Abstract
Despite its practical relevance for strategic decision processes in organizations, research on strategic cognition has thus far largely ignored the impact of information visualization. This is surprising as research in the fields of cognitive psychology and medicine shows quite consistently that visual aids have positive effects on decision makers’ comprehension of the issues at hand and – consequently – their decision outcomes. In this paper, we build on cognitive psychology and strategic cognition research to introduce strategic problem comprehension as a concept that links information visualization and strategic decision outcomes. We hypothesize that information visualization leads to higher levels of strategic problem comprehension, as it fosters the integration and comparison of relevant information, which subsequently improves strategic decision outcomes. Furthermore, we identify overconfidence as a boundary condition for the effect of information visualization on strategic problem comprehension Two vignette-based decision experiments involving 62 graduate-level management students and 79 executives, respectively, confirm our hypotheses. Our study contributes to strategic cognition research by specifying the important impact of information visualization as well as strategic problem comprehension for strategic decision-making.
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