Organizational Cognitive Complexity: Determinants and Consequences.

Marketing strategy formation is a complex process. Strategic decision-making involves participation by multiple organizational members with diverse and sometimes conflicting viewpoints. Beyond the cognitive capacity of individual decision-makers, marketing strategy develops through an emergent process that engages the collective efforts and interpretive capabilities of various representatives of the organization. This study examines the relationships among organizational context, processes, and outcomes. Specifically, organizations are examined as cognitive units stimulated by perceived environmental turbulence, team functional diversity, and an open-minded culture. These factors enhance cognitive complexity, which is the organization\u27s capacity to perceive its environment in a multidimensional way. With greater cognitive complexity, the organization increases its ability to differentiate and integrate various issues during the decision-making process, resulting in more novel and timely strategic marketing action