Cognitive inertia in a turbulent market: the case of UK residential estate agents

Article Abstract:

Recently, a number of researchers seeking to develop cognitive approaches for understanding processes associated with the development and implementation of competitive positioning strategies have drawn attention to the notion of 'cognitive inertia.' Once established, there is a danger that actors may become overly dependent on their mental models of competitive space, to the extent that they fail to notice changes in the material conditions of their business environment, until these changes have become so widespread, or significant in other ways, that their organization's capacity for successful adaptation has been seriously undermined. While there have been several anecdotal accounts of cognitive inertia reported in the literature, and a number of researchers have explored processes of cognitive change in organizations more generally, to date there have been virtually no studies published which have investigated this phenomenon specifically within the domain of competitor assessment. This paper reports one such investigation, a longitudinal field study which explored the extent to which actors' mental models of competitive space in the UK residential estate agency (real estate) industry, an industry characterized by high volatility in recent years, remained stable or changed over time. An initial sample of 208 respondents from 58 firms completed detailed questionnaires at the onset of the recent recession in the UK property market. The questionnaires were designed to elicit the respondents' perceptions of their own organization and various competitors on a number of key dimensions. A sub-sample of 114 respondents from 41 firms returned a further set of completed questionnaires, 12 to 18 months later, when the recession had become deeply established. The findings are entirely consistent with the cognitive inertia hypothesis. The results indicate that the respondents' individual and collective cognitions remained highly stable, despite a significant down-turn in the property market from T1 to T2. (Reprinted by permission of the publisher.)

Real estate agents and managers, Real Estate Agents & Brokers, Offices of Real Estate Agents and Brokers, United Kingdom, Real estate agents, Beliefs, opinions and attitudes, Cognition, Real estate agents and brokers, Perception (Philosophy)

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Exploring the need for a shared cognitive map

Article Abstract:

This article reports on an experiment that was undertaken to elicit the shared perceptions of a group of individuals in relation to a particular organizational domain. These shared perceptions were termed collective beliefs, and were to be modelled in the form of a causal cognitive map. An initial conceptual framework was presented in which it was posited that groups of individuals who work closely together share a set of common beliefs which enable them to function successfully as a group. These shared beliefs are an integral part of the group's cultural identity. Collective beliefs were defined as those beliefs which are a function of the group, encompassing more than those beliefs that are shared by the individuals within the group. Following the experiment it was proposed that it is not necessary for members of a group to have a complete set of shared beliefs in order to function as a decision-making group. In the new model, collective cognitions are described as merely transitory phenomena, changing in response to circumstances. The reforming of such phenomena over time results in the formation of shared belief systems. This framework was supported by the literature. (Reprinted by permission of the publisher.)

Psychological aspects, Analysis, Work groups, Teamwork (Workplace), Collective behavior

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The influence of cognitive-based group composition on decision-making process and outcome

Article Abstract:

The effects of cognitive-based group composition on decision-making process (problem formulation, ideation) and outcome (performance, time-to-decision) were investigated. Two types of composition based on the Myers-Briggs Type Indicator were compared - a uni-temperament group composition (all sensing-judgers), common among supervisors and managers, and a multi-temperament composition (a sensing-judger, a sensing-perceiver, an intuitive-thinker, and an intuitive-feeler). While significant relationships were found between the process and outcome stages, cognitive-based group comparison generally did not predict the decision-making process or outcome variables. A significant interaction between group composition and problem formulation, however, suggests that a multi-temperament (heterogeneous) composition can moderate the effect of problem formulation on performance. The implications of these findings for cognitive-based group composition and decision making are discussed, along with suggestions for future research. (Reprinted by permission of the publisher.)

Usage, Social groups, Group problem solving, Myers-Briggs Type Indicator (Test)

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