Perceived task complexity in strategic decision situations: the role of cognitive integration and cognitive load

Abstract

Purpose Strategic decisions in organizations are often characterized by high uncertainty and ambiguity, which increases their perceived complexity. While research has shown that perceived task complexity impacts strategic decisions, its drivers have not received much attention. Based on managerial cognition research, this paper aims to introduce cognitive abilities, especially cognitive integration and cognitive load, as important individual characteristics that impact perceived task complexity through their effects on information acquisition and processing. Design/methodology/approach Building on managerial cognition research, the authors argue that strategic decision-makers with high levels of cognitive integration perceive a task as less complex, whereas high levels of cognitive load have the opposite effect. Perceived task complexity, in turn, negatively affects strategic decision outcomes. The authors test the hypotheses based on a field study with 50 graduate-level management students who participated in a computer-based strategic decision simulation. Findings Based on OLS regression analyses, the authors find a positive effect of cognitive integration and a negative impact of cognitive load on perceived task complexity, which negatively impacts strategic decision outcomes. Originality/value The authors contribute to strategic decision-making research by highlighting the role of cognitive processes and abilities for strategic decision-making processes and outcomes.