Abstract
While recent research has provided valuable insight into how paradox facilitates dynamic decision making, the positive effect of paradoxical cognition on strategic decision quality has not been empirically tested, and its boundary conditions are unclear. We addressed these lacunae using survey data from 110 firms in China, an intriguing setting for studying paradox. We found the effect of paradoxical cognition on decision quality to be positive and significant. Furthermore, we found that firms adopting high levels of comprehensiveness and low levels of strategic flexibility benefit more from paradoxical cognition. We thus shed light on the boundary conditions of paradoxical cognition’s positive effect on strategic decision quality: it is a complement to comprehensiveness, but is a substitute to strategic flexibility.
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