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Objective environmental conditions and perceived environmental uncertainty

Objective environmental conditions and perceived environmental uncertainty PurposeIt appears as if a gap exists between objective environmental conditions and the respective managerial perception of those conditions. This situation poses severe problems for executives deriving effective strategies and initiating successful organizational change. Therefore, the purpose of this paper is to develop and provide a deeper understanding of the factors that lead to such a gap.Design/methodology/approachOn the basis of the literature from psychology and strategic management, this paper develops a conceptual framework of the cognitive model with the perception process and potentially moderating factors. Furthermore, more precise mechanisms and relationships within the perception of environmental conditions are proposed.FindingsThe perception process consists of three stages, attention, encoding and storage/retrieval, which all may explain variations in how individuals interpret the environment. Moreover, dispositional factors (such as cognitive styles, cognitive structures, intelligence and motivation) as well as situational factors (such as emotion and stress) further cause variations between and within individuals, which ultimately leads to a gap between objective and perceived environmental conditions.Originality/valueThis study not only highlights the existence and the severe consequence of a misperception of environmental conditions, but also offers a variety of factors that could lead to this undesirable effect. Furthermore, while previous research has typically focused on single factors that might influence the perception process, this study assumes a holistic view on the cognitive model and provides more detailed and specific mechanisms on a perceptual gap. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Accounting & Organizational Change Emerald Publishing

Objective environmental conditions and perceived environmental uncertainty

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References (134)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1832-5912
DOI
10.1108/JAOC-11-2016-0079
Publisher site
See Article on Publisher Site

Abstract

PurposeIt appears as if a gap exists between objective environmental conditions and the respective managerial perception of those conditions. This situation poses severe problems for executives deriving effective strategies and initiating successful organizational change. Therefore, the purpose of this paper is to develop and provide a deeper understanding of the factors that lead to such a gap.Design/methodology/approachOn the basis of the literature from psychology and strategic management, this paper develops a conceptual framework of the cognitive model with the perception process and potentially moderating factors. Furthermore, more precise mechanisms and relationships within the perception of environmental conditions are proposed.FindingsThe perception process consists of three stages, attention, encoding and storage/retrieval, which all may explain variations in how individuals interpret the environment. Moreover, dispositional factors (such as cognitive styles, cognitive structures, intelligence and motivation) as well as situational factors (such as emotion and stress) further cause variations between and within individuals, which ultimately leads to a gap between objective and perceived environmental conditions.Originality/valueThis study not only highlights the existence and the severe consequence of a misperception of environmental conditions, but also offers a variety of factors that could lead to this undesirable effect. Furthermore, while previous research has typically focused on single factors that might influence the perception process, this study assumes a holistic view on the cognitive model and provides more detailed and specific mechanisms on a perceptual gap.

Journal

Journal of Accounting & Organizational Change – Emerald Publishing

Published: Mar 5, 2018

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