitor flat screens. In terms of perceived performance, Carnot is currently not perceived as the go to producer. Nanoburger is currently the most reputable company; they are an American company and have the largest market share. However the customers have realized that Carnot has the ability to match demand where their competitors can’t. Shaping a Competitive Advantage Carnot is

Total Quality Management

689 words - 3 pages . Company use differentiation as source of competitive advantage must make its product or service difficult to copy. People: To make company to outperform its competitor, its make choose the best people only to work in the organization. For example, Toyata implement total quality and had obtained an excellence outcomes. The total quality machine is workforce. And Apple Inc. only hired people who passionate about what they do. 3. What is the

Tesco and Its Competitiveness

1073 words - 5 pages facilities for children and yet appears to offer lower prices (Angwin, Cummings and Smith, 2011, p. 3). The company underpins the low prices with low costs which it enjoys from its buying power. According to the resource-based approach, an organization’s competitive advantage comes from the unique capabilities of its resources which not only define, but also generate an organization’s strategic capacity (Jones & Tilley 2007, p. 124). Resource

Cognitive Theorist

873 words - 4 pages in addition to administering ingenious tests to children revealed varying cognitive abilities. Piaget’s drive to study the cognitive development in children was informed by the psychological assumption that children have reduced or less thinking competency that adults. As such, Piaget made observations that children have a different mode of thinking compared to adult members of the society. Piaget established that children have innate and basic

Riordan Strategic Plan

1140 words - 5 pages will increase effectiveness, add improvement to its supply chain, and implement the methods and concepts of lean production to gain value and over time help sustain competitive advantage. Strategic capacity planning starts with better use of resources by reducing waste of raw material and producing products in good time at a lower cost. Riordan should make sure it has stock available and on the shelf, which will allow the inventory cost to rise

Pizza War Case Study

760 words - 4 pages CASE: BSB, Inc., The Pizza Wars Come to Campus 1. Does BSB, Inc., enjoy any competitive advantages or core competencies? BSB Inc. has got a competitive advantage with its delivery service, but this advantage is closely related to its capacity of serving the customer’s pizza needs. The delivery service is only a competitive advantage when the pizza production fits the customer wishes and demands in terms of quantity and quality. Furthermore

Developing A Reward Strategy T

727 words - 3 pages companies will be the ones who: Are linked to their suppliers, Global, Cross-functional, Built around knowledge workers and organize with a capacity for continuos change. With these guidelines set in place it is important to realize how to gain a competitive advantage. This is accomplished by innovation in technology, speed to market and creating customer value.Human Capital is the key to competitive advantage. It is only when the employee truly

Related Essays

It As A Competitive Advantage Essay

1855 words - 8 pages IT as a Competitive Advantage Marcus Liubakka The College of Saint Scholastica Introduction In 2003, Nicholas Carr, published a controversial article titled “IT Doesn’t Matter”. The premise of his article defines IT as a digital data infrastructure, and compares its build-out to previous impactful infrastructure build-outs like electricity and the railroad. Carr claims that IT has become a commodity, and businesses can no longer use their IT

New Belgium Brewing (A): Social Responsibility As A Competitive Advantage Brief

1165 words - 5 pages Marketing Strategic Name: Ching Jui Liao Due date: 10/16/2012 New Belgium Brewing (A): Social Responsibility as a Competitive advantage Brief Strengths 1. Strong brand name 2. Definite company core values and beliefs 3. NBB offers a variety of permanent and seasonal ales and pilsners. 4. Strong and stable sales force. 5. Employees enjoy their job because the company treats them

Three Test To Determine Ccompetitive Advantage

929 words - 4 pages advantage is created when a firm's products or services differ from its competitors and are seen as better than a competitor's products by customers. To gain competitive advantage a business strategy of a firm manipulates the various resources over which it has direct control and these resources have the ability to generate competitive advantage. Superior performance outcomes and superiority in production resources reflects competitive advantage

Entrepreneurship Essay

1075 words - 5 pages Sony are the two companies that have held their leadership position using innovation as a competitive advantage. Access to intellectual properties. The holding of an intellectual right; which can exist in the form of trademarks, trade names, copyrights and patents. The holding of intellectual properties is a strong source of sustained competitive advantage and General Electric company has stood the test of time because of the several patents held