In this study, we distinguish two facets of dominant logic and assess empirically their relationships to strategic renewal and firm performance. In a sample of 156 Finnish small and medium-sized enterprises (SMEs) in the forestry and forest products sector, we find that cognitive and practiced dominant logics have divergent relationships with outcomes. Practiced dominant logic is more strongly related to a recognized need for capability development and performance than cognitive dominant logic is. These effects appear regardless of whether the practiced dominant logic is efficiency- or proactivity-oriented. Further, the results suggest that the differences in practiced dominant logic may reflect future investment plans, especially in terms of investment in research and development and new markets. We contribute to the literature by examining with survey-based data the relationship that dominant logic has with strategic renewal and performance. The practiced and cognitive dominant logics are measured separately, and we present a novel operationalization of cognitive dominant logic.
This study uses behavioral drivers to examine the variation in managerial cognition impact on opportunities seizing. Behavioral drivers of firms’ actions have so far been focused on rivalry, leaving relational modes of interaction relatively unattended. In this study, we fill this gap by introducing relational awareness and relational motivation of managers toward their environment. Our study of 400 Polish firms indicates that relational awareness and motivation are significantly associated with the durability and heterogeneity of inter-organizational relationships (IORs) that managers establish to seize market opportunities. However, relationship heterogeneity is focused on the supply chain, while the broader value network is not relevant to managers.
Using data from a large, cross-industry sample, this paper examines the impact of brand equity (BE) on employee attitudes. Stronger brands have both positive and negative effects on employee attitudes, contingent on organizational hierarchy. Specifically, the impact of stronger brands on employee attitudes is positive for lower-level employees, negative for mid-level executives, and not significant for top managers. This paper further details the extent to which alignment between top and mid-level executives ' attitudes affects lower-ranking employees' attitudes. Because firms’ management of the impact of BE on employee attitudes has important implications, this article recommends an approach that enables firms to regulate work relationships by investing in strong brands. Given that such investments are less beneficial in certain circumstances, this study provides useful guidelines for enhancing their effects.
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