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The Icarus paradox revisited: how strong performance sows the seeds of dysfunction in future strategic decision-makingUniversity of Georgia, USA, aamason{at}terry.uga.edu
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) This article has been cited by other articles:
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