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Strategic Organization
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The Icarus paradox revisited: how strong performance sows the seeds of dysfunction in future strategic decision-making

Allen C. Amason

University of Georgia, USA, aamason{at}terry.uga.edu

Ann C. Mooney

Stevens Institute of Technology, USA, amooney{at}stevens-tech.edu

This article reports on two studies that examine the relationship between performance and strategic issue-framing and decision-processing.The results suggest strong performance promotes a defensive mindset that may lead to dysfunctional outcomes. Study 1 draws its data from 51 CEOs and shows that performance is associated with framing issues as threats rather than opportunities. Study 2 draws its data from 45 top management teams and shows that performance is associated with less comprehensiveness in decision-making. Implications of these findings provide insights into why organizations that perform well sometimes squander their success subsequently through poor decision-making.

Key Words: paradox of performance • strategic decision-making • strategic issue diagnosis • top management team processes

Strategic Organization, Vol. 6, No. 4, 407-434 (2008)
DOI: 10.1177/1476127008096364


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[Abstract] [PDF]