Cited by 774Innovation and Knowledge ManagementOrganizational Management and LeadershipManagement and Organizational Studies

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Cognition and Renewal: Comparing CEO and Organizational Effects on Incumbent Adaptation to Technical Change

Eggers, J. P., Kaplan, Sarah·2009·Organization Science

DOI 10.1287/orsc.1080.0401

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Abstract

We investigate the conditions under which managerial cognition affects the timing of incumbent entry into a radical new technological market. We address this question using a longitudinal study of communications technology firms entering the fiber-optics product market. Using a hazard rate model, we investigate the relevance of cognition based on the direction of CEO attention. We find that attention toward the emerging technology and the affected industry is associated with faster entry, and attention to existing technologies is associated with slower progress. Second, we assess the extent to which the effect of cognition is dependent upon the levels of relevant organizational factors and find that CEO attention to the emerging technology may amplify the effects of industry orientation. Managerial cognition is important in understanding organizational outcomes, and considering both the direction of cognition and its interaction with organizational factors provides a more nuanced view of entry behavior. These results contribute to the literatures on incumbent response to technical change and new product development by suggesting that context-specific managerial cognition has a separate and important influence on the degree and direction of strategic renewal. We argue that managerial cognition is therefore a dynamic managerial capability that can shape adaptation by established firms.

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Background
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“Subscriber: University of Iowa; date: 21 October 2015 is not unique to IBM (see also Amis et al., 2004; Sull and Spinosa, 2007; Eggers and Kaplan, 2009; Gulati and Puranam, 2009; Beer et al., 2011; Battilana and Casciaro, 2012; Groysberg and Slind, 2012; Gawer and Phillips, 2013; Ramarajan et al.,…”
BackgroundMethodInfluential

Authors: Eggers, J. P., & Kaplan, S.
Affiliations: New York University (US)
University of Pennsylvania (US)
ORCID: Eggers, J. P.
Kaplan, Sarah
Venue: Organization Science
Publisher: Institute for Operations Research and the Management Sciences (INFORMS)
Published: 2009-04
Volume: 20
Issue: 2
Pages: 461-477
ISSN: 1047-7039 (ISSN-L)
1526-5455
DOI: 10.1287/orsc.1080.0401
OpenAlex: W2141155750
Cited by: 774
References: 0
Citations by year: 2026: 78 · 2025: 86 · 2024: 62 · 2023: 55 · 2022: 68 · 2021: 63 · 2020: 60 · 2019: 46 · 2018: 30 · 2017: 36 · 2016: 34 · 2015: 45 · 2014: 35 · 2013: 22 · 2012: 23
FWCI: 30.46
Type: journal article
Language: en
Open access: closed
Locations: Organization Science (publishedVersion)
Topics: Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Organizational Management and Leadership
Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Management and Organizational Studies
Keywords: managerial cognition, incumbent firms, technological change, market entry timing, industry orientation, strategic renewal, new product development, management skills

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Cognition and Renewal: Comparing CEO and Organizational Effects on Incumbent Adaptation to Technical Change

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