Using Panel Data DEA to Measure CEOs’ Focus of Attention: An Application to the Study of Cognitive Group Membership and Performance

Strategic Management Journal (2015), Forthcoming

36 Pages Posted: 30 Dec 2014

See all articles by Jordi Surroca

Jordi Surroca

Universidad Carlos III de Madrid - Department of Business Administration

Diego Prior

Autonomous University of Barcelona

Josep A. Tribo

Stevens Institute of Technology

Date Written: December 30, 2014

Abstract

In this study, we examine the existence and performance of cognitive groups. In accordance with the attention-based view of managerial cognition, cognitive groups are defined as groups of firms in which the CEOs focus their attention on similar strategic elements when seeking to maximize their firm’s competitive advantage. We developed a panel data extension of the original Data Envelopment Analysis to gauge CEOs’ focus of attention and then clustered firms into groups. We compared our approach, with other approaches that use content analysis of CEOs’ letters to shareholders and CEOs’ demographic characteristics to measure CEOs’ attention. Although the different approaches are related, indicating the existence of a common underlying construct (i.e., mental models), our approach explains a higher proportion of the variation in organizational performance.

Keywords: cognitive groups, CEO attention, data envelopment analysis, mental models

JEL Classification: G20, M11

Suggested Citation

Surroca, Jordi and Prior, Diego and Tribo Gine, Josep Antonio, Using Panel Data DEA to Measure CEOs’ Focus of Attention: An Application to the Study of Cognitive Group Membership and Performance (December 30, 2014). Strategic Management Journal (2015), Forthcoming, Available at SSRN: https://ssrn.com/abstract=2543795

Jordi Surroca

Universidad Carlos III de Madrid - Department of Business Administration ( email )

Calle Madrid 126
Getafe, Madrid, Madrid 28903
Spain

HOME PAGE: http://www.uc3m.es/uc3m/dpto/EMP/profesor/ijordi.htm

Diego Prior

Autonomous University of Barcelona ( email )

Plaça Cívica
Cerdañola del Valles
Barcelona, Barcelona 08193
Spain

Josep Antonio Tribo Gine (Contact Author)

Stevens Institute of Technology ( email )

Hoboken, NJ 07030
United States
9292708869 (Phone)
07030 (Fax)

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